x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 11-1893410 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
712 Fifth Avenue, 18th Floor, New York, New York | 10019 | |
(Address of Principal Executive Offices) | (Zip Code) | |
Registrant’s telephone number, including area code: (212) 957-5000 |
Title of each class | Name of each exchange on which registered | |||
Common Stock, $0.25 par value | New York Stock Exchange |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
• | Home & Building Products (“HBP”) segment consists of two companies, The AMES Companies, Inc. (“AMES”) and Clopay Building Products Company, Inc. ("CBP"): |
• | Defense Electronics segment consists of Telephonics Corporation ("Telephonics"), founded in 1933, a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers. |
• | Seasonal Outdoor Tools |
• | Long Handled Tools: An extensive line of engineered tools including shovels, spades, scoops, rakes, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks, marketed under leading brand names including AMES®, True Temper®, Harper®, UnionTools®, Garant®, Cyclone® and Kelso™, as well as contractor-oriented brands including Razor-Back® Jackson® and Darby™. |
• | Wheelbarrows: AMES designs, develops and manufactures a full line of wheelbarrows and lawn carts, primarily under the AMES®, True Temper®, Jackson® Professional Tools, UnionTools®, Garant® and Westmix™ brand names. The |
• | Snow Tools: A complete line of snow tools is marketed under the True Temper®, Garant® and Union Tools® brand names. The snow tool line includes shovels, pushers, roof rakes, sled sleigh shovels, scoops and ice scrapers. |
• | Pruning: The pruning line is made up of pruners, loppers, shears, and other tools sold primarily under the True Temper®, Cyclone® and Garant® brand names. |
• | Project Tools |
• | Striking Tools: Axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars and repair handles make up the striking tools product line. These products are marketed under the True Temper®, Cyclone®, Garant®, Jackson® Professional Tools and Razor-Back® Professional Tools brand names. |
• | Hand Tools: Hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, and other traditional hand tools make up this product line. These products are marketed under the Trojan®, Cyclone® and Supercraft® brand names. In addition, gardening hand tools, such as trowels, cultivators, weeders and other specialty garden hand tools, are marketed under the AMES® brand name. |
• | Outdoor Décor and Watering |
• | Planters and Lawn Accessories: AMES is a designer, manufacturer and distributor of indoor and outdoor planters and accessories, sold under the Southern Patio®, Northcote Pottery™, Tuscan Path, La Hacienda®, Hills®, Kelkay® and Dynamic Design®™ brand names, as well as various private label brands. The range of planter sizes (from 6 to 32 inches) is available in various designs, colors and materials. |
• | Garden Hose and Storage: AMES offers a wide range of manufactured and sourced garden hoses and hose reels under the AMES®, NeverLeak®, Nylex®, and Hills® brand names. |
• | Storage and Organization: AMES designs, manufactures and sells a comprehensive portfolio of wire and wood shelving, containers, storage cabinets and other closet and home organization accessories primarily under the highly-recognized ClosetMaid® brand name and other private label brands. Wire products include wire shelving and hardware, wire accessories and kitchen storage products. Wire product brands include Maximum Load®, SuperSlide® and ShelfTrack®. Wood solutions include closet systems, cube storage, storage furniture and cabinets. Selected wood product brands include MasterSuite®, Suite Symphony®™, Impressions™, ExpressShelf®, and SpaceCreations®. |
• | Cleaning Products: AMES offers a full line of cleaning products for professional, home, and industrial use, including brooms, brushes, squeegees and other cleaning products, primarily under the Harper® brand. |
• | Radar: Telephonics provides a wide range of high-performing, lightweight and cost-effective maritime surveillance and weather avoidance radar systems for fixed- and rotary-wing aircraft, Unmanned Aerial Vehicles (UAVs) and shipboard platforms to the U.S. Government and numerous international defense agencies. Telephonics maritime surveillance radars offer advanced features such as Ground Moving Target Indicator (GMTI), Synthetic Aperture Radar (SAR), Inverse Synthetic Aperture Radar (ISAR), Automatic Identification System (AIS) and weather avoidance. |
• | Surveillance: Telephonics is a global leader in Identification Friend or Foe (IFF), Monopulse Secondary Surveillance Radars (MSSR) and Air Traffic Control (ATC) systems enabling military and civilian air traffic controllers to effectively identify aircraft and vehicles as friendly. Telephonics provides both equipment and supporting services required to safely and reliably control flight operations. These systems are used by the U.S. Army, U.S. Navy, U.S. Air Force, U.S. Marines, Federal Aviation Administration ("FAA"), NATO and numerous international defense agencies. They have been fielded globally in a wide range of ground, air and sea-based applications. |
