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BUSINESS SEGMENTS
12 Months Ended
Sep. 30, 2011
Segment Reporting Disclosure [Text Block]

NOTE 19 — BUSINESS SEGMENTS


Griffon’s reportable business segments are as follows:


 

 

 

 

•

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

 

 

 

 

•

HBP 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.

 

 

 

 

•

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 operating results before interest income or expense, income taxes and certain nonrecurring items of income or expense.


Information on Griffon’s business segments is as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended September 30,

 

 

 

 

 

 

2011

 

2010

 

2009

 

 

 

 

 

 

REVENUE

 

 

 

 

 

 

 

 

 

 

Home & Building Products:

 

 

 

 

 

 

 

 

 

 

ATT

 

$

434,789

 

$

—

 

$

—

 

CBP

 

 

404,947

 

 

389,366

 

 

393,414

 

 

 

 

 

 

Home & Building Products

 

 

839,736

 

 

389,366

 

 

393,414

 

Telephonics

 

 

455,353

 

 

434,516

 

 

387,881

 

Plastics

 

 

535,713

 

 

470,114

 

 

412,755

 

 

 

 

 

 

Total consolidated net sales

 

$

1,830,802

 

$

1,293,996

 

$

1,194,050

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended September 30,

 

 

 

 

 

 

2011

 

2010

 

2009

 

 

 

 

 

 

INCOME (LOSS) BEFORE TAXES AND DISCONTINUED OPERATIONS

 

 

 

 

 

 

 

 

 

 

Segment operating profit (loss):

 

 

 

 

 

 

 

 

 

 

Home & Building Products

 

$

28,228

 

$

4,986

 

$

(11,326

)

Telephonics

 

 

40,595

 

 

38,586

 

 

34,883

 

Plastics

 

 

13,308

 

 

20,469

 

 

24,072

 

 

 

 

 

 

Total segment operating profit

 

 

82,131

 

 

64,041

 

 

47,629

 

Unallocated amounts

 

 

(22,868

)

 

(27,394

)

 

(20,960

)

Unallocted acquisition costs

 

 

—

 

 

(9,805

)

 

—

 

Loss from debt extinguishment, net

 

 

(26,164

)

 

(1,117

)

 

4,488

 

Net interest expense

 

 

(47,448

)

 

(11,913

)

 

(11,552

)

 

 

 

 

 

Income (loss) before taxes and discontinued operations

 

$

(14,349

)

$

13,812

 

$

19,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit before depreciation, amortization, restructuring, fair value write-up of acquired inventory sold and acquisition costs:

 

 

 

 

 

 

 

 

 

 

Home & Building Products

 

$

77,119

 

$

19,351

 

$

3,137

 

Telephonics

 

 

50,875

 

 

46,120

 

 

41,540

 

Plastics

 

 

37,639

 

 

42,853

 

 

46,002

 

 

 

 

 

 

Total Segment profit before depreciation, amortization, restructuring, fair value write-up of acquired inventory sold and acquisition costs

 

 

165,633

 

 

108,324

 

 

90,679

 

Unallocated amounts, less acquisition costs

 

 

(22,868

)

 

(27,394

)

 

(20,960

)

Loss from debt extinguishment, net

 

 

(26,164

)

 

(1,117

)

 

4,488

 

Net interest expense

 

 

(47,448

)

 

(11,913

)

 

(11,552

)

Segment depreciation and amortization

 

 

(60,361

)

 

(40,103

)

 

(41,810

)

Restructuring charges

 

 

(7,543

)

 

(4,180

)

 

(1,240

)

Fair value write-up of acquired inventory sold

 

 

(15,152

)

 

—

 

 

—

 

Acquisition costs

 

 

(446

)

 

(9,805

)

 

—

 

 

 

 

 

 

Income (loss) before taxes and discontinued operations

 

$

(14,349

)

$

13,812

 

$

19,605

 

 

 

 

 

 


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


 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended September 30,

 

 

 

 

 

 

2011

 

2010

 

2009

 

 

 

 

 

 

