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CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION
 3 Months Ended
Dec. 31, 2019
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 by Clopay Corporation, Telephonics Corporation, The AMES Companies, Inc., ATT Southern LLC, Clopay Ames 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, 2019 and September 30, 2019 and for the three months ended December 31, 2019 and 2018. 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, 2019
 
($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
CURRENT ASSETS
 

 
 

 
 

 
 

 
 

Cash and equivalents
$
3,070

 
$
25,532

 
$
36,190

 
$
—

 
$
64,792

Accounts receivable, net of allowances
—

 
241,261

 
32,533

 
(1,222
)
 
272,572

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

 
94,672

 
2,154

 
—

 
96,826

Inventories, net
—

 
391,447

 
75,869

 
(247
)
 
467,069

Prepaid and other current assets
11,041

 
26,573

 
6,906

 
(146
)
 
44,374

Assets of discontinued operations
—

 
—

 
321

 
—

 
321

Total Current Assets
14,111

 
779,485

 
153,973

 
(1,615
)
 
945,954

PROPERTY, PLANT AND EQUIPMENT, net
1,313

 
284,774

 
46,061

 
—

 
332,148

OPERATING LEASE RIGHT-OF-USE ASSETS
10,483

 
125,259

 
18,637

 
—

 
154,379

GOODWILL
—

 
375,734

 
70,856

 
—

 
446,590

INTANGIBLE ASSETS, net
92

 
222,536

 
135,115

 
—

 
357,743

INTERCOMPANY RECEIVABLE
40,433

 
907,715

 
105,239

 
(1,053,387
)
 
—

EQUITY INVESTMENTS IN SUBSIDIARIES
1,654,370

 
495,645

 
3,353,794

 
(5,503,809
)
 
—

OTHER ASSETS
8,206

 
24,343

 
—

 
(14,444
)
 
18,105

ASSETS OF DISCONTINUED OPERATIONS
—

 
—

 
2,883

 
—

 
2,883

Total Assets
$
1,729,008

 
$
3,215,491

 
$
3,886,558

 
$
(6,573,255
)
 
$
2,257,802

CURRENT LIABILITIES
 

 
 

 
 

 
 

 
 

Notes payable and current portion of long-term debt
$
—

 
$
2,589

 
$
6,862

 
$
—

 
$
9,451

Accounts payable and accrued liabilities
48,147

 
299,912

 
—

 
(1,078
)
 
346,981

Current portion of operating lease liabilities
1,823

 
22,389

 
4,080

 
—

 
28,292

Liabilities of discontinued operations
—

 
—

 
3,787

 
—

 
3,787

Total Current Liabilities
49,970

 
324,890

 
14,729

 
(1,078
)
 
388,511

 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT, net
1,091,638

 
2,743

 
42,753

 
—

 
1,137,134

LONG-TERM OPERATING LEASE LIABILITIES
9,816

 
106,191

 
14,942

 
—

 
130,949

INTERCOMPANY PAYABLES
64,689

 
527,147

 
490,808

 
(1,082,644
)
 
—

OTHER LIABILITIES
18,202

 
79,514

 
13,754

 
(8,171
)
 
103,299

LIABILITIES OF DISCONTINUED OPERATIONS
—

 
—

 
3,216

 
—

 
3,216

Total Liabilities
1,234,315

 
1,040,485

 
580,202

 
(1,091,893
)
 
1,763,109

SHAREHOLDERS’ EQUITY
494,693

 
2,175,006

 
3,306,356

 
(5,481,362
)
 
494,693

Total Liabilities and Shareholders’ Equity
$
1,729,008

 
$
3,215,491

 
$
3,886,558

 
$
(6,573,255
)
 
$
2,257,802


CONDENSED CONSOLIDATING BALANCE SHEETS
At September 30, 2019

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

 
 

 
 

 
 

 
 

Cash and equivalents
$
1,649

 
$
25,217

 
$
45,511

 
$
—

 
$
72,377

Accounts receivable, net of allowances
—

 
227,069

 
38,580

 
(1,199
)
 
264,450

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

 
104,109

 
1,002

 
—

 
105,111

Inventories, net
—

 
372,839

 
69,540

 
(258
)
 
442,121

Prepaid and other current assets
8,238

 
25,754

 
6,951

 
(144
)
 
40,799

Assets of discontinued operations
—

 
—

 
321

 
—

 
321

Total Current Assets
9,887

 
754,988

 
161,905

 
(1,601
)
 
925,179

 
 
 
 
 
 
 
 
 
 
PROPERTY, PLANT AND EQUIPMENT, net
1,184

 
289,282

 
46,860

 
—

 
337,326

GOODWILL
—

 
375,734

 
61,333

 
—

 
437,067

INTANGIBLE ASSETS, net
93

 
224,275

 
132,271

 
—

 
356,639

INTERCOMPANY RECEIVABLE
5,834

 
864,884

 
75,684

 
(946,402
)
 
—

EQUITY INVESTMENTS IN SUBSIDIARIES
1,628,031

 
581,438

 
3,233,038

 
(5,442,507
)
 
—

OTHER ASSETS
8,182

 
24,635

 
(2,352
)
 
(14,625
)
 
15,840

ASSETS OF DISCONTINUED OPERATIONS
—

 
—

 
2,888

 
—

 
2,888

Total Assets
$
1,653,211

 
$
3,115,236

 
$
3,711,627

 
$
(6,405,135
)
 