• | Communications: Telephonics' advanced wired and wireless communication systems provide the digital backbone for defense and civil platforms worldwide, including fixed- and rotary-wing aircraft, lighter-than-air aircraft and ground control shelters. These systems are designed to meet stringent customer requirements to support adaptability to special missions and communications protocol requirements. Telephonics' vehicle-based intercommunications systems deliver traditional intercom system capabilities while incorporating software-defined features, including an open architecture for integration into vehicle C4 (command, control, communications, and computing) systems, networked communications gateways and combat vehicles. Commercial audio products and headsets are utilized worldwide in a wide range of military and civilian applications, including audiometric testing and onboard flight entertainment. Advanced transit communications systems deliver high-quality audio communications and critical travel information, enhancing passenger safety, as well as train crew intelligibility and operational efficiency. Telephonics communications systems are fielded within the U.S. Army, U.S. Navy, U.S. Air Force, U.S. Marines and numerous international defense agencies. These systems are also sold to aerospace manufacturers, commercial airlines, and audiometric original equipment manufacturers. |
• | Systems Engineering and Analysis (SEG): SEG provides sophisticated, highly technical engineering and analytic support to customers including the Missile Defense Agency, AEGIS Ballistic Missile Defense Program, Program Executive Offices for Integrated Warfare Systems and Ships, U.S. Naval Surface Warfare Centers, Marine Corps System Command and the U.S. Army Aviation and Missile Command, among others. As a leading provider of combat, radar and missile systems engineering and analysis, SEG is a key source of systems engineering expertise for the U.S. integrated air and missile defense initiatives. In addition to government program offices, SEG works extensively with national laboratories, the Intelligence Community and prime contractors. |
• | Telephonics Large Scale Integration (TLSI): TLSI has designed nearly 400 mixed-signal custom Application Specific Integrated Circuits (ASICs) for customers in the automotive, industrial, defense/avionics and smart energy markets. TLSI works with its customers' technical teams, taking complete responsibility for the ASIC development process, from the initial ASIC specification definition through qualification and volume production, to meet the most stringent customer program requirements. Over 10 million ASIC's are shipped every year. |
a. | The U.S. Government and its agencies, through prime and subcontractor relationships, represented 10% of Griffon’s consolidated revenue and 62% of Telephonics' revenue. |
b. | Home Depot represented 19% of Griffon’s consolidated revenue and 23% of HBP's revenue. |
Name | Age | Positions Held and Prior Business Experience | ||
Ronald J. Kramer | 60 | Chief Executive Officer since April 2008, Chairman of the Board since January 2018, Director since 1993, Vice Chairman of the Board from November 2003 to January 2018. From 2002 through March 2008, President and a Director of Wynn Resorts, Ltd. (Nasdaq:WYNN), a developer, owner and operator of destination casino resorts. From 1999 to 2001, Managing Director at Dresdner Kleinwort Wasserstein, an investment banking firm, and its predecessor Wasserstein Perella & Co. Member of the board of directors of Business Development Corporation of America. | ||
Robert F. Mehmel | 56 | Director since May 2018, President and Chief Operating Officer since December 2012. From August 2008 to October 2012, President and Chief Operating Officer of DRS Technologies (Formerly NYSE:DRS) ("DRS"), a supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide. From May 2006 to August 2008, Executive Vice President and Chief Operating Officer of DRS and from January 2001 to May 2006, Executive Vice President, Business Operations and Strategy, of DRS. | ||
Brian G. Harris | 49 | Senior Vice President and Chief Financial Officer since August 2015. From November 2012 to July 2015, Vice President and Controller of Griffon. From July 2009 to July 2015, Griffon's Chief Accounting Officer. From May 2005 to June 2009, Assistant Controller of Dover Corporation, a diversified global manufacturer (NYSE:DOV). Prior to this time, held various finance and accounting roles with Hearst Argyle Television (Formerly NYSE:HTV), John Wiley and Sons, Inc. (NYSE:JW.A) and Arthur Andersen, LLP. | ||
