<SEC-DOCUMENT>0001558370-17-002705.txt : 20170518
<SEC-HEADER>0001558370-17-002705.hdr.sgml : 20170518
<ACCEPTANCE-DATETIME>20170418160519
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001558370-17-002705
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20170418

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TopBuild Corp
		CENTRAL INDEX KEY:			0001633931
		STANDARD INDUSTRIAL CLASSIFICATION:	CONSTRUCTION SPECIAL TRADE CONTRACTORS [1700]
		IRS NUMBER:				473096382
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		260 JIMMY ANN DRIVE
		CITY:			DAYTONA BEACH
		STATE:			FL
		ZIP:			32114
		BUSINESS PHONE:		(386) 304-2200

	MAIL ADDRESS:	
		STREET 1:		260 JIMMY ANN DRIVE
		CITY:			DAYTONA BEACH
		STATE:			FL
		ZIP:			32114

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Masco SpinCo Corp.
		DATE OF NAME CHANGE:	20150213
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">April 18, 2017</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Mr. W. John Cash</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Branch Chief</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Office of Manufacturing and Construction</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">Division of Corporation Finance</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Securities and Exchange Commission</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">Washington, D.C. 20549-4631</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">Attention:&nbsp;&nbsp;&nbsp;&nbsp;W. John Cash</font>
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		<p style="margin:0pt 0pt 0pt 57.6pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Kevin Stertzel</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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						<font style="display:inline;font-family:Times New Roman,Times,serif;">Re:</font></p>
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					<p style="margin:0pt;font-family:Calibri;line-height:115%;font-size: 11pt;">
						<font style="display:inline;font-family:Times New Roman,Times,serif;">TopBuild Corp.</font></p>
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						<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font></p>
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					<p style="margin:0pt;font-family:Calibri;line-height:115%;font-size: 11pt;">
						<font style="display:inline;font-family:Times New Roman,Times,serif;">Form 10-K for Fiscal Year Ended December 31, 2016</font></p>
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						<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font></p>
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					<p style="margin:0pt;font-family:Calibri;line-height:115%;font-size: 11pt;">
						<font style="display:inline;font-family:Times New Roman,Times,serif;">Filed February 28, 2017</font></p>
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						<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font></p>
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					<p style="margin:0pt;font-family:Calibri;line-height:115%;font-size: 11pt;">
						<font style="display:inline;font-family:Times New Roman,Times,serif;">File No. 1-36870</font></p>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Dear Mr. Cash:</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">This is in response to your letter dated April 13, 2017, commenting on TopBuild Corp.&#x2019;s Form 10-K for the year ended December 31, 2016.&nbsp;&nbsp;For ease of reference, we have repeated the SEC&#x2019;s comment in bold text preceding our response.</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;color:#000000;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;text-decoration:underline;">Form 10-K for Fiscal Year Ended December 31, 2016 </font>
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		<p style="margin:0pt;line-height:100%;color:#000000;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;color:#000000;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;text-decoration:underline;">Financial Statements </font>
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		<p style="margin:0pt;line-height:100%;color:#000000;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;color:#000000;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;text-decoration:underline;">Summary of Significant Accounting Policies </font>
		</p>
		<p style="margin:0pt;line-height:100%;color:#000000;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;color:#000000;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;text-decoration:underline;">Revenue Recognition, page 38 </font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt 0pt 0pt 36pt;line-height:100%;text-indent: -18pt;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;color:#000000;">1.&nbsp;&nbsp;&nbsp;We note your policy disclosure which states that you recognize revenue for your Installation Segment &#x201C;by order within the contract,&#x201D; based on the amount of material installed and associated labor. We note you previously disclosed the use of the percentage of completion method for these revenues. Please tell us if your revenue</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;">&nbsp;</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;color:#000000;">recognition policy has changed and clarify for us and in your disclosure, the meaning of the term &#x201C;by order within the contract.