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CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION
 3 Months Ended
Dec. 31, 2018
Consolidating Guarantor And Non Guarantor Financial Information [Abstract]  
CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

Griffon’s Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by the domestic assets of Clopay Building Products Company, Inc., Telephonics Corporation, The AMES Companies, Inc., ATT Southern LLC, Clopay Ames True Temper Holding Corp., ClosetMaid, LLC, CornellCookson, LLC and Cornell Real Estate Holdings, LLC, all of which are indirectly 100% owned by Griffon. In accordance with Rule 3-10 of Regulation S-X promulgated under the Securities Act, presented below are condensed consolidating financial information as of December 31, 2018 and September 30, 2018 and for the three months ended December 31, 2018 and 2017. The financial information may not necessarily be indicative of the results of operations or financial position of the guarantor companies or non-guarantor companies had they operated as independent entities. The guarantor companies and the non-guarantor companies include the consolidated financial results of their wholly-owned subsidiaries accounted for under the equity method.

The indenture relating to the Senior Notes (the “Indenture”) contains terms providing that, under certain limited circumstances, a guarantor will be released from its obligations to guarantee the Senior Notes.  These circumstances include (i) a sale of at least a majority of the stock, or all or substantially all the assets, of the subsidiary guarantor as permitted by the Indenture; (ii) a public equity offering of a subsidiary guarantor that qualifies as a “Minority Business” as defined in the Indenture (generally, a business the EBITDA of which constitutes less than 50% of the segment adjusted EBITDA of the Company for the most recently ended four fiscal quarters), and that meets certain other specified conditions as set forth in the Indenture; (iii) the designation of a guarantor as an “unrestricted subsidiary” as defined in the Indenture, in compliance with the terms of the Indenture; (iv) Griffon exercising its right to defease the Senior Notes, or to otherwise discharge its obligations under the Indenture, in each case in accordance with the terms of the Indenture; and (v) upon obtaining the requisite consent of the holders of the Senior Notes.CONDENSED CONSOLIDATING BALANCE SHEETS
At December 31, 2018
 
($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
CURRENT ASSETS
 

 
 

 
 

 
 

 
 

Cash and equivalents
$
10,629

 
$
32,096

 
$
39,027

 
$
—

 
$
81,752

Accounts receivable, net of allowances
—

 
217,290

 
36,535

 
(474
)
 
253,351

Contract costs and recognized income not yet billed, net of progress payments
—

 
88,019

 
1,213

 
—

 
89,232

Inventories, net
—

 
384,893

 
67,462

 
7

 
452,362

Prepaid and other current assets
8,067

 
22,507

 
6,668

 
2,373

 
39,615

Assets of discontinued operations
—

 
—

 
325

 
—

 
325

Total Current Assets
18,696

 
744,805

 
151,230

 
1,906

 
916,637

PROPERTY, PLANT AND EQUIPMENT, net
887

 
295,409

 
40,194

 
—

 
336,490

GOODWILL
—

 
394,008

 
44,420

 
—

 
438,428

INTANGIBLE ASSETS, net
93

 
279,849

 
85,439

 
—

 
365,381

INTERCOMPANY RECEIVABLE
67,780

 
621,995

 
58,690

 
(748,465
)
 
—

EQUITY INVESTMENTS IN SUBSIDIARIES
1,542,276

 
508,267

 
3,029,840

 
(5,080,383
)
 
—

OTHER ASSETS
6,708

 
17,057

 
(2,136
)
 
(6,685
)
 
14,944

ASSETS OF DISCONTINUED OPERATIONS
—

 
—

 
2,909

 
—

 
2,909

Total Assets
$
1,636,440

 
$
2,861,390

 
$
3,410,586

 
$
(5,833,627
)
 
$
2,074,789

CURRENT LIABILITIES
 

 
 

 
 

 
 

 
 

Notes payable and current portion of long-term debt
$
2,276

 
$
3,448

 
$
7,148

 
$
—

 
$
12,872

Accounts payable and accrued liabilities
27,556

 
280,395

 
32,424

 
7,195

 
347,570

Liabilities of discontinued operations
—

 
—

 
6,882

 
—

 
6,882

Total Current Liabilities
29,832

 
283,843

 
46,454

 
7,195

 
367,324

 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT, net
1,077,036

 
5,250

 
59,793

 
—

 
1,142,079

INTERCOMPANY PAYABLES
51,497

 
283,010

 
415,912

 
(750,419
)
 