Seth L. Kaplan | 49 | Senior Vice President, General Counsel and Secretary since May 2010. From July 2008 to May 2010, Assistant General Counsel and Assistant Secretary at Hexcel Corporation (NYSE:HXL), a manufacturer of advanced composite materials for space and defense, commercial aerospace and wind energy applications. From 2000 to July 2008, Senior Corporate Counsel and Assistant Secretary at Hexcel. From 1994 to 2000, associate at the law firm Winthrop, Stimson, Putnam & Roberts (now Pillsbury Winthrop Shaw Pittman LLP). |
• | Termination for default or for convenience by the government; |
• | Reduction or modification in the event of changes in the government’s requirements or budgetary constraints; |
• | Increased or unexpected costs, causing losses or reduced profits under contracts where Telephonics’ prices are fixed, or determinations that certain costs are not allowable under particular government contracts; |
• | The failure or inability of the prime contractor to perform its contract under circumstances in which Telephonics is a subcontractor; |
• | Failure to observe and comply with government business practice and procurement regulations such that Telephonics could be suspended or barred from bidding on or receiving awards of new government contracts; |
• | The failure of the government to exercise options for additional work provided for in contracts; |
• | The inherent discretion of government agencies in determining whether Telephonics has complied with all specifications set forth in a government contract; and |
• | The government’s right, in certain circumstances, to freely use technology developed under these contracts. |
• | Product improvements are not completed on a timely basis; |
• | New products are not introduced on a timely basis or do not achieve sufficient market penetration; |
• | There are budget overruns or delays in R&D efforts; or |
• | New products experience reliability or quality problems, or otherwise do not meet customer preferences or requirements. |
• | Costs associated with incomplete or poorly implemented acquisitions; |
• | Expenses, delays and difficulties of integrating acquired companies into Griffon’s existing organization; |
• | Dilution of the interest of existing stockholders; |
• | Diversion of management’s attention; or |
• | Difficulty in obtaining financing on acceptable terms, or at all. |
• | A substantial portion of cash flows from operations could be used to pay principal and interest on debt, thereby reducing the funds available for working capital, capital expenditures, acquisitions, product development and other general corporate purposes; |
• | Insufficient cash flows from operations may force Griffon to sell assets, or seek additional capital, which Griffon may not be able to accomplish on favorable terms, if at all; and |
• | Its level of indebtedness may make Griffon more vulnerable to economic or industry downturns. |
Location | Business Segment | Primary Use | Approx. Square Footage | Owned/ Leased | Lease End Year | ||||||
New York, NY | Corporate | Headquarters | 13,000 | Leased | 2025 | ||||||
Farmingdale, NY | Telephonics | Manufacturing/R&D | 180,000 | Owned | |||||||
Huntington, NY | Telephonics | Manufacturing | 90,000 | Owned | |||||||
Huntington, NY | Telephonics | Manufacturing | 100,000 | Leased | 2021 | ||||||
Columbia, MD | Telephonics | Engineering | 33,000 | Leased | 2023 | ||||||
Elizabeth City, NC | Telephonics | Repair and Service | 22,000 | Leased | 2039 | ||||||
Troy, OH | Home & Building Products | Office, Manufacturing | 1,230,000 | Leased | 2021 | ||||||
Russia, OH | Home & Building Products | Manufacturing | 250,000 | Owned | |||||||
Mason, OH | Home & Building Products | Office / R&D | 50,000 | Leased | 2020 | ||||||
Mountain Top, PA | Home & Building Products | Office, Manufacturing | 229,044 | Owned /Leased | 2019 | ||||||
Goodyear, AZ | Home & Building Products | Manufacturing | 163,000 | Owned | |||||||
Carlisle, PA | Home & Building Products | Manufacturing, Distribution | 1,227,000 | Leased | 2020 | ||||||
Reno, NV | Home & Building Products | Manufacturing, Distribution | 400,000 | Leased | 2022 | ||||||
Camp Hill, PA | Home & Building Products | Office, Manufacturing | 380,000 | Owned | |||||||
Harrisburg, PA | Home & Building Products | Manufacturing | 264,000 | Owned | |||||||
St. Francois, Quebec | Home & Building Products | Manufacturing, Distribution | 353,000 | Owned | |||||||
Falls City, NE | Home & Building Products | Manufacturing | 82,000 | Owned | |||||||
Cork, Ireland | Home & Building Products | Manufacturing, Distribution | 74,000 | Owned | |||||||
Victoria, Australia | Home & Building Products | Manufacturing | 29,000 | Leased | 2019 | ||||||
Champion, PA | Home & Building Products | Wood Mill | 225,000 | Owned | |||||||
Victoria, Australia | Home & Building Products | Distribution | 174,000 | Leased | 2023 | ||||||