&#x201D; To the extent your accounting policy has changed, please clarify for us the basis for the change and the accounting guidance you are currently following.</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;text-decoration:underline;">Response:</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">We have not changed our revenue recognition policy.&nbsp;&nbsp;In future filings, we will revise our accounting policy disclosure to clarify the meaning of the term &#x201C;by order within the contract&#x201D;.&nbsp; The revised disclosure to be included in our next Form 10-K filing will be as follows (changes are underlined versus the disclosure included in the Form 10-K for the fiscal year ended December 31, 2016):</font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:normal;text-align:justify;text-justify:inter-ideograph;border-bottom:1pt none #D9D9D9 ;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-weight:bold;font-style:italic;color:#000000;font-size:11pt;">Revenue Recognition </font>
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		<p style="margin:0pt;line-height:normal;text-align:justify;text-justify:inter-ideograph;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;font-size:11pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:normal;text-align:justify;text-justify:inter-ideograph;border-top:1pt none #D9D9D9 ;font-family:Times New Roman,Times,serif;font-size: 11pt;">
			<font style="display:inline;color:#000000;font-size:11pt;">We recognize revenue for our Installation segment&nbsp;</font><font style="display:inline;text-decoration:line-through;color:#000000;font-size:11pt;">by</font><font style="display:inline;color:#000000;font-size:11pt;">&nbsp;</font><font style="display:inline;color:#000000;font-size:11pt;text-decoration:underline;">using the percentage of completion method of accounting with respect to each particular</font><font style="display:inline;color:#000000;font-size:11pt;"> order within&nbsp;</font><font style="display:inline;text-decoration:line-through;color:#000000;font-size:11pt;">the</font><font style="display:inline;color:#000000;font-size:11pt;">&nbsp;</font><font style="display:inline;color:#000000;font-size:11pt;text-decoration:underline;">a given customer&#x2019;s</font><font style="display:inline;color:#000000;font-size:11pt;">&nbsp;contract, based on the amount of material installed </font><font style="display:inline;color:#000000;font-size:11pt;text-decoration:underline;">at that customer&#x2019;s location</font><font style="display:inline;color:#000000;font-size:11pt;"> and </font><font style="display:inline;color:#000000;font-size:11pt;text-decoration:underline;">the</font><font style="display:inline;color:#000000;font-size:11pt;"> associated labor costs&nbsp;</font><font style="display:inline;text-decoration:line-through;color:#000000;font-size:11pt;">at our customers&#x2019; locations</font><font style="display:inline;color:#000000;font-size:11pt;text-decoration:underline;">, as compared to </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
		<p><font size="1"> </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><p style="margin:0pt;line-height:normal;text-align:justify;text-justify:inter-ideograph;border-top:1pt none #D9D9D9 ;font-family:Times New Roman,Times,serif;font-size: 11pt;"><font style="display:inline;color:#000000;font-size:11pt;text-decoration:underline;">the total expected cost for the particular order.&nbsp; Each contract contains one or more individual orders, which are based on services delivered.</font><font style="display:inline;color:#000000;font-size:11pt;">&nbsp; The amount of revenue recognized for our Installation segment that had not been billed as of December&nbsp;31, 2016 and 2015 was $28.9&nbsp;million and $23.7 million, respectively.&nbsp; Revenue from our distribution segment is recognized when title to products and risk of loss transfers to our customers.&nbsp;&nbsp;</font><font style="display:inline;font-size:11pt;">At time of sale we record estimated reductions to revenue for customer programs and incentive offerings, including special pricing and other volume&#8209;based incentives.</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">We hope that this letter is fully responsive to your comment. If you have any further questions or would like additional clarification, please contact me at (386)&nbsp;763-2900. </font>
		</p>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Sincerely, </font>
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			<font style="display:inline;font-family:Times New Roman,Times,serif;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">/s/ John S. Peterson</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">John S. Peterson </font>
		</p>
		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">Vice President and Chief Financial Officer</font>
		</p>
		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;">TopBuild Corp.</font>
		</p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;">
		<p><font size="1"> </font></p></div><div style="margin-left:10.2941176470588%;margin-right:10.2941176470588%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr></div>
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