TopBuild (BLD) 10-K 3 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2015	Feb. 26, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	TopBuild Corp
Entity Central Index Key	1,633,931
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		37,833,855
Entity Public Float			$ 1.1
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 112,848	$ 2,965
Receivables, net of an allowance for doubtful accounts of $3,399 and $3,961 at December 31, 2015 and 2014, respectively	235,549	220,176
Inventories, net	118,701	106,972
Prepaid expenses and other current assets	13,263	5,117
Total current assets	480,361	335,230
Property and equipment, net	93,066	93,157
Goodwill	1,044,041	1,044,041
Other intangible assets, net	1,987	2,962
Deferred tax assets, net	20,549
Other assets	2,245	1,034
Total Assets	1,642,249	1,476,424
Current liabilities:
Accounts payable	253,311	228,720
Current portion of long-term debt	15,000
Accrued liabilities	58,369	72,747
Total current liabilities	326,680	301,467
Long-term bank debt	178,457
Deferred income taxes, net	181,254	182,281
Other liabilities	40,129	40,385
Total Liabilities	$ 726,520	$ 524,133
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value: 10,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2015
Common stock, $0.01 par value: 250,000,000 shares authorized; 37,681,765 shares issued and outstanding at December 31, 2015	$ 377
Additional paid-in capital	838,976
Retained earnings	76,376
Former Parent investment		$ 952,291
Total equity	915,729	952,291
Total liabilities and equity	$ 1,642,249	$ 1,476,424

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 3,399	$ 3,961
Preferred Stock, Par Value (in dollars per share)	$ 0.01
Preferred Stock, Shares Authorized	10,000,000
Preferred Stock, Shares, Issued	0
Preferred Stock, Shares, Outstanding	0
Common Stock, Par Value (in dollars per share)	$ 0.01
Common Stock, Shares Authorized	250,000,000
Common Stock, Shares, Issued	37,681,765
Common Stock, Shares, Outstanding	37,681,765

CONSLIDATED STATEMENT OF OPERAT

CONSLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 1,616,580	$ 1,512,077	$ 1,411,524
Cost of sales	1,258,551	1,180,409	1,108,846
Gross profit	358,029	331,668	302,678
Selling, general and administrative expenses	274,498	290,951	278,575
Operating profit	83,531	40,717	24,103
Other income (expense), net:
Interest expense	(9,465)	(12,404)	(13,366)
Other, net	49	25	37
Other expense, net	(9,416)	(12,379)	(13,329)
Income from continuing operations before income taxes	74,115	28,338	10,774
Income tax benefit (expense) from continuing operations	5,008	(17,842)	(22,325)
Income (loss) from continuing operations	79,123	10,496	(11,551)
Loss from discontinued operations, net	(152)	(1,093)	(1,187)
Net income (loss)	$ 78,971	$ 9,403	$ (12,738)
Basic:
Income (loss) from continuing operations	$ 2.10	$ 0.28	$ (0.31)
Loss from discontinued operations, net		(0.03)	(0.03)
Net income (loss)	2.10	0.25	(0.34)
Diluted:
Income (loss) from continuing operations	2.09	0.28	(0.31)
Loss from discontinued operations, net		(0.03)	(0.03)
Net income (loss)	$ 2.09	$ 0.25	$ (0.34)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net Cash From (For) Operating Activities:
Net income (loss)	$ 78,971	$ 9,403	$ (12,738)
Adjustments to reconcile net income to net cash from (for) operating activities:
Depreciation and amortization	12,108	26,079	27,488
Share-based compensation	4,651	3,762	3,903
Loss on sale of property and equipment	2,334	364	591
Provision for bad debt expense	4,219	3,563	3,379
Loss from inventory obsolescence	1,879	1,302	743
Non-cash employee benefit policy change	(9,861)
Deferred income taxes, net	(16,556)	16,711	21,609
Changes in certain assets and liabilities:
Receivables, net	(19,591)	(19,225)	(25,620)
Inventories, net	(13,608)	(10,287)	(13,376)
Prepaids and other current assets	(9,054)	100	(1,186)
Accounts payable	24,008	44,941	27,676
Accrued liabilities	(3,746)	(4,768)	(7,733)
Other, net	257	(84)	(64)
Net cash from operating activities	56,011	71,861	24,672
Cash Flows From (For) Investing Activities:
Purchases of property and equipment	(13,644)	(13,141)	(14,008)
Proceeds from sale of property and equipment	805	999	281
Other, net	632	880	(541)
Net cash for investing activities	(12,207)	(11,262)	(14,268)
Cash Flows From (For) Financing Activities:
Net transfer from (to) Former Parent	72,965	(60,655)	(18,124)
Cash distribution paid to Former Parent	(200,000)
Proceeds from issuance of long-term debt	200,000
Repayments of long-term debt	(5,000)
Payment of debt issuance costs	(1,715)
Other, net	(171)
Net cash from (for) financing activities	66,079	(60,655)	(18,124)
CASH AND CASH EQUIVALENTS:
Increase (decrease) for the period	109,883	(56)	(7,720)
Cash and cash equivalents at beginning of period	2,965	3,021	10,741
Cash and cash equivalents at end of period	112,848	2,965	3,021
Supplemental disclosure of cash paid for:
Cash interest on long-term debt	2,233
Income taxes	20,992	$ 1,134	$ 717
Supplemental disclosure of noncash investing activities:
Accruals for property and equipment	$ 583

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Net Parent Company Investment	Total
Balance at Dec. 31, 2012				$ 1,026,770	$ 1,026,770
Increase (Decrease) in Stockholders' Equity
Net income				(12,738)	(12,738)
Net transfers to Former Parent				(11,350)	(11,350)
Balance at Dec. 31, 2013				1,002,682	1,002,682
Increase (Decrease) in Stockholders' Equity
Net income				9,403	9,403
Net transfers to Former Parent				(59,794)	(59,794)
Balance at Dec. 31, 2014				952,291	952,291
Increase (Decrease) in Stockholders' Equity
Net income			$ 76,376	2,595	78,971
Separation-related adjustments				(118,356)	(118,356)
Reclassification of Former Parent investment in connection with the Separation		$ 836,530		$ (836,530)
Issuance of common stock at Separation	$ 377	(377)
Share-based compensation		2,823			2,823
Balance at Dec. 31, 2015	$ 377	$ 838,976	$ 76,376		$ 915,729

