BUSINESS SEGMENTS

3 Months Ended

Dec. 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 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.

• PPC 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	2015		2014
Home & Building Products:
AMES	$	118,290	$	133,110
CBP	142,908		138,600
Home & Building Products	261,198		271,710
Telephonics	109,037		90,658
PPC	123,914		139,792
Total consolidated net sales	$	494,149	$	502,160

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

	For the Three Months Ended December 31,
INCOME (LOSS) BEFORE TAXES	2015			2014
Segment operating profit:
Home & Building Products	$	21,159		$	16,369
Telephonics	7,813			7,517
PPC	6,017			8,020
Total segment operating profit	34,989			31,906
Net interest expense	(12,012		)	(11,637		)
Unallocated amounts	(9,628		)	(8,264		)
Income before taxes	$	13,349		$	12,005

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 December 31,
	2015			2014
Segment adjusted EBITDA:
Home & Building Products	$	29,829		$	24,470
Telephonics	10,344			10,032
PPC	11,785			14,551
Total Segment adjusted EBITDA	51,958			49,053
Net interest expense	(12,012		)	(11,637		)
Segment depreciation and amortization	(16,969		)	(17,147		)
Unallocated amounts	(9,628		)	(8,264		)
Income before taxes	$	13,349		$	12,005

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

	For the Three Months Ended December 31,
DEPRECIATION and AMORTIZATION	2015		2014
Segment:
Home & Building Products	$	8,670	$	8,101
Telephonics	2,531		2,515
PPC	5,768		6,531
Total segment depreciation and amortization	16,969		17,147
Corporate	115		113
Total consolidated depreciation and amortization	$	17,084	$	17,260
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	17,280	$	10,261
Telephonics	1,280		969
PPC	6,404		7,679
Total segment	24,964		18,909
Corporate	54		12
Total consolidated capital expenditures	$	25,018	$	18,921

ASSETS	At December 31, 2015		At September 30, 2015
Segment assets:
Home & Building Products	$	1,052,909	$	1,034,032
Telephonics	300,622		302,560
PPC	338,536		343,519
Total segment assets	1,692,067		1,680,111
Corporate	47,186		47,831
Total continuing assets	1,739,253		1,727,942
Assets of discontinued operations	3,936		3,491
Consolidated total	$	1,743,189	$	1,731,433