BUSINESS SEGMENTS

3 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Griffon’s reportable segments are as follows:

• HBP is a leading manufacturer and marketer of residential, commercial and industrial garage doors to professional installing dealers and major home center retail chains, as well as a global provider of non-powered landscaping products that make work easier for homeowners and professionals.

• Telephonics develops, designs and manufactures high-technology integrated information, communication and sensor system solutions to military and commercial markets worldwide.

• Plastics is an international leader in the development and production of embossed, laminated and printed specialty plastic films used in a variety of hygienic, health-care and industrial applications.

Information on Griffon’s reportable segments is as follows:

	For the Three Months Ended December 31,
REVENUE	2014		2013
Home & Building Products:
AMES	$	133,110	$	96,608
CBP	138,600		121,842
Home & Building Products	271,710		218,450
Telephonics	90,658		96,025
Plastics	139,792		138,983
Total consolidated net sales	$	502,160	$	453,458

The following table reconciles segment operating profit to income before taxes:

	For the Three Months Ended December 31,
INCOME (LOSS) BEFORE TAXES	2014			2013
Segment operating profit:
Home & Building Products	$	16,369		$	9,393
Telephonics	7,517			10,652
Plastics	8,020			5,825
Total segment operating profit	31,906			25,870
Net interest expense	(11,637		)	(13,101		)
Unallocated amounts	(8,264		)	(7,983		)
Income before taxes	$	12,005		$	4,786

Griffon evaluates performance and allocates resources based on each segment's operating results before interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges, acquisition-related expenses, as applicable (“Segment adjusted EBITDA”). Griffon believes this information is useful to investors for the same reason.

The following table provides a reconciliation of Segment adjusted EBITDA to Income before taxes:

	For the Three Months Ended December 31,
	2014			2013
Segment adjusted EBITDA:
Home & Building Products	$	24,470		$	19,067
Telephonics	10,032			12,396
Plastics	14,551			12,743
Total Segment adjusted EBITDA	49,053			44,206
Net interest expense	(11,637		)	(13,101		)
Segment depreciation and amortization	(17,147		)	(16,696		)
Unallocated amounts	(8,264		)	(7,983		)
Restructuring charges	—			(842		)
Acquisition costs	—			(798		)
Income before taxes	$	12,005		$	4,786

Unallocated amounts typically include general corporate expenses not attributable to a reportable segment.

	For the Three Months Ended December 31,
DEPRECIATION and AMORTIZATION	2014		2013
Segment:
Home & Building Products	$	8,101	$	8,034
Telephonics	2,515		1,744
Plastics	6,531		6,918
Total segment depreciation and amortization	17,147		16,696
Corporate	113		97
Total consolidated depreciation and amortization	$	17,260	$	16,793
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	10,261	$	8,468
Telephonics	969		3,367
Plastics	7,679		5,760
Total segment	18,909		17,595
Corporate	12		321
Total consolidated capital expenditures	$	18,921	$	17,916

ASSETS	At December 31, 2014		At September 30, 2014
Segment assets:
Home & Building Products	$	1,054,456	$	1,030,005
Telephonics	291,818		319,327
Plastics	380,274		389,464
Total segment assets	1,726,548		1,738,796
Corporate	25,384		77,814
Total continuing assets	1,751,932		1,816,610
Assets of discontinued operations	3,731		3,751
Consolidated total	$	1,755,663	$	1,820,361