FAIR VALUE MEASUREMENTS

9 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Text Block]

NOTE 2 – FAIR VALUE MEASUREMENTS

The carrying values of cash and equivalents, accounts receivable, accounts and notes payable and revolving credit debt approximate fair value due to either the short-term nature of such instruments or the fact that the interest rate of the revolving credit debt is based upon current market rates.

The fair values of Griffon’s 2018 senior notes, and 2017 and 2023 4% convertible notes approximated $556,000, $91,000 and $532, respectively, on June 30, 2012. Fair values were based upon quoted market prices (level 1 inputs).

Insurance contracts with a value of $4,213 and trading securities with a value of $290 at June 30, 2012 are measured and recorded at fair value based upon quoted prices in active markets for identical assets (level 1 inputs).

Items Measured at Fair Value on a Recurring Basis

At June 30, 2012, Griffon had $1,250 of Australian dollar contracts at a weighted average rate of $0.97. The contracts, which protect Australia operations from currency fluctuations for U.S. dollar based purchases, do not qualify for hedge accounting. A fair value gain of $15 and $55 was recorded in other assets and to other income for the outstanding contracts, based on similar contract values (level 2 inputs), for the three and nine months ended June 30, 2012, respectively. The contracts expire in 30 to 90 days.