TopBuild Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Closure Costs

Closure Costs

6 Months Ended

Jun. 30, 2017

13. CLOSURE COSTS

We continuously evaluate our national footprint to ensure we are strategically located throughout the U.S. to serve our customers and position ourselves for continued growth. As a result of this evaluation, management approved a plan to consolidate certain back-office support operations to our Daytona Beach, Florida, Branch Support Center. We recognize expenses related to closures and position eliminations at the time of announcement or notification. Such costs included termination and other severance benefits, lease abandonment costs, and other transition costs. Closure costs are reflected in our Condensed Consolidated Statements of Operations as selling, general, and administrative expense. Accrued closure costs are reflected in our Condensed Consolidated Balance Sheets as accrued liabilities. Remaining accrued closure costs are expected to be paid within the next three to six months, except our lease termination costs, which we expect to be paid over the following three years.

The following table details our total estimated closure costs, by cost type, related to the above closure and transition costs, in thousands:


Segment / Cost Type	Closure Costs Liability at December 31, 2016		Closure Costs Incurred for the Six Months Ended June 30, 2017		Cash Payments for the Six Months Ended June 30, 2017		Non-cash Adjustments for the Six Months Ended June 30, 2017		Closure Costs Liability at June 30, 2017
Corporate:
Severance	$	—	$	672	$	(59)	$	(282)	$	331
Lease abandonment		—		582		(52)		(115)		415
Other costs		—		876		(792)		—		84
Total Corporate:	$	—	$	2,130	$	(903)	$	(397)	$	830