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation. On June 30, 2015 (the “Effective Date”), Masco Corporation (“Masco” or the “Former Parent”) completed the separation (the “Separation”) of its Installation and Other Services businesses (the “Services Business”) from its other businesses. On the Effective Date, TopBuild Corp. (“TopBuild” or the “Company”), a Delaware corporation formed in anticipation of the Separation, became an independent public company which holds, through its subsidiaries, the assets and liabilities associated with the Services Business. The Separation was achieved through the distribution of 100 percent of the outstanding capital stock of TopBuild to holders of Masco Corporation common stock. Immediately following the Separation, Masco Corporation stockholders owned 100 percent of the outstanding shares of common stock of TopBuild. References to “TopBuild,” the “Company,” “we,” “our,” and “us” refer to TopBuild Corp. and its consolidated subsidiaries. Prior to the Separation, the consolidated financial statements of TopBuild were prepared on a stand-alone basis and reflect the historical results of operations, financial position, and cash flows of Masco’s Services Business, including an allocable portion of corporate costs. We report our business in two segments, Installation and Distribution. Our Installation segment principally includes the sales and installation of insulation and other building products. Our Distribution segment principally includes the distribution of insulation and other building products. Our segments are based on our operating units, for which financial information is regularly evaluated by our corporate operating executives. Financial Statement Presentation. The consolidated financial statements have been developed in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Historically, stand-alone financial statements were not prepared for the Services Business. Separation related adjustments recorded in the Consolidated Statements of Changes in Equity primarily relate to a cash distribution of $200 million made by TopBuild to Masco immediately prior to the Separation, offset by net transfers from the Former Parent. All intercompany transactions between the TopBuild entities have been eliminated. Transactions between TopBuild and Masco prior to the Separation, with the exception of purchase transactions, are reflected in equity in the Consolidated Balance Sheets as “Former Parent investment” and in the Consolidated Statements of Cash Flows as a financing activity in “Net transfer from (to) Former Parent.” The accompanying consolidated financial statements for the periods prior to the Separation include allocations of general corporate expenses that were incurred by Masco for functions such as corporate human resources, finance, and legal, including salaries, benefits, and other related costs. These general corporate expenses were allocated to TopBuild on the basis of sales. Total allocated general corporate costs were $13.6 million, $21.9 million, and $22.1 million for the years ended December 31, 2015, 2014, and 2013, respectively and are included in selling, general, and administrative expense. Prior to the Separation, Masco incurred certain operating expenses on behalf of the Services Business which were allocated to TopBuild based on direct benefit or usage. These allocated operating expenses were $5.6 million, $17.8 million, and $16.0 million for the years ended December 31, 2015, 2014, and 2013, respectively and are included in selling, general, and administrative expense. An estimate of these operating expenses were allocated to each of TopBuild’s reporting segment, based on a percentage of sales. For the periods prior to the Separation, these consolidated financial statements may not reflect the actual expenses that would have been incurred had we operated as a stand-alone company and may not reflect the consolidated results of operations, financial position, and cash flows had we operated as a stand-alone company. Actual costs that would have been incurred had we operated as a stand-alone company prior to the Separation would depend on multiple factors including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. During the first quarter ended March 31, 2015, we identified an error related primarily to the misallocation of a favorable legal settlement to general corporate expenses of TopBuild in the fourth quarter of 2014. The impact of the error was to understate the allocation of corporate expense reported as selling, general, and administrative expense and overstate operating profit by $1.9 million. The error was not considered material to the previously reported 2014 financial statements. We recorded the correction of the error by an out-of-period adjustment in the first quarter of 2015 which is therefore reflected in the twelve months ended December 31, 2015 Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Use of Estimates and Assumptions in the Preparation of Financial Statements. The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of any contingent assets and liabilities, at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results may differ from these estimates and assumptions. Revenue Recognition. We recognize revenue for our Installation segment using the percentage of completion method of accounting based on the amount of material installed and associated labor costs at our customers’ locations compared to the total expected cost for the contract. The amount of revenue recognized for our Installation segment, which had not been billed as of December 31, 2015 and 2014, was $23.7 million and $23.6 million, respectively. Revenue from our distribution segment is recognized when title to products and risk of loss transfers to our customers. At time of sale we record estimated reductions to revenue for customer programs and incentive offerings, including special pricing and other volume ‑based incentives. Income Taxes. We account for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax basis and financial reporting basis of our assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which we operate. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence. If, based upon all available evidence, both positive and negative, it is more likely than not (more than 50 percent likely) such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable and the accounting guidance restricts the amount of reliance we can place on projected taxable income to support the recovery of the deferred tax assets. Interest and penalties on our uncertain tax positions, if recorded, are reported in income tax expense. Cash and Cash Equivalents. We consider our highly liquid investments with a maturity of three months or less at the time of purchase to be cash and cash equivalents. Receivables, net. We do business with a significant number of customers, principally homebuilders. We monitor our exposure for credit losses on our customer receivable balances and the credit worthiness of our customers on an on ‑going basis and record related allowances for doubtful accounts. Allowances are estimated based upon specific customer balances where a risk of default has been identified, and also include a provision for non ‑customer specific defaults based upon historical collection, return, and write ‑off activity. During downturns in our markets, declines in the financial condition and creditworthiness of customers impact the credit risk of the receivables involved and we have incurred additional bad debt expense related to customer defaults. Receivables, net are presented net of certain allowances, including allowances for doubtful accounts. Inventories, net. Inventories, net consist primarily of insulation, rain gutters, garage doors, fireplaces, fireproofing and firestopping products, roofing and shingles, shower enclosures, closet shelving, accessories, and other products. We value inventory at the lower of cost or market, where cost is determined by the first in ‑first out cost method. Inventory value is evaluated at each balance sheet date to ensure that it is carried at the lower of cost or market. Inventory provisions are recorded to reduce inventory to the lower of cost or market value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage, and specific identification of items such as product discontinuance, engineering/material changes, or regulatory-related changes. As of December 31, 2015 and 2014, all inventory consisted of finished goods. Property and Equipment, net. Property and equipment, net, including significant betterments to existing facilities, are recorded at cost. Upon retirement or disposal, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the Consolidated Statements of Operations. Maintenance and repair costs are charged against earnings as incurred. Gains and losses on the disposal of equipment are included in selling, general, and administrative expense. We review our property and equipment as an event occurs or circumstances change that would more likely than not reduce the fair value of the property and equipment below the carrying amount. If the carrying amount is not recoverable from its undiscounted cash flows, we would recognize an impairment loss for the difference between the carrying amount and the current fair value. Further, we evaluate the remaining useful lives of property and equipment at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods. Depreciation. Depreciation expense is computed principally using the straight ‑line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Asset Class Estimated Useful Life Buildings and land improvements 20 – 40 years Software and company vehicles 3 – 6 years Equipment 3 – 15 years Fair Value . The fair value measurement standard defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (referred to as an “exit price”). A fair value hierarchy is established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are : Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities or other inputs that are observable or can be corroborated by market data. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions . Goodwill and Other Intangible Assets. We perform our annual impairment testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We have defined our reporting units and completed the impairment testing of goodwill at the operating segment level. Our operating segments are reporting units that engage in business activities for which discrete financial information, including long-range forecasts, are available. We compare the fair value of the reporting units to the carrying value of the reporting units for goodwill impairment testing. Fair value for our reporting units is determined using a discounted cash flow method, which includes significant unobservable inputs (Level 3 inputs). Determining market values using a discounted cash flow method requires us to make significant estimates and assumptions, including long ‑term projections of cash flows, market conditions, and appropriate discount rates. Our judgments are based upon historical experience, current market trends, consultations with external valuation specialists and other information. In estimating future cash flows, we rely on internally generated long-range forecasts for sales and operating profits, including capital expenditures, and generally utilize a one to three percent long ‑term assumed annual growth rate of cash flows for periods after the long-range forecast. An impairment loss is recognized to the extent that a reporting unit’s recorded goodwill exceeds the implied fair value of goodwill. Intangible assets with finite useful lives are amortized using the straight ‑line method over their estimated useful lives. We evaluate the remaining useful lives of amortizable intangible assets at each reporting period to determine whether events and circumstances warrant a revision to the remaining periods of amortization. For additional information, see Note 4 - Goodwill and Other Intangible Assets . Insurance Reserves. We use a combination of high deductible insurance and matching deductible insurance for a number of risks including, but not limited to, workers’ compensation, general, vehicle, and property liabilities. Our workers’ compensation insurance is primarily a high ‑deductible insurance program and our primary general liability insurance is a matching deductible program. We are insured for covered claims above the deductibles and retentions. The liabilities represent our best estimate of our costs, using generally accepted actuarial reserving methods, of the ultimate obligations for reported claims plus those incurred but not reported claims through December 31, 2015 and 2014. The accruals are adjusted as new information develops or circumstances change that would affect the estimated liability. We also have an insurance receivable for claims that exceeded the stop loss limit included in other assets on our Consolidated Balance Sheets which offsets an equal liability included within the reserve amount recorded in other liabilities on our Consolidated Balance Sheet. At December 31, 2015 and 2014, the amount of this receivable and liability was $1.8 million and $1.4 million, respectively Advertising . Advertising costs are expensed as incurred. Advertising expense, net of manufacturers support, was approximately $1.5 million, $2.5 million, and $3.1 million for the years ended December 31, 2015, 2014, and 2013, respectively, and is included in selling, general, and administrative expense. Share ‑based Compensation. Our share-based compensation program consists of restricted stock and stock option awards. We grant restricted stock awards with a fair value based on our closing stock price on the date of grant. Restricted stock awards generally vest ratably over five years. We also grant stock options for a fixed number of shares to certain employees with an exercise price equal to the market price of our common stock on the date of grant. Stock options generally become exercisable (vest ratably) over five years beginning on the first anniversary from the date of grant and expire no later than 10 years after the grant date. The fair value of stock option awards is determined using the Black-Scholes Options Pricing Model. We have elected to use the straight-line method to recognize compensation expense evenly over the respective service period for restricted stock awards and stock option grants. Share-based compensation expense is reported in selling, general, and administrative expense. Debt Issuance Costs. Debt issuance costs are amortized as interest expense over the life of the respective debt, which approximates the effective interest rate method. Leases . Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognized as an expense in the Consolidated Statements of Operations on a straight-line basis over the lease term, including future option periods the Company reasonably expects to exercise, whereby an equal amount of rent expense is attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in later years. The difference between rent expense recognized and actual rental payments is recorded as deferred rent and included in other liabilities. Lease termination costs are accrued over the life of the lease based on historical experience. Leasehold improvements are amortized over the lesser of the expected lease term, including cancelable option periods, or the estimated useful lives of the related assets using the straight-line method. Recently Issued Accounting Pronouncements : In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard for revenue recognition, Accounting Standards Codification 606 (“ASC 606”). The purpose of ASC 606 is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability across industries. ASC 606 is effective for us for annual periods beginning January 1, 2018. We are currently evaluating the impact the adoption of this new standard will have on our results of operations. In April 2014, the FASB issued Accounting Standards Update 2014-8 (“ASU 2014-8”), “Reporting of Discontinued Operations and Disclosure of Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. On January 1, 2015, we adopted ASU 2014-8. Adoption of the new standard did not have an impact on our financial position or results of operations. In April 2015, the FASB issued Accounting Standards Update 2015-03 (“ASU 2015-03”), “Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs,” which requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. ASU 2015-3 is effective for us in the first quarter of 2016, however, we elected to early adopt this standard retrospectively during the fourth quarter of 2015. The adoption of this standard did not affect our Consolidated Statements of Operations. As we did not incur any debt issuance costs prior to the Separation there is no change to our Consolidated Balance Sheet as of December 31, 2014. In July 2015, the FASB issued Accounting Standards Update 2015-11 (“ASU 2015-11”), “Simplifying the Measurement of Inventory.” Under the amendment, ASU 2015-11, inventory should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We do not expect the adoption of this amendment to have a material impact on our financial position or results of operations. In November 2015, the FASB issued Accounting Standards Update 2015-17 (“ASU 2015-17”), “Balance Sheet Classification of Deferred Taxes.” This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for us in the first quarter of 2017, however, we early adopted this new standard prospectively during the fourth quarter of 2015. As we adopted this guidance prospectively, prior periods were not retrospectively adjusted. The adoption of this standard did not affect our Consolidated Statements of Operations.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions
Related Party Transactions	2. RELATED PARTY TRANSACTIONS Prior to the Separation, interest was charged each month as an adjustment to Former Parent investment in TopBuild. Our Consolidated Statements of Operations reflect an interest expense charge of $6.3 million, $12.4 million, and $13.4 million for the years ended December 31, 2015, 2014, and 2013, respectively. The charge was based on the monthly average intercompany balance payable to Masco based on a 12-month LIBOR plus two percent. Prior to the Separation, transactions between us and Masco, with the exception of purchase transactions, are reflected in equity in the Consolidated Balance Sheets as “Former Parent investment” and in the Consolidated Statements of Cash Flows as a financing activity in “Net transfer from (to) Former Parent.” Top B uild related party purchases from Masco businesses aggregated $2.6 million, $6.7 million, and $6.4 million for the years ended December 31, 2015, 2014, and 2013, respectively, and have been included in cost of sales. The amounts owed to Masco subsidiaries was $0.6 million at December 31, 2014. Subsequent to the Separation, any transactions with Masco are no longer considered related party and are reflected in our Consolidated Statements of Operations and included in the operating cash flow section of our Consolidated Statements of Cash Flows. In conjunction with the Separation, we executed several agreements with Masco. These agreements include a Tax Matters Agreement, a Transition Services Agreement, and an Employee Matters Agreement. The Tax Matters Agreement governs the parties’ respective rights, responsibilities, and obligations with respect to taxes. The Transition Services Agreement sets forth the terms on which Masco will provide to us and we will provide to Masco, on a transition basis, certain services or functions that the companies have historically shared. The Employee Matters Agreement governs our, and Masco’s, compensation and employee benefit obligations with respect to current and former employees and non-employee directors of each company. Masco will continue to provide some of thse services to us, generally through June 30, 2016, with a possible extension of 12 months. One of our directors, Mr. Carl Camden, is the Chief Executive and President of Kelly Services, Inc. We purchased approximately $0.2 million, $0.1 million, and $0.2 million of Kelly Services’ services in the years ended December 31, 2015, 2014, and 2013, respectively. Subsequent to the Separation, one of our Directors, Mr. Dennis Archer, continues to serve on the Masco board of directors

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property and Equipment
Property and Equipment	3. PROPERTY & EQUIPMENT The following table sets forth our property and equipment by class as of December 31, 2015 and 2014, in thousands: As of December 31, 2015 2014 Land and improvements $ $ Buildings Equipment Computer hardware and software Company vehicles Less: Accumulated depreciation Total property and equipment, net $ $ Depreciation expense was $11.1 million, $24.9 million, and $26.2 million for the years ended December 31, 2015, 2014, and 2013, respectively

Goodwill and Other Intangibles

Goodwill and Other Intangibles	12 Months Ended
	Dec. 31, 2015
Goodwill and Other Intangibles
Goodwill and Other Intangibles	4. GOODWILL AND OTHER INTANGIBLES There were no changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014. The goodwill balances by segment, were as follows, in thousands: Gross Goodwill Gross Goodwill Accumulated Net Goodwill at at Impairment at December 31, 2014 December 31, 2015 Losses December 31, 2015 Installation $ $ $ $ Distribution — Total $ $ $ $ Gross Goodwill Gross Goodwill Accumulated Net Goodwill at at Impairment at December 31, 2013 December 31, 2014 Losses December 31, 2014 Installation $ $ $ $ Distribution — Total $ $ $ $ In the fourth quarters of 2015 and 2014, we completed our annual impairment testing of goodwill and other indefinite-lived intangible assets. The impairment tests in both 2015 and 2014 indicated there was no impairment of goodwill or other indefinite-lived intangible assets. Other intangible assets, net includes customer relationships, non-compete agreements, and trademarks. The following table sets forth our other intangible assets and associated amortization expense, in thousands: For the years ended December 31, 2015 2014 2013 Gross definite-lived intangible assets $ $ Accumulated amortization Net definite-lived intangible assets Indefinite-lived intangible assets not subject to amortization Other intangible assets, net $ $ Amortization expense recognized $ $ $ The following table sets forth the amortization expense related to the definite-lived intangible assets during each of the next five years, in thousands: Amortization Expense 2016 $ 2017 2018 2019 2020 Thereafter