—

OTHER LIABILITIES
6,514

 
71,569

 
16,882

 
(3,650
)
 
91,315

LIABILITIES OF DISCONTINUED OPERATIONS
—

 
—

 
2,510

 
—

 
2,510

Total Liabilities
1,164,879

 
643,672

 
541,551

 
(746,874
)
 
1,603,228

SHAREHOLDERS’ EQUITY
471,561

 
2,217,718

 
2,869,035

 
(5,086,753
)
 
471,561

Total Liabilities and Shareholders’ Equity
$
1,636,440

 
$
2,861,390

 
$
3,410,586

 
$
(5,833,627
)
 
$
2,074,789

CONDENSED CONSOLIDATING BALANCE SHEETS
At September 30, 2018

($ in thousands)
Parent
Company
 
Guarantor
Companies
 
Non-Guarantor
Companies
 
Elimination
 
Consolidation
CURRENT ASSETS
 

 
 

 
 

 
 

 
 

Cash and equivalents
$
15,976

 
$
16,353

 
$
37,429

 
$
—

 
$
69,758

Accounts receivable, net of allowances
—

 
234,885

 
69,729

 
(24,105
)
 
280,509

Contract costs and recognized income not yet billed, net of progress payments
—

 
121,393

 
410

 
—

 
121,803

Inventories, net
—

 
332,067

 
66,373

 
(81
)
 
398,359

Prepaid and other current assets
12,179

 
21,313

 
6,168

 
2,461

 
42,121

Assets of discontinued operations
—

 
—

 
324

 
—

 
324

Total Current Assets
28,155

 
726,011

 
180,433

 
(21,725
)
 
912,874

 
 
 
 
 
 
 
 
 
 
PROPERTY, PLANT AND EQUIPMENT, net
936

 
299,920

 
41,636

 
—

 
342,492

GOODWILL
6,646

 
361,507

 
71,242

 
—

 
439,395

INTANGIBLE ASSETS, net
93

 
293,093

 
77,672

 
—

 
370,858

INTERCOMPANY RECEIVABLE
56,396

 
314,394

 
(121,445
)
 
(249,345
)
 
—

EQUITY INVESTMENTS IN SUBSIDIARIES
1,528,932

 
968,330

 
3,347,894

 
(5,845,156
)
 
—

OTHER ASSETS
8,651

 
15,942

 
374

 
(8,612
)
 
16,355

ASSETS OF DISCONTINUED OPERATIONS
—

 
—

 
2,916

 
—

 
2,916

Total Assets
$
1,629,809

 
$
2,979,197

 
$
3,600,722

 
$
(6,124,838
)
 
$
2,084,890

CURRENT LIABILITIES
 

 
 

 
 

 
 

 
 

Notes payable and current portion of long-term debt
$
2,276

 
$
3,398

 
$
7,337

 
$
—

 
$
13,011

Accounts payable and accrued liabilities
26,639

 
303,154

 
59,531

 
(16,474
)
 
372,850

Liabilities of discontinued operations
—

 
(22,327
)
 
29,537

 
—

 
7,210

Total Current Liabilities
28,915

 
284,225

 
96,405

 
(16,474
)
 
393,071

LONG-TERM DEBT, net
1,044,071

 
6,110

 
57,890

 
—

 
1,108,071

INTERCOMPANY PAYABLES
66,058

 
(77,760
)
 
263,227

 
(251,525
)
 
—

OTHER LIABILITIES
16,374

 
73,391

 
20,592

 
(3,647
)
 
106,710

LIABILITIES OF DISCONTINUED OPERATIONS
—

 
—

 
2,647

 
—

 
2,647

Total Liabilities
1,155,418

 
285,966

 
440,761

 
(271,646
)
 
1,610,499

SHAREHOLDERS’ EQUITY
474,391

 
2,693,231

 
3,159,961

 
(5,853,192
)
 
