BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2012

Segment Reporting Disclosure [Text Block]

NOTE 11 – BUSINESS SEGMENTS

Griffon’s reportable business segments are as follows:

• 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.

• 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. 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 and acquisition costs to Income before taxes and discontinued operations:

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2012		2011		2012		2011
REVENUE
Home & Building Products:
ATT	$	130,311	$	114,144	$	362,374	$	353,985
CBP		106,910		100,099		309,825		290,840
Home & Building Products		237,221		214,243		672,199		644,825
Telephonics		101,116		103,530		319,621		315,334
Plastics		141,909		137,509		421,889		385,654
Total consolidated net sales	$	480,246	$	455,282	$	1,413,709	$	1,345,813

	For the Three Months Ended June 30,						For the Nine Months Ended June 30,
	2012			2011			2012			2011
INCOME (LOSS) BEFORE TAXES
Segment operating profit (loss):
Home & Building Products	$	17,482		$	13,512		$	35,412		$	18,820
Telephonics		14,113			9,725			40,171			31,643
Plastics		3,506			(305	)		7,879			9,007
Total segment operating profit		35,101			22,932			83,462			59,470
Unallocated amounts		(7,253	)		(7,781	)		(20,041	)		(19,468	)
Loss from debt extinguishment, net		—			—			—			(26,164	)
Net interest expense		(12,855	)		(12,463	)		(38,775	)		(34,839	)
Income (loss) before taxes	$	14,993		$	2,688		$	24,646		$	(21,001	)
Segment profit before depreciation, amortization, restructuring, fair value write-up of acquired inventory sold and acquisition costs:
Home & Building Products	$	25,831		$	22,487		$	59,434		$	59,640
Telephonics		15,886			12,122			46,912			37,457
Plastics		10,117			6,048			27,462			27,065
Total Segment profit before depreciation, amortization, restructuring, fair value write-up of acquired inventory sold and acquisition costs		51,834			40,657			133,808			124,162
Unallocated amounts, less acquisition costs		(7,253	)		(7,781	)		(20,041	)		(19,468	)
Loss from debt extinguishment, net		—			—			—			(26,164	)
Net interest expense		(12,855	)		(12,463	)		(38,775	)		(34,839	)
Segment depreciation and amortization		(16,733	)		(15,607	)		(48,373	)		(44,817	)
Restructuring charges		—			(2,118	)		(1,795	)		(4,723	)
Fair value write-up of acquired inventory sold		—			—			—			(15,152	)
Acquisition costs		—			—			(178	)		—
Income (loss) before taxes	$	14,993		$	2,688		$	24,646		$	(21,001	)

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

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2012		2011		2012		2011
DEPRECIATION and AMORTIZATION
Segment:
Home & Building Products	$	8,349	$	7,460	$	23,571	$	21,548
Telephonics		1,773		1,794		5,219		5,211
Plastics		6,611		6,353		19,583		18,058
Total segment depreciation and amortization		16,733		15,607		48,373		44,817
Corporate		99		93		295		261
Total consolidated depreciation and amortization	$	16,832	$	15,700	$	48,668	$	45,078
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	5,974	$	4,855	$	20,547	$	18,630
Telephonics		4,462		3,854		8,246		5,992
Plastics		7,037		14,415		28,811		40,031
Total segment		17,473		23,124		57,604		64,653
Corporate		17		113		91		321
Total consolidated capital expenditures	$	17,490	$	23,237	$	57,695	$	64,974

	At June 30, 2012		At September 30, 2011
ASSETS
Segment assets:
Home & Building Products	$	963,998	$	972,714
Telephonics		253,709		288,968
Plastics		425,447		450,452
Total segment assets		1,643,154		1,712,134
Corporate		149,455		148,064
Total continuing assets		1,792,609		1,860,198
Assets of discontinued operations		4,277		5,056
Consolidated total	$	1,796,886	$	1,865,254