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2015
Long-Term Debt
Long-Term Debt	5. LONG-TERM DEBT In connection with the Separation, the Company and wholly-owned domestic subsidiaries (collectively, the “Guarantors”) entered into a credit agreement and related collateral and guarantee documentation (collectively, the “Credit Agreement”) with PNC Bank, National Association, as administrative agent, and the other lenders and agents party thereto. The Credit Agreement was executed by the parties thereto on June 9, 2015, with an effective date of June 30, 2015. The Credit Agreement consists of a senior secured term loan facility (“term loan facility”) of $200 million and a senior secured revolving credit facility (“revolving facility”) which provides borrowing availability of up to $125 million. Together, the term loan facility and revolving facility are referred to as the credit facility. Additional borrowing capacity under the credit facility may be accessed by the Company in an aggregate amount not to exceed $100 million without the consent of the lenders, subject to certain conditions (including existing or new lenders providing commitments in respect of such additional borrowing capacity). The credit facility is scheduled to mature on June 30, 2020. The revolving facility includes a $100 million sublimit for the issuance of letters of credit and a $15 million sublimit for swingline loans. Swingline loans and letters of credit issued under the revolving facility reduce availability under the revolving facility. The proceeds of the $200 million term loan facility were used to finance a cash distribution to Masco in connection with the Separation. We expect to use the borrowing capacity under the revolving facility from time to time for working capital and funds for general corporate purposes. Interest payable on the credit facility is based on either: · the London interbank offered rate (“LIBOR”), adjusted for statutory reserve requirements (the “Adjusted LIBOR Rate”); or · the Base Rate, which is defined as the highest of (a) the prime rate, (b) the federal funds open rate plus 0.50 percent, and (c) the daily LIBOR rate for a one-month interest period plus 1.0 percent, plus, (A) in the case of Adjusted LIBOR Rate borrowings, applicable margins ranging from 1.00 percent to 2.00 percent per annum, and (B) in the case of Base Rate borrowings, spreads ranging from 0.00 percent to 1.00 percent per annum, depending on, in each of (A) and (B), the Company’s Total Leverage Ratio, defined as the ratio of debt to EBITDA, ranging from less than or equal to 1 .00 : 1.00 to greater than 2.5 0 : 1.00 . The interest rate period with respect to the Adjusted LIBOR Rate interest rate option can be set at one-, two-, three-, or six-months, and in certain circumstances one-week or 12-months, as selected by the Company in accordance with the terms of the Credit Agreement. The interest rate as of December 31, 2015 , was 2.42 percent. The effective interest rate on the term loan facility for the year ending December 31, 2015, was 2.23 percent. The Company shall make payments on the outstanding principal amount of the term loan in quarterly principal installments based on annual amortization of (a) for the first year, 5 percent, (b) for the second, third, and fourth years, 10 percent per year, and (c) for the fifth year, 15 percent, with the remaining balance payable on the scheduled maturity date of the term loan. The following table sets forth our principal payments for the following five years, in thousands: Total Principal Payments Schedule of Debt Maturity by Years: 2016 $ 2017 2018 2019 2020 Total principal maturities $ The following table reconciles the principal balance of our long-term debt to our Consolidated Balance Sheets as of December 31, 2015 and 2014, in thousands: 2015 2014 Current portion of long-term debt $ $ — Long term portion of long-term debt — Unamortized debt issuance costs — Long-term debt $ $ — Borrowings under the credit facility are prepayable at the Company’s option without premium or penalty. The Company is required to prepay the term loan with the net cash proceeds of certain asset sales, debt issuances, or casualty events, subject to certain exceptions. The Credit Agreement contains certain covenants that limit, among other things, the ability of the Company and its subsidiaries to incur additional indebtedness or liens; to make certain investments or loans; to make certain restricted payments; to enter into consolidations, mergers, sales of material assets, and other fundamental changes; to transact with affiliates; to enter into agreements restricting the ability of subsidiaries to incur liens or pay dividends; or to make certain accounting changes. In addition, the Credit Agreement requires us to maintain a net leverage ratio, defined as the ratio of debt (less certain cash) to EBITDA, that is less than (i) from the date the Credit Agreement is entered into through December 31, 2015, 3.50 :1.00; (ii) from March 31, 2016, through September 30, 2016, 3.25 :1.00; and (iii) from and after December 31, 2016, 3.00 :1.00. The Credit Agreement also requires us to maintain a minimum fixed charge coverage ratio of 1.10 :1.00. The Credit Agreement contains customary events of default. We were compliant with all covenants as of December 31, 2015 . All obligations under the Credit Agreement are guaranteed by the Guarantors, and all obligations under the Credit Agreement, including the guarantees of those obligations, are secured by substantially all of the assets of the Company and the Guarantors. W e have standby letters of credit outstanding of approximately $55.1 million as of December 31, 2015. The standby letters of credit were issued to secure financial obligations related to our workers compensation, general insurance, and auto liability programs.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements
Fair Value Measurements	6. FAIR VALUE MEASUREMENTS The fair value measurement standard defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (referred to as an “exit price”). Authoritative guidance on fair value measurements and disclosures clarifies that a fair value measurement for a liability should reflect the entity’s non-performance risk. In addition, a fair value hierarchy is established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Fair Value on Recurring Basis The carrying values of cash and cash equivalents, receivables, net, and accounts payables are considered to be representative of their respective fair values due to the short-term nature of these instruments. Fair Value on Non-Recurring Basis Fair value measurements were applied to our long-term debt. The carrying value of our long-term debt approximates the fair market value, primarily due to the fact that the non-performance risk of servicing our debt obligations, as reflected in our business and credit risk profile, has not materially changed since the debt obligations were assumed on June 30, 2015. In addition, due to the floating-rate nature of our long-term debt, the market value is not subject to variability solely due to changes in the general level of interest rates as is the case with a fixed-rate debt obligation. During the periods presented, there were no transfers between fair value hierarchical levels .

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2015
Segment Information
Segment Information	7. SEGMENT INFORMATION Our reportable segments are as follows: Installation principally includes the sale and installation of insulation and other building products. We sell primarily to the residential new construction market, but have seen increasing activity in both the commercial construction industry and repair/remodel of residential housing. In addition to insulation, our installed product lines include rain gutters, garage doors, fireplaces, fireproofing and firestopping products, shower enclosures, closet shelving, and other building products. Distribution principally includes the distribution of insulation and other building products. Our distributed products include insulation, insulation accessories, rain gutters, and roofing, among others. Distributed products are sold primarily to contractors and dealers (including lumber yards) from distribution centers in various parts of the United States. Our segments are based on our operating units, for which financial information is regularly evaluated by our corporate operating executives in determining resource allocation and assessing performance. Accounting policies for the segments are generally the same as those for the Company. The key performance metric we use to evaluate our businesses is segment operating profit. Operating profit for the individual segments includes estimated corporate costs which are allocated to the segments based on various metrics including sales and headcount. To arrive at total segment operating profit, the aforementioned allocated estimated corporate costs are removed and replaced with actual corporate costs, which are allocated to the segments based on direct benefit or usage (such as salaries of corporate employees who directly support the segment). Differences between estimated and actual corporate costs are included in ‘‘Intercompany eliminations and other adjustments.’’ Intercompany sales from the Distribution segment to the Installation segment are recorded by the Distribution segment with a profit margin and by our Installation segment at cost. The following table is a summary of the annual percentage of net sales by product category: 2015 2014 2013 Insulation % % % Rain gutters Accessories Afterpaint (shower enclosures, closet shelving, mirrors/glass, bath accessories, etc.) Garage doors Fireplaces Roofing materials Fireproofing and firestopping Other % % % Information about us by segment is as follows, in thousands: Net Sales Operating Profit 2015 2014 2013 2015 2014 2013 Our operations by segment were (1): Installation $ $ $ $ $ $ Distribution Intercompany eliminations and other adjustments (2) Total $ $ $ General corporate expense, net (3) Operating profit, as reported Other expense, net Income from continuing operations before income taxes $ $ $ Property Additions Depreciation and Amortization Total Assets 2015 2014 2013 2015 2014 2013 2015 2014 Our operations by segment were (1): Installation $ $ $ $ $ $ $ $ Distribution Corporate — — — — — Total, as reported $ $ $ $ $ $ $ $ (1) All of our operations are located in the United States. (2) Intercompany eliminations include the elimination of intercompany profit of $15.6 million, $14.1 million, and $11.2 million for the years ending December 31, 2015, 2014, and 2013, respectively. Other adjustments primarily include differences between estimated and actual corporate costs allocated to the segments. During the years ended December 31, 2015, 2014, and 2013, other adjustments were $10.8 million, $0.5 million, and $4.8 million, respectively. (3) General corporate expense, net included those expenses not specifically attributable to our segments.

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2015
Discontinued Operations
Discontinued Operations	8. DISCONTINUED OPERATIONS The presentation of discontinued operations includes components which were sold, for which operations and cash flows can be clearly distinguished from the rest of the Company. We have no continuing involvement in these product lines or businesses. Expenses incurred subsequent to disposition are primarily related to the settlement of our self-insurance reserves. Selected financial information for discontinued operations is presented in the following table, in thousands: Years Ended December 31, 2015 2014 2013 Loss before income tax $ $ $ Income tax benefit (expense) Loss from discontinued operations, net $ $ $

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2015
Accrued Liabilities
Accrued Liabilities	9. ACCRUED LIABILITIES The following table sets forth the components of accrued liabilities at December 31, 2015 and 2014, in thousands: 2015 2014 Salaries, wages, and commissions $ $ Insurance reserves Other Total Accrued Liabilities $ $

Other Liabilities

Other Liabilities	12 Months Ended
	Dec. 31, 2015
Other Liabilities
Other Liabilities	10. OTHER LIABILITIES The following table sets forth the components of other liabilities at December 31, 2015 and 2014, in thousands: 2015 2014 Long-term portion of insurance reserves $ $ Other Total other liabilities $ $

Employee Retirement Plans

Employee Retirement Plans	12 Months Ended
	Dec. 31, 2015
Employee Retirement Plans
Employee Retirement Plans	11. EMPLOYEE RETIREMENT PLANS We provide a defined-contribution retirement plan for substantially all employees. In addition, we participate in 21 regional multi ‑employer pension plans, principally related to building trades; none of the plans are considered significant. Prior to the Separation, Masco provided defined-benefit pension plans to certain TopBuild employees. The TopBuild liability associated with these plans is not reflected in our balance sheet as this obligation will be maintained and serviced by Masco; all future benefit accruals were frozen effective January 1, 2010. Pre ‑tax expense related to our participation in the retirement plans was as follows, in thousands: Years Ended December 31, 2015 2014 2013 Defined contribution plans $ $ $ Defined benefit plans — — Multi-employer plans $ $ $ The Pension Protection Act (“PPA”) defines a zone status for multi-employer pension plans. Plans in the green zone are at least 80 percent funded, plans in the yellow zone are at least 65 percent funded and plans in the red zone are generally less than 65 percent funded. We participate in the Carpenters Pension Trust Fund for Northern California (“NCT”), which is our largest multi ‑employer plan expense and is in the red zone. The NCT has implemented a funding or rehabilitation plan in accordance with government requirements. Our contributions to NCT have not exceeded 1 percent of the total contributions to the plan. Employer Identification PPA Zone Status Funding Plan Contributions (in thousands) Surcharge Pension Fund Number/Plan Number 2015 2014 Pending / Implemented 2015 2014 2013 Imposed NCT 94-6050970/001 Red Red Yes $ $ $ No