Pollington Site, UK | Home & Building Products | Manufacturing, Distribution | 115,000 | Owned | |||||||
Queensland, Australia | Home & Building Products | Distribution | 50,000 | Leased | 2018 | ||||||
New South Wales, Australia | Home & Building Products | Distribution | 76,000 | Leased | 2020 | ||||||
Regency Park, South Australia | Home & Building Products | Distribution | 62,000 | Leased | 2019 | ||||||
Welshpool, Western Australia | Home & Building Products | Distribution | 97,000 | Leased | 2019 | ||||||
New South Wales, Australia | Home & Building Products | Distribution | 32,000 | Leased | 2019 | ||||||
Gloucestershire, UK | Home & Building Products | Distribution | 46,000 | Leased | 2022 | ||||||
Ocala, FL | Home & Building Products | Headquarters | 640,000 | Leased | 2020 | ||||||
Grantsville, MD | Home & Building Products | Manufacturing | 155,000 | Owned | |||||||
Reynosa, MX | Home & Building Products | Manufacturing (owned), Distribution (leased) | 133,000 | Owned /Leased | 2020 | ||||||
Chino, CA | Home & Building Products | Distribution | 202,000 | Leased | 2021 | ||||||
Pharr, TX | Home & Building Products | Distribution | 100,000 | Leased | 2018 | ||||||
Belle Vernon, PA | Home & Building Products | Distribution | 268,000 | Leased | 2022 | ||||||
Fairfield, IA | Home & Building Products | Manufacturing | 52,000 | Leased | 2018 |
Fiscal 2018 | Fiscal 2017 | ||||||||||||||||||||||
Market Prices | Dividends | Market Prices | Dividends | ||||||||||||||||||||
High | Low | Per Share | High | Low | Per Share | ||||||||||||||||||
Quarter ended December 31, | $ | 24.50 | $ | 19.65 | $ | 0.07 | $ | 26.95 | $ | 16.18 | $ | 0.06 | |||||||||||
Quarter ended March 31, | 21.85 | 17.60 | 0.07 | 27.15 | 23.30 | 0.06 | |||||||||||||||||
Quarter ended June 30, | 23.55 | 17.00 | 1.07 | 25.15 | 21.15 | 0.06 | |||||||||||||||||
Quarter ended September 30, | 19.75 | 16.00 | 0.07 | 22.58 | 17.65 | 0.06 | |||||||||||||||||
$ | 1.28 | $ | 0.24 |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid Per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs | |||||||||||
July 1 - 31, 2018 | 934 | (2) | $ | 17.80 | — | ||||||||||
August 1 - 31, 2018 | — | — | — | ||||||||||||
September 1 - 30, 2018 | — | — | — | ||||||||||||
Total | 934 | $ | 17.80 | — | $ | 58,327 | (1) |
1. | Shares, if any, purchased by the Company in open market purchases are pursuant to share repurchases authorized by the Company’s Board of Directors. On each of August 3, 2016 and August 1, 2018, the Company’s Board of Directors authorized the repurchase of up to $50,000 of Griffon common stock; as of September 30, 2018, $58,327 remained available for purchase under these Board authorized repurchase programs. |
2. | Shares acquired by the Company from holders of restricted stock upon vesting of the restricted stock to satisfy tax withholding obligations of the holders. |
For the Years Ended September 30, | |||||||||||||||||||
(in thousands, except per share amounts) | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||
Revenue | $ | 1,977,918 | $ | 1,524,997 | $ | 1,477,035 | $ | 1,483,291 | $ | 1,398,448 | |||||||||
Income (loss) before taxes and discontinued operations | $ | 33,810 | $ | 16,698 | $ | 32,213 | $ | 19,066 | $ | (20,957 | ) | ||||||||
Provision (benefit) for income taxes | 555 | (1,085 | ) | 12,432 | 6,772 | (10,151 | ) | ||||||||||||
Income (loss) from continuing operations | 33,255 | 17,783 | 19,781 | 12,294 | (10,806 | ) | |||||||||||||
Income (loss) from discontinued operations | 92,423 | (2,871 | ) | 10,229 | 21,995 | 10,629 | |||||||||||||
Net Income (loss) | $ | 125,678 | $ | 14,912 | $ | 30,010 | $ | 34,289 | $ | (177 | ) | ||||||||
Basic earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | 0.81 | $ | 0.43 | $ | 0.48 | $ | 0.28 | $ | (0.22 | ) | ||||||||
Discontinued operations | 2.25 | (0.07 | ) | 0.25 | 0.49 | 0.22 | |||||||||||||
Net income (loss) | $ | 3.06 | $ | 0.36 | $ | 0.73 | $ | 0.77 | $ | — | |||||||||
Weighted average shares outstanding | 41,005 | 41,005 | 41,074 | 44,608 | 49,367 | ||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | 0.78 | $ | 0.41 | $ | 0.45 | $ | 0.26 | $ | (0.22 | ) | ||||||||
Discontinued operations | 2.18 | (0.07 | ) | 0.23 | 0.47 | 0.22 | |||||||||||||
Net income (loss) | $ | 2.96 | $ | 0.35 | $ | 0.68 | $ | 0.73 | $ | — | |||||||||
Weighted average shares outstanding | 42,422 | 43,011 | 44,109 | 46,939 | 49,367 | ||||||||||||||
Cash dividends declared per common share | $ | 1.28 | $ | 0.24 | $ | 0.20 | $ | 0.16 | $ | 0.12 | |||||||||
Capital expenditures | $ | 50,138 | $ | 34,937 | $ | 59,276 | $ | 46,308 | $ | 57,392 | |||||||||
Depreciation and amortization | $ | 55,803 | $ | 47,878 | $ | 46,342 | $ | 45,834 | $ | 39,986 | |||||||||
Total assets | $ | 2,084,890 | $ | 1,873,541 | $ | 1,782,096 | $ | 1,712,813 | $ | 1,808,826 | |||||||||
Current portion of debt | $ | 13,011 | $ | 11,078 | $ | 13,932 | $ | 8,170 | $ | 4,580 | |||||||||
