BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

NOTE 11 – BUSINESS SEGMENTS

Griffon’s reportable business segments are as follows:

• Home & Building Products is a leading manufacturer and marketer of residential, commercial and industrial garage doors to professional installing dealers and major home center retail chains, as well as a global provider of non-powered landscaping products that make work easier for homeowners and professionals.

• Telephonics develops, designs and manufactures high-technology integrated information, communication and sensor system solutions to military and commercial markets worldwide.

• Plastics is an international leader in the development and production of embossed, laminated and printed specialty plastic films used in a variety of hygienic, health-care and industrial applications.

Griffon evaluates performance and allocates resources based on each segments’ operating results before interest income or expense, income taxes, depreciation and amortization, gain (losses) from debt extinguishment, unallocated amounts, restructuring charges and costs related to the fair value of inventory for acquisitions. Griffon believes this information is useful to investors for the same reason. The following tables provide a reconciliation of Segment profit and Segment profit before depreciation, amortization, restructuring and fair value write-up of acquired inventory sold to Income before taxes and discontinued operations:

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2011		2010		2011		2010
REVENUE
Home & Building Products:
ATT	$	114,144	$	—	$	353,985	$	—
CBP		100,099		104,325		290,840		286,051
Home & Building Products		214,243		104,325		644,825		286,051
Telephonics		103,530		100,413		315,334		320,222
Plastics		137,509		122,288		385,654		339,887
Total consolidated net sales	$	455,282	$	327,026	$	1,345,813	$	946,160

	For the Three Months Ended June 30,						For the Nine Months Ended June 30,
	2011			2010			2011			2010
INCOME (LOSS) BEFORE TAXES AND DISCONTINUED OPERATIONS
Segment operating profit (loss):
Home & Building Products *	$	13,512		$	2,406		$	18,820		$	5,553
Telephonics		9,725			9,783			31,643			27,400
Plastics		(305	)		6,691			9,007			12,138
Total segment operating profit		22,932			18,880			59,470			45,091
Unallocated amounts		(7,781	)		(8,247	)		(19,468	)		(22,138	)
Loss from debt extinguishment, net		—			—			(26,164	)		(6	)
Net interest expense		(12,463	)		(3,679	)		(34,839	)		(10,124	)
Income (loss) before taxes and discontinued operations	$	2,688		$	6,954		$	(21,001	)	$	12,823
Segment profit before depreciation, amortization, restructuring and fair value write-up of acquired inventory sold:
Home & Building Products	$	22,487		$	5,941		$	59,640		$	16,502
Telephonics		12,122			11,768			37,457			32,798
Plastics		6,048			11,718			27,065			28,611
Total Segment profit before depreciation, amortization, restructuring and fair value write-up of acquired inventory sold		40,657			29,427			124,162			77,911
Unallocated amounts		(7,781	)		(8,247	)		(19,468	)		(22,138	)
Loss from debt extinguishment, net		—			—			(26,164	)		(6	)
Net interest expense		(12,463	)		(3,679	)		(34,839	)		(10,124	)
Segment depreciation and amortization		(15,607	)		(9,058	)		(44,817	)		(29,100	)
Restructuring charges		(2,118	)		(1,489	)		(4,723	)		(3,720	)
Fair value write-up of acquired inventory sold		—			—			(15,152	)		—
Income (loss) before taxes and discontinued operations	$	2,688		$	6,954		$	(21,001	)	$	12,823

* Includes nil and $15,152 of costs related to the sale of inventory that was recorded at fair value in connection with acquisition accounting for ATT for the three and nine months ended June 30, 2011, respectively.

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

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2011		2010		2011		2010
DEPRECIATION and AMORTIZATION
Segment:
Home & Building Products:	$	7,460	$	2,046	$	21,548	$	7,229
Telephonics		1,794		1,985		5,211		5,398
Plastics		6,353		5,027		18,058		16,473
Total segment depreciation and amortization		15,607		9,058		44,817		29,100
Corporate		93		91		261		257
Total consolidated depreciation and amortization	$	15,700	$	9,149	$	45,078	$	29,357
CAPITAL EXPENDITURES
Segment:
Home & Building Products:	$	4,855	$	2,428	$	18,630	$	8,886
Telephonics		3,854		4,021		5,992		10,388
Plastics		14,415		2,325		40,031		6,624
Total segment		23,124		8,774		64,653		25,898
Corporate		113		118		321		683
Total consolidated capital expenditures	$	23,237	$	8,892	$	64,974	$	26,581
					At June 30, 2011		At September 30, 2010
ASSETS
Segment assets:
Home & Building Products:					$	956,536	$	918,012
Telephonics						266,024		268,373
Plastics						465,189		397,470
Total segment assets						1,687,749		1,583,855
Corporate						194,240		157,645
Total continuing assets						1,881,989		1,741,500
Assets of discontinued operations						5,114		6,882
Consolidated total					$	1,887,103	$	1,748,382