Other Commitments and Contingen

Other Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Other Commitments and Contingencies
Other Commitments and Contingencies	12. OTHER COMMITMENTS AND CONTINGENCIES Litigation. We are subject to claims, charges, litigation, and other proceedings in the ordinary course of our business, including those arising from or related to contractual matters, intellectual property, personal injury, environmental matters, product liability, product recalls, construction defects, insurance coverage, personnel and employment disputes, antitrust, and other matters, including class actions. We believe we have adequate defenses in these matters and that the likelihood the outcome of these matters would have a material adverse effect on us is remote. However, there is no assurance that we will prevail in these matters, and we could in the future incur judgments, enter into settlements of claims, or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations. Other Matters . We enter into contracts, which include customary indemnifications that are standard for the industries in which we operate. Such indemnifications include customer claims against builders for issues relating to our products and workmanship. In conjunction with divestitures and other transactions, we occasionally provide customary indemnifications relating to various items including: the enforceability of trademarks; legal and environmental issues; and asset valuations. We evaluate the probability that amounts may be incurred and appropriately record an estimated liability when deemed probable. We occasionally use performance bonds to ensure completion of our work on certain larger customer contracts that can span multiple accounting periods. As of December 31, 2015 and 2014, we had performance bonds outstanding, totaling $19.5 million and $14.1 million, respectively. Performance bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. In addition, at December 31, 2015 and 2014, respectively, we had $10.0 million and $5.4 million of other types of bonds outstanding, principally license and insurance related. We lease company vehicles and warehouse facilities, some under non-cancellable operating leases. We lease certain operating facilities from certain related parties, primarily former owners (and in certain cases, current management personnel) of companies acquired. Such leases approximate market value and are comprised of less than 40 of our leases. Rental expense is recorded in our Consolidated Statements of Operations and includes expense to such related parties. Our rental expense was as follows, in thousands: Rent Expense (Including Related Parties) Rent Expense with Related Parties 2015 $ $ 2014 2013 Future minimum lease payments at December 31, 2015 were as follows, in thousands: Minimum Lease Payments (Including Related Parties) Minimum Lease Payments with Related Parties 2016 $ $ 2017 2018 2019 2020 − 2021 & Thereafter − A corporate leased asset used by Masco was terminated and an accrual was established in 2014 for the difference between estimated proceeds and the contractual value. The corporate leased asset was disposed of on April 1, 2015, for the expected proceeds, and we received reimbursement from Masco.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes
Income Taxes	13. INCOME TAXES (In thousands) 2015 2014 2013 Income from continuing operations before income taxes: U.S . $ $ $ Income tax expense (benefit) on income from continuing operations: Currently payable: U.S. Federal $ $ $ State and local Deferred: U.S. Federal State and local $ $ $ Deferred tax assets at December 31: Receivables, net $ $ Inventories, net Other assets, principally share-based compensation Accrued liabilities Long-term liabilities Net operating loss carryforward Valuation allowance Deferred tax liabilities at December 31: Property and equipment, net Intangibles, net Other Net deferred tax liability at December 31 $ $ The FASB issued Accounting Standards Update 2015-17 (“ASU 2015-17”) “Balance Sheet Classification of Deferred Taxes”, in November of 201 5 . This guidance requires all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for us in the first quarter of 2017; however, we early adopted this new standard prospectively during the fourth quarter of 2015. See “Summary of Significant Accounting Policies” for more discussion on this subject. At December 31, 2015 the net deferred tax liability of $160.7 million consisted of net long-term deferred tax assets of $20.6 million and net long-term deferred tax liabilities of $181.3 million. At December 31, 2014 the net deferred tax liability of $181.4 million consisted of net short-term deferred tax assets included in prepaid expenses and other current assets of $0.9 million and net long-term deferred tax liabilities of $182.3 million. The deferred portion of state and local taxes includes a $(33.7) million, $(2.0) million, and $0.8 million tax (benefit) expense resulting from a change in the valuation allowance against state and local deferred tax assets in the years ending December 31, 2015, 2014, and 2013, respectively. Accounting guidance for income taxes requires that future realization of deferred tax assets depends on the existence of sufficient taxable income in future periods. Possible sources of taxable income include taxable income in carryback periods, future reversals of existing taxable temporary differences recorded as a deferred tax liability, tax ‑planning strategies that generate future income or gains in excess of anticipated losses in the carryforward period, and projected future taxable income. If, based upon all available evidence, both positive and negative, it is more likely than not (more than 50 percent likely) such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three ‑year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable. Accounting guidance restricts the amount of reliance we can place on projected taxable income to support the recovery of deferred tax assets. In a prior period, we had recorded a valuation allowance against our U.S. Federal and certain state deferred tax assets as a non ‑cash charge to income tax expense. In reaching this conclusion, we considered the significant decline in residential new construction, high level of foreclosure activity, and the slower than anticipated recovery in the U.S. housing market which led to U.S. operating losses, causing us to be in a three ‑year cumulative U.S. loss position. During the years ended December, 31, 2010, 2011, and 2012, objective and verifiable negative evidence, such as continued U.S. operating losses and significant impairment charges for U.S. goodwill in 2010, continued to outweigh positive evidence necessary to reduce the valuation allowance. As a result, we recorded increases in the valuation allowance against our U.S. Federal and certain state deferred tax assets as a non ‑cash charge to income tax expense during the years ended December 31, 2010, 2011, and 2012. A return to sustainable profitability in the U.S. is required before we would change our judgment regarding the need for a valuation allowance against our deferred tax assets. Although strengthening residential new construction activity resulted in profitability for our operations in 2013 and 2014, we continued to record a full valuation allowance against the U.S. Federal and certain state deferred tax assets. We arrived at this conclusion due to the Company’s (i) low amount of profit in 2013 and 2014 , (ii) continued three ‑year cumulative loss position through the year ended December 31, 2014, and (iii) lack of taxable income after evaluating the sources of income generally allowed under ASC 740 in determining whether or not a deferred asset may be realized. In the fourth quarter of 2015 we recorded a $35.5 million tax benefit ( $13.5 million of Federal and $22.0 million of s tate and local net of federal benefit) from the release of the valuation allowance against its U.S. Federal and certain state deferred tax assets due primarily to a return to sustainable profitability in our U.S. operations. In reaching this conclusion , we considered the Company’s strong results in the third and fourth quarters reflecting (i) continued improvement in both new home construction and repair/remodel activity in the U.S. and (ii) the Company’s ability to function as a standalone business. We also considered our progress on strategic initiatives to reduce costs and expand the breadth of our market positions, which contributed to the continued improvement in our operations over the past few years For activity through the first six months of 2015 we will file tax returns as a member of the Masco consolidated group for federal and certain state jurisdictions. As a result, certain tax attributes, primarily the net operating loss carryforward, are treated as an asset of the Masco group and may be utilized by the Masco group through the end of December 31, 2015, Masco’s tax year-end. It is anticipated that all of our U.S. Federal net operating loss carryforward and certain state net operating loss carryforwards will be utilized by the Masco consolidated group. In accordance, the deferred tax assets relating to the net operating loss carryforwards for federal and certain state jurisdictions were transferred to Masco in the amount of $401 million, with a similar transfer of the related valuation allowance. Due to the fact that TopBuild’s current income tax expense is based on a full year, notwithstanding that it was a member of Masco’s consolidated group through June 30, 2015, an adjustment of $2.6 million was required to be made to equity to record the appropriate current income tax payable on a standalone basis. Of the deferred tax asset related to the net operating loss at December 31, 2015, $31.2 million will expire between 2020 and 2035. Of the deferred tax asset related to the net operating loss at December 31, 2014, $434.1 million will expire between 2020 and 2034. A reconciliation of the U.S. Federal statutory tax rate to the income tax expense (benefit) on income from continuing operations was as follows: 2015 2014 2013 U.S. Federal statutory tax rate % % % State and local taxes, net of U.S. Federal tax benefit U.S. Federal valuation allowance Other, net — Effective tax rate % % % The reduction in the valuation allowance in 2015 resulted in a negative effective tax rate for the year. Income taxes paid were $21.0 million, $1.1 million, and $0.7 million during the years ended December 31, 2015, 2014, and 2013, respectively. We file income tax returns in the U.S. Federal jurisdiction and various state and local jurisdictions. For periods prior to the Separation we, as a member of the Masco consolidated group, participated in the Compliance Assurance Program (“CAP”). CAP is a real ‑time audit of the U.S. Federal income tax return that allows the Internal Revenue Service (“IRS”), working in conjunction with Masco, to determine tax return compliance with the U.S. Federal tax law prior to filing the return. This program provided us with greater certainty about our tax liability for a given year within months, rather than years, of filing the annual tax return and greatly reduced the need for recording a liability for U.S. Federal uncertain tax positions. The IRS has completed their examination of the Masco consolidated U.S. Federal tax return in which we were included through the year ended December 31, 2014. With few exceptions, we are no longer subject to state income tax examinations on filed returns for years before 2010. At December 31, 2015, there are no liabilities related to uncertain tax positions. We have not incurred any interest related to the underpayment of income taxes or penalties related to tax positions not meeting the minimum statutory threshold to avoid payment of penalties in the year ended December 31, 2015.

Income (Loss) Per Share

Income (Loss) Per Share	12 Months Ended
	Dec. 31, 2015
Income (Loss) Per Share
Income (Loss) Per Share	14. INCOME (LOSS) PER SHARE Basic net income per share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method. For comparative purposes, the computation of basic and diluted earnings per common share for prior year periods presented was calculated using the shares distributed at Separation. Basic and diluted income (loss) per share were computed as follows, in thousands (except share and per share amounts): Years Ended December 31, 2015 2014 2013 Income (loss) from continuing operations $ $ $ Loss from discontinued operations, net Net income (loss) - basic and diluted $ $ $ Weighted average number of common shares outstanding - basic Dilutive effect of common stock equivalents: Restricted stock awards — — Stock options — — Weighted average number of common shares outstanding - diluted Basic earnings (loss) per common share: Income (loss) from continuing operations $ $ $ Loss from discontinued operations, net — Net income (loss) $ $ $ Diluted earnings (loss) per common share: Income (loss) from continuing operations $ $ $ Loss from discontinued operations, net — Net income (loss) $ $ $ Certain restricted stock awards and stock options were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. On June 30, 2015, we distributed 37.7 million shares of our common stock to Masco shareholders in conjunction with the Separation.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2015
Share-Based Compensation.
Share-Based Compensation	15. SHARE-BASED COMPENSATION Prior to the Separation, our employees participated in the Masco share-based compensation program and received restricted stock awards and stock options. Effective July 1, 2015, our employees participate in the 2015 TopBuild Long-Term Incentive Plan (the “2015 Plan”). The 2015 Plan authorizes the Board of Directors to grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and dividend equivalents. No more than 4.0 million shares of common stock may be issued under the 2015 Plan. Prior to the Separation, share-based compensation expense was allocated to TopBuild based on the awards and options previously granted by Masco to TopBuild employees. Outstanding, unvested Masco stock options and restricted stock awards held by employees of TopBuild as of June 30, 2015, were forfeited upon Separation and replaced with TopBuild long-term incentive awards immediately subsequent to the Separation. The replacement awards are subject to the same terms and conditions in effect prior to the Separation and are of generally equivalent value. For the year ended December 31, 2015 and 2014 , share-based compensation was $4.7 million and $3.8 million, respectively. The following table presents a summary of our share-based compensation activity for the six months ended December 31, 2015, in thousands (except per share amounts): Restricted Stock Awards Stock Options Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance, June 30, 2015 — $ — — $ — $ — $ — Replacement awards Granted Converted/Exercised — — — Forfeited — — — Balance, December 31, 2015 $ $ $ $ Exercisable, December 31, 2015 $ $ $ As of December 31, 2015 , there was $9.1 million of unrecognized compensation expense related to unvested restricted stock awards. Such awards had a weighted average remaining vesting period of 1.5 years. The total fair value of restricted stock awards that vested during the year ended December 31, 2015, was $0.5 million. As of December 31, 2015 , there was $3.0 million of unrecognized compensation expense related to unvested stock options. Such options had a weighted average remaining vesting period of 2.0 years and a weighted average remaining contractual life of 8.6 years. The total fair value of stock options that vested during the year ended December 31, 2015, was $0.0 million. The weighted average remaining contractual term for vested but unexercised stock options is 4.8 years. The fair value of stock options granted under the 2015 Plan was calculated using the Black-Scholes Options Pricing Model. The following table presents the assumptions used to estimate the fair values of the options granted: Risk free interest rate % Expected volatility % Expected life (in years) Dividend yield % Weighted average estimated fair value of options granted during the year $

Quarterly Financial Data

Quarterly Financial Data	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Data
Quarterly Financial Data	16. QUARTERLY FINANCIAL DATA (UNAUDITED) The following tables set forth our quarterly results for each quarter of the years ending December 31, 2015 and 2014, in thousands (except per share amounts): 2015 Q1 (a) Q2 Q3 Q4 Total Year Net sales $ $ $ $ $ Gross profit Operating profit (loss) Income (loss) from continuing operations Income (loss) from discontinued operations, net — Net income (loss) $ $ $ $ $ Basic income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — — — Net income (loss) $ $ $ $ $ Diluted income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — — — Net income (loss) $ $ $ $ $ 2014 Q1 (a) Q2 (a) Q3 (a) Q4 (a) Total Year (a) Net sales $ $ $ $ $ Gross profit Operating profit (loss) Income (loss) from continuing operations Loss from discontinued operations, net Net income (loss) $ $ $ $ $ Basic income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — Net income (loss) $ $ $ $ $ Diluted income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — Net income (loss) $ $ $ $ $ (a) For comparative purposes, the computation of basic and diluted earnings per common share for prior year periods presented was calculated using the shares distributed at Separation.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events
Subsequent Events	17. SUBSEQUENT EVENTS In connection with the preparation of our financial statements, and in accordance with U.S. GAAP, the Company evaluated subsequent events after the balance sheet date of December 31, 2015 . 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 has approved a plan to close certain locations within our Installation and Distribution segments during the first and second quarters of 2016. We continue to assess the financial effect of these closures as the selection of locations has not been finalized. We believe these efforts are necessary to preserve our competitiveness and will provide lasting benefit over the long-term. On March 1, 201 6 , the Company’s Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may purchase up to $50 million of the Company’s common stock. Share repurchases may be executed through various means including, without limitation, open market purchases, privately negotiated transactions, or otherwise. The Share Repurchase Program does not obligate the Company to purchase any shares and expires in one year. Authorization for the Share Repurchase Program may be terminated, increased, or decreased by the Company’s Board of Directors at its discretion at any time.

