WARRANTY LIABILITY

6 Months Ended

Mar. 31, 2023

Product Warranties Disclosures [Abstract]

CPP and HBP offer warranties against product defects for periods generally ranging from one to ten years, with limited lifetime warranties on certain door and fan models. Typical warranties require CPP and HBP to repair or replace the defective products during the warranty period at no cost to the customer. At the time revenue is recognized, Griffon records a liability for warranty costs, estimated based on historical experience, and periodically assesses its warranty obligations and adjusts the liability as necessary. CPP offers an express limited warranty for a period of ninety days on all products from the date of original purchase unless otherwise stated on the product or packaging from the date of original purchase. Warranty costs expected to be incurred in the next 12 months are classified in accrued liabilities. Warranty costs expected to be incurred beyond one year are classified in other long-term liabilities. The current portion of warranty was $20,101 as of March 31, 2023 and $16,786 as of September 30, 2022. The long-term warranty liability was $1,240 at both March 31, 2023 and September 30, 2022.

Changes in Griffon’s warranty liability for the three and six months ended March 31, 2023 and 2022 were as follows:


	Three Months Ended March 31,				Six Months Ended March 31,
	2023		2022		2023		2022
Balance, beginning of period	$	18,939	$	9,572	$	18,026	$	7,818
Warranties issued and changes in estimated pre-existing warranties	6,413		5,788		11,080		9,249
Actual warranty costs incurred	(4,011)		(3,755)		(7,765)		(5,462)
Other warranty liabilities assumed from acquisitions	—		7,592		—		7,592
Balance, end of period	$	21,341	$	19,197	$	21,341	$	19,197