TopBuild (BLD) 10-Q 11 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document and Entity Information
Entity Registrant Name	TopBuild Corp
Entity Central Index Key	1,633,931
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		38,460,478
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 108,150	$ 112,848
Receivables, net of an allowance for doubtful accounts of $3,334 and $3,399 at March 31, 2016 and December 31, 2015, respectively	243,000	235,549
Inventories, net	108,016	118,701
Prepaid expenses and other current assets	6,096	13,263
Total current assets	465,262	480,361
Property and equipment, net	92,098	93,066
Goodwill	1,044,041	1,044,041
Other intangible assets, net	1,778	1,987
Deferred tax assets, net	20,549	20,549
Other assets	2,127	2,245
Total Assets	1,625,855	1,642,249
Current liabilities:
Accounts payable	223,308	253,311
Current portion of long-term debt	17,500	15,000
Accrued liabilities	65,527	58,369
Total current liabilities	306,335	326,680
Long-term debt	173,543	178,457
Deferred tax liabilities, net	181,251	181,254
Long-term portion of insurance reserves	38,641	39,655
Other liabilities	435	474
Total Liabilities	$ 700,205	$ 726,520
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value: 10,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2016 and December 31, 2015
Common stock, $0.01 par value: 250,000,000 shares authorized; 38,480,200 and 38,268,375 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 385	$ 377
Treasury stock, 53,408 shares at March 31, 2016, at cost	(1,539)
Additional paid-in capital	839,312	838,976
Retained earnings	87,492	76,376
Total equity	925,650	915,729
Total liabilities and equity	$ 1,625,855	$ 1,642,249

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 3,334	$ 3,399
Preferred Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares, Issued	0	0
Preferred Stock, Shares, Outstanding	0	0
Common Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	38,480,200	38,268,375
Common Stock, Shares, Outstanding	38,480,200	38,268,375
Treasury stock, shares at cost	53,408

CONSLIDATED STATEMENT OF OPERAT

CONSLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 414,024	$ 358,460
Cost of sales	324,569	284,644
Gross profit	89,455	73,816
Selling, general and administrative expenses	69,688	74,963
Operating profit (loss)	19,767	(1,147)
Other income (expense), net:
Interest expense	(1,673)	(3,161)
Other, net	75	8
Other expense, net	(1,598)	(3,153)
Income (loss) from continuing operations before income taxes	18,169	(4,300)
Income tax (expense) benefit from continuing operations	(7,053)	500
Income (loss) from continuing operations	11,116	(3,800)
Income from discontinued operations, net		1
Net income (loss)	$ 11,116	$ (3,799)
Basic:
Income (loss) from continuing operations	$ 0.29	$ (0.10)
Net income (loss)	0.29	(0.10)
Diluted:
Income (loss) from continuing operations	0.29	(0.10)
Net income (loss)	$ 0.29	$ (0.10)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net Cash From (For) Operating Activities:
Net income (loss)	$ 11,116	$ (3,799)
Adjustments to reconcile net income to net cash from (for) operating activities:
Depreciation and amortization	2,895	3,053
Share-based compensation	1,600	808
Loss on sale of property and equipment	950	97
Provision for bad debt expense	1,054	944
Loss from inventory obsolescence	335	358
Deferred income taxes, net	(3)	(500)
Changes in certain assets and liabilities:
Receivables, net	(8,505)	2,047
Inventories, net	10,350	2,223
Prepaids and other current assets	7,167	450
Accounts payable	(29,846)	(31,265)
Long-term portion of insurance reserves	(1,014)	1,713
Accrued liabilities	7,158	5,232
Other, net	96
Net cash from (for) operating activities	3,353	(18,639)
Cash Flows From (For) Investing Activities:
Purchases of property and equipment	(2,900)	(2,298)
Proceeds from sale of property and equipment	76	369
Other, net	68	140
Net cash for investing activities	(2,756)	(1,789)
Cash Flows From (For) Financing Activities:
Net transfer from Former Parent		21,062
Repayment of long-term debt	(2,500)
Taxes withheld and paid on employees' equity awards	(1,256)
Repurchase of shares of common stock	(1,539)
Net cash (for) from financing activities	(5,295)	21,062
CASH AND CASH EQUIVALENTS:
(Decrease) increase for the year	(4,698)	634
Cash and cash equivalents at beginning of period	112,848	2,965
Cash and cash equivalents at end of period	108,150	$ 3,599
Supplemental disclosure of noncash investing activities:
Accruals for property and equipment	$ 426

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock at Cost	Additional Paid-in Capital	Retained Earnings	Former Parent Investment	Total
Balance at Dec. 31, 2014					$ 952,292	$ 952,292
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(3,799)	(3,799)
Net transfers from Former Parent					24,770	24,770
Balance at Mar. 31, 2015					$ 973,263	973,263
Balance at Dec. 31, 2015	$ 377		$ 838,976	$ 76,376		915,729
Increase (Decrease) in Stockholders' Equity
Net income (loss)				11,116		11,116
Share-based compensation			1,600			1,600
Issuance of restricted share awards under long-term equity incentive plan	8		(8)
Repurchase of 53,408 shares of common stock pursuant to Share Repurchase Program		$ (1,539)				(1,539)
50,728 shares of common stock withheld to satisfy statutory withholding requirements			(1,256)			(1,256)
Balance at Mar. 31, 2016	$ 385	$ (1,539)	$ 839,312	$ 87,492		$ 925,650

