DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

On September 27, 2021, Griffon announced it was exploring strategic alternatives for its DE segment, which consisted of its Telephonics subsidiary. On June 27, 2022, Griffon completed the sale of Telephonics for $330,000 in cash, excluding customary post-closing adjustments, primarily related to working capital. In connection with the sale of Telephonics, the Company recorded a gain of $107,517 ($89,241, net of tax) for the year ended September 30, 2022.

In accordance with ASC 205-20 Presentation of Financial Statements: Discontinued Operations, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component of an entity meets the criteria in paragraph 205-20-45-10. In the period in which the component meets held-for-sale or discontinued operations criteria the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations.

Defense Electronics (DE or Telephonics)

For the year ended September 30, 2022, the following amounts related to Telephonics have been segregated from Griffon's continuing operations and are reported as discontinued operations:


	For the Year Ended September 30,
	2022
Revenue	$	161,061
Cost of goods and services	125,208
Gross profit	35,853
Selling, general and administrative expenses	26,423


Income from discontinued operations	9,430
Other income (expense)
Gain on sale of business	107,517
Interest income, net	2
Other, net	(604)
Total other income (expense)	106,915
Income from discontinued operations before tax	116,345
Provision for income taxes	20,188
Income from discontinued operations	$	96,157

For the year ended September 30, 2022, depreciation and amortization was excluded from the results since DE was classified as a discontinued operation and, accordingly, the Company ceased depreciation and amortization in accordance with discontinued operations accounting guidelines. Depreciation and amortization for fiscal 2022 would have been approximately $7,442 through the date of disposition on June 27, 2022.

The following amounts summarize the total assets and liabilities related to Installation Services and other discontinued activities which have been segregated from Griffon’s continuing operations, and are reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets:


	At September 30, 2024		At September 30, 2023
Assets of discontinued operations:
Prepaid and other current assets	$	648	$	1,001
Other long-term assets	3,417		4,290
Total assets of discontinued operations	$	4,065	$	5,291

Liabilities of discontinued operations:
Accrued liabilities, current	$	4,498	$	7,148
Other long-term liabilities	3,270		4,650
Total liabilities of discontinued operations	$	7,768	$	11,798

At September 30, 2024 and 2023, Griffon’s liabilities for discontinued operations primarily related to insurance claims, income taxes, product liability, warranty claims and environmental reserves totaling $7,768 and $11,798, respectively. The decrease in assets and liabilities was primarily associated with insurance claims receivable and payable.

Except for revenue from the Telephonics business for the year ended September 30, 2022, as noted above, there was no reported revenue in 2024, 2023 and 2022 for Installations Services and other discontinued operations.