BUSINESS SEGMENTS

6 Months Ended

Mar. 31, 2016

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 March 31,				For the Six Months Ended March 31,
REVENUE	2016		2015		2016		2015
Home & Building Products:
AMES	$	165,847	$	159,092	$	284,137	$	292,202
CBP	113,387		104,513		256,295		243,113
Home & Building Products	279,234		263,605		540,432		535,315
Telephonics	105,874		98,687		214,911		189,345
PPC	114,999		137,728		238,913		277,520
Total consolidated net sales	$	500,107	$	500,020	$	994,256	$	1,002,180

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 BEFORE TAXES	2016			2015			2016			2015
Segment operating profit:
Home & Building Products	$	17,810		$	8,651		$	38,969		$	25,020
Telephonics	7,875			9,114			15,688			16,631
PPC	5,880			9,867			11,897			17,887
Total segment operating profit	31,565			27,632			66,554			59,538
Net interest expense	(12,348		)	(11,857		)	(24,360		)	(23,494		)
Unallocated amounts	(9,379		)	(7,580		)	(19,007		)	(15,844		)
Income before taxes	$	9,838		$	8,195		$	23,187		$	20,200

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), 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 March 31,						For the Six Months Ended March 31,
	2016			2015			2016			2015
Segment adjusted EBITDA:
Home & Building Products	$	26,338		$	17,330		$	56,167		$	41,800
Telephonics	10,444			11,616			20,788			21,648
PPC	11,781			15,764			23,566			30,315
Total Segment adjusted EBITDA	48,563			44,710			100,521			93,763
Net interest expense	(12,348		)	(11,857		)	(24,360		)	(23,494		)
Segment depreciation and amortization	(16,998		)	(17,078		)	(33,967		)	(34,225		)
Unallocated amounts	(9,379		)	(7,580		)	(19,007		)	(15,844		)
Income before taxes	$	9,838		$	8,195		$	23,187		$	20,200

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	2016		2015		2016		2015
Segment:
Home & Building Products	$	8,528	$	8,679	$	17,198	$	16,780
Telephonics	2,569		2,502		5,100		5,017
PPC	5,901		5,897		11,669		12,428
Total segment depreciation and amortization	16,998		17,078		33,967		34,225
Corporate	120		115		235		228
Total consolidated depreciation and amortization	$	17,118	$	17,193	$	34,202	$	34,453
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	10,835	$	11,114	$	28,115	$	21,375
Telephonics	1,958		1,339		3,238		2,308
PPC	6,956		7,486		13,360		15,165
Total segment	19,749		19,939		44,713		38,848
Corporate	1,185		853		1,239		865
Total consolidated capital expenditures	$	20,934	$	20,792	$	45,952	$	39,713

ASSETS	At March 31, 2016		At September 30, 2015
Segment assets:
Home & Building Products	$	1,079,215	$	1,034,032
Telephonics	296,137		302,560
PPC	350,935		343,519
Total segment assets	1,726,287		1,680,111
Corporate	48,643		47,831
Total continuing assets	1,774,930		1,727,942
Assets of discontinued operations	3,584		3,491
Consolidated total	$	1,778,514	$	1,731,433