$
2,074,939

CURRENT LIABILITIES
 

 
 

 
 

 
 

 
 

Notes payable and current portion of long-term debt
$
—

 
$
3,075

 
$
7,450

 
$
—

 
$
10,525

Accounts payable and accrued liabilities
41,796

 
266,411

 
68,390

 
(1,356
)
 
375,241

Liabilities of discontinued operations
—

 
—

 
4,333

 
—

 
4,333

Total Current Liabilities
41,796

 
269,486

 
80,173

 
(1,356
)
 
390,099

LONG-TERM DEBT, net
1,040,449

 
3,119

 
50,181

 
—

 
1,093,749

INTERCOMPANY PAYABLES
71,634

 
457,265

 
444,557

 
(973,456
)
 
—

OTHER LIABILITIES
21,569

 
81,582

 
15,017

 
(8,171
)
 
109,997

LIABILITIES OF DISCONTINUED OPERATIONS
—

 
—

 
3,331

 
—

 
3,331

Total Liabilities
1,175,448

 
811,452

 
593,259

 
(982,983
)
 
1,597,176

SHAREHOLDERS’ EQUITY
477,763

 
2,303,784

 
3,118,368

 
(5,422,152
)
 
477,763

Total Liabilities and Shareholders’ Equity
$
1,653,211

 
$
3,115,236

 
$
3,711,627

 
$
(6,405,135
)
 
$
2,074,939


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended December 31, 2019
 
($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
Revenue
$
—

 
$
441,392

 
$
117,039

 
$
(9,993
)
 
$
548,438

Cost of goods and services
—

 
327,213

 
81,678

 
(10,374
)
 
398,517

Gross profit
—

 
114,179

 
35,361

 
381

 
149,921

Selling, general and administrative expenses
6,018

 
87,848

 
24,024

 
(92
)
 
117,798

 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
(6,018
)
 
26,331

 
11,337

 
473

 
32,123

Other income (expense)
 

 
 

 
 

 
 

 
 

Interest income (expense), net
(6,324
)
 
(9,673
)
 
47

 
—

 
(15,950
)
Other, net
(97
)
 
(1,351
)
 
2,699

 
(473
)
 
778

Total other income (expense)
(6,421
)
 
(11,024
)
 
2,746

 
(473
)
 
(15,172
)
Income (loss) before taxes
(12,439
)
 
15,307

 
14,083

 
—

 
16,951

Provision (benefit) for income taxes
(4,395
)
 
5,727

 
5,007

 
—

 
6,339

Income (loss) before equity in net income of subsidiaries
(8,044
)
 
9,580

 
9,076

 
—

 
10,612

Equity in net income (loss) of subsidiaries
18,656

 
9,196

 
9,580

 
(37,432
)
 
—

 
 
 
 
 
 
 
 
 
 
Net Income (loss)
$
10,612

 
$
18,776

 
$
18,656

 
$
(37,432
)
 
$
10,612

Comprehensive income (loss)
$
17,453

 
$
18,776

 
$
18,656

 
$
(37,432
)
 
$
17,453


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
)
 
—

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 CASH FLOWS
For the Three Months Ended December 31, 2019
($ in thousands)
Parent Company
 
Guarantor Companies
 
Non-Guarantor Companies
 
Elimination
 
Consolidation
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Net income (loss)
$
10,612

 
$
18,776

 
$
18,656

 
$
(37,432
)
 
$
10,612

Net cash provided by (used in) operating activities:
(42,309
)
 
12,888

 
11,252

 
—

 
(18,169
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Acquisition of property, plant and equipment
(212
)
 
(12,463
)
 
(497
)
 
—

 
(13,172
)
Acquired businesses, net of cash acquired
—

 
—

 
(10,531
)
 
—

 
(10,531
)
Proceeds from sale of assets
—

 
184

 
—

 
—

 
184

Net cash provided by (used in) investing activities
(212
)
 
(12,279
)
 
(11,028
)
 
—

 
(23,519
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Purchase of shares for treasury
(1,758
)
 
—

 
—

 
—

 
(1,758
)
Proceeds from long-term debt
65,329

 
13

 
6,615

 
—

 
71,957

Payments of long-term debt
(16,179
)
 
(40
)
 
(15,826
)
 
—

 
(32,045
)
Financing costs
(21
)
 
—

 
—

 
—

 
(21
)
Dividends paid
(3,392
)
 
—

 
—

 
—

 
(3,392
)
Other, net
(37
)
 
(3
)
 
—

 
—

 
(40
)
Net cash provided by (used in) financing activities
43,942

 
(30
)
 
(9,211
)
 
—

 
34,701

CASH FLOWS FROM DISCONTINUED OPERATIONS:
 

 
 

 
 

 
 

 
 

Net cash provided by (used) in discontinued operations
—

 
—

 
(606
)
 
—

 
(606
)
Effect of exchange rate changes on cash and equivalents
—

 
(264
)
 
272

 
—

 
8

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS
1,421

 
315

 
(9,321
)
 
—

 
(7,585
)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
1,649

 
25,217

 
45,511

 
—

 
72,377

CASH AND EQUIVALENTS AT END OF PERIOD
$
3,070

 
$
25,532

 
$
36,190

 
$
—

 
$
64,792


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 (used in) 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

Contingent consideration for acquired businesses
—

 
—

 
(1,686
)
 
—

 
(1,686
)
Financing costs
(67
)
 
—

 
—

 
—

 
(67
)
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 provided by (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