CONSOLIDATED STATEMENTS OF EQU7

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2016shares
CONSOLIDATED STATEMENTS OF EQUITY
Repurchase of shares of common stock pursuant to Share Repurchase Program (in shares)	53,408
Numberof shares of common stock withheld to satisfy statutory withholding requirements (in shares)	50,728

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Basis of Presentation
Basis of Presentation	1. BASIS OF PRESENTATIO N 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 common stock. References to “TopBuild,” the “Company,” “we,” “our,” and “us” refer to TopBuild Corp. and its consolidated subsidiaries. These condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . 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 sale 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. In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to state fairly our financial position as of March 31, 2016 , our results of operations for the three months ended March 31, 2016 , and cash flows for the three months ended March 31, 2016 . The Condensed Consolidated Balance Sheet at December 31, 2015 , was derived from our audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Accounting Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies
Accounting Policies	2. ACCOUNTING POLICIES Financial Statement Presentation. The condensed consolidated financial statements have been developed in conformity with U.S. GAAP, which requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. Our financial statements for the periods prior to the Separation have been derived from the financial statements and accounting records of Masco using the historical results of operations and historical basis of assets and liabilities of the Services Business, and reflect Masco’s net investment in the Services Business. All intercompany transactions between TopBuild entities have been eliminated. Transactions between TopBuild and Masco prior to the Separation, with the exception of purchase transactions, are reflected in the Condensed Consolidated Statements of Cash Flows as a financing activity in “Net transfer from Former Parent” and in the Condensed Consolidated Statements of Changes in Equity as “Former Parent Investment.” The accompanying condensed consolidated financial statements for the periods prior to the Separation include allocations of general corporate expenses 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 $ 7.9 million for the three months ended March 31, 2015 . These costs were included in selling, general, and administrative expenses. Prior to the Separation, Masco incurred certain operating expenses on behalf of the Services Business that were allocated to TopBuild based on direct benefit or usage. These allocated operating expenses were $ 4.4 million for the three months ended March 31, 2015 . These costs were included in selling, general, and administrative expenses. An estimate of these operating expenses was allocated to each of TopBuild’s reporting segments based on a percentage of sales. For the periods prior to the Separation, t hese condensed 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 if we had operated as a stand-alone company prior to the Separation would have depended on multiple factors, including organizational structure and strategic decisions made in various areas, including, without limitation, information technology and infrastructure . During the 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 expenses 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. The Company recorded the correction of the error by an out-of-period adjustment in the first quarter of 2015, which is therefore reflected in the three months ended March 31, 2015, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows. Share-based Compensation. Our share-based compensation program currently consists of restricted share awards (“RSAs”) and stock option awards (“Options”). Share-based compensation is reported in selling, general, and administrative expense. The following table details our award types and accounting policies: Award Type: Fair Value Determination Vesting Expense Recognition‡ Expense Measurement Restricted Share Awards Service Condition Closing stock price on date of grant Ratably; 3 or 5 years Straight-line Fair value at grant date Performance Condition Closing stock price on date of grant Cliff; 3 years Straight-line; Adjusted based on meeting or exceeding performance targets Evaluated quarterly; 0 - 200% of fair value at grant date depending on performance Market Condition Monte-Carlo Simulation Cliff; 3 years Straight-line; Recognized even if condition is not met Fair value at grant date Stock Options† Black-Scholes Options Pricing Model Ratably; 3 or 5 years Straight-line Fair value at grant date †Stock options expire no later than 10 years after the grant date. ‡Expense is reversed if award is forfeited prior to vesting. 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 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 prices 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; however, we do not anticipate adopting this standard until the first quarter of 2017. We do not anticipate the adoption of this amendment will have a material impact on our financial position or results of operations . In February 2016, the FASB issued Accounting Standards Update 2016-02 (“ASU 2016-02”), “Leases.” This standard requires a lessee to recognize most leases on their balance sheet. Companies are required to use a modified retrospective transition method for all existing leases. This standard is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We have not yet selected an adoption date nor have we determined the effect on our financial position or results of operations. In March 2016, the FASB issued Accounting Standards Update 2016-09 (“ASU 2016-09”), “Improvements to Employee Share-Based Payment Accounting.” This update is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under this guidance, an entity recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of 2017. Early adoption is permitted. We have not yet selected an adoption date nor have we determined the effect on our financial position or results of operations.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	3 Months Ended
	Mar. 31, 2016
Goodwill and Other Intangibles
Goodwill and Other Intangibles	3. GOODWILL AND OTHER INTANGIBLES The changes in the carrying amount of goodwill for the three months ended March 31, 2016 , by segment, were as follows, in thousands: Gross Goodwill Gross Goodwill Accumulated Net Goodwill at at Impairment at December 31, 2015 March 31, 2016 Losses March 31, 2016 Installation $ $ $ $ Distribution — Total $ $ $ $ Other intangible assets, net includes the carrying value of our definite-lived intangible assets of $1.8 million (net of accumulated amortization of $18.1 million) at March 31, 2016 , and $2.0 million (net of accumulated amortization of $17.9 million) at December 31, 2015 .