DEPRECIATION and AMORTIZATION

 

 

 

 

 

 

 

 

 

 

Segment:

 

 

 

 

 

 

 

 

 

 

Home & Building Products:

 

$

28,796

 

$

10,185

 

$

13,223

 

Telephonics

 

 

7,234

 

 

7,534

 

 

6,657

 

Plastics

 

 

24,331

 

 

22,384

 

 

21,930

 

 

 

 

 

 

Total segment depreciation and amortization

 

 

60,361

 

 

40,103

 

 

41,810

 

Corporate

 

 

351

 

 

339

 

 

536

 

 

 

 

 

 

Total consolidated depreciation and amortization

 

$

60,712

 

$

40,442

 

$

42,346

 

 

 

 

 

 

CAPITAL EXPENDITURES

 

 

 

 

 

 

 

 

 

 

Segment:

 

 

 

 

 

 

 

 

 

 

Home & Building Products:

 

$

28,083

 

$

10,527

 

$

7,560

 

Telephonics

 

 

8,291

 

 

12,410

 

 

7,564

 

Plastics

 

 

50,824

 

 

16,819

 

 

16,801

 

 

 

 

 

 

Total segment

 

 

87,198

 

 

39,756

 

 

31,925

 

Corporate

 

 

419

 

 

721

 

 

772

 

 

 

 

 

 

Total consolidated capital expenditures

 

$

87,617

 

$

40,477

 

$

32,697

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

At September
30, 2011

 

At September
30, 2010

 

At September
30, 2009

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Segment assets:

 

 

 

 

 

 

 

 

 

 

Home & Building Products:

 

$

972,714

 

$

923,331

 

$

169,251

 

Telephonics

 

 

288,968

 

 

268,373

 

 

271,809

 

Plastics

 

 

450,452

 

 

397,470

 

 

364,626

 

 

 

 

 

 

Total segment assets

 

 

1,712,134

 

 

1,589,174

 

 

805,686

 

Corporate

 

 

148,064

 

 

157,645

 

 

330,752

 

 

 

 

 

 

Total continuing assets

 

 

1,860,198

 

 

1,746,819

 

 

1,136,438

 

Assets of discontinued operations

 

 

5,056

 

 

6,882

 

 

7,453

 

 

 

 

 

 

Consolidated total

 

$

1,865,254

 

$

1,753,701

 

$

1,143,891

 

 

 

 

 

 


Segment information by geographic region was as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended September 30,

 

 

 

 

 

REVENUE BY GEOGRAPHIC AREA

 

 

2011

 

2010

 

2009

 

 

 

 

 

 

United States

 

$

1,265,975

 

$

882,444

 

$

827,009

 

Europe

 

 

127,690

 

 

117,376

 

 

108,040

 

Canada

 

 

125,330

 

 

68,934

 

 

69,198

 

Brazil

 

 

71,106

 

 

55,570

 

 

41,566

 

All other countries

 

 

240,701

 

 

169,672

 

 

148,237

 

 

 

 

 

 

Consolidated revenue

 

$

1,830,802

 

$

1,293,996

 

$

1,194,050

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT & EQUIPMENT BY
GEOGRAPHIC AREA

 

 

At September
30, 2011

 

At September
30, 2010

 

At September
30, 2009

 

 

 

 

 

 

United States

 

$

234,876

 

$

216,659

 

$

150,132

 

Germany

 

 

74,225

 

 

61,860

 

 

64,503

 

All other countries

 

 

40,949

 

 

36,241

 

 

21,384

 

 

 

 

 

 

Consolidated property, plant and equipment

 

$

350,050

 

$

314,760

 

$

236,019

 

 

 

 

 

 


As a percentage of consolidated revenue, HBP sales to Home Depot were approximately 12% in 2011; Plastics sales to P&G were approximately 14% in 2011, 18% in 2010 and 19% in 2009; and Telephonics’ sales to the United States Government and its agencies, either as a prime contractor or subcontractor, aggregated approximately 19% in 2011, 24% in 2010 and 23% in 2009.