SCHEDULE II - Valuation and Qua

SCHEDULE II - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2015
SCHEDULE II Valuation and Qualifying Accounts
SCHEDULE II Valuation and Qualifying Accounts	For the years ended December 31, 2015, 2014, and 2013 Column A Column B Column C Column D Column E Additions Balance at Charged to Charged to Balance at Beginning of Costs and Other End of Description Period Expenses Accounts Deductions Period Allowances for doubtful accounts, deducted from accounts receivable in the balance sheet: 2015 $ $ $ ― $ (a) $ 2014 $ $ $ ― $ (a) $ 2013 $ $ $ ― $ (a) $ Valuation allowance on deferred tax assets: 2015 $ $ ― $ ― $ (b) $ 2014 $ $ $ (c) $ ― $ 2013 $ $ $ (c) $ ― $ (a) Deductions representing uncollectible accounts written off, less recoveries of accounts written off in prior years. (b) Of the $453.8 million, $47.2 million (of which $13.5 million was related to federal deferred tax assets and $33.7 million was related to state and local deferred tax assets, before federal tax benefit) is reflected in our Consolidated Statements of Operations in income tax benefit (expense) from continuing operations. The remaining $406.6 million was related to federal and state net operating losses that were utilized by Masco in their separate consolidated return and written off at the time of Separation with the related deferred assets. (c) Valuation allowance on deferred tax assets recorded primarily in equity.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies
Basis of Presentation and Financial Statement Presentation	Basis of Presentation. On June 30, 2015 (the “Effective Date”), Masco Corporation (“Masco” or the “Former Parent”) completed the separation (the “Separation”) of its Installation and Other Services businesses (the “Services Business”) from its other businesses. On the Effective Date, TopBuild Corp. (“TopBuild” or the “Company”), a Delaware corporation formed in anticipation of the Separation, became an independent public company which holds, through its subsidiaries, the assets and liabilities associated with the Services Business. The Separation was achieved through the distribution of 100 percent of the outstanding capital stock of TopBuild to holders of Masco Corporation common stock. Immediately following the Separation, Masco Corporation stockholders owned 100 percent of the outstanding shares of common stock of TopBuild. References to “TopBuild,” the “Company,” “we,” “our,” and “us” refer to TopBuild Corp. and its consolidated subsidiaries. Prior to the Separation, the consolidated financial statements of TopBuild were prepared on a stand-alone basis and reflect the historical results of operations, financial position, and cash flows of Masco’s Services Business, including an allocable portion of corporate costs. We report our business in two segments, Installation and Distribution. Our Installation segment principally includes the sales and installation of insulation and other building products. Our Distribution segment principally includes the distribution of insulation and other building products. Our segments are based on our operating units, for which financial information is regularly evaluated by our corporate operating executives. Financial Statement Presentation. The consolidated financial statements have been developed in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Historically, stand-alone financial statements were not prepared for the Services Business. Separation related adjustments recorded in the Consolidated Statements of Changes in Equity primarily relate to a cash distribution of $200 million made by TopBuild to Masco immediately prior to the Separation, offset by net transfers from the Former Parent. All intercompany transactions between the TopBuild entities have been eliminated. Transactions between TopBuild and Masco prior to the Separation, with the exception of purchase transactions, are reflected in equity in the Consolidated Balance Sheets as “Former Parent investment” and in the Consolidated Statements of Cash Flows as a financing activity in “Net transfer from (to) Former Parent.” The accompanying consolidated financial statements for the periods prior to the Separation include allocations of general corporate expenses that were incurred by Masco for functions such as corporate human resources, finance, and legal, including salaries, benefits, and other related costs. These general corporate expenses were allocated to TopBuild on the basis of sales. Total allocated general corporate costs were $13.6 million, $21.9 million, and $22.1 million for the years ended December 31, 2015, 2014, and 2013, respectively and are included in selling, general, and administrative expense. Prior to the Separation, Masco incurred certain operating expenses on behalf of the Services Business which were allocated to TopBuild based on direct benefit or usage. These allocated operating expenses were $5.6 million, $17.8 million, and $16.0 million for the years ended December 31, 2015, 2014, and 2013, respectively and are included in selling, general, and administrative expense. An estimate of these operating expenses were allocated to each of TopBuild’s reporting segment, based on a percentage of sales. For the periods prior to the Separation, these consolidated financial statements may not reflect the actual expenses that would have been incurred had we operated as a stand-alone company and may not reflect the consolidated results of operations, financial position, and cash flows had we operated as a stand-alone company. Actual costs that would have been incurred had we operated as a stand-alone company prior to the Separation would depend on multiple factors including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. During the first quarter ended March 31, 2015, we identified an error related primarily to the misallocation of a favorable legal settlement to general corporate expenses of TopBuild in the fourth quarter of 2014. The impact of the error was to understate the allocation of corporate expense reported as selling, general, and administrative expense and overstate operating profit by $1.9 million. The error was not considered material to the previously reported 2014 financial statements. We recorded the correction of the error by an out-of-period adjustment in the first quarter of 2015 which is therefore reflected in the twelve months ended December 31, 2015 Consolidated Statements of Operations and Consolidated Statements of Cash Flows.
Use of Estimates and Assumptions in the Preparation of Financial Statements	Use of Estimates and Assumptions in the Preparation of Financial Statements. The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of any contingent assets and liabilities, at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results may differ from these estimates and assumptions.
Revenue Recognition	Revenue Recognition. We recognize revenue for our Installation segment using the percentage of completion method of accounting based on the amount of material installed and associated labor costs at our customers’ locations compared to the total expected cost for the contract. The amount of revenue recognized for our Installation segment, which had not been billed as of December 31, 2015 and 2014, was $23.7 million and $23.6 million, respectively. Revenue from our distribution segment is recognized when title to products and risk of loss transfers to our customers. At time of sale we record estimated reductions to revenue for customer programs and incentive offerings, including special pricing and other volume ‑based incentives.
Income Taxes	Income Taxes. We account for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax basis and financial reporting basis of our assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which we operate. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence. If, based upon all available evidence, both positive and negative, it is more likely than not (more than 50 percent likely) such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable and the accounting guidance restricts the amount of reliance we can place on projected taxable income to support the recovery of the deferred tax assets.
Cash and Cash Equivalents	Cash and Cash Equivalents. We consider our highly liquid investments with a maturity of three months or less at the time of purchase to be cash and cash equivalents.
Receivables, net	Receivables, net. We do business with a significant number of customers, principally homebuilders. We monitor our exposure for credit losses on our customer receivable balances and the credit worthiness of our customers on an on ‑going basis and record related allowances for doubtful accounts. Allowances are estimated based upon specific customer balances where a risk of default has been identified, and also include a provision for non ‑customer specific defaults based upon historical collection, return, and write ‑off activity. During downturns in our markets, declines in the financial condition and creditworthiness of customers impact the credit risk of the receivables involved and we have incurred additional bad debt expense related to customer defaults. Receivables, net are presented net of certain allowances, including allowances for doubtful accounts.
Inventories, net	Inventories, net. Inventories, net consist primarily of insulation, rain gutters, garage doors, fireplaces, fireproofing and firestopping products, roofing and shingles, shower enclosures, closet shelving, accessories, and other products. We value inventory at the lower of cost or market, where cost is determined by the first in ‑first out cost method. Inventory value is evaluated at each balance sheet date to ensure that it is carried at the lower of cost or market. Inventory provisions are recorded to reduce inventory to the lower of cost or market value for obsolete or slow moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions, inventory levels and turns, product spoilage, and specific identification of items such as product discontinuance, engineering/material changes, or regulatory-related changes. As of December 31, 2015 and 2014, all inventory consisted of finished goods.
Property and Equipment, net	Property and Equipment, net. Property and equipment, net, including significant betterments to existing facilities, are recorded at cost. Upon retirement or disposal, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the Consolidated Statements of Operations. Maintenance and repair costs are charged against earnings as incurred. Gains and losses on the disposal of equipment are included in selling, general, and administrative expense. We review our property and equipment as an event occurs or circumstances change that would more likely than not reduce the fair value of the property and equipment below the carrying amount. If the carrying amount is not recoverable from its undiscounted cash flows, we would recognize an impairment loss for the difference between the carrying amount and the current fair value. Further, we evaluate the remaining useful lives of property and equipment at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods.
Depreciation	Depreciation. Depreciation expense is computed principally using the straight ‑line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Asset Class Estimated Useful Life Buildings and land improvements 20 – 40 years Software and company vehicles 3 – 6 years Equipment 3 – 15 years
Fair Value	Fair Value . The fair value measurement standard defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (referred to as an “exit price”). A fair value hierarchy is established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are : Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities or other inputs that are observable or can be corroborated by market data. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets. We perform our annual impairment testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We have defined our reporting units and completed the impairment testing of goodwill at the operating segment level. Our operating segments are reporting units that engage in business activities for which discrete financial information, including long-range forecasts, are available. We compare the fair value of the reporting units to the carrying value of the reporting units for goodwill impairment testing. Fair value for our reporting units is determined using a discounted cash flow method, which includes significant unobservable inputs (Level 3 inputs). Determining market values using a discounted cash flow method requires us to make significant estimates and assumptions, including long ‑term projections of cash flows, market conditions, and appropriate discount rates. Our judgments are based upon historical experience, current market trends, consultations with external valuation specialists and other information. In estimating future cash flows, we rely on internally generated long-range forecasts for sales and operating profits, including capital expenditures, and generally utilize a one to three percent long ‑term assumed annual growth rate of cash flows for periods after the long-range forecast. An impairment loss is recognized to the extent that a reporting unit’s recorded goodwill exceeds the implied fair value of goodwill. Intangible assets with finite useful lives are amortized using the straight ‑line method over their estimated useful lives. We evaluate the remaining useful lives of amortizable intangible assets at each reporting period to determine whether events and circumstances warrant a revision to the remaining periods of amortization. For additional information, see Note 4 - Goodwill and Other Intangible Assets .
Insurance reserves	Insurance Reserves. We use a combination of high deductible insurance and matching deductible insurance for a number of risks including, but not limited to, workers’ compensation, general, vehicle, and property liabilities. Our workers’ compensation insurance is primarily a high ‑deductible insurance program and our primary general liability insurance is a matching deductible program. We are insured for covered claims above the deductibles and retentions. The liabilities represent our best estimate of our costs, using generally accepted actuarial reserving methods, of the ultimate obligations for reported claims plus those incurred but not reported claims through December 31, 2015 and 2014. The accruals are adjusted as new information develops or circumstances change that would affect the estimated liability. We also have an insurance receivable for claims that exceeded the stop loss limit included in other assets on our Consolidated Balance Sheets which offsets an equal liability included within the reserve amount recorded in other liabilities on our Consolidated Balance Sheet. At December 31, 2015 and 2014, the amount of this receivable and liability was $1.8 million and $1.4 million, respectively
Advertising	Advertising . Advertising costs are expensed as incurred. Advertising expense, net of manufacturers support, was approximately $1.5 million, $2.5 million, and $3.1 million for the years ended December 31, 2015, 2014, and 2013, respectively, and is included in selling, general, and administrative expense.
Share-based Compensation	Share ‑based Compensation. Our share-based compensation program consists of restricted stock and stock option awards. We grant restricted stock awards with a fair value based on our closing stock price on the date of grant. Restricted stock awards generally vest ratably over five years. We also grant stock options for a fixed number of shares to certain employees with an exercise price equal to the market price of our common stock on the date of grant. Stock options generally become exercisable (vest ratably) over five years beginning on the first anniversary from the date of grant and expire no later than 10 years after the grant date. The fair value of stock option awards is determined using the Black-Scholes Options Pricing Model. We have elected to use the straight-line method to recognize compensation expense evenly over the respective service period for restricted stock awards and stock option grants. Share-based compensation expense is reported in selling, general, and administrative expense.
Debt Issuance Costs	Debt Issuance Costs. Debt issuance costs are amortized as interest expense over the life of the respective debt, which approximates the effective interest rate method.
Leases	Leases . Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognized as an expense in the Consolidated Statements of Operations on a straight-line basis over the lease term, including future option periods the Company reasonably expects to exercise, whereby an equal amount of rent expense is attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in later years. The difference between rent expense recognized and actual rental payments is recorded as deferred rent and included in other liabilities. Lease termination costs are accrued over the life of the lease based on historical experience. Leasehold improvements are amortized over the lesser of the expected lease term, including cancelable option periods, or the estimated useful lives of the related assets using the straight-line method.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements : In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard for revenue recognition, Accounting Standards Codification 606 (“ASC 606”). The purpose of ASC 606 is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability across industries. ASC 606 is effective for us for annual periods beginning January 1, 2018. We are currently evaluating the impact the adoption of this new standard will have on our results of operations. In April 2014, the FASB issued Accounting Standards Update 2014-8 (“ASU 2014-8”), “Reporting of Discontinued Operations and Disclosure of Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. On January 1, 2015, we adopted ASU 2014-8. Adoption of the new standard did not have an impact on our financial position or results of operations. In April 2015, the FASB issued Accounting Standards Update 2015-03 (“ASU 2015-03”), “Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs,” which requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. ASU 2015-3 is effective for us in the first quarter of 2016, however, we elected to early adopt this standard retrospectively during the fourth quarter of 2015. The adoption of this standard did not affect our Consolidated Statements of Operations. As we did not incur any debt issuance costs prior to the Separation there is no change to our Consolidated Balance Sheet as of December 31, 2014. In July 2015, the FASB issued Accounting Standards Update 2015-11 (“ASU 2015-11”), “Simplifying the Measurement of Inventory.” Under the amendment, ASU 2015-11, inventory should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We do not expect the adoption of this amendment to have a material impact on our financial position or results of operations. In November 2015, the FASB issued Accounting Standards Update 2015-17 (“ASU 2015-17”), “Balance Sheet Classification of Deferred Taxes.” This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for us in the first quarter of 2017, however, we early adopted this new standard prospectively during the fourth quarter of 2015. As we adopted this guidance prospectively, prior periods were not retrospectively adjusted. The adoption of this standard did not affect our Consolidated Statements of Operations.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies
Estimated useful lives	Asset Class Estimated Useful Life Buildings and land improvements 20 – 40 years Software and company vehicles 3 – 6 years Equipment 3 – 15 years

