DISCONTINUED OPERATIONS

9 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

During the quarter ended March 31, 2019, Griffon recorded an $11,000 charge ($7,646, net of tax) to discontinued operations. The charge consisted primarily of a purchase price adjustment to resolve a claim related to the $475,000 PPC divestiture and included an additional reserve for a legacy environmental matter. During the quarter ended June 30, 2019, $9,500 of this charge was paid.

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 June 30, 2019		At September 30, 2018
Assets of discontinued operations:
Prepaid and other current assets	$	323	$	324
Other long-term assets	2,895		2,916
Total assets of discontinued operations	$	3,218	$	3,240

Liabilities of discontinued operations:
Accrued liabilities, current	$	2,653	$	7,210
Other long-term liabilities	2,295		2,647
Total liabilities of discontinued operations	$	4,948	$	9,857

At June 30, 2019, Griffon's assets and liabilities for PPC and Installations Services and other discontinued operations primarily related to the above matter, insurance claims, income tax and product liability, warranty and environmental reserves totaling liabilities of approximately of $4,948.

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 $465,000, net of 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 $117,625 ($86,357, net of tax) during the nine months ended June 30, 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 June 30, 2018			For the Nine Months Ended June 30, 2018
Revenue	$	—		$	166,262
Cost of goods and services	—			132,100
Gross profit	—			34,162
Selling, general and administrative expenses	200			26,303
Income (loss) from discontinued operations	(200		)	7,859
Other income (expense)
Gain on sale of business	—			117,625
Interest expense, net	—			(155		)
Other, net	—			(687		)
Total other income (expense)	—			116,783
Income from operations of discontinued operations	$	(200	)	$	124,642

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. 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 Installation Services revenue or income for the nine months ended June 30, 2019 and 2018.

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.