Long term portion of debt, net | 1,108,071 | 968,080 | 896,946 | 803,617 | 791,301 | ||||||||||||||
Total debt, net | $ | 1,121,082 | $ | 979,158 | $ | 910,878 | $ | 811,787 | $ | 795,881 |
Notes: | Results of operations from acquired businesses are included from the date of acquisition. The fair value of assets and liabilities, inclusive of changes resulting from operating the businesses, are included in the first period ended after the date of each acquisition, and all periods thereafter. |
• | Home & Building Products ("HBP") consists of two companies, The AMES Companies, Inc. (“AMES”) and CBP. HBP revenue accounted for 83%, 73% and 71% of Griffon’s consolidated revenue in 2018, 2017 and 2016, respectively: |
◦ | AMES, founded in 1774, is the leading U.S. manufacturer and a global provider of branded consumer and professional tools, landscaping products, and outdoor lifestyle solutions. In 2018, we acquired ClosetMaid, a leader in wood and wire closet organization, general living storage and wire garage storage products for homeowners and professionals. AMES’ revenue was 48%, 36%, and 35% of Griffon’s consolidated revenue in 2018, 2017 and 2016, respectively. |
◦ | CBP, since 1964, is a leading manufacturer and marketer of residential and commercial garage doors and sells to professional dealers and some of the largest home center retail chains in North America. In 2018, we acquired CornellCookson, a leading U.S. manufacturer and marketer of rolling steel door and grille products designed |
• | Defense Electronics segment consists of Telephonics Corporation ("Telephonics"), founded in 1933, a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers. Telephonics’ revenue was 17%, 27% and 29% of Griffon’s consolidated revenue in 2018, 2017 and 2016, respectively. |
– | Acquisition costs of $9,617 ($6,145, net of tax, or $0.14 per share); |
– | Acquisition costs of $9,617 ($6,145, net of tax, or $0.14 per share); |
For the Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Income from continuing operations | $ | 33,255 | $ | 17,783 | $ | 19,781 | |||||
Adjusting items, net of tax: | |||||||||||
Acquisition costs | 5,047 | 6,145 | — | ||||||||
Contract settlement charges | — | 3,300 | — | ||||||||
Special dividend ESOP charges | 2,125 | — | — | ||||||||
Secondary equity offering costs | 795 | — | — | ||||||||
Cost of life insurance benefit | 248 | — | — | ||||||||
Discrete and other certain tax benefits | (9,384 | ) | (8,274 | ) | (857 | ) | |||||
Adjusted income from continuing operations | $ | 32,086 | $ | 18,954 | $ | 18,924 | |||||
Earnings per common share from continuing operations | $ | 0.78 | $ | 0.41 | $ | 0.45 | |||||
Adjusting items, net of tax: | |||||||||||
Acquisition costs | 0.12 | 0.14 | — | ||||||||
Contract settlement charges | — | 0.08 | — | ||||||||
Restructuring | — | — | — | ||||||||
Special dividend ESOP charges | 0.05 | — | — | ||||||||
Secondary equity offering costs | 0.02 | — | — | ||||||||
Cost of life insurance benefit | 0.01 | — | — | ||||||||
Discrete and other certain tax benefits | (0.22 | ) | (0.19 | ) | (0.02 | ) | |||||
Adjusted earnings per share from continuing operations | $ | 0.76 | $ | 0.44 | $ | 0.43 | |||||
Weighted-average shares outstanding (in thousands) | 42,422 | 43,011 | 44,109 |
For the Years Ended September 30, | |||||||||||
INCOME BEFORE TAXES FROM CONTINUING OPERATIONS | 2018 | 2017 | 2016 | ||||||||
Segment operating profit: | |||||||||||
Home & Building Products | $ | 130,487 | $ | 89,495 | $ | 79,682 | |||||
Defense Electronics | 25,262 | 29,943 | 42,801 | ||||||||
Segment operating profit from continuing operations | 155,749 | 119,438 | 122,483 | ||||||||
Net interest expense | (63,871 | ) | (51,449 | ) | (49,877 | ) | |||||
Unallocated amounts | (45,812 | ) | (42,398 | ) | (40,393 | ) | |||||
Acquisition costs | (5,217 | ) | (8,893 | ) | — | ||||||
Special dividend charges | (3,220 | ) | — | — | |||||||
Cost of life insurance benefit | (2,614 | ) | — | — | |||||||
Secondary equity offering costs | (1,205 | ) | — | — | |||||||
Income before taxes from continuing operations | $ | 33,810 | $ | 16,698 | $ | 32,213 |
For the Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Segment adjusted EBITDA: | |||||||||||
Home & Building Products | $ | 177,400 | $ | 126,766 | $ | 114,949 | |||||
Defense Electronics | 36,063 | 45,931 | 53,385 | ||||||||
Total Segment adjusted EBITDA from continuing operations | 213,463 | 172,697 | 168,334 | ||||||||
Net interest expense | (63,871 | ) | (51,449 | ) | (49,877 | ) | |||||
Segment depreciation and amortization | (55,334 | ) | (47,398 | ) | (45,851 | ) | |||||
Unallocated amounts | (45,812 | ) | (42,398 | ) | (40,393 | ) | |||||
Acquisition costs | (7,597 | ) | (9,617 | ) | — | ||||||
Contract settlement charges | — | (5,137 | ) | — | |||||||
Special dividend charges | (3,220 | ) | — | — | |||||||
Cost of life insurance benefit | (2,614 | ) | — | — | |||||||
Secondary equity offering costs | (1,205 | ) | — | — | |||||||