Depreciation and Amortization

Depreciation and Amortization	3 Months Ended
	Mar. 31, 2016
Depreciation and Amortization
Depreciation and Amortization	4. DEPRECIATION AND AMORTIZATION The following table sets forth our depreciation and amortization expense for the three months ended March 31, 2016 and 2015 , in thousands: Three Months Ended March 31, 2016 2015 Depreciation $ $ Amortization Total $ $

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2016
Long-Term Debt
Long-Term Debt	5. LONG-TERM DEBT In connection with the Separation, the Company and its 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 the 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 March 31, 2016 , was 2.44 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 reconciles the principal balance of our long-term debt to our Condensed Consolidated Balance Sheets, in thousands: As of March 31, December 31, 2016 2015 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). In addition, the Credit Agreement requires us to maintain a minimum fixed charge coverage ratio of 1.10 :1.00. The Credit Agreement also contains customary events of default. We were compliant with all covenants as of March 31, 2016 . 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 had standby letters of credit outstanding of approximately $55.1 million as of March 31, 2016 . 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	3 Months Ended
	Mar. 31, 2016
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 payable 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 we assumed our debt obligations under the credit facility 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	3 Months Ended
	Mar. 31, 2016
Segment Information
Segment Information	7. SEGMENT INFORMATION Information about us by segment is as follows, in thousands: Three Months Ended March 31, 2016 2015 2016 2015 Net Sales Operating Profit (Loss) (2) Our operations by segment were (1): Installation $ $ $ $ Distribution Intercompany eliminations and other adjustments (3) Total $ $ General corporate expense, net (4) Operating profit (loss), as reported Other expense, net Income (loss) from continuing operations before income taxes $ $ (1) All of our operations are located in the United States. (2) Segment operating profit for the three months ended March 31, 2016, includes an allocation of general corporate expenses attributable to the operating segments which is based on direct benefit or usage (such as salaries of corporate employees who directly support the segment). Segment operating profit for the three months ended March 31, 2015, includes an estimate of general corporate expenses calculated based on a percentage of sales. For the three months ended March 31, 2015, the $0.4 million difference between estimated expenses and actual corporate expenses is recorded in intercompany eliminations and other adjustments. (3) Intercompany eliminations include the elimination of intercompany profit of $3.4 million for each of the three months ended March 31, 2016 and 2015. Other adjustments primarily include differences between estimated and actual corporate costs allocated to the segments for the three months ended March 31, 2015, as noted in footnote (2) above. (4) General corporate expense, net included those expenses not specifically attributable to our segments.

Other Commitments and Contingen

Other Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Other Commitments and Contingencies
Other Commitments and Contingencies	8. 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. Performance bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. Other types of bonds outstanding are principally license and insurance related.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	9. INCOME TAXES Our effective tax rates were 38.8 percent and 11.6 percent for the three months ended March 31, 2016 and 2015, respectively. The lower rate in 2015 was primarily due to a decrease in our valuation allowance resulting from a partial use of our Federal net operating loss carryforward. For 2015 activity through the Separation, we file our tax returns as a member of the Masco consolidated group for U.S. Federal and certain State jurisdictions. As a result, certain tax attributes, primarily the Federal and State net operating loss carryforwards, were treated as assets of the Masco consolidated group, which they were able to utilize through December 31, 2015. Masco fully utilized the Federal net operating loss and certain State net operating losses by the end of 2015. In the fourth quarter of 2015, we released all but $0.8 million of our valuation allowance against U.S. Federal and certain state deferred tax assets, due primarily to a return to sustainable operating profitability.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Earnings Per Share	10. INCOME (LOSS) PER SHAR E 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 income per common share for prior year periods presented was calculated using the shares distributed at Separation. On June 30, 2015, we distributed 37.7 million shares of our common stock to Masco shareholders in conjunction with the Separation. Basic and diluted income (loss) per share were computed as follows (in thousands except share and per share amounts): Three Months Ended March 31, 2016 2015 Income (loss) from continuing operations $ $ Income from discontinued operations, net — Net income (loss) - basic and diluted $ $ Weighted average number of common shares outstanding - basic Dilutive effect of common stock equivalents: RSAs with service-based conditions — RSAs with market-based conditions — — RSAs with performance-based conditions — — Stock options — Weighted average number of common shares outstanding - diluted Basic income (loss) per common share: Income (loss) from continuing operations $ $ Income from discontinued operations, net — — Net income (loss) $ $ Diluted income (loss) per common share: Income (loss) from continuing operations $ $ Income from discontinued operations, net — — Net income (loss) $ $ The following table summarizes the shares excluded from the calculation of diluted income (loss) per share because their effect would have been anti-dilutive: Three Months Ended March 31, 2016 Anti-dilutive common stock equivalents: RSAs with service-based conditions RSAs with market-based conditions RSAs with performance-based conditions — Stock options Total anti-dilutive common stock equivalents:

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2016
Share-Based Compensation.
Share-Based Compensation	11. SHARE-BASED COMPENSATION Prior to the Separation, our employees participated in the Masco share-based compensation program and received restricted share 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 shares, restricted share 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 share awards held by employees of TopBuild as of June 30, 2015, were forfeited upon Separation and replaced with TopBuild long-term incentive awards, issued under the 2015 Plan, 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. Included in selling, general, and administrative expenses is share-based compensation expense of $1.6 million and $0.8 million for the three months ended March 31, 2016 and 2015 , respectively. The following table presents a summary of our share-based compensation activity for the three months ended March 31, 2016 (in thousands, except per share amounts): Restricted Share 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 December 31, 2015 $ $ $ $ Granted Converted/Exercised — — — Forfeited — — — Balance March 31, 2016 $ $ $ $ Exercisable March 31, 2016 $ $ $ As of March 31, 2016 , there was $ 16.8 million of unrecognized compensation expense related to unvested restricted share awards; such awards had a weighted average remaining vesting period of 2.2 years. As of March 31, 2016 , there was $6.8 million of unrecognized compensation expense related to unvested stock options; such options had a weighted average remaining vesting period of 2.3 years and weighted average remaining contractual life of 9.4 years. Our RSAs with performance-based conditions are evaluated on a quarterly basis with adjustments to compensation expense based on the likelihood of the performance target being achieved or exceeded. The following table shows the range of payouts and the related expense for our RSAs with performance-based conditions, dollars in thousands: Payout Ranges and related expense RSAs with performance-based conditions Grant Date Fair Value 0% 25% 100% 200% February 22, 2016 $ $ — $ $ $ The fair value of our RSAs with a market-based condition granted under the 2015 Plan was determined using a Monte Carlo simulation. The following are key inputs in the Monte Carlo analysis: 2016 Remaining measurement period (years) Risk free interest rate % Dividend yield % Estimated fair value of market-based RSAs granted $ The fair values of stock options granted under the 2015 Plan were calculated using the Black-Scholes Options Pricing Model. The following table presents the assumptions used to estimate the fair values of options granted in 2016 and 2015: 2016 2015 Risk free interest rate % % Expected volatility % % Expected life (in years) Dividend yield % % Estimated fair value of options granted $ $

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2016
Share Repurchase Program
Share Repurchase Program	NOTE 12. SHARE REPURCHASE PROGRAM On March 1, 2016, our Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which we may purchase up to $50 million of our common stock. Share repurchases may be executed through various means including, without limitation, open market purchases, privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan. The Share Repurchase Program does not obligate us to purchase any shares and expires in one year. In its discretion, the Board of Directors may terminate, modify, or amend the Share Repurchase Program at any time. During the three months ended March 31, 2016, we repurchased 53,408 shares of our common stock at a cost of approximately $1.5 million.

Closure Costs

Closure Costs	3 Months Ended
	Mar. 31, 2016
Closure Costs
Closure Costs	NOTE 13. CLOSURE COSTS We continuously evaluate our national footprint to ensure we are strategically located throughout the U.S. to serve our customers and position ourselves for continued growth. As a result of this evaluation, management approved a plan to close 13 locations within our Installation and Distribution segments during the first and second quarters of 2016. In conjunction with this evaluation, we eliminated certain positions at our corporate headquarters located in Daytona Beach, Florida. We recognize expenses related to branch closures and position eliminations at the time of announcement or notification. Such costs may include termination and other severance benefits, lease abandonment costs, and other contract termination costs. Closure costs are accrued on our Condensed Consolidated Balance Sheets as part of accrued liabilities and reflected in our Condensed Consolidated Statements of Operations as selling, general, and administrative expense. Unpaid amounts noted as of March 31, 2016, are expected to be paid within the next 12 months. The following table details our total estimated closure costs by cost type and segment related to the above closures and position eliminations, dollars in thousands: Segment / Cost Type Closure Costs Liability at December 31, 2015 Closure Costs Incurred for the Three Months Ended March 31, 2016 Cash Payments for the Three Months Ended March 31, 2016 Closure Costs Liability at March 31, 2016 Installation: Severance $ — $ $ $ Lease abandonment — Total Installation: — Distribution: Severance — — Lease abandonment — — Total Distribution: — Corporate: Severance — — Total Corporate: — — Consolidated: Severance — Lease abandonment — Total Consolidated: $ — $ $ $

