TopBuild Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Closure Costs

Closure Costs

3 Months Ended

Mar. 31, 2016

NOTE 13. CLOSURE COSTS

We continuously evaluate our national footprint to ensure we are strategically located throughout the U.S. to serve our customers and position ourselves for continued growth. As a result of this evaluation, management approved a plan to close 13 locations within our Installation and Distribution segments during the first and second quarters of 2016. In conjunction with this evaluation, we eliminated certain positions at our corporate headquarters located in Daytona Beach, Florida. We recognize expenses related to branch closures and position eliminations at the time of announcement or notification. Such costs may include termination and other severance benefits, lease abandonment costs, and other contract termination costs. Closure costs are accrued on our Condensed Consolidated Balance Sheets as part of accrued liabilities and reflected in our Condensed Consolidated Statements of Operations as selling, general, and administrative expense. Unpaid amounts noted as of March 31, 2016, are expected to be paid within the next 12 months.

The following table details our total estimated closure costs by cost type and segment related to the above closures and position eliminations, dollars in thousands:


Segment / Cost Type	Closure Costs Liability at December 31, 2015		Closure Costs Incurred for the Three Months Ended March 31, 2016		Cash Payments for the Three Months Ended March 31, 2016		Closure Costs Liability at March 31, 2016
Installation:
Severance	$	—	$	582.7	$	(71.9)	$	510.8
Lease abandonment		—		212.6		(26.4)		186.2
Total Installation:		—		795.3		(98.3)		697.0

Distribution:
Severance		—		12.6		(12.6)		—
Lease abandonment		—		70.0		—		70.0
Total Distribution:		—		82.6		(12.6)		70.0

Corporate:
Severance		—		97.8		—		97.8
Total Corporate:		—		97.8		—		97.8

Consolidated:
Severance		—		693.1		(84.5)		608.6
Lease abandonment		—		282.6		(26.4)		256.2
Total Consolidated:	$	—	$	975.7	$	(110.9)	$	864.8