Income before taxes from continuing operations | $ | 33,810 | $ | 16,698 | $ | 32,213 |
For the Years Ended September 30, | ||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||
Revenue: | ||||||||||||||||||||
AMES | $ | 953,612 | $ | 545,269 | $ | 513,973 | ||||||||||||||
CBP | 697,969 | 568,001 | 527,370 | |||||||||||||||||
Home & Building Products | $ | 1,651,581 | $ | 1,113,270 | $ | 1,041,343 | ||||||||||||||
Segment operating profit | $ | 130,487 | 7.9 | % | $ | 89,495 | 8.0 | % | $ | 79,682 | 7.7 | % | ||||||||
Depreciation and amortization | 44,533 | 36,547 | 35,267 | |||||||||||||||||
Acquisition costs | 2,380 | 724 | — | |||||||||||||||||
Segment adjusted EBITDA | $ | 177,400 | 10.7 | % | $ | 126,766 | 11.4 | % | $ | 114,949 | 11.0 | % |
For the Years Ended September 30, | ||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||
Revenue | $ | 326,337 | $ | 411,727 | $ | 435,692 | ||||||||||||||
Segment operating profit | $ | 25,262 | 7.7 | % | $ | 29,943 | 7.3 | % | $ | 42,801 | 9.8 | % | ||||||||
Depreciation and amortization | 10,801 | 10,851 | 10,584 | |||||||||||||||||
Contract settlement charges | — | 5,137 | — | |||||||||||||||||
Segment adjusted EBITDA | $ | 36,063 | 11.1 | % | $ | 45,931 | 11.2 | % | $ | 53,385 | 12.3 | % |
Cash Flows from Continuing Operations | Years Ended September 30, | ||||||
(in thousands) | 2018 | 2017 | |||||
Net Cash Flows Provided By (Used In): | |||||||
Operating activities | $ | 66,446 | $ | 49,151 | |||
Investing activities | (5,680 | ) | (71,337 | ) | |||
Financing activities | 39,065 | (700 | ) |
a. | The U.S. Government and its agencies, through prime and subcontractor relationships, represented 10% of Griffon’s consolidated revenue and 62% of Telephonics' revenue. |
b. | Home Depot represented 19% of Griffon’s consolidated revenue and 23% of HBP's revenue. |
Cash and Equivalents and Debt | At September 30, | At September 30, | |||||
(in thousands) | 2018 | 2017 | |||||
Cash and equivalents | $ | 69,758 | $ | 47,681 | |||
Notes payables and current portion of long-term debt | 13,011 | 11,078 | |||||
Long-term debt, net of current maturities | 1,108,071 | 968,080 | |||||
Debt discount and issuance costs | 13,610 | 13,243 | |||||
Total debt | 1,134,692 | 992,401 | |||||
Debt, net of cash and equivalents | $ | 1,064,934 | $ | 944,720 |
Payments Due by Period | |||||||||||||||||||||||
(in thousands) | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Other | |||||||||||||||||
Long-term debt (a) | $ | 1,134,693 | $ | 13,011 | $ | 102,998 | $ | 1,017,743 | $ | 941 | $ | — | |||||||||||
Interest expense | 291,564 | 59,457 | 116,815 | 115,292 | — | — | |||||||||||||||||
Rental commitments | 104,182 | 32,189 | 42,965 | 16,893 | 12,135 | — | |||||||||||||||||
Purchase obligations (b) | 233,068 | 226,026 | 5,571 | 1,471 | — | — | |||||||||||||||||
Capital expenditures | 2,114 | 2,114 | — | — | — | — | |||||||||||||||||
Supplemental & post-retirement benefits (c) | 14,717 | 1,906 | 3,556 | 3,187 | 6,068 | — | |||||||||||||||||
Uncertain tax positions (d) | 1,258 | — | — | — | — | 1,258 | |||||||||||||||||
Total obligations | $ | 1,781,596 | $ | 334,703 | $ | 271,905 | $ | 1,154,586 | $ | 19,144 | $ | 1,258 |
(a) | Included in long-term debt are capital leases of: $3,759 (less than 1 year), $5,547 (1-3 years), $468 (3-5 years) and $0 (more than 5 years). |
(b) | Purchase obligations are generally for the purchase of goods and services in the ordinary course of business. Griffon uses blanket purchase orders to communicate expected requirements to certain vendors. Purchase obligations reflect those purchase orders in which the commitment is considered to be firm. Purchase obligations that extend beyond 2018 are principally related to long-term contracts received from customers of Telephonics. |
(c) | Griffon funds required payouts under its non-qualified supplemental defined benefit plan from its general assets and the expected payments are included in each period, as applicable. |
(d) | Due to the uncertainty of the potential settlement of future uncertain tax positions, management is unable to estimate the timing of related payments, if any, that will be made subsequent to 2018. These amounts do not include any potential indirect benefits resulting from deductions or credits for payments made to other jurisdictions. |
▪ | Report of Independent Registered Public Accounting Firm. |
▪ | Consolidated Balance Sheets at September 30, 2018 and 2017. |
▪ | Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended September 30, 2018, 2017 and 2016. |
▪ | Consolidated Statements of Cash Flows for the years ended September 30, 2018, 2017 and 2016. |
▪ | Consolidated Statements of Shareholders’ Equity for the years ended September 30, 2018, 2017 and 2016. |
▪ | Notes to Consolidated Financial Statements. |
▪ | Schedule II – Valuation and Qualifying Account. |
At September 30, 2018 | At September 30, 2017 | ||||||
