DISCONTINUED OPERATIONS

PPC

On November 16, 2017, Griffon announced it entered into a definitive agreement to sell PPC and on February 6, 2018, completed the sale to Berry for approximately $475,000. As a result, Griffon classified the results of operations of the PPC business as discontinued operations in the Consolidated Statements of Operations for all periods presented and classified the related assets and liabilities associated with the discontinued operations in the consolidated balance sheets. PPC is a global leader in the development and production of embossed, laminated and printed specialty plastic films for hygienic, health-care and industrial products and sells to some of the world's largest consumer products companies. In connection with the sale of PPC, the Company recorded a gain of $112,964 (81,041, net of tax) during the year ended September 30, 2018. The tax computed on the PPC gain is preliminary and is subject to finalization.

The following amounts related to the PPC segment have been segregated from Griffon's continuing operations and are reported as discontinued operations:



	For the Year Ended September 30,
	2018			2017			2016
Revenue	$	166,262		$	460,914		$	480,126
Cost of goods and services	132,100			389,416			407,385
Gross profit	34,162			71,498			72,741
Selling, general and administrative expenses	26,303			43,518			45,673
Restructuring charges	—			—			5,900
Total operating expenses	26,303			43,518			51,573
Income from discontinued operations	7,859			27,980			21,168
Other income (expense)
Gain on sale of business	112,964			—			—
Interest expense, net	(155		)	(63		)	(1,234		)
Other, net	(687		)	59			1,018
Total other income (expense)	112,122			(4		)	(216		)
Income from operations of discontinued operations	119,981			27,976			20,952

The Company has no assets or liabilities classified as held for sale as of September 30, 2018. The following amounts related to PPC have been segregated from Griffon's continuing operations and are reported as assets and liabilities of discontinued operations held for sale in the consolidated balance sheet at September 30, 2017:



	At September 30, 2017
ASSETS
Accounts receivable, net	$	51,768
Inventories, net	45,742
Prepaid and other current assets	11,000
PROPERTY, PLANT AND EQUIPMENT, net	185,940
GOODWILL	57,087
INTANGIBLE ASSETS, net	12,298
OTHER ASSETS	6,889
Total Assets Held for Sale	$	370,724
LIABILITIES
Notes payable and current portion of long-term debt	$	11,163
Accounts payable	36,619
Accrued liabilities	14,553
LONG-TERM DEBT, net	10,549
OTHER LIABILITIES	11,566
Total Liabilities Held for Sale	$	84,450

Installation Services and Other Discontinued Activities

In 2008, as a result of the downturn in the residential housing market, Griffon exited substantially all operating activities of its Installation Services segment which sold, installed and serviced garage doors and openers, fireplaces, floor coverings, cabinetry

and a range of related building products, primarily for the new residential housing market. In 2008, Griffon sold eleven units, closed one unit and merged two units into CBP. Griffon substantially concluded its remaining disposal activities in 2009.

Installation Services operating results have been reported as discontinued operations in the Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented; Installation Services is excluded from segment reporting. There was no reported revenue in 2018, 2017 and 2016.

During the year ended September 30, 2017, Griffon recorded $5,700 of reserves in discontinued operations related to historical environmental remediation efforts and to increase the reserve for homeowner association claims (HOA) related to the Clopay Services Corporation discontinued operations in 2008.

The following amounts summarize the total assets and liabilities of PPC and Installation Services and other discontinued activities which have been segregated from Griffon’s continuing operations and are reported as assets and liabilities of discontinued operations in the consolidated balance sheets:



	At September 30, 2018		At September 30, 2017
Assets of discontinued operations:
Prepaid and other current assets	$	324	$	329
Other long-term assets	2,916		2,960
Total assets of discontinued operations	$	3,240	$	3,289

Liabilities of discontinued operations:
Accrued liabilities, current	$	7,210	$	8,342
Other long-term liabilities	2,648		3,037
Total liabilities of discontinued operations	$	9,858	$	11,379

At September 30, 2018, Griffon’s liabilities for PPC and Installations Services and other discontinued operations primarily related to insurance claims, income taxes and product liability, warranty and environmental reserves and stay and transaction bonuses totaling liabilities of approximately $9,858.