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BUSINESS SEGMENTS
 6 Months Ended
Mar. 31, 2013
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.

Information on Griffon’s business segments is as follows:


    For the Three Months Ended
March 31, 		    For the Six Months Ended
March 31, 		 
  2013     2012     2013     2012  
REVENUE                                
Home & Building Products:                                
ATT   $ 136,237     $ 133,321     $ 213,546     $ 232,061  
CBP     89,499       91,269       202,366       202,915  
Home & Building Products     225,736       224,590       415,912       434,976  
Telephonics     121,631       113,992       217,681       218,506  
Plastics     141,376       143,849       278,899       279,980  
Total consolidated net sales   $ 488,743     $ 482,431     $ 912,492     $ 933,462  

    For the Three Months Ended
March 31, 		    For the Six Months Ended
March 31, 		 
    2013     2012     2013     2012  
INCOME (LOSS) BEFORE TAXES                                
Segment operating profit:                                
Home & Building Products   $ 3,835     $ 8,096     $ 11,106     $ 17,930  
Telephonics     13,753       13,543       28,398       26,056  
Plastics     916       2,492       3,558       4,372  
Total segment operating profit     18,504       24,131       43,062       48,358  
Net interest expense     (12,909 )     (12,919 )     (25,988 )     (25,919 )
Unallocated amounts     (7,980 )     (6,453 )     (15,567 )     (12,787 )
Loss on pension settlement     —       —       (2,142 )     —  
Income (loss) before taxes   $ (2,385 )   $ 4,759     $ (635 )   $ 9,652  

Griffon evaluates performance and allocates resources based on each segments’ operating results before interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges, acquisition-related expenses, and gains (losses) from pension settlement and debt extinguishment, as applicable (“Segment adjusted EBITDA”). Griffon believes this information is useful to investors for the same reason.


The following table provides a reconciliation of Segment adjusted EBITDA to Income (loss) before taxes:


    For the Three Months Ended
March 31, 		    For the Six Months Ended
March 31, 		 
    2013     2012     2013     2012  
Segment adjusted EBITDA:                                
Home & Building Products   $ 17,555     $ 15,853     $ 34,794     $ 33,603  
Telephonics     15,505       15,336       31,869       31,024  
Plastics     12,352       9,164       21,671       17,344  
Total Segment adjusted EBITDA     45,412       40,353       88,334       81,971  
Net interest expense     (12,909 )     (12,919 )     (25,988 )     (25,919 )
Segment depreciation and amortization     (17,572 )     (16,222 )     (34,828 )     (31,640 )
Unallocated amounts     (7,980 )     (6,453 )     (15,567 )     (12,787 )
Restructuring charges     (9,336 )     —       (10,444 )     (1,795 )
Acquisition costs     —       —       —       (178 )
Loss on pension settlement     —       —       (2,142 )     —  
Income (loss) before taxes   $ (2,385 )   $ 4,759     $ (635 )   $ 9,652  

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


    For the Three Months Ended
March 31, 		    For the Six Months Ended
March 31, 		 
    2013     2012     2013     2012  
DEPRECIATION and AMORTIZATION                                
Segment:                                
Home & Building Products   $ 9,157     $ 7,757     $ 18,017     $ 15,222  
Telephonics     1,752       1,793       3,471       3,446  
Plastics     6,663       6,672       13,340       12,972  
Total segment depreciation and amortization     17,572       16,222       34,828       31,640  
Corporate     109       99       210       196  
Total consolidated depreciation and amortization   $ 17,681     $ 16,321     $ 35,038     $ 31,836  
                                 
CAPITAL EXPENDITURES                                
Segment:                                
Home & Building Products   $ 6,711     $ 8,305     $ 15,804     $ 14,573  
Telephonics     2,630       2,554       3,452       3,784  
Plastics     4,333       9,446       11,701       21,774  
Total segment     13,674       20,305       30,957       40,131  
Corporate     33       8       38       74  
Total consolidated capital expenditures   $ 13,707     $ 20,313     $ 30,995     $ 40,205  
                                 

    At March 31,
 2013 		    At September 30,
2012 		 
ASSETS                
Segment assets:                
Home & Building Products   $ 988,515     $ 943,766  
Telephonics     287,360       255,420  
Plastics     422,263       430,395  
Total segment assets     1,698,138       1,629,581  
Corporate     90,450       173,088  
Total continuing assets     1,788,588       1,802,669  
Assets of discontinued operations     3,221       3,523  
Consolidated total   $ 1,791,809     $ 1,806,192