BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 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 June 30,				For the Nine Months Ended June 30,
REVENUE	2016		2015		2016		2015
Home & Building Products:
AMES	$	122,198	$	140,614	$	406,335	$	432,816
CBP	133,362		131,577		389,657		374,690
Home & Building Products	255,560		272,191		795,992		807,506
Telephonics	91,767		115,340		306,678		304,685
PPC	114,873		124,163		353,786		401,683
Total consolidated net sales	$	462,200	$	511,694	$	1,456,456	$	1,513,874

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 BEFORE TAXES	2016			2015			2016			2015
Segment operating profit:
Home & Building Products	$	23,201		$	16,268		$	62,170		$	41,288
Telephonics	9,471			13,284			25,159			29,915
PPC	1,672			8,299			13,569			26,186
Total segment operating profit	34,344			37,851			100,898			97,389
Net interest expense	(12,960		)	(12,150		)	(37,320		)	(35,644		)
Unallocated amounts	(9,625		)	(9,008		)	(28,632		)	(24,852		)
Income before taxes	$	11,759		$	16,693		$	34,946		$	36,893

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) and restructuring charges, 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 June 30,						For the Nine Months Ended June 30,
	2016			2015			2016			2015
Segment adjusted EBITDA:
Home & Building Products	$	32,082		$	25,386		$	88,249		$	67,186
Telephonics	12,125			15,712			32,913			37,360
PPC	13,588			14,084			37,154			44,399
Total Segment adjusted EBITDA	57,795			55,182			158,316			148,945
Net interest expense	(12,960		)	(12,150		)	(37,320		)	(35,644		)
Segment depreciation and amortization	(17,551		)	(17,331		)	(51,518		)	(51,556		)
Unallocated amounts	(9,625		)	(9,008		)	(28,632		)	(24,852		)
Restructuring charges	(5,900		)	—			(5,900		)	—
Income before taxes	$	11,759		$	16,693		$	34,946		$	36,893

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	2016		2015		2016		2015
Segment:
Home & Building Products	$	8,881	$	9,118	$	26,079	$	25,898
Telephonics	2,654		2,428		7,754		7,445
PPC	6,016		5,785		17,685		18,213
Total segment depreciation and amortization	17,551		17,331		51,518		51,556
Corporate	126		117		361		345
Total consolidated depreciation and amortization	$	17,677	$	17,448	$	51,879	$	51,901
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	9,148	$	8,644	$	37,263	$	30,019
Telephonics	2,360		1,644		5,598		3,952
PPC	5,648		4,820		19,008		19,985
Total segment	17,156		15,108		61,869		53,956
Corporate	139		544		1,378		1,409
Total consolidated capital expenditures	$	17,295	$	15,652	$	63,247	$	55,365

ASSETS	At June 30, 2016		At September 30, 2015
Segment assets:
Home & Building Products	$	1,018,530	$	1,034,032
Telephonics	318,654		302,560
PPC	347,096		343,519
Total segment assets	1,684,280		1,680,111
Corporate	92,013		47,831
Total continuing assets	1,776,293		1,727,942
Assets of discontinued operations	3,348		3,491
Consolidated total	$	1,779,641	$	1,731,433