BUSINESS SEGMENTS

3 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

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 December 31,
REVENUE		2013		2012
Home & Building Products:
ATT	$	96,608	$	77,309
CBP		121,842		112,867
Home & Building Products		218,450		190,176
Telephonics		96,025		96,050
Plastics		138,983		137,523
Total consolidated net sales	$	453,458	$	423,749

The following table reconciles segment operating profit to income before taxes:

	For the Three Months Ended December 31,
INCOME BEFORE TAXES	2013			2012
Segment operating profit:
Home & Building Products	$	9,393		$	7,271
Telephonics		10,652			14,645
Plastics		5,825			2,642
Total segment operating profit		25,870			24,558
Net interest expense		(13,101	)		(13,079	)
Unallocated amounts		(7,983	)		(7,587	)
Loss on pension settlement		—			(2,142	)
Income before taxes	$	4,786		$	1,750

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 before taxes:

	For the Three Months Ended December 31,
	2013			2012
Segment adjusted EBITDA:
Home & Building Products	$	19,067		$	17,239
Telephonics		12,396			16,364
Plastics		12,743			9,319
Total Segment adjusted EBITDA		44,206			42,922
Net interest expense		(13,101	)		(13,079	)
Segment depreciation and amortization		(16,696	)		(17,256	)
Unallocated amounts		(7,983	)		(7,587	)
Restructuring charges		(842	)		(1,108	)
Acquisition costs		(798	)		—
Loss on pension settlement		—			(2,142	)
Income before taxes	$	4,786		$	1,750

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

	For the Three Months Ended December 31,
	2013		2012
DEPRECIATION and AMORTIZATION
Segment:
Home & Building Products	$	8,034	$	8,860
Telephonics		1,744		1,719
Plastics		6,918		6,677
Total segment depreciation and amortization		16,696		17,256
Corporate		97		101
Total consolidated depreciation and amortization	$	16,793	$	17,357
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	8,468	$	9,093
Telephonics		3,367		822
Plastics		5,760		7,368
Total segment		17,595		17,283
Corporate		321		5
Total consolidated capital expenditures	$	17,916	$	17,288

ASSETS		At December 31, 2013		At September 30, 2013
Segment assets:
Home & Building Products	$	956,407	$	908,386
Telephonics		291,180		296,919
Plastics		426,968		422,730
Total segment assets		1,674,555		1,628,035
Corporate		73,331		156,455
Total continuing assets		1,747,886		1,784,490
Assets of discontinued operations		4,273		4,289
Consolidated total	$	1,752,159	$	1,788,779