REPORTABLE SEGMENTS

12 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 18 — REPORTABLE SEGMENTS

Griffon’s reportable 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 operating results before interest income or expense, income taxes and certain nonrecurring items of income or expense.

Information on Griffon’s reportable segments is as follows:

	For the Years Ended September 30,
REVENUE	2013		2012		2011
Home & Building Products:
ATT	$	419,549	$	433,866	$	434,789
CBP		435,416		422,674		404,947
Home & Building Products		854,965		856,540		839,736
Telephonics		453,351		441,503		455,353
Plastics		563,011		563,102		535,713
Total consolidated net sales	$	1,871,327	$	1,861,145	$	1,830,802

	For the Years Ended September 30,
INCOME (LOSS) BEFORE TAXES	2013			2012			2011
Segment operating profit:
Home & Building Products	$	26,130		$	37,082		$	28,228
Telephonics		55,076			49,232			40,595
Plastics		16,589			13,688			13,308
Total segment operating profit		97,795			100,002			82,131
Net interest expense		(52,167	)		(51,715	)		(47,448	)
Unallocated amounts		(29,153	)		(26,346	)		(22,868	)
Loss from debt extinguishment, net		—			—			(26,164	)
Loss on pension settlement		(2,142	)		—			—
Income (loss) before taxes from continuing operations	$	14,333		$	21,941		$	(14,349	)

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 including the impact of the fair value of inventory acquired as part of a business combination, and gains (losses) from pension settlement and debt extinguishment, as applicable (“Segment adjusted EBITDA”, a non-GAAP measure). 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 and discontinued operations:

	For the Years Ended September 30,
	2013			2012			2011
Segment adjusted EBITDA:
Home & Building Products	$	70,064		$	70,467		$	77,119
Telephonics		63,199			60,565			50,875
Plastics		48,100			40,000			37,639
Total Segment adjusted EBITDA		181,363			171,032			165,633
Net interest expense		(52,167	)		(51,715	)		(47,448	)
Segment depreciation and amortization		(70,306	)		(65,864	)		(60,361	)
Unallocated amounts		(29,153	)		(26,346	)		(22,868	)
Loss from debt extinguishment, net		—			—			(26,164	)
Restructuring charges		(13,262	)		(4,689	)		(7,543	)
Fair value write-up of acquired inventory sold		—			—			(15,152	)
Acquisition costs		—			(477	)		(446	)
Loss on pension settlement		(2,142	)		—			—
Income (loss) before taxes from continuing operations	$	14,333		$	21,941		$	(14,349	)

	For the Years Ended September 30,
DEPRECIATION and AMORTIZATION	2013		2012		2011
Segment:
Home & Building Products	$	36,195	$	32,034	$	28,796
Telephonics		7,373		7,518		7,234
Plastics		26,738		26,312		24,331
Total segment depreciation and amortization		70,306		65,864		60,361
Corporate		442		400		351
Total consolidated depreciation and amortization	$	70,748	$	66,264	$	60,712
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	30,695	$	24,648	$	28,083
Telephonics		11,112		11,979		8,291
Plastics		22,509		32,069		50,824
Total segment		64,316		68,696		87,198
Corporate		125		155		419
Total consolidated capital expenditures	$	64,441	$	68,851	$	87,617

ASSETS	At September 30, 2013		At September 30, 2012		At September 30, 2011
Segment assets:
Home & Building Products	$	908,386	$	943,766	$	972,714
Telephonics		296,919		255,420		288,968
Plastics		422,730		430,395		450,452
Total segment assets		1,628,035		1,629,581		1,712,134
Corporate		156,455		173,088		148,064
Total continuing assets		1,784,490		1,802,669		1,860,198
Assets of discontinued operations		4,289		3,523		5,056
Consolidated total	$	1,788,779	$	1,806,192	$	1,865,254

Segment information by geographic region was as follows:

	For the Years Ended September 30,
REVENUE BY GEOGRAPHIC AREA	2013		2012		2011
United States	$	1,319,740	$	1,317,911	$	1,265,977
Europe		255,733		255,323		262,518
Canada		114,984		120,457		125,330
South America		103,840		93,243		96,340
All other countries		77,030		74,211		80,637
Consolidated revenue	$	1,871,327	$	1,861,145	$	1,830,802

LONG-LIVED ASSETS BY GEOGRAPHIC AREA	At September 30, 2013		At September 30, 2012		At September 30, 2011
United States	$	421,604	$	422,647	$	394,313
Germany		82,314		84,480		94,800
Canada		46,792		50,894		50,093
All other countries		24,274		29,331		34,033
Consolidated property, plant and equipment, net	$	574,984	$	587,352	$	573,239

As a percentage of consolidated revenue, HBP sales to the Home Depot were approximately 11% in 2013, and 12% in both 2012 and 2011; Plastics sales to P&G were approximately 14% in 2013, 13% in 2012 and 14% in 2011; and Telephonics’ sales to the United States Government and its agencies aggregated approximately 19% in 2013, 2012 and 2011.