CURRENT ASSETS | |||||||
Cash and equivalents | $ | 69,758 | $ | 47,681 | |||
Accounts receivable, net of allowances of $6,408 and $5,966 | 280,509 | 208,229 | |||||
Contract costs and recognized income not yet billed, net of progress payments of $3,172 and $4,407 | 121,803 | 131,662 | |||||
Inventories | 398,359 | 299,437 | |||||
Prepaid and other current assets | 42,121 | 40,067 | |||||
Assets of discontinued operations held for sale | — | 370,724 | |||||
Assets of discontinued operations not held for sale | 324 | 329 | |||||
Total Current Assets | 912,874 | 1,098,129 | |||||
PROPERTY, PLANT AND EQUIPMENT, net | 342,492 | 232,135 | |||||
GOODWILL | 439,395 | 319,139 | |||||
INTANGIBLE ASSETS, net | 370,858 | 205,127 | |||||
OTHER ASSETS | 16,355 | 16,051 | |||||
ASSETS OF DISCONTINUED OPERATIONS | 2,916 | 2,960 | |||||
Total Assets | $ | 2,084,890 | $ | 1,873,541 | |||
CURRENT LIABILITIES | |||||||
Notes payable and current portion of long-term debt | $ | 13,011 | $ | 11,078 | |||
Accounts payable | 233,658 | 183,951 | |||||
Accrued liabilities | 139,192 | 83,258 | |||||
Liabilities of discontinued operations held for sale | — | 84,450 | |||||
Liabilities of discontinued operations | 7,210 | 8,342 | |||||
Total Current Liabilities | 393,071 | 371,079 | |||||
LONG-TERM DEBT, net | 1,108,071 | 968,080 | |||||
OTHER LIABILITIES | 106,710 | 132,537 | |||||
LIABILITIES OF DISCONTINUED OPERATIONS | 2,647 | 3,037 | |||||
Total Liabilities | 1,610,499 | 1,474,733 | |||||
COMMITMENTS AND CONTINGENCIES - See Note 13 | |||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock, par value $0.25 per share, authorized 3,000 shares, no shares issued | — | — | |||||
Common stock, par value $0.25 per share, authorized 85,000 shares, issued shares of 81,520 and 80,663, respectively. | 20,380 | 20,166 | |||||
Capital in excess of par value | 503,396 | 487,077 | |||||
Retained earnings | 550,523 | 480,347 | |||||
Treasury shares, at cost, 35,846 common shares and 33,557 common shares | (534,830 | ) | (489,225 | ) | |||
Accumulated other comprehensive loss | (34,112 | ) | (60,481 | ) | |||
Deferred compensation | (30,966 | ) | (39,076 | ) | |||
Total Shareholders’ Equity | 474,391 | 398,808 | |||||
Total Liabilities and Shareholders’ Equity | $ | 2,084,890 | $ | 1,873,541 |
Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Revenue | $ | 1,977,918 | $ | 1,524,997 | $ | 1,477,035 | |||||
Cost of goods and services | 1,448,358 | 1,116,881 | 1,076,342 | ||||||||
Gross profit | 529,560 | 408,116 | 400,693 | ||||||||
Selling, general and administrative expenses | 433,110 | 339,089 | 318,353 | ||||||||
Income from continuing operations | 96,450 | 69,027 | 82,340 | ||||||||
Other income (expense) | |||||||||||
Interest expense | (65,568 | ) | (51,513 | ) | (49,943 | ) | |||||
Interest income | 1,697 | 64 | 66 | ||||||||
Other, net | 1,231 | (880 | ) | (250 | ) | ||||||
Total other income (expense) | (62,640 | ) | (52,329 | ) | (50,127 | ) | |||||
Income before taxes from continuing operations | 33,810 | 16,698 | 32,213 | ||||||||
Provision (benefit) for income taxes | 555 | (1,085 | ) | 12,432 | |||||||
Income from continuing operations | $ | 33,255 | $ | 17,783 | $ | 19,781 | |||||
Discontinued operations: | |||||||||||
Income from operations of discontinued businesses | 119,981 | 22,276 | 20,952 | ||||||||
Provision for income taxes | 27,558 | 25,147 | 10,723 | ||||||||
Income (loss) from discontinued operations | 92,423 | (2,871 | ) | 10,229 | |||||||
Net income | $ | 125,678 | $ | 14,912 | $ | 30,010 | |||||
Income from continuing operations | $ | 0.81 | $ | 0.43 | $ | 0.48 | |||||
Income (loss) from discontinued operations | 2.25 | (0.07 | ) | 0.25 | |||||||
Basic earnings per common share | $ | 3.06 | $ | 0.36 | $ | 0.73 | |||||
Weighted-average shares outstanding | 41,005 | 41,005 | 41,074 | ||||||||
Income from continuing operations | $ | 0.78 | $ | 0.41 | $ | 0.45 | |||||
Income (loss) from discontinued operations | 2.18 | (0.07 | ) | 0.23 | |||||||
Diluted earnings per common share | $ | 2.96 | $ | 0.35 | $ | 0.68 | |||||
Weighted-average shares outstanding | 42,422 | 43,011 | 44,109 | ||||||||
Net income | $ | 125,678 | $ | 14,912 | $ | 30,010 | |||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Foreign currency translation adjustments | 9,403 | 10,667 | 17,284 | ||||||||
Pension and other post retirement plans | 16,381 | 9,203 | (5,651 | ) | |||||||
Gain (loss) on cash flow hedge | 585 | 890 | (1,686 | ) | |||||||
Total other comprehensive income, net of taxes | 26,369 | 20,760 | 9,947 | ||||||||
Comprehensive income | $ | 152,047 | $ | 35,672 | $ | 39,957 |
Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES - CONTINUING OPERATIONS: | |||||||||||
Net income | $ | 125,678 | $ | 14,912 | $ | 30,010 | |||||
Net (income) loss from discontinued operations | (92,423 | ) | 2,871 | (10,229 | ) | ||||||
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | |||||||||||