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events
Subsequent Events	NOTE 14. SUBSEQUENT EVENTS On May 9, 2016, the Company and its lenders executed an amendment to the Credit Agreement (“the Amendment”). The Amendment provides for the exclusion of up to $50 million of completed share repurchases (on a trailing twelve month basis) from the Credit Agreement’s definition of “Fixed Charges” for the purposes of determining the Company’s compliance with the quarterly Fixed Charge Coverage Ratio (“FCCR”) financial covenant. The Amendment provides for an initial exclusion of up to $25 million and allows for the exclusion of an additional $25 million of completed share repurchases from the FCCR calculation provided that the Company’s Total Leverage Ratio is below 2.0X at the time of such share repurchase and after giving pro forma effect to any such share repurchase.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies
Financial Statement Presentation	Financial Statement Presentation. The condensed consolidated financial statements have been developed in conformity with U.S. GAAP, which requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. Our financial statements for the periods prior to the Separation have been derived from the financial statements and accounting records of Masco using the historical results of operations and historical basis of assets and liabilities of the Services Business, and reflect Masco’s net investment in the Services Business. All intercompany transactions between TopBuild entities have been eliminated. Transactions between TopBuild and Masco prior to the Separation, with the exception of purchase transactions, are reflected in the Condensed Consolidated Statements of Cash Flows as a financing activity in “Net transfer from Former Parent” and in the Condensed Consolidated Statements of Changes in Equity as “Former Parent Investment.” The accompanying condensed consolidated financial statements for the periods prior to the Separation include allocations of general corporate expenses 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 $ 7.9 million for the three months ended March 31, 2015 . These costs were included in selling, general, and administrative expenses. Prior to the Separation, Masco incurred certain operating expenses on behalf of the Services Business that were allocated to TopBuild based on direct benefit or usage. These allocated operating expenses were $ 4.4 million for the three months ended March 31, 2015 . These costs were included in selling, general, and administrative expenses. An estimate of these operating expenses was allocated to each of TopBuild’s reporting segments based on a percentage of sales. For the periods prior to the Separation, t hese condensed 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 if we had operated as a stand-alone company prior to the Separation would have depended on multiple factors, including organizational structure and strategic decisions made in various areas, including, without limitation, information technology and infrastructure . During the 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 expenses 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. The Company recorded the correction of the error by an out-of-period adjustment in the first quarter of 2015, which is therefore reflected in the three months ended March 31, 2015, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows.
Share-based Compensation	Share-based Compensation. Our share-based compensation program currently consists of restricted share awards (“RSAs”) and stock option awards (“Options”). Share-based compensation is reported in selling, general, and administrative expense. The following table details our award types and accounting policies: Award Type: Fair Value Determination Vesting Expense Recognition‡ Expense Measurement Restricted Share Awards Service Condition Closing stock price on date of grant Ratably; 3 or 5 years Straight-line Fair value at grant date Performance Condition Closing stock price on date of grant Cliff; 3 years Straight-line; Adjusted based on meeting or exceeding performance targets Evaluated quarterly; 0 - 200% of fair value at grant date depending on performance Market Condition Monte-Carlo Simulation Cliff; 3 years Straight-line; Recognized even if condition is not met Fair value at grant date Stock Options† Black-Scholes Options Pricing Model Ratably; 3 or 5 years Straight-line Fair value at grant date †Stock options expire no later than 10 years after the grant date. ‡Expense is reversed if award is forfeited prior to vesting.
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 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 prices 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; however, we do not anticipate adopting this standard until the first quarter of 2017. We do not anticipate the adoption of this amendment will have a material impact on our financial position or results of operations . In February 2016, the FASB issued Accounting Standards Update 2016-02 (“ASU 2016-02”), “Leases.” This standard requires a lessee to recognize most leases on their balance sheet. Companies are required to use a modified retrospective transition method for all existing leases. This standard is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We have not yet selected an adoption date nor have we determined the effect on our financial position or results of operations. In March 2016, the FASB issued Accounting Standards Update 2016-09 (“ASU 2016-09”), “Improvements to Employee Share-Based Payment Accounting.” This update is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under this guidance, an entity recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of 2017. Early adoption is permitted. We have not yet selected an adoption date nor have we determined the effect on our financial position or results of operations.

Accounting Policies (Tables)

Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies
Summary of award types and accounting policies	Award Type: Fair Value Determination Vesting Expense Recognition‡ Expense Measurement Restricted Share Awards Service Condition Closing stock price on date of grant Ratably; 3 or 5 years Straight-line Fair value at grant date Performance Condition Closing stock price on date of grant Cliff; 3 years Straight-line; Adjusted based on meeting or exceeding performance targets Evaluated quarterly; 0 - 200% of fair value at grant date depending on performance Market Condition Monte-Carlo Simulation Cliff; 3 years Straight-line; Recognized even if condition is not met Fair value at grant date Stock Options† Black-Scholes Options Pricing Model Ratably; 3 or 5 years Straight-line Fair value at grant date †Stock options expire no later than 10 years after the grant date. ‡Expense is reversed if award is forfeited prior to vesting.

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Other Intangibles
Changes in carrying amount of goodwill by segment	The changes in the carrying amount of goodwill for the three months ended March 31, 2016 , by segment, were as follows, in thousands: Gross Goodwill Gross Goodwill Accumulated Net Goodwill at at Impairment at December 31, 2015 March 31, 2016 Losses March 31, 2016 Installation $ $ $ $ Distribution — Total $ $ $ $

