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BUSINESS SEGMENTS
 3 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS

In fiscal 2019, Griffon modified its reportable segment structure to provide investors with improved visibility after a series of portfolio repositioning actions which included the divestiture of the Plastics business, the acquisition of ClosetMaid and its subsequent integration into AMES, and the acquisition of CornellCookson by Clopay. The prior year amounts have been recast to reflect the recent change in Griffon's reporting segment structure. Griffon now reports it operations through three reportable segments from continuing operations, as follows:

•
CPP conducts its operations through AMES. Founded in 1774, AMES is the leading North American manufacturer and a global provider of branded consumer and professional tools and products for home storage and organization, landscaping, and enhancing outdoor lifestyles. CPP sells products globally through a portfolio of leading brands including True Temper, AMES, and ClosetMaid.

•
HBP conducts its operations through Clopay. Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and rolling steel doors in North America.  Residential and commercial sectional garage doors are sold through professional dealers and leading home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. Rolling steel door and grille products designed for commercial, industrial, institutional, and retail use are sold under the CornellCookson brand.

•
DE conducts its operations through Telephonics, founded in 1933, a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers.

Information on Griffon’s reportable segments from continuing operations is as follows:
 
For the Three Months Ended December 31,
 
REVENUE
2019
 
2018
 
Consumer and Professional Products
$
241,076

 
$
216,474

 
Home and Building Products
241,381

 
223,295

 
Defense Electronics
65,981

 
70,753

 
Total consolidated net sales
$
548,438

 
$
510,522

 


Disaggregation of Revenue
Revenue from contracts with customers is disaggregated by end markets, segments and geographic location, as it more accurately depicts the nature and amount of the Company’s revenue. The following table presents revenue disaggregated by end market and segment:
 
For the Three Months Ended December 31,
 
2019
 
2018
Residential repair and remodel
$
35,090

 
$
27,158

Retail
119,620

 
113,365

Residential new construction
14,973

 
14,272

Industrial
10,623

 
9,758

International excluding North America
60,770

 
51,921

Total Consumer and Professional Products
241,076

 
216,474

Residential repair and remodel
121,997

 
113,367

Commercial construction
91,887

 
84,376

Residential new construction
27,497

 
25,552

Total Home and Building Products
241,381

 
223,295

U.S. Government
42,701

 
45,560

International
18,533

 
22,099

Commercial
4,747

 
3,094

Total Defense Electronics
$
65,981

 
$
70,753

Total Consolidated Revenue
$
548,438

 
$
510,522

The following table presents revenue disaggregated by geography based on the location of the Company's customer:
 
For the Three Months Ended December 31, 2019
Revenue by Geographic Area - Destination
Consumer and Professional Products
Home and Building Products
Defense Electronics
Total
United States
$
160,158

$
226,950

$
46,143

$
433,251

Europe
6,605

23

5,985

12,613

Canada
17,781

11,253

2,574

31,608

Australia
54,228

—

606

54,834

All other countries
2,304

$
3,155

10,673

16,132

Consolidated revenue
$
241,076

$
241,381

$
65,981

$
548,438



 
For the Three Months Ended December 31, 2018
Revenue by Geographic Area - Destination
Consumer and Professional Products
Home and Building Products
Defense Electronics
Total
United States
$
142,916

$
209,827

$
48,295

$
401,038

Europe
7,865

17

10,311

18,193

Canada
19,365

10,981

2,629

32,975

Australia
44,039

184

609

44,832

All other countries
2,289

2,286

8,909

13,484

Consolidated revenue
$
216,474

$
223,295

$
70,753

$
510,522




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, loss on debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, 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,
 
 
2019
 
2018
 
Segment adjusted EBITDA:
 

 
 

 
Consumer and Professional Products
$
21,926

 
$
20,565

 
Home and Building Products
40,701

 
31,295

 
Defense Electronics
4,475

 
4,785

 
Segment adjusted EBITDA
67,102

 
56,645

 
Unallocated amounts, excluding depreciation
(11,942
)
 
(11,264
)
 
Adjusted EBITDA
55,160

 
45,381

 
Net interest expense
(15,950
)
 
(16,331
)
 
Depreciation and amortization
(15,825
)
 
(15,085
)
 
Restructuring charges
(6,434
)
 
—

 
Income before taxes
$
16,951

 
$
13,965

 


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

For the Three Months Ended December 31,

DEPRECIATION and AMORTIZATION
2019

2018

Segment:
 

 

Consumer and Professional Products
$
8,231

 
$
7,806

 
Home and Building Products
4,800

 
4,509

 
Defense Electronics
2,644

 
2,636

 
Total segment depreciation and amortization
15,675

 
14,951

 
Corporate
150

 
134

 
Total consolidated depreciation and amortization
$
15,825

 
$
15,085

 







CAPITAL EXPENDITURES
 


 


Segment:
 


 


Consumer and Professional Products
$
3,732

 
$
4,334

 
Home and Building Products
7,939

 
2,811

 
Defense Electronics
1,289

 
1,234

 
Total segment
12,960

 
8,379

 
Corporate
212

 
18

 
Total consolidated capital expenditures
$
13,172

 
$
8,397

 

ASSETS
At December 31, 2019

At September 30, 2019
Segment assets:
 

 
Consumer and Professional Products
$
1,235,734

 
$
1,070,510

Home and Building Products
589,478

 
571,216

Defense Electronics
340,788

 
347,575

Total segment assets
2,166,000

 
1,989,301

Corporate
88,598

 
82,429

Total continuing assets
2,254,598

 
2,071,730

Assets of discontinued operations
3,204

 
3,209

Consolidated total
$
2,257,802

 
$
2,074,939