474,391

Total Liabilities and Shareholders’ Equity
$
1,629,809

 
$
2,979,197

 
$
3,600,722

 
$
(6,124,838
)
 
$
2,084,890

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended December 31, 2018
 
($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
Revenue
$
—

 
$
419,244

 
$
98,240

 
$
(6,962
)
 
$
510,522

Cost of goods and services
—

 
309,097

 
65,702

 
(7,323
)
 
367,476

Gross profit
—

 
110,147

 
32,538

 
361

 
143,046

Selling, general and administrative expenses
5,060

 
84,976

 
23,817

 
(99
)
 
113,754

Income (loss) from operations
(5,060
)
 
25,171

 
8,721

 
460

 
29,292

Other income (expense)
 

 
 

 
 

 
 

 
 

Interest income (expense), net
(6,307
)
 
(9,130
)
 
(894
)
 
—

 
(16,331
)
Other, net
(262
)
 
687

 
1,041

 
(462
)
 
1,004

Total other income (expense)
(6,569
)
 
(8,443
)
 
147

 
(462
)
 
(15,327
)
Income (loss) before taxes
(11,629
)
 
16,728

 
8,868

 
(2
)
 
13,965

Provision (benefit) for income taxes
(3,535
)
 
5,974

 
2,775

 
(2
)
 
5,212

Income (loss) before equity in net income of subsidiaries
(8,094
)
 
10,754

 
6,093

 
—

 
8,753

Equity in net income (loss) of subsidiaries
16,847

 
6,050

 
10,754

 
(33,651
)
 
—

Income from continuing operations
$
8,753

 
$
16,804

 
$
16,847

 
$
(33,651
)
 
$
8,753

 
 
 
 
 
 
 
 
 
 
Net Income (loss)
$
8,753

 
$
16,804

 
$
16,847

 
$
(33,651
)
 
$
8,753

Comprehensive income (loss)
$
3,303

 
$
53,569

 
$
(4,551
)
 
$
(49,018
)
 
$
3,303

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended December 31, 2017

($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
Revenue
$
—

 
$
351,312

 
$
92,519

 
$
(6,528
)
 
$
437,303

Cost of goods and services
—

 
262,640

 
60,779

 
(6,895
)
 
316,524

Gross profit
—

 
88,672

 
31,740

 
367

 
120,779

Selling, general and administrative expenses
11,337

 
75,330

 
20,049

 
(92
)
 
106,624

Income (loss) from operations
(11,337
)
 
13,342

 
11,691

 
459

 
14,155

Other income (expense)
 

 
 

 
 

 
 

 
 

Interest income (expense), net
(6,774
)
 
(6,202
)
 
(3,666
)
 
—

 
(16,642
)
Other, net
(5
)
 
1,205

 
(324
)
 
(462
)
 
414

Total other income (expense)
(6,779
)
 
(4,997
)
 
(3,990
)
 
(462
)
 
(16,228
)
Income (loss) before taxes
(18,116
)
 
8,345

 
7,701

 
(3
)
 
(2,073
)
Provision (benefit) for income taxes
(29,692
)
 
2,734

 
2,057

 
(3
)
 
(24,904
)
Income (loss) before equity in net income of subsidiaries
11,576

 
5,611

 
5,644

 
—

 
22,831

Equity in net income (loss) of subsidiaries
19,413

 
(652
)
 
5,611

 
(24,372
)
 
—

Income (loss) from continuing operations
30,989

 
4,959

 
11,255

 
(24,372
)
 
22,831

Income (loss) from discontinued operations
—

 
4,360

 
3,798

 
—

 
8,158

Net Income (loss)
$
30,989

 
$
9,319

 
$
15,053

 
$
(24,372
)
 
$
30,989

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
39,347

 
$
22,769

 
$
47,447

 
$
(70,216
)
 
$
39,347

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Three Months Ended December 31, 2018

($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Net income (loss)
$
8,753

 
$
16,804

 
$
16,847

 
$
(33,651
)
 
$
8,753

Net cash provided by (used in) operating activities:
(23,532
)
 
16,272

 
8,301

 
—

 
1,041

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Acquisition of property, plant and equipment
(18
)
 
