DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

During 2019, Griffon recorded an $11,050 charge ($8,335, net of tax) to discontinued operations. The charge consisted primarily of a purchase price adjustment to resolve a claim related to the $465,000 Plastics divestiture and included an additional reserve for a legacy environmental matter. During 2019, $9,500 of this charge was paid.

The following amounts summarize the total assets and liabilities of Plastics 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, 2019		At September 30, 2018
Assets of discontinued operations:
Prepaid and other current assets	$	321	$	324
Other long-term assets	2,888		2,916
Total assets of discontinued operations	$	3,209	$	3,240

Liabilities of discontinued operations:
Accrued liabilities, current	$	4,333	$	7,210
Other long-term liabilities	3,331		2,647
Total liabilities of discontinued operations	$	7,664	$	9,857

At September 30, 2019, Griffon’s liabilities for Plastics, Installations Services and other discontinued operations primarily related to insurance claims, income taxes and product liability, warranty and environmental reserves totaling liabilities of approximately $7,664.

Plastics

On November 16, 2017, Griffon announced it entered into a definitive agreement to sell Plastics and on February 6, 2018, completed the sale to Berry for approximately $465,000, net of certain post-closing adjustments. As a result, Griffon classified the results of operations of the Plastics 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. Plastics 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 Plastics, the Company recorded a $9,500 post-closing adjustment ($7,085, net of tax) during 2019 and recorded a gain on sale of $112,964 ($81,041, net of tax) during 2018.

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



	For the Year Ended September 30,
	2019			2018			2017
Revenue	$	—		$	166,262		$	460,914
Cost of goods and services	—			132,100			389,416
Gross profit	—			34,162			71,498
Selling, general and administrative expenses	9,500			26,303			43,518
Restructuring charges	—			—			—
Total operating expenses	9,500			26,303			43,518
Income from discontinued operations	(9,500		)	7,859			27,980
Other income (expense)
Gain on sale of business	—			112,964			—
Interest expense, net	—			(155		)	(63		)
Other, net	—			(687		)	59
Total other income (expense)	—			112,122			(4		)
Income from operations of discontinued operations	(9,500		)	119,981			27,976

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 HBP. 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 2019, 2018 and 2017.

During 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.