Depreciation and Amortization (

Depreciation and Amortization (Tables)	3 Months Ended
	Mar. 31, 2016
Depreciation and Amortization
Schedule of depreciation and amortization expense	Three Months Ended March 31, 2016 2015 Depreciation $ $ Amortization Total $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Long-Term Debt
Principal balance of our long-term debt	As of March 31, December 31, 2016 2015 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)	3 Months Ended
	Mar. 31, 2016
Segment Information
Schedule of information by segment	Three Months Ended March 31, 2016 2015 2016 2015 Net Sales Operating Profit (Loss) (2) Our operations by segment were (1): Installation $ $ $ $ Distribution Intercompany eliminations and other adjustments (3) Total $ $ General corporate expense, net (4) Operating profit (loss), as reported Other expense, net Income (loss) from continuing operations before income taxes $ $ (1) All of our operations are located in the United States. (2) Segment operating profit for the three months ended March 31, 2016, includes an allocation of general corporate expenses attributable to the operating segments which is based on direct benefit or usage (such as salaries of corporate employees who directly support the segment). Segment operating profit for the three months ended March 31, 2015, includes an estimate of general corporate expenses calculated based on a percentage of sales. For the three months ended March 31, 2015, the $0.4 million difference between estimated expenses and actual corporate expenses is recorded in intercompany eliminations and other adjustments. (3) Intercompany eliminations include the elimination of intercompany profit of $3.4 million for each of the three months ended March 31, 2016 and 2015. Other adjustments primarily include differences between estimated and actual corporate costs allocated to the segments for the three months ended March 31, 2015, as noted in footnote (2) above. General corporate expense, net included those expenses not specifically attributable to our segments.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings 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): Three Months Ended March 31, 2016 2015 Income (loss) from continuing operations $ $ Income from discontinued operations, net — Net income (loss) - basic and diluted $ $ Weighted average number of common shares outstanding - basic Dilutive effect of common stock equivalents: RSAs with service-based conditions — RSAs with market-based conditions — — RSAs with performance-based conditions — — Stock options — Weighted average number of common shares outstanding - diluted Basic income (loss) per common share: Income (loss) from continuing operations $ $ Income from discontinued operations, net — — Net income (loss) $ $ Diluted income (loss) per common share: Income (loss) from continuing operations $ $ Income from discontinued operations, net — — Net income (loss) $ $
Summary of shares excluded from the calculation of diluted income (loss) per share because their effect would have been anti-dilutive	Three Months Ended March 31, 2016 Anti-dilutive common stock equivalents: RSAs with service-based conditions RSAs with market-based conditions RSAs with performance-based conditions — Stock options Total anti-dilutive common stock equivalents:

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Share-Based Compensation
Schedule of share-based compensation activity	The following table presents a summary of our share-based compensation activity for the three months ended March 31, 2016 (in thousands, except per share amounts): Restricted Share 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 December 31, 2015 $ $ $ $ Granted Converted/Exercised — — — Forfeited — — — Balance March 31, 2016 $ $ $ $ Exercisable March 31, 2016 $ $ $
Schedule of assumptions used to estimate the fair values of options granted	2016 2015 Risk free interest rate % % Expected volatility % % Expected life (in years) Dividend yield % % Estimated fair value of options granted $ $
Performance-based conditions | Restricted Stock Awards
Share-Based Compensation
Schedule of the range of payouts and the related expense for RSAs with performance-based conditions	Payout Ranges and related expense RSAs with performance-based conditions Grant Date Fair Value 0% 25% 100% 200% February 22, 2016 $ $ — $ $ $
Market-based conditions | Restricted Stock Awards
Share-Based Compensation
Schedule of key inputs used to estimate the fair value of awards	2016 Remaining measurement period (years) Risk free interest rate % Dividend yield % Estimated fair value of market-based RSAs granted $

Closure Costs (Tables)

Closure Costs (Tables)	3 Months Ended
	Mar. 31, 2016
Closure Costs
Schedule of estimated closure costs by costs type and segment	Segment / Cost Type Closure Costs Liability at December 31, 2015 Closure Costs Incurred for the Three Months Ended March 31, 2016 Cash Payments for the Three Months Ended March 31, 2016 Closure Costs Liability at March 31, 2016 Installation: Severance $ — $ $ $ Lease abandonment — Total Installation: — Distribution: Severance — — Lease abandonment — — Total Distribution: — Corporate: Severance — — Total Corporate: — — Consolidated: Severance — Lease abandonment — Total Consolidated: $ — $ $ $

Basis of Presentation (Details)

Basis of Presentation (Details) - segment	Jun. 30, 2015	Mar. 31, 2016
Basis of Presentation
Percentage Of Capital Distribution	100.00%
Number of reportable segments		2

Accounting Policies - Allocatio

Accounting Policies - Allocation of Expenses (Details) $ in Millions	3 Months Ended
	Mar. 31, 2015USD ($)
Accounting Policies
Allocated general corporate costs	$ 7.9
Allocated operating expenses	4.4
Understatement of Allocation of Corporate Expense
Accounting Policies
Correction or error, amount	$ 1.9

Accounting Policies - Share-Bas

Accounting Policies - Share-Based Compensation (Details)	3 Months Ended
	Mar. 31, 2016
Stock Options | Minimum
Share-Based Compensation
Vesting period	3 years
Stock Options | Maximum
Share-Based Compensation
Vesting period	5 years
Expiration period	10 years
Service-based conditions | Restricted Stock Awards | Minimum
Share-Based Compensation
Vesting period	3 years
Service-based conditions | Restricted Stock Awards | Maximum
Share-Based Compensation
Vesting period	5 years
Performance-based conditions | Restricted Stock Awards
Share-Based Compensation
Vesting period	3 years
Performance-based conditions | Restricted Stock Awards | Minimum
Share-Based Compensation
Expense measurement, payout range (as percent)	0.00%
Performance-based conditions | Restricted Stock Awards | Maximum
Share-Based Compensation
Expense measurement, payout range (as percent)	200.00%
Market-based conditions | Restricted Stock Awards
Share-Based Compensation
Vesting period	3 years

Goodwill and Other Intangible34

Goodwill and Other Intangibles - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Changes in the carrying amount of goodwill
Gross Goodwill	$ 1,806,062	$ 1,806,062
Accumulated Impairment Losses	(762,021)
Net Goodwill	1,044,041	1,044,041
Installation
Changes in the carrying amount of goodwill
Gross Goodwill	1,389,775	1,389,775
Accumulated Impairment Losses	(762,021)
Net Goodwill	627,754
Distribution
Changes in the carrying amount of goodwill
Gross Goodwill	416,287	$ 416,287
Net Goodwill	$ 416,287