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property and Equipment
Schedule of property, plant and equipment	As of December 31, 2015 2014 Land and improvements $ $ Buildings Equipment Computer hardware and software Company vehicles Less: Accumulated depreciation Total property and equipment, net $ $

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Other Intangibles
Changes in carrying amount of goodwill by segment	There were no changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014. The goodwill balances by segment, were as follows, in thousands: Gross Goodwill Gross Goodwill Accumulated Net Goodwill at at Impairment at December 31, 2014 December 31, 2015 Losses December 31, 2015 Installation $ $ $ $ Distribution — Total $ $ $ $ Gross Goodwill Gross Goodwill Accumulated Net Goodwill at at Impairment at December 31, 2013 December 31, 2014 Losses December 31, 2014 Installation $ $ $ $ Distribution — Total $ $ $ $
Other intangible assets and associated amortization expense	Other intangible assets, net includes customer relationships, non-compete agreements, and trademarks. The following table sets forth our other intangible assets and associated amortization expense, in thousands: For the years ended December 31, 2015 2014 2013 Gross definite-lived intangible assets $ $ Accumulated amortization Net definite-lived intangible assets Indefinite-lived intangible assets not subject to amortization Other intangible assets, net $ $ Amortization expense recognized $ $ $
Future amortization expense related to definite-lived intangible assets	The following table sets forth the amortization expense related to the definite-lived intangible assets during each of the next five years, in thousands: Amortization Expense 2016 $ 2017 2018 2019 2020 Thereafter

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Long-Term Debt
Schedule of Debt-Maturity by years	The following table sets forth our principal payments for the following five years, in thousands: Total Principal Payments Schedule of Debt Maturity by Years: 2016 $ 2017 2018 2019 2020 Total principal maturities $
Principal balance of our long-term debt	The following table reconciles the principal balance of our long-term debt to our Consolidated Balance Sheets as of December 31, 2015 and 2014, in thousands: 2015 2014 Current portion of long-term debt $ $ — Long term portion of long-term debt — Unamortized debt issuance costs — Long-term debt $ $ —

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Information
Summary of the annual percentage of net sales by product category.	2015 2014 2013 Insulation % % % Rain gutters Accessories Afterpaint (shower enclosures, closet shelving, mirrors/glass, bath accessories, etc.) Garage doors Fireplaces Roofing materials Fireproofing and firestopping Other % % %
Schedule of information by segment	Information about us by segment is as follows, in thousands: Net Sales Operating Profit 2015 2014 2013 2015 2014 2013 Our operations by segment were (1): Installation $ $ $ $ $ $ Distribution Intercompany eliminations and other adjustments (2) Total $ $ $ General corporate expense, net (3) Operating profit, as reported Other expense, net Income from continuing operations before income taxes $ $ $ Property Additions Depreciation and Amortization Total Assets 2015 2014 2013 2015 2014 2013 2015 2014 Our operations by segment were (1): Installation $ $ $ $ $ $ $ $ Distribution Corporate — — — — — Total, as reported $ $ $ $ $ $ $ $ (1) All of our operations are located in the United States. (2) Intercompany eliminations include the elimination of intercompany profit of $15.6 million, $14.1 million, and $11.2 million for the years ending December 31, 2015, 2014, and 2013, respectively. Other adjustments primarily include differences between estimated and actual corporate costs allocated to the segments. During the years ended December 31, 2015, 2014, and 2013, other adjustments were $10.8 million, $0.5 million, and $4.8 million, respectively. (3) General corporate expense, net included those expenses not specifically attributable to our segments.

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2015
Discontinued Operations
Discontinued Operations	Selected financial information for discontinued operations is presented in the following table, in thousands: Years Ended December 31, 2015 2014 2013 Loss before income tax $ $ $ Income tax benefit (expense) Loss from discontinued operations, net $ $ $

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Accrued Liabilities
Accrued Liabilities	The following table sets forth the components of accrued liabilities at December 31, 2015 and 2014, in thousands: 2015 2014 Salaries, wages, and commissions $ $ Insurance reserves Other Total Accrued Liabilities $ $

Other Liabilities (Tables)

Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Other Liabilities
Other Liabilities	The following table sets forth the components of other liabilities at December 31, 2015 and 2014, in thousands: 2015 2014 Long-term portion of insurance reserves $ $ Other Total other liabilities $ $

Employee Retirement Plans (Tabl

Employee Retirement Plans (Tables)	12 Months Ended
	Dec. 31, 2015
Employee Retirement Plans
Pre tax expense	Pre ‑tax expense related to our participation in the retirement plans was as follows, in thousands: Years Ended December 31, 2015 2014 2013 Defined contribution plans $ $ $ Defined benefit plans — — Multi-employer plans $ $ $
Total contributions to the plan	Employer Identification PPA Zone Status Funding Plan Contributions (in thousands) Surcharge Pension Fund Number/Plan Number 2015 2014 Pending / Implemented 2015 2014 2013 Imposed NCT 94-6050970/001 Red Red Yes $ $ $ No

Other Commitments and Conting35

Other Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Other Commitments and Contingencies
Schedule of Rent Expense	Our rental expense was as follows, in thousands: Rent Expense (Including Related Parties) Rent Expense with Related Parties 2015 $ $ 2014 2013
Future minimum lease payments	Future minimum lease payments at December 31, 2015 were as follows, in thousands: Minimum Lease Payments (Including Related Parties) Minimum Lease Payments with Related Parties 2016 $ $ 2017 2018 2019 2020 − 2021 & Thereafter −

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Schedule of income tax expense (benefit) and deferred tax	(In thousands) 2015 2014 2013 Income from continuing operations before income taxes: U.S . $ $ $ Income tax expense (benefit) on income from continuing operations: Currently payable: U.S. Federal $ $ $ State and local Deferred: U.S. Federal State and local $ $ $ Deferred tax assets at December 31: Receivables, net $ $ Inventories, net Other assets, principally share-based compensation Accrued liabilities Long-term liabilities Net operating loss carryforward Valuation allowance Deferred tax liabilities at December 31: Property and equipment, net Intangibles, net Other Net deferred tax liability at December 31 $ $
Schedule of reconciliation of the U.S. Federal statutory tax rate to the income tax expense (benefit)	2015 2014 2013 U.S. Federal statutory tax rate % % % State and local taxes, net of U.S. Federal tax benefit U.S. Federal valuation allowance Other, net — Effective tax rate % % %

Income (Loss) Per Share (Tables

Income (Loss) Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Income (Loss) Per Share
Schedule of basic and diluted earnings per share	Basic and diluted income (loss) per share were computed as follows, in thousands (except share and per share amounts): Years Ended December 31, 2015 2014 2013 Income (loss) from continuing operations $ $ $ Loss from discontinued operations, net Net income (loss) - basic and diluted $ $ $ Weighted average number of common shares outstanding - basic Dilutive effect of common stock equivalents: Restricted stock awards — — Stock options — — Weighted average number of common shares outstanding - diluted Basic earnings (loss) per common share: Income (loss) from continuing operations $ $ $ Loss from discontinued operations, net — Net income (loss) $ $ $ Diluted earnings (loss) per common share: Income (loss) from continuing operations $ $ $ Loss from discontinued operations, net — Net income (loss) $ $ $

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Share-Based Compensation.
Schedule of share-based compensation activity	The following table presents a summary of our share-based compensation activity for the six months ended December 31, 2015, in thousands (except per share amounts): Restricted Stock Awards Stock Options Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance, June 30, 2015 — $ — — $ — $ — $ — Replacement awards Granted Converted/Exercised — — — Forfeited — — — Balance, December 31, 2015 $ $ $ $ Exercisable, December 31, 2015 $ $ $
Schedule of assumptions used to estimate the fair values of options granted	Risk free interest rate % Expected volatility % Expected life (in years) Dividend yield % Weighted average estimated fair value of options granted during the year $

Quarterly Financial Data (Table

Quarterly Financial Data (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Data
Schedule of quarterly financial information	The following tables set forth our quarterly results for each quarter of the years ending December 31, 2015 and 2014, in thousands (except per share amounts): 2015 Q1 (a) Q2 Q3 Q4 Total Year Net sales $ $ $ $ $ Gross profit Operating profit (loss) Income (loss) from continuing operations Income (loss) from discontinued operations, net — Net income (loss) $ $ $ $ $ Basic income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — — — Net income (loss) $ $ $ $ $ Diluted income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — — — Net income (loss) $ $ $ $ $ 2014 Q1 (a) Q2 (a) Q3 (a) Q4 (a) Total Year (a) Net sales $ $ $ $ $ Gross profit Operating profit (loss) Income (loss) from continuing operations Loss from discontinued operations, net Net income (loss) $ $ $ $ $ Basic income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — Net income (loss) $ $ $ $ $ Diluted income (loss) per common share: Income (loss) from continuing operations $ $ $ $ $ Loss from discontinued operations, net — — Net income (loss) $ $ $ $ $ (a) For comparative purposes, the computation of basic and diluted earnings per common share for prior year periods presented was calculated using the shares distributed at Separation.

