XML 22 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
Discontinued Operations
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
DISCONTINUED OPERATIONS
 
The presentation of discontinued operations includes a component or group of components that we have or intend to dispose of, and represents a strategic shift that has (or will have) a major effect on our operations and financial results.  For spin off transactions, discontinued operations treatment is appropriate following the completion of the spin off.

On September 30, 2014, we announced a plan to spin off 100 percent of our Installation and Other Services businesses into an independent, publicly-traded company named TopBuild Corp. (“TopBuild”) through a tax-free distribution of the stock of TopBuild to our stockholders.  We initiated the spin off as TopBuild was no longer considered core to our long-term growth strategy in branded building products. We completed the spin off on June 30, 2015 at which time we accounted for it as a discontinued operation. Losses from this discontinued operation were included in loss from discontinued operations, net, in the condensed consolidated statement of operations for the three-month and six-month periods ended June 30, 2015.
 
The major classes of line items constituting income from discontinued operations, net, were as follows, in millions:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Net sales
$
—

 
$
404

 
$
—

 
$
762

Cost of sales
—

 
318

 
—

 
603

Gross profit
—

 
86

 
—

 
159

Selling, general and administrative expenses
—

 
80

 
—

 
148

Income from discontinued operations
$
—

 
$
6

 
$
—

 
$
11

Income tax expense (A)
—

 
(10
)
 
—

 
(12
)
Loss from discontinued operations, net
$
—

 
$
(4
)
 
$
—

 
$
(1
)
 
(A) The unusual relationship between income tax expense and income from discontinued operations for the three-month and six-month periods ended June 30, 2015 resulted primarily from certain non-deductible transaction costs related to the spin off of TopBuild.

Other selected financial information for TopBuild during the period owned by us was as follows, in millions:
 
Six Months Ended
June 30,
 
2016
 
2015
Depreciation and amortization
$
—

 
$
6

Capital expenditures
$
—

 
$
7

 
In conjunction with the spin off, we entered into a Transition Services Agreement with TopBuild under which we provide administrative services to TopBuild subsequent to the separation.  The fees for services rendered under the Transition Services Agreement are not material to our results of operations.