(6,935
)
 
(1,444
)
 
—

 
(8,397
)
Acquired businesses, net of cash acquired
(9,219
)
 
—

 
—

 
—

 
(9,219
)
Proceeds from sale of assets
—

 
38

 
13

 
—

 
51

Net cash provided by investing activities
(9,237
)
 
(6,897
)
 
(1,431
)
 
—

 
(17,565
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Purchase of shares for treasury
(1,348
)
 
—

 
—

 
—

 
(1,348
)
Proceeds from long-term debt
32,412

 
—

 
6,553

 
—

 
38,965

Payments of long-term debt
(569
)
 
(855
)
 
(2,898
)
 
—

 
(4,322
)
Change in short-term borrowings
—

 
38

 
—

 
—

 
38

Financing costs
(67
)
 
—

 
—

 
—

 
(67
)
Contingent consideration for acquired businesses
—

 
—

 
(1,686
)
 
—

 
(1,686
)
Dividends paid
(3,143
)
 
—

 
—

 
—

 
(3,143
)
Other, net
137

 
7,240

 
(7,240
)
 
—

 
137

Net cash provided by (used in) financing activities
27,422

 
6,423

 
(5,271
)
 
—

 
28,574

CASH FLOWS FROM DISCONTINUED OPERATIONS:
 

 
 

 
 

 
 

 
 

Net cash used in discontinued operations
—

 
—

 
(458
)
 
—

 
(458
)
Effect of exchange rate changes on cash and equivalents
—

 
(55
)
 
457

 
—

 
402

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS
(5,347
)
 
15,743

 
1,598

 
—

 
11,994

CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
15,976

 
16,353

 
37,429

 
—

 
69,758

CASH AND EQUIVALENTS AT END OF PERIOD
$
10,629

 
$
32,096

 
$
39,027

 
$
—

 
$
81,752

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Three Months Ended December 31, 2017
 
($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Net income (loss)
$
30,989

 
$
9,319

 
$
15,053

 
$
(24,372
)
 
$
30,989

Net (income) loss from discontinued operations
—

 
(4,360
)
 
(3,798
)
 
—

 
(8,158
)
Net cash provided by (used in) operating activities:
(68,932
)
 
48,147

 
15,131

 
—

 
(5,654
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Acquisition of property, plant and equipment
(121
)
 
(7,984
)
 
(2,680
)
 
—

 
(10,785
)
Acquired businesses, net of cash acquired
(194,001
)
 
(4,682
)
 
—

 
—

 
(198,683
)
Proceeds from sale of assets
—

 
7

 
432

 
—

 
439

Net cash provided by (used in) investing activities
(194,122
)
 
(12,659
)
 
(2,248
)
 
—

 
(209,029
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Purchase of shares for treasury
(4,332
)
 
—

 
—

 
—

 
(4,332
)
Proceeds from long-term debt
326,094

 
976

 
(976
)
 
—

 
326,094

Payments of long-term debt
(45,719
)
 
(1,776
)
 
(5,478
)
 
—

 
(52,973
)
Change in short-term borrowings
—

 
35

 
—

 
—

 
35

Financing costs
(7,392
)
 
—

 
—

 
—

 
(7,392
)
Dividends paid
(2,990
)
 
—

 
—

 
—

 
(2,990
)
Other, net
84

 
(10,524
)
 
10,524

 
—

 
84

Net cash provided by (used in) financing activities
265,745

 
(11,289
)
 
4,070

 
—

 
258,526

CASH FLOWS FROM DISCONTINUED OPERATIONS:
 

 
 

 
 

 
 

 
 

Net cash used in discontinued operations
—

 
(827
)
 
(5,592
)
 
—

 
(6,419
)
Effect of exchange rate changes on cash and equivalents
—

 
(1
)
 
(684
)
 
—

 
(685
)
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS
2,691

 
23,371

 
10,677

 
—

 
36,739

CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
3,240

 
8,066

 
36,375

 
—

 
47,681

CASH AND EQUIVALENTS AT END OF PERIOD
$
5,931

 
$
31,437

 
$
47,052

 
$
—

 
$
84,420