Summary of Significant Accoun40

Summary of Significant Accounting Policies - Basis of presentation (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)segment
Percentage Of Capital Distribution	100.00%
Cash distribution to Masco | $	$ 200
Number of reportable segments | segment	2
Masco
Ownership percentage	100.00%

Summary of Significant Accoun41

Summary of Significant Accounting Policies - Allocation of Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Correction of error
Allocated general corporate costs	$ 13.6	$ 21.9	$ 22.1
Allocated operating expenses	5.6	$ 17.8	$ 16
Understatement of Allocation of Corporate Expense
Correction of error
Correction or error in current period, amount	$ 1.9

Summary of Significant Accoun42

Summary of Significant Accounting Policies - PPE And Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Insurance receivables
Insurance receivables	$ 1.8
Insurance Liabilities
Insurance liability		$ 1.4
Advertising
Advertising expense	$ 1.5	2.5	$ 3.1
Minimum
Goodwill and Other Intangible Assets
Annual growth rate of cash flows (in percent)	1.00%
Maximum
Goodwill and Other Intangible Assets
Annual growth rate of cash flows (in percent)	3.00%
Buildings and land improvements | Minimum
Property and Equipment
Estimated Useful Life (in years)	20 years
Buildings and land improvements | Maximum
Property and Equipment
Estimated Useful Life (in years)	40 years
Software and company vehicles | Minimum
Property and Equipment
Estimated Useful Life (in years)	3 years
Software and company vehicles | Maximum
Property and Equipment
Estimated Useful Life (in years)	6 years
Equipment | Minimum
Property and Equipment
Estimated Useful Life (in years)	3 years
Equipment | Maximum
Property and Equipment
Estimated Useful Life (in years)	15 years
Installation | Unbilled Revenues
Revenue Recognition
Revenues	$ 23.7	$ 23.6

Summary of Significant Accoun43

Summary of Significant Accounting Policies - Share-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2015
Restricted Stock Awards
Share-Based Compensation
Award vesting period	5 years
Stock Options
Share-Based Compensation
Award vesting period	5 years
Award expiration period	10 years

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Masco
Interest expense - related party	$ 6.3	$ 12.4	$ 13.4
Purchases from related party	$ 2.6	6.7	6.4
Extension of service provision period	12 months
Number of directors continuing on board after separation | item	1
Masco | 12 month LIBOR
Interest rate	2.00%
Masco subsidiaries
Amount due to related party		0.6
Kelly services
Purchases from related party	$ 0.2	$ 0.1	$ 0.2

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment
Property, plant and equipment, gross	$ 293,129	$ 292,194
Less: Accumulated depreciation and property reserves	(200,063)	(199,037)
Total Property Plant & Equipment, net	93,066	93,157
Depreciation expense	11,100	24,900	$ 26,200
Land and improvements
Property, Plant and Equipment
Property, plant and equipment, gross	7,950	8,055
Buildings
Property, Plant and Equipment
Property, plant and equipment, gross	39,424	39,521
Equipment
Property, Plant and Equipment
Property, plant and equipment, gross	85,217	80,818
Computer hardware and software
Property, Plant and Equipment
Property, plant and equipment, gross	123,550	124,835
Company vehicles
Property, Plant and Equipment
Property, plant and equipment, gross	$ 36,988	$ 38,965

Goodwill and Other Intangible46

Goodwill and Other Intangibles - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Changes in the carrying amount of goodwill
Gross Goodwill	$ 1,806,062	$ 1,806,062	$ 1,806,062
Accumulated Impairment Losses	(762,021)	(762,021)
Net Goodwill	1,044,041	1,044,041
Impairment of goodwill	0	0
Impairment of indefinite-lived intangible assets	0	0
Installation
Changes in the carrying amount of goodwill
Gross Goodwill	1,389,775	1,389,775	1,389,775
Accumulated Impairment Losses	(762,021)	(762,021)
Net Goodwill	627,754	627,754
Distribution
Changes in the carrying amount of goodwill
Gross Goodwill	416,287	416,287	$ 416,287
Net Goodwill	$ 416,287	$ 416,287

Goodwill and Other Intangible47

Goodwill and Other Intangibles - Other intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other intangible assets
Gross definite-lived intangible assets	$ 19,472	$ 19,727
Accumulated amortization	(17,892)	(17,172)
Net definite-lived intangible assets	1,580	2,555
Indefinite-lived intangible assets not subject to amortization	407	407
Other intangible assets, net	1,987	2,962
Amortization expense recognized	$ 1,026	$ 1,166	$ 1,267

Goodwill and Other Intangible48

Goodwill and Other Intangibles - Amortization expense (Details) $ in Thousands	Dec. 31, 2015USD ($)
Amortization expense related to the definite-lived intangible assets during each of the next five years
2,016	$ 722
2,017	327
2,018	106
2,019	106
2,020	106
Thereafter	$ 213

Long-Term Debt - Narratives (De

Long-Term Debt - Narratives (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015USD ($)
Long-Term Debt
Letters of credit outstanding		$ 55.1
Credit Agreement
Long-Term Debt
Interest rate at period end	2.42%
Minimum fixed charge coverage ratio		1.10
Credit Agreement | Debt Covenants Term Period One
Long-Term Debt
Leverage ratio		3.50
Credit Agreement | Debt Covenants Term Period Two
Long-Term Debt
Leverage ratio		3.25
Credit Agreement | Debt Covenant Term Period Three
Long-Term Debt
Leverage ratio		3
Credit Agreement | Adjusted LIBOR Borrowings | Minimum
Long-Term Debt
Applicable margin based on total leverage ratio	1.00%
Leverage ratio used to determine applicable margin on borrowings	1
Credit Agreement | Adjusted LIBOR Borrowings | Maximum
Long-Term Debt
Applicable margin based on total leverage ratio	2.00%
Leverage ratio used to determine applicable margin on borrowings	2.50
Credit Agreement | Base Rate Borrowings | Minimum
Long-Term Debt
Applicable margin based on total leverage ratio	0.00%
Leverage ratio used to determine applicable margin on borrowings	1
Credit Agreement | Base Rate Borrowings | Maximum
Long-Term Debt
Applicable margin based on total leverage ratio	1.00%
Leverage ratio used to determine applicable margin on borrowings	2.50
Credit Agreement | Base Rate Borrowings | Federal Funds Open Rate
Long-Term Debt
Basis spread	0.50%
Credit Agreement | Base Rate Borrowings | LIBOR
Long-Term Debt
Basis spread	1.00%
Term Loan Facility
Long-Term Debt
Face amount of debt		$ 200
Proceeds from issuance of debt		200
Amortization of outstanding principal to be paid in quarterly installments, expressed as a percentage, year one	5.00%
Amortization of outstanding principal to be paid in quarterly installments, expressed as a percentage, year two through year four	10.00%
Amortization of outstanding principal to be paid in quarterly installments, expressed as a percentage, year five	15.00%
Revolving Facility
Long-Term Debt
Maximum borrowing capacity		125
Additional borrowing capacity available, subject to certain conditions		100
Sublimit available for issuance of letters of credit		100
Sublimit available for swingline loans		$ 15

Long-Term Debt - Current maturi

Long-Term Debt - Current maturities of debt (Details) $ in Thousands	Dec. 31, 2015USD ($)
Schedule of Debt Maturity by Years:
2,016	$ 15,000
2,017	20,000
2,018	20,000
2,019	25,000
2,020	115,000
Total principal maturities	$ 195,000

Long-Term Debt - Schedule of de

Long-Term Debt - Schedule of debt (Details) $ in Thousands	Dec. 31, 2015USD ($)
Long-Term Debt
Current portion of long-term debt	$ 15,000
Long term portion of long-term debt	180,000
Prepaid debt issuance costs	(1,543)
Long-term debt	$ 193,457

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value on Non-Recurring Basis
Fair value assets level 1 to 2 transfers	$ 0	$ 0	$ 0
Fair value assets level 2 to 1 transfers	0	0	0
Fair value liabilities level 1 to 2 transfers	0	0	0
Fair value liabilities level 2 to 1 transfers	$ 0	$ 0	$ 0

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment information
Percentage of net sales									100.00%	100.00%	100.00%
Net sales	$ 426,471	$ 427,888	$ 403,761	$ 358,460	$ 398,057	$ 397,647	$ 382,794	$ 333,579	$ 1,616,580	$ 1,512,077	$ 1,411,524
Operating Profit (Loss)	42,997	$ 30,191	$ 11,490	$ (1,147)	24,582	$ 13,783	$ 10,220	$ (7,868)	83,531	40,717	24,103
General corporate expense, net									(22,605)	(21,948)	(22,073)
Other expense, net									(9,416)	(12,379)	(13,329)
Income from continuing operations before income taxes									74,115	28,338	10,774
Property Additions									14,227	13,141	14,008
Depreciation and Amortization									12,108	26,079	$ 27,488
Total Assets	1,642,249				1,476,424				$ 1,642,249	$ 1,476,424
Insulation
Segment information
Percentage of net sales									72.00%	71.00%	70.00%
Rain gutters
Segment information
Percentage of net sales									7.00%	7.00%	7.00%
Accessories
Segment information
Percentage of net sales									4.00%	4.00%	4.00%
Afterpaint
Segment information
Percentage of net sales									4.00%	4.00%	3.00%
Garage doors
Segment information
Percentage of net sales									3.00%	3.00%	3.00%
Fireplaces
Segment information
Percentage of net sales									2.00%	2.00%	3.00%
Roofing materials
Segment information
Percentage of net sales									2.00%	2.00%	3.00%
Fireproofing and firestopping
Segment information
Percentage of net sales									2.00%	1.00%	1.00%
Other
Segment information
Percentage of net sales									4.00%	6.00%	6.00%
Installation
Segment information
Property Additions									$ 9,802	$ 9,270	$ 10,505
Depreciation and Amortization									8,371	22,564	23,924
Total Assets	927,303				904,118				927,303	904,118
Distribution
Segment information
Property Additions									3,123	3,871	3,503
Depreciation and Amortization									3,699	3,515	3,564
Total Assets	574,601				$ 572,306				574,601	572,306
Operating Segment
Segment information
Operating Profit (Loss)									106,136	62,665	46,176
Operating Segment | Installation
Segment information
Net sales									1,057,553	963,351	904,570
Operating Profit (Loss)									55,232	23,970	6,160
Operating Segment | Distribution
Segment information
Net sales									646,441	628,810	578,141
Operating Profit (Loss)									55,700	52,334	46,405
Intercompany Eliminations and Other Adjustments
Segment information
Net sales									(87,414)	(80,084)	(71,187)
Operating Profit (Loss)									(4,796)	(13,639)	(6,389)
Intercompany Eliminations
Segment information
Operating Profit (Loss)									15,600	14,100	11,200
Other Adjustments
Segment information
Operating Profit (Loss)									10,800	$ 500	$ 4,800
Corporate
Segment information
Property Additions									1,302
Depreciation and Amortization									38
Total Assets	$ 140,345								$ 140,345

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended							12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Selected financial information
Loss before income tax									$ (702)	$ (1,444)
Income tax benefit (expense)									(391)	257
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total	$ 82	$ (235)	$ 1	$ (170)	$ (79)	$ (348)	$ (496)	$ (152)	$ (1,093)	$ (1,187)
Discontinued Operations, Disposed of by Sale
Selected financial information
Loss before income tax								(234)
Income tax benefit (expense)								82
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total								$ (152)

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accrued Liabilities
Employee compensation	$ 16,037	$ 24,704
Insurance	20,274	24,892
Other	22,058	23,151
Total Accrued Liabilities	$ 58,369	$ 72,747

Other Liabilities (Details)

Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other Liabilities
Long-term portion of insurance reserves	$ 39,655	$ 39,972
Other	474	413
Total other liabilities	$ 40,129	$ 40,385

