BUSINESS SEGMENTS

3 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Griffon’s reportable segments are as follows:

• HBP is the leading U.S. manufacturer and a global provider of long-handled tools and landscaping products for homeowners and professionals, as well as a leading manufacturer and marketer of residential and commercial garage doors and sells to professional dealers and some of the largest home center retail chains in North America.

• Telephonics is recognized globally as a leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers.

• PPC is a global leader in the development and production of embossed, laminated and printed specialty plastic films for hygienic, health-care and industrial products and sells to some of the world's largest consumer products companies.

Information on Griffon’s reportable segments is as follows:

	For the Three Months Ended December 31,
REVENUE	2016		2015
Home & Building Products:
AMES	$	120,724	$	118,290
CBP	143,460		142,908
Home & Building Products	264,184		261,198
Telephonics	88,093		109,037
PPC	114,823		123,914
Total consolidated net sales	$	467,100	$	494,149

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

	For the Three Months Ended December 31,
INCOME BEFORE TAXES	2016			2015
Segment operating profit:
Home & Building Products	$	22,640		$	21,159
Telephonics	5,391			7,813
PPC	8,031			6,017
Total segment operating profit	36,062			34,989
Net interest expense	(13,367		)	(12,012		)
Unallocated amounts	(9,719		)	(9,628		)
Income before taxes	$	12,976		$	13,349

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 December 31,
	2016			2015
Segment adjusted EBITDA:
Home & Building Products	$	31,807		$	29,829
Telephonics	8,108			10,344
PPC	14,437			11,785
Total Segment adjusted EBITDA	54,352			51,958
Net interest expense	(13,367		)	(12,012		)
Segment depreciation and amortization	(18,290		)	(16,969		)
Unallocated amounts	(9,719		)	(9,628		)
Income before taxes	$	12,976		$	13,349

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

	For the Three Months Ended December 31,
DEPRECIATION and AMORTIZATION	2016		2015
Segment:
Home & Building Products	$	9,167	$	8,670
Telephonics	2,717		2,531
PPC	6,406		5,768
Total segment depreciation and amortization	18,290		16,969
Corporate	104		115
Total consolidated depreciation and amortization	$	18,394	$	17,084
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	6,273	$	17,280
Telephonics	1,296		1,280
PPC	14,906		6,404
Total segment	22,475		24,964
Corporate	3		54
Total consolidated capital expenditures	$	22,478	$	25,018

ASSETS	At December 31, 2016		At September 30, 2016
Segment assets:
Home & Building Products	$	1,027,389	$	1,020,297
Telephonics	318,290		334,631
PPC	358,387		365,920
Total segment assets	1,704,066		1,720,848
Corporate	38,945		59,061
Total continuing assets	1,743,011		1,779,909
Assets of discontinued operations	2,178		2,187
Consolidated total	$	1,745,189	$	1,782,096