BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENTS

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 June 30,				For the Nine Months Ended June 30,
REVENUE	2014		2013		2014		2013
Home & Building Products:
Ames	$	132,179	$	128,332	$	389,492	$	341,878
CBP	121,814		112,285		334,494		314,651
Home & Building Products	253,993		240,617		723,986		656,529
Telephonics	102,446		129,997		302,656		347,678
Plastics	148,600		139,212		439,542		418,111
Total consolidated net sales	$	505,039	$	509,826	$	1,466,184	$	1,422,318

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

	For the Three Months Ended June 30,						For the Nine Months Ended June 30,
INCOME (LOSS) BEFORE TAXES	2014			2013			2014			2013
Segment operating profit:
Home & Building Products	$	9,747		$	11,549		$	27,958		$	22,655
Telephonics	13,134			10,592			34,463			38,990
Plastics	8,075			5,401			23,252			8,959
Total segment operating profit	30,956			27,542			85,673			70,604
Net interest expense	(11,541		)	(13,137		)	(37,003		)	(39,125		)
Unallocated amounts	(6,521		)	(6,573		)	(22,895		)	(22,140		)
Loss from debt extinguishment, net	—			—			(38,890		)	—
Loss on pension settlement	—			—			—			(2,142		)
Income (loss) before taxes	$	12,894		$	7,832		$	(13,115	)	$	7,197

Griffon evaluates performance and allocates resources based on each segment's 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 June 30,						For the Nine Months Ended June 30,
	2014			2013			2014			2013
Segment adjusted EBITDA:
Home & Building Products	$	19,596		$	21,478		$	55,787		$	56,272
Telephonics	15,087			13,146			40,018			45,015
Plastics	14,922			12,161			43,881			33,832
Total Segment adjusted EBITDA	49,605			46,785			139,686			135,119
Net interest expense	(11,541		)	(13,137		)	(37,003		)	(39,125		)
Segment depreciation and amortization	(16,691		)	(17,639		)	(49,723		)	(52,467		)
Unallocated amounts	(6,521		)	(6,573		)	(22,895		)	(22,140		)
Loss from debt extinguishment, net	—			—			(38,890		)	—
Restructuring charges	(358		)	(1,604		)	(1,892		)	(12,048		)
Acquisition costs	(1,600		)	—			(2,398		)	—
Loss on pension settlement	—			—			—			(2,142		)
Income (loss) before taxes	$	12,894		$	7,832		$	(13,115	)	$	7,197

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

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
DEPRECIATION and AMORTIZATION	2014		2013		2014		2013
Segment:
Home & Building Products	$	7,891	$	9,075	$	23,539	$	27,092
Telephonics	1,953		1,804		5,555		5,275
Plastics	6,847		6,760		20,629		20,100
Total segment depreciation and amortization	16,691		17,639		49,723		52,467
Corporate	104		110		304		320
Total consolidated depreciation and amortization	$	16,795	$	17,749	$	50,027	$	52,787
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	8,194	$	6,534	$	23,384	$	22,352
Telephonics	6,082		2,401		14,969		5,853
Plastics	5,063		5,947		15,213		17,648
Total segment	19,339		14,882		53,566		45,853
Corporate	675		9		1,293		33
Total consolidated capital expenditures	$	20,014	$	14,891	$	54,859	$	45,886

ASSETS	At June 30, 2014		At September 30, 2013
Segment assets:
Home & Building Products	$	1,020,849	$	908,386
Telephonics	299,058		296,919
Plastics	421,892		422,730
Total segment assets	1,741,799		1,628,035
Corporate	85,210		156,455
Total continuing assets	1,827,009		1,784,490
Assets of discontinued operations	4,241		4,289
Consolidated total	$	1,831,250	$	1,788,779