Employee Retirement Plans - Pen

Employee Retirement Plans - Pension expense (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Retirement Plans [Line Items]
Number of regional multi-employer pension plans in which the entity participates | item	21
Pension Expense	$ 9,280	$ 7,497	$ 6,688
Defined-contribution plans
Retirement Plans [Line Items]
Pension Expense	3,451	2,983	3,095
Defined-benefit pension plans
Retirement Plans [Line Items]
Pension Expense			26
Multi-employer plans
Retirement Plans [Line Items]
Pension Expense	$ 5,829	$ 4,514	$ 3,567

Employee Retirement Plans - Mul

Employee Retirement Plans - Multiemployer plans (Details) - NCT - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Contribution to NCT(as a percent of total plan contribution)	1.00%
Contributions by employer	$ 1,730	$ 1,479	$ 1,292

Other Commitments and Conting59

Other Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Other Commitments and Contingencies
Performance bonds outstanding	$ 19,500	$ 14,100
Other bonds outstanding	10,000	5,400
Rent Expense	46,431	39,387	$ 34,017
Future minimum lease payments
2,016	37,033
2,017	27,224
2,018	17,406
2,019	8,909
2,020	3,847
2021 and Thereafter	$ 6,639
Maximum
Other Commitments and Contingencies
Number of leases | item	40
Related Parties
Other Commitments and Contingencies
Rent Expense	$ 2,223	$ 2,660	$ 2,650
Future minimum lease payments
2,016	1,902
2,017	1,577
2,018	961
2,019	$ 8

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income from continuing operations before income taxes: US		$ 74,115	$ 28,338	$ 10,774
Currently payable:
U.S. Federal		9,656	(28)	(21)
State and local		1,811	1,162	738
Deferred:
U.S. Federal	$ 13,500	12,633	14,943	19,115
State and local	22,000	(29,108)	1,765	2,493
Income Tax Expense (Benefit), Total	35,500	(5,008)	17,842	22,325
Deferred tax assets:
Receivables, net	1,888	1,888	2,567
Inventories, net	1,484	1,484	2,094
Other assets, principally share-based compensation	1,883	1,883	5,427
Accrued liabilities	11,095	11,095	11,594
Long-term liabilities	15,957	15,957	26,156
Deferred tax assets on operating loss carryforwards	31,197	31,197	434,090
Total deferred tax assets, gross	63,504	63,504	481,928
Deferred tax valuation allowance	(815)	(815)	(454,610)
Deferred tax assets, net	62,689	62,689	27,318
Deferred tax liabilities:
Property and equipment, net	13,899	13,899	15,318
Intangibles, net	207,589	207,589	191,736
Other	1,906	1,906	1,637
Total deferred tax liabilities, gross	223,394	223,394	208,691
Net deferred tax liability	160,705	160,705	181,373
Other disclosures
Net long-term deferred tax assets	20,549	20,549
Net long-term deferred tax liabilities	181,254	181,254	182,281
Tax (benefit) expense resulting from a change in valuation allowance against state and local deferred tax assets		(33,700)	(2,000)	$ 800
Decrease in deferred tax assets operating loss carryforwards		401,000
Adjustment to equity to record the appropriate current income tax payable on a standalone basis		2,600
Deferred tax assets, operating loss carryforward, subject to expiration	$ 31,200	$ 31,200	$ 434,100
Income Tax Reconciliation
U.S. Federal statutory tax rate expense (benefit)		35.00%	35.00%	35.00%
State and local taxes, net of U.S. Federal tax benefit		(24.00%)	7.00%	19.00%
U.S. Federal valuation allowance		(18.00%)	20.00%	150.00%
Other, net (as a percent)			1.00%	3.00%
Effective tax rate (as a percent)		(7.00%)	63.00%	207.00%
Income taxes paid:
Income taxes paid		$ 20,992	$ 1,134	$ 717
Prepaid Expenses and Other Current Assets
Other disclosures
Net short-term deferred tax assets			$ 900

Income (Loss) Per Share (Detail

Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2015	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income (Loss) Per Share
Income (loss) from continuing operations		$ 59,669	$ 16,624	$ 6,630	$ (3,800)	$ 5,941	$ 6,458	$ 6,182	$ (8,085)	$ 79,123	$ 10,496	$ (11,551)
Loss from discontinued operations, net		82		(235)	1	(170)	(79)	(348)	(496)	(152)	(1,093)	(1,187)
Net income (loss)		$ 59,751	$ 16,624	$ 6,395	$ (3,799)	$ 5,771	$ 6,379	$ 5,834	$ (8,581)	$ 78,971	$ 9,403	$ (12,738)
Weighted average number of common shares outstanding - basic										37,674,913	37,667,947	37,667,947
Dilutive effect of common stock equivalents:
Restricted stock awards										93,688
Stock options										12,274
Weighted average number of common shares outstanding - diluted										37,780,875	37,667,947	37,667,947
Basic earnings (loss) per common share:
Income (loss) from continuing operations		$ 1.58	$ 0.44	$ 0.18	$ (0.10)	$ 0.16	$ 0.17	$ 0.16	$ (0.21)	$ 2.10	$ 0.28	$ (0.31)
Loss from discontinued operations, net				(0.01)				(0.01)	(0.01)		(0.03)	(0.03)
Net income (loss)		1.58	0.44	0.17	(0.10)	0.16	0.17	0.15	(0.22)	2.10	0.25	(0.34)
Diluted earnings (loss) per common share:
Income (loss) from continuing operations		1.57	0.44	0.18	(0.10)	0.16	0.17	0.16	(0.21)	2.09	0.28	(0.31)
Loss from discontinued operations, net				(0.01)				(0.01)	(0.01)		(0.03)	(0.03)
Net income (loss)		$ 1.57	$ 0.44	$ 0.17	$ (0.10)	$ 0.16	$ 0.17	$ 0.15	$ (0.22)	$ 2.09	$ 0.25	$ (0.34)
Other disclosures
Issuance of common stock in conjunction with the Separation (in shares)	37,700,000

Share-Based Compensation - Expe

Share-Based Compensation - Expense (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 4.7	$ 3.8
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	4

Share-Based Compensation - Acti

Share-Based Compensation - Activity (Details)	6 Months Ended	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Stock options, additional disclosures
Fair value of restricted stock awards | $		$ 500,000
Fair value of stock options | $		$ 0
Weighted average remaining contractual term for vested but unexercised stock options		4 years 9 months 18 days
Restricted Stock Awards
Restricted Stock Awards, Number of Shares
Replacement awards (in shares) | shares	468,700
Granted (in shares) | shares	143,000
Vested (in shares) | shares	(21,000)
Forfeited (in shares) | shares	(4,100)
Balance at end of period (in shares) | shares	586,600	586,600
Restricted Stock Awards, Weighted Average Grant Date Fair Value Per Share
Replacement awards (in dollars per share)	$ 20.32
Granted (in dollars per share)	27.63
Vested (in dollars per share)	23.81
Forfeited (in dollars per share)	21.49
Balance at end of period (in dollars per share)	$ 21.97	$ 21.97
Restricted stock awards, additional disclosures
Unrecognized compensation expense related to unvested restricted stock awards | $	$ 9,100,000	$ 9,100,000
Weighted average remaining vesting period		1 year 6 months
Stock Options
Stock Options, Number of Shares
Replacement awards (in shares) | shares	162,500
Granted (in shares) | shares	225,100
Balance at end of period (in shares) | shares	387,600	387,600
Stock Options, Weighted Average Grant Date Fair Value Per Share
Replacement awards (in dollars per share)	$ 7.84
Granted (in dollars per share)	10.44
Balance at end of period (in dollars per share)	9.35	$ 9.35
Stock Options, Weighted Average Exercise Price Per Share
Replacement awards (in dollars per share)	19.78
Granted (in dollars per share)	27.10
Balance at end of period (in dollars per share)	$ 24.03	$ 24.03
Stock options, additional disclosures
Aggregate intrinsic value | $	$ 2,611,700	$ 2,611,700
Unrecognized compensation expense related to unvested stock options | $	$ 3,000,000	$ 3,000,000
Weighted average remaining vesting period		2 years
Weighted average remaining contractual life		8 years 7 months 6 days
Exercisable, Number of shares | shares	1,900	1,900
Exercisable, Weighted Average Grant Date Fair Value Per Share		$ 3.88
Exercisable Weighted Average Exercise Price Per Share	$ 11.08	$ 11.08
Exercisable, Aggregate Intrinsic Value | $	$ 37,900	$ 37,900
Assumptions used to estimate the fair values of the options granted:
Risk free interest rate (as a percent)		1.82%
Expected volatility (as a percent)		37.00%
Expected life (in years)		6 years
Dividend yield (as a percent)		0.00%
Weighted-average estimated fair value of options granted during the year (in dollars per share)		$ 10.44

Quarterly Financial Data (Detai

Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Data
Net sales	$ 426,471	$ 427,888	$ 403,761	$ 358,460	$ 398,057	$ 397,647	$ 382,794	$ 333,579	$ 1,616,580	$ 1,512,077	$ 1,411,524
Gross profit	104,521	94,002	85,690	73,816	92,765	88,384	84,941	65,578	358,029	331,668	302,678
Operating profit (loss)	42,997	30,191	11,490	(1,147)	24,582	13,783	10,220	(7,868)	83,531	40,717	24,103
Income (loss) from continuing operations	59,669	16,624	6,630	(3,800)	5,941	6,458	6,182	(8,085)	79,123	10,496	(11,551)
Loss from discontinued operations	82		(235)	1	(170)	(79)	(348)	(496)	(152)	(1,093)	(1,187)
Net income (loss)	$ 59,751	$ 16,624	$ 6,395	$ (3,799)	$ 5,771	$ 6,379	$ 5,834	$ (8,581)	$ 78,971	$ 9,403	$ (12,738)
Basic:
Income (loss) from continuing operations	$ 1.58	$ 0.44	$ 0.18	$ (0.10)	$ 0.16	$ 0.17	$ 0.16	$ (0.21)	$ 2.10	$ 0.28	$ (0.31)
Loss from discontinued operations, net			(0.01)				(0.01)	(0.01)		(0.03)	(0.03)
Net income (loss)	1.58	0.44	0.17	(0.10)	0.16	0.17	0.15	(0.22)	2.10	0.25	(0.34)
Diluted:
Income (loss) from continuing operations	1.57	0.44	0.18	(0.10)	0.16	0.17	0.16	(0.21)	2.09	0.28	(0.31)
Loss from discontinued operations, net			(0.01)				(0.01)	(0.01)		(0.03)	(0.03)
Net income (loss)	$ 1.57	$ 0.44	$ 0.17	$ (0.10)	$ 0.16	$ 0.17	$ 0.15	$ (0.22)	$ 2.09	$ 0.25	$ (0.34)

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ in Millions	Mar. 01, 2016USD ($)
Subsequent Events
Share repurchase program, authorized amount	$ 50
Share repurchase program, expiration period	1 year

SCHEDULE II - Valuation and Q66

SCHEDULE II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred:
Income tax (expense) benefit from continuing operations	$ 35,500	$ (5,008)	$ 17,842	$ 22,325
U.S. Federal	13,500	12,633	14,943	19,115
State and local	22,000	(29,108)	1,765	2,493
Deferred tax assets on operating loss carryforwards	31,197	31,197	434,090
Allowances for doubtful accounts, deducted from accounts receivable in the balance sheet:
Valuation And Qualifying Accounts
Balance at Beginning of Period		3,961	4,578	4,877
Additions Charged to Costs and Expenses		4,219	3,563	3,379
Deductions		(4,781)	(4,180)	(3,678)
Balance at End of Period	3,399	3,399	3,961	4,578
Valuation allowance on deferred tax assets:
Valuation And Qualifying Accounts
Balance at Beginning of Period		454,610	452,600	436,380
Additions Charged to Costs and Expenses			3,950	16,990
Additions Charged to Other Accounts			(1,940)	(770)
Deductions		(453,795)
Balance at End of Period	815	815	$ 454,610	$ 452,600
Deferred:
Income tax (expense) benefit from continuing operations		47,200
U.S. Federal		13,500
State and local		33,700
Deferred tax assets on operating loss carryforwards	$ 406,600	$ 406,600