BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 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 dealers and major home center retail chains, as well as a global provider of non-powered landscaping products for homeowners and professionals.

• Telephonics develops, designs and manufactures high-technology integrated information, communication and sensor system solutions for 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 June 30,				For the Nine Months Ended June 30,
REVENUE	2015		2014		2015		2014
Home & Building Products:
AMES	$	140,614	$	132,179	$	432,816	$	389,492
CBP	131,577		121,814		374,690		334,494
Home & Building Products	272,191		253,993		807,506		723,986
Telephonics	115,340		102,446		304,685		302,656
Plastics	124,163		148,600		401,683		439,542
Total consolidated net sales	$	511,694	$	505,039	$	1,513,874	$	1,466,184

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

	For the Three Months Ended June 30,						For the Nine Months Ended June 30,
INCOME (LOSS) BEFORE TAXES	2015			2014			2015			2014
Segment operating profit:
Home & Building Products	$	16,268		$	9,747		$	41,288		$	27,958
Telephonics	13,284			13,134			29,915			34,463
Plastics	8,299			8,075			26,186			23,252
Total segment operating profit	37,851			30,956			97,389			85,673
Net interest expense	(12,150		)	(11,541		)	(35,644		)	(37,003		)
Unallocated amounts	(9,008		)	(6,521		)	(24,852		)	(22,895		)
Loss from debt extinguishment, net	—			—			—			(38,890		)
Income before taxes	$	16,693		$	12,894		$	36,893		$	(13,115	)

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 and gains (losses) from debt extinguishment, 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 June 30,						For the Nine Months Ended June 30,
	2015			2014			2015			2014
Segment adjusted EBITDA:
Home & Building Products	$	25,386		$	19,596		$	67,186		$	55,787
Telephonics	15,712			15,087			37,360			40,018
Plastics	14,084			14,922			44,399			43,881
Total Segment adjusted EBITDA	55,182			49,605			148,945			139,686
Net interest expense	(12,150		)	(11,541		)	(35,644		)	(37,003		)
Segment depreciation and amortization	(17,331		)	(16,691		)	(51,556		)	(49,723		)
Unallocated amounts	(9,008		)	(6,521		)	(24,852		)	(22,895		)
Loss from debt extinguishment, net	—			—			—			(38,890		)
Restructuring charges	—			(358		)	—			(1,892		)
Acquisition costs	—			(1,600		)	—			(2,398		)
Income (loss) before taxes	$	16,693		$	12,894		$	36,893		$	(13,115	)

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

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
DEPRECIATION and AMORTIZATION	2015		2014		2015		2014
Segment:
Home & Building Products	$	9,118	$	7,891	$	25,898	$	23,539
Telephonics	2,428		1,953		7,445		5,555
Plastics	5,785		6,847		18,213		20,629
Total segment depreciation and amortization	17,331		16,691		51,556		49,723
Corporate	117		104		345		304
Total consolidated depreciation and amortization	$	17,448	$	16,795	$	51,901	$	50,027
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	8,644	$	8,194	$	30,019	$	23,384
Telephonics	1,644		6,082		3,952		14,969
Plastics	4,820		5,063		19,985		15,213
Total segment	15,108		19,339		53,956		53,566
Corporate	544		675		1,409		1,293
Total consolidated capital expenditures	$	15,652	$	20,014	$	55,365	$	54,859

ASSETS	At June 30, 2015		At September 30, 2014
Segment assets:
Home & Building Products	$	1,062,188	$	1,033,453
Telephonics	296,937		319,327
Plastics	348,743		389,464
Total segment assets	1,707,868		1,742,244
Corporate	10,128		64,015
Total continuing assets	1,717,996		1,806,259
Assets of discontinued operations	3,756		3,750
Consolidated total	$	1,721,752	$	1,810,009