BUSINESS SEGMENTS

6 Months Ended

Mar. 31, 2015

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 March 31,				For the Six Months Ended March 31,
REVENUE	2015		2014		2015		2014
Home & Building Products:
AMES	$	159,092	$	160,705	$	292,202	$	257,313
CBP	104,513		90,838		243,113		212,680
Home & Building Products	263,605		251,543		535,315		469,993
Telephonics	98,687		104,185		189,345		200,210
Plastics	137,728		151,959		277,520		290,942
Total consolidated net sales	$	500,020	$	507,687	$	1,002,180	$	961,145

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

	For the Three Months Ended March 31,						For the Six Months Ended March 31,
INCOME (LOSS) BEFORE TAXES	2015			2014			2015			2014
Segment operating profit:
Home & Building Products	$	8,651		$	8,818		$	25,020		$	18,211
Telephonics	9,114			10,677			16,631			21,329
Plastics	9,867			9,352			17,887			15,177
Total segment operating profit	27,632			28,847			59,538			54,717
Net interest expense	(11,857		)	(12,361		)	(23,494		)	(25,462		)
Unallocated amounts	(7,580		)	(8,391		)	(15,844		)	(16,374		)
Loss from debt extinguishment, net	—			(38,890		)	—			(38,890		)
Income before taxes	$	8,195		$	(30,795	)	$	20,200		$	(26,009	)

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 (loss) before taxes:

	For the Three Months Ended March 31,						For the Six Months Ended March 31,
	2015			2014			2015			2014
Segment adjusted EBITDA:
Home & Building Products	$	17,330		$	17,124		$	41,800		$	36,191
Telephonics	11,616			12,535			21,648			24,931
Plastics	15,764			16,216			30,315			28,959
Total Segment adjusted EBITDA	44,710			45,875			93,763			90,081
Net interest expense	(11,857		)	(12,361		)	(23,494		)	(25,462		)
Segment depreciation and amortization	(17,078		)	(16,336		)	(34,225		)	(33,032		)
Unallocated amounts	(7,580		)	(8,391		)	(15,844		)	(16,374		)
Loss from debt extinguishment, net	—			(38,890		)	—			(38,890		)
Restructuring charges	—			(692		)	—			(1,534		)
Acquisition costs	—			—			—			(798		)
Income (loss) before taxes	$	8,195		$	(30,795	)	$	20,200		$	(26,009	)

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

	For the Three Months Ended March 31,				For the Six Months Ended March 31,
DEPRECIATION and AMORTIZATION	2015		2014		2015		2014
Segment:
Home & Building Products	$	8,679	$	7,614	$	16,780	$	15,648
Telephonics	2,502		1,858		5,017		3,602
Plastics	5,897		6,864		12,428		13,782
Total segment depreciation and amortization	17,078		16,336		34,225		33,032
Corporate	115		103		228		200
Total consolidated depreciation and amortization	$	17,193	$	16,439	$	34,453	$	33,232
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	11,114	$	6,722	$	21,375	$	15,190
Telephonics	1,339		5,520		2,308		8,887
Plastics	7,486		4,390		15,165		10,150
Total segment	19,939		16,632		38,848		34,227
Corporate	853		297		865		618
Total consolidated capital expenditures	$	20,792	$	16,929	$	39,713	$	34,845

ASSETS	At March 31, 2015		At September 30, 2014
Segment assets:
Home & Building Products	$	1,091,443	$	1,030,005
Telephonics	291,535		319,327
Plastics	354,150		389,464
Total segment assets	1,737,128		1,738,796
Corporate	6,241		64,015
Total continuing assets	1,743,369		1,802,811
Assets of discontinued operations	3,884		3,750
Consolidated total	$	1,747,253	$	1,806,561