Goodwill and Other Intangible35

Goodwill and Other Intangibles - Other intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Other intangible assets
Accumulated amortization	$ (18,100)		$ (17,900)
Net definite-lived intangible assets	1,800		2,000
Other intangible assets, net	1,778		$ 1,987
Amortization expense recognized	$ 209	$ 271

Depreciation and Amortizations

Depreciation and Amortizations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Depreciation and Amortization
Depreciation	$ 2,686	$ 2,782
Amortization	209	271
Total	$ 2,895	$ 3,053

Long-Term Debt - Narratives (De

Long-Term Debt - Narratives (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Long-Term Debt
Letters of credit outstanding	$ 55.1
Credit Agreement
Long-Term Debt
Additional borrowing capacity available, subject to certain conditions	$ 100
Interest rate at period end	2.44%
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
Sublimit available for issuance of letters of credit	100
Sublimit available for swingline loans	$ 15

Long-Term Debt - Schedule of de

Long-Term Debt - Schedule of debt (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Long-Term Debt
Current portion of long-term debt	$ 17,500	$ 15,000
Long term portion of long-term debt	175,000	180,000
Unamortized debt issuance costs	(1,457)	(1,543)
Long-term debt	$ 191,043	$ 193,457

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value on Non-Recurring Basis
Amount of transfers of assets and liabilities measured on a recurring and non-recurring basis between Levels 1, 2 and 3 of the fair value hierarchy	$ 0	$ 0

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment information
Net sales	$ 414,024	$ 358,460
Operating profit (loss)	19,767	(1,147)
Other expense, net	(1,598)	(3,153)
Income from continuing operations before income taxes	18,169	(4,300)
Total Assets	1,625,855		$ 1,642,249
Operating Segment
Segment information
Operating profit (loss)	24,487	6,756
Operating Segment | Installation
Segment information
Net sales	272,878	233,363
Operating profit (loss)	13,506	(1,032)
Operating Segment | Distribution
Segment information
Net sales	160,888	144,611
Operating profit (loss)	14,333	11,377
Intercompany Eliminations and Other Adjustments
Segment information
Net sales	(19,742)	(19,514)
Operating profit (loss)	(3,352)	(3,589)
Intercompany Eliminations
Segment information
Operating profit (loss)	3,400	3,400
Other Adjustments
Segment information
Operating profit (loss)		400
Corporate
Segment information
General corporate expense, net	$ (4,720)	$ (7,903)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Taxes
Effective tax rate (as a percent)	38.80%	11.60%
Deferred tax valuation allowance			$ 0.8

Earnings Per Share - Computatio

Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2015	Mar. 31, 2016	Mar. 31, 2015
Income (loss) from continuing operations		$ 11,116	$ (3,800)
Income from discontinued operations, net			1
Net income (loss)		$ 11,116	$ (3,799)
Weighted average number of common shares outstanding - basic		37,761,423	37,667,947
Dilutive effect of common stock equivalents:
Stock options		24,004
Weighted average number of common shares outstanding - diluted		37,899,110	37,667,947
Basic earnings (loss) per common share:
Income (loss) from continuing operations		$ 0.29	$ (0.10)
Net income (loss)		0.29	(0.10)
Diluted earnings (loss) per common share:
Income (loss) from continuing operations		0.29	(0.10)
Net income (loss)		$ 0.29	$ (0.10)
Other disclosures
Issuance of common stock in conjunction with the Separation (in shares)	37,700,000
Service-based conditions
Dilutive effect of common stock equivalents:
Restricted stock awards		113,683

Earnings Per Share - Anti-dilut

Earnings Per Share - Anti-dilutive common stock equivalents (Details)	3 Months Ended
	Mar. 31, 2016shares
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents	609,311
Restricted Stock Awards | Service-based conditions
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents	99,734
Restricted Stock Awards | Market-based conditions
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents	25,293
Stock Options
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents	484,284

Share-Based Compensation - Expe

Share-Based Compensation - Expense (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Selling, General and Administrative Expenses
Share-Based Compensation
Share-based compensation expense	$ 1.6	$ 0.8
2015 Plan
Share-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	4