Depreciation and amortization | 55,803 | 47,878 | 46,342 | ||||||||
Stock-based compensation | 10,078 | 8,090 | 10,136 | ||||||||
Provision for losses on accounts receivable | 96 | 271 | 351 | ||||||||
Amortization of deferred financing costs and debt discounts | 5,219 | 4,511 | 7,321 | ||||||||
Deferred income tax | (17,633 | ) | 2,341 | 6,044 | |||||||
Gain (loss) on sale/disposal of assets and investments | 290 | (126 | ) | (319 | ) | ||||||
Change in assets and liabilities, net of assets and liabilities acquired: | |||||||||||
(Increase) decrease in accounts receivable and contract costs and recognized income not yet billed | 2,681 | (19,131 | ) | (35,933 | ) | ||||||
(Increase) decrease in inventories | (52,122 | ) | (29,299 | ) | 16,103 | ||||||
(Increase) decrease in prepaid and other assets | 5,969 | (4,781 | ) | 1,462 | |||||||
Increase in accounts payable, accrued liabilities and income taxes payable | 11,078 | 17,541 | 4,829 | ||||||||
Other changes, net | 11,732 | 4,073 | 4,001 | ||||||||
Net cash provided by operating activities - continuing operations | 66,446 | 49,151 | 80,118 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES - CONTINUING OPERATIONS: | |||||||||||
Acquisition of property, plant and equipment | (50,138 | ) | (34,937 | ) | (59,276 | ) | |||||
Acquired business, net of cash acquired | (430,932 | ) | (34,719 | ) | (4,470 | ) | |||||
Investment sales (purchases) | — | (1,824 | ) | 715 | |||||||
Proceeds from sale of business | 474,727 | — | — | ||||||||
Proceeds from sale of property, plant and equipment | 663 | 143 | 770 | ||||||||
Net cash used in investing activities - continuing operations | (5,680 | ) | (71,337 | ) | (62,261 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES - CONTINUING OPERATIONS: | |||||||||||
Proceeds from issuance of common stock | — | — | — | ||||||||
Dividends paid | (49,797 | ) | (10,325 | ) | (8,798 | ) | |||||
Purchase of shares for treasury | (45,605 | ) | (15,841 | ) | (65,307 | ) | |||||
Proceeds from long-term debt | 443,058 | 233,443 | 302,362 | ||||||||
Payments of long-term debt | (300,993 | ) | (170,454 | ) | (208,514 | ) | |||||
Change in short-term borrowings | 144 | — | — | ||||||||
Share premium payment on settled debt | — | (24,997 | ) | — | |||||||
Financing costs | (7,793 | ) | (1,548 | ) | (4,384 | ) | |||||
Purchase of ESOP shares | — | (10,908 | ) | — | |||||||
Other, net | 51 | (70 | ) | 55 | |||||||
Net cash provided by (used) in financing activities - continuing operations | 39,065 | (700 | ) | 15,414 | |||||||
CASH FLOWS FROM DISCONTINUED OPERATIONS: | |||||||||||
Net cash provided by (used in) operating activities | (45,624 | ) | 47,193 | 24,264 |
Net cash used in investing activities | (10,762 | ) | (45,075 | ) | (31,343 | ) | |||||
Net cash provided by (used in) financing activities | (22,541 | ) | (4,268 | ) | (6,526 | ) | |||||
Net cash provided by (used in) discontinued operations | (78,927 | ) | (2,150 | ) | (13,605 | ) | |||||
Effect of exchange rate changes on cash and equivalents | 1,173 | 164 | 886 | ||||||||
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 22,077 | (24,872 | ) | 20,552 | |||||||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 47,681 | 72,553 | 52,001 | ||||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ | 69,758 | $ | 47,681 | $ | 72,553 | |||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||
Cash paid for interest | $ | 59,793 | $ | 48,137 | $ | 43,208 | |||||
Cash paid for taxes | 32,140 | 20,998 | 3,431 |
COMMON STOCK | CAPITAL IN EXCESS OF PAR VALUE | RETAINED EARNINGS | TREASURY SHARES | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | DEFERRED COMPENSATION | Total | |||||||||||||||||||||||||||
(in thousands) | SHARES | PAR VALUE | SHARES | COST | |||||||||||||||||||||||||||||
Balance at 9/30/2015 | 79,080 | $ | 19,770 | $ | 518,485 | $ | 454,548 | 30,737 | $ | (436,559 | ) | $ | (91,188 | ) | $ | (34,531 | ) | $ | 430,525 | ||||||||||||||
Net income | — | — | — | $ | 30,010 | — | — | — | — | 30,010 | |||||||||||||||||||||||
Dividends | — | — | — | (8,798 | ) | — | — | — | — | (8,798 | ) | ||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | — | — | 2,853 | 2,853 | ||||||||||||||||||||||||
Common stock issued | 41 | 10 | (10 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Common stock acquired | — | — | — | — | 4,060 | (65,307 | ) | — | — | (65,307 | ) | ||||||||||||||||||||||
Equity awards granted, net | 845 | 212 | 52 | — | — | — | — | — | 264 | ||||||||||||||||||||||||
ESOP allocation of common stock | — | — | 1,317 | — | — | — | — | — | 1,317 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 10,136 | — | — | — | — | — | 10,136 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 9,947 | — | 9,947 | ||||||||||||||||||||||||
Balance at 9/30/2016 | 79,966 | $ | 19,992 | $ | 529,980 | $ | 475,760 | 34,797 | $ | (501,866 | ) | $ | (81,241 | ) | $ | (31,678 | ) | $ | 410,947