DISCONTINUED OPERATIONS

3 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

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 $475,000 in cash, subject to certain post-closing adjustments. 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. All results and information presented exclude PPC unless otherwise noted. 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 2018. The tax computed on the PPC gain is preliminary and is subject to finalization.

Summarized results of the Company’s discontinued operations are as follows:



	For the Three Months Ended December 31, 2017
Revenue	$	120,430
Cost of goods and services	95,944
Gross profit	24,486
Selling, general and administrative expenses	12,108
Income (loss) from discontinued operations	12,378
Other income (expense)
Gain on sale of business	—
Interest expense, net	(60		)
Other, net	(852		)
Total other income (expense)	(912		)
Income from operations of discontinued operations	$	11,466

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.

In 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 not held for sale in the Condensed Consolidated Balance Sheets:



	At December 31, 2018		At September 30, 2018
Assets of discontinued operations:
Prepaid and other current assets	$	325	$	324
Other long-term assets	2,909		2,916
Total assets of discontinued operations	$	3,234	$	3,240

Liabilities of discontinued operations:
Accrued liabilities, current	$	6,882	$	7,210
Other long-term liabilities	2,510		2,647
Total liabilities of discontinued operations	$	9,392	$	9,857

At December 31, 2018, Griffon's assets and liabilities for PPC and Installations Services and other discontinued operations primarily related to insurance claims, income tax and product liability, warranty and environmental reserves and stay and transaction bonuses totaling liabilities of approximately $9,392.

There was no PPC or Installation Services revenue or income for the quarter months ended December 31, 2018 or 2017.