Item 2. Properties.

The table below lists principal North American properties used by our continuing operations.

Most of our North American facilities used by our continuing operations range from single warehouse buildings to complex manufacturing facilities. We own most of our North American manufacturing facilities, none of which is subject to significant encumbrances. A substantial number of our warehouse and distribution facilities are leased.

Our Masco Cabinetry business uses 8 manufacturing facilities and 3 warehouse buildings, each located within North America.

The table below lists principal properties used by our continuing operations outside of North America.

Most of our international facilities used by our continuing operations are in China, Germany and the United Kingdom. We own most of our international manufacturing facilities, none of which is subject to significant encumbrances. A substantial number of our international warehouse and distribution facilities are leased.

There are no international properties associated with our Masco Cabinetry business.

We lease our corporate headquarters in Livonia, Michigan, and we own a building in Taylor, Michigan that is used by our Masco Technical Services (research and development) department. We continue to lease an office facility in Luxembourg, which serves as a headquarters for most of our foreign operations.

Each of our operating divisions assesses the manufacturing, distribution and other facilities needed to meet its operating requirements. Our buildings, machinery and equipment have been generally well maintained and are in good operating condition. We believe our facilities have sufficient capacity and are adequate for our production and distribution requirements.