Share-Based Compensation - Acti

Share-Based Compensation - Activity (Details) - USD ($)	Feb. 22, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Restricted Stock Awards
Restricted Stock Awards, Number of Shares
Balance at beginning of period (in shares)		586,600
Granted (in shares)		317,200
Converted/Exercised (in shares)		(152,100)
Forfeited (in shares)		(1,200)
Balance at end of period (in shares)		750,500
Restricted Stock Awards, Weighted Average Grant Date Fair Value Per Share
Balance at beginning of period (in dollars per share)		$ 21.97
Granted (in dollars per share)		28.41
Converted/Exercised (in dollars per share)		19.16
Forfeited (in dollars per share)		23.20
Balance at end of period (in dollars per share)		$ 25.25
Restricted stock awards, additional disclosures
Unrecognized compensation expense related to unvested restricted stock awards		$ 16,800,000
Weighted average remaining vesting period		2 years 2 months 12 days
Assumptions used to estimate the fair values of the awards granted:
Remaining measurement period		2 years 10 months 10 days
Risk free interest rate (as a percent)		0.90%
Dividend yield (as a percent)		0.00%
Estimated fair value of awards granted (in dollars per share)		$ 33.77
Stock Options
Stock Options, Number of Shares
Balance at beginning of period (in shares)		387,600
Granted (in shares)		409,300
Balance at end of period (in shares)		796,900
Stock Options, Weighted Average Grant Date Fair Value Per Share
Balance at beginning of period (in dollars per share)		$ 9.35
Granted (in dollars per share)		10.20
Balance at end of period (in dollars per share)		9.79
Stock Options, Weighted Average Exercise Price Per Share
Balance at beginning of period (in dollars per share)		24.03
Granted (in dollars per share)		26.30
Balance at end of period (in dollars per share)		$ 25.20
Stock options, additional disclosures
Aggregate intrinsic value		$ 3,620,400		$ 2,611,700
Unrecognized compensation expense related to unvested stock options		$ 6,800,000
Weighted average remaining vesting period		2 years 3 months 18 days
Weighted average remaining contractual life		9 years 4 months 24 days
Exercisable, Number of shares		71,700
Exercisable, Weighted Average Grant Date Fair Value Per Share		$ 6.69
Exercisable Weighted Average Exercise Price Per Share		$ 16.86
Exercisable, Aggregate Intrinsic Value		$ 923,900
Assumptions used to estimate the fair values of the awards granted:
Risk free interest rate (as a percent)		1.51%	1.82%
Expected volatility (as a percent)		38.00%	37.00%
Expected life (in years)		6 years	6 years
Dividend yield (as a percent)		0.00%	0.00%
Estimated fair value of awards granted (in dollars per share)		$ 10.20	$ 10.44
Performance-based conditions | Restricted Stock Awards
Restricted stock awards, additional disclosures
Grant date fair value	$ 2,351,700
Performance-based conditions | Restricted Stock Awards | Payout Range-0%
Restricted stock awards, additional disclosures
Payout range (as a percent)	0.00%
Performance-based conditions | Restricted Stock Awards | Payout Range-25%
Restricted stock awards, additional disclosures
Payout range (as a percent)	25.00%
Related expenses	$ 587,900
Performance-based conditions | Restricted Stock Awards | Payout Range-100%
Restricted stock awards, additional disclosures
Payout range (as a percent)	100.00%
Related expenses	$ 2,351,700
Performance-based conditions | Restricted Stock Awards | Payout Range-200%
Restricted stock awards, additional disclosures
Payout range (as a percent)	200.00%
Related expenses	$ 4,703,400

Share Repurchase Program (Detai

Share Repurchase Program (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 01, 2016
Share Repurchase Program
Share repurchase program, authorized amount		$ 50,000
Shares repurchased (in shares)	53,408
Cost of shares repurchased	$ 1,539

Closure Costs (Details)

Closure Costs (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Closure Costs
Closure Costs Incurred for the Period	$ 975,700
Cash Payments for the Period	(110,900)
Closure Costs Liability, Ending Balance	864,800
Severance
Closure Costs
Closure Costs Incurred for the Period	693,100
Cash Payments for the Period	(84,500)
Closure Costs Liability, Ending Balance	608,600
Lease abandonment
Closure Costs
Closure Costs Incurred for the Period	282,600
Cash Payments for the Period	(26,400)
Closure Costs Liability, Ending Balance	256,200
Corporate
Closure Costs
Closure Costs Incurred for the Period	97,800
Closure Costs Liability, Ending Balance	97,800
Corporate | Severance
Closure Costs
Closure Costs Incurred for the Period	97,800
Closure Costs Liability, Ending Balance	97,800
Installation | Operating Segment
Closure Costs
Closure Costs Incurred for the Period	795,300
Cash Payments for the Period	(98,300)
Closure Costs Liability, Ending Balance	697,000
Installation | Operating Segment | Severance
Closure Costs
Closure Costs Incurred for the Period	582,700
Cash Payments for the Period	(71,900)
Closure Costs Liability, Ending Balance	510,800
Installation | Operating Segment | Lease abandonment
Closure Costs
Closure Costs Incurred for the Period	212,600
Cash Payments for the Period	(26,400)
Closure Costs Liability, Ending Balance	186,200
Distribution | Operating Segment
Closure Costs
Closure Costs Incurred for the Period	82,600
Cash Payments for the Period	(12,600)
Closure Costs Liability, Ending Balance	70,000
Distribution | Operating Segment | Severance
Closure Costs
Closure Costs Incurred for the Period	12,600
Cash Payments for the Period	(12,600)
Distribution | Operating Segment | Lease abandonment
Closure Costs
Closure Costs Incurred for the Period	70,000
Closure Costs Liability, Ending Balance	$ 70,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Credit Agreement - Amendment $ in Millions	May. 09, 2016USD ($)
Subsequent Events
Maximum exclusion of share repurchases from the Credit Agreement's definition of "Fixed Charges"	$ 50
Initial exclusion of share repurchases from the Credit Agreement's definition of "Fixed Charges"	25
Additional exclusion of share repurchases from the Credit Agreement's definition of "Fixed Charges", provided the Company's Total Leverage Ratio is below specified threshold	$ 25
Total Leverage Ratio used to determine the additional exclusion of completed share repurchases	2