BUSINESS SEGMENTS

12 Months Ended

Sep. 30, 2012

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,
	2012		2011		2010
REVENUE
Home & Building Products:
ATT	$	433,866	$	434,789	$	—
CBP		422,674		404,947		389,366
Home & Building Products		856,540		839,736		389,366
Telephonics		441,503		455,353		434,516
Plastics		563,102		535,713		470,114
Total consolidated net sales	$	1,861,145	$	1,830,802	$	1,293,996

	For the Years Ended September 30,
	2012			2011			2010
INCOME (LOSS) BEFORE TAXES
Segment operating profit:
Home & Building Products	$	37,082		$	28,228		$	4,986
Telephonics		49,232			40,595			38,586
Plastics		13,688			13,308			20,469
Total segment operating profit		100,002			82,131			64,041
Unallocated amounts		(26,346	)		(22,868	)		(27,394	)
Unallocated acquisition costs		—			—			(9,805	)
Loss from debt extinguishment, net		—			(26,164	)		(1,117	)
Net interest expense		(51,715	)		(47,448	)		(11,913	)
Income (loss) before taxes	$	21,941		$	(14,349	)	$	13,812

	For the Years Ended September 30,
	2012			2011			2010
Segment profit before depreciation, amortization, restructuring, fair value write-up of acquired inventory sold and acquisition costs:
Home & Building Products	$	70,467		$	77,119		$	19,351
Telephonics		60,565			50,875			46,120
Plastics		40,000			37,639			42,853
Total Segment profit before depreciation, amortization, restructuring, fair value write-up of acquired inventory sold and acquisition costs		171,032			165,633			108,324
Unallocated amounts		(26,346	)		(22,868	)		(27,394	)
Loss from debt extinguishment, net		—			(26,164	)		(1,117	)
Net interest expense		(51,715	)		(47,448	)		(11,913	)
Segment depreciation and amortization		(65,864	)		(60,361	)		(40,103	)
Restructuring charges		(4,689	)		(7,543	)		(4,180	)
Fair value write-up of acquired inventory sold		—			(15,152	)		—
Acquisition costs		(477	)		(446	)		(9,805	)
Income (loss) before taxes	$	21,941		$	(14,349	)	$	13,812

	For the Years Ended September 30,
	2012		2011		2010
DEPRECIATION and AMORTIZATION
Segment:
Home & Building Products	$	32,034	$	28,796	$	10,185
Telephonics		7,518		7,234		7,534
Plastics		26,312		24,331		22,384
Total segment depreciation and amortization		65,864		60,361		40,103
Corporate		400		351		339
Total consolidated depreciation and amortization	$	66,264	$	60,712	$	40,442
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	24,648	$	28,083	$	10,527
Telephonics		11,979		8,291		12,410
Plastics		32,069		50,824		16,819
Total segment		68,696		87,198		39,756
Corporate		155		419		721
Total consolidated capital expenditures	$	68,851	$	87,617	$	40,477

	At September 30, 2012		At September 30, 2011		At September 30, 2010
ASSETS
Segment assets:
Home & Building Products	$	943,766	$	972,714	$	923,331
Telephonics		255,420		288,968		268,373
Plastics		430,395		450,452		397,470
Total segment assets		1,629,581		1,712,134		1,589,174
Corporate		173,088		148,064		157,645
Total continuing assets		1,802,669		1,860,198		1,746,819
Assets of discontinued operations		3,523		5,056		6,882
Consolidated total	$	1,806,192	$	1,865,254	$	1,753,701

Segment information by geographic region was as follows:

	For the Years Ended September 30,
REVENUE BY GEOGRAPHIC AREA	2012		2011		2010
United States	$	1,317,911	$	1,265,977	$	880,480
Europe		255,323		262,518		220,507
Canada		120,457		125,330		68,934
South America		93,243		96,340		70,450
All other countries		74,210		80,637		53,625
Consolidated revenue	$	1,861,145	$	1,830,802	$	1,293,996

PROPERTY, PLANT & EQUIPMENT BY GEOGRAPHIC AREA	At September 30, 2012		At September 30, 2011		At September 30, 2010
United States	$	254,080	$	234,876	$	216,659
Germany		65,750		74,225		61,860
All other countries		37,049		40,949		36,241
Consolidated property, plant and equipment, net	$	356,879	$	350,050	$	314,760

As a percentage of consolidated revenue, HBP sales to Home Depot were approximately 12% in 2012 and 12% in 2011; Plastics sales to P&G were approximately 13% in 2012, 14% in 2011 and 18% in 2010; and Telephonics’ sales to the United States Government and its agencies, either as a prime contractor or subcontractor, aggregated approximately 19% in 2012, 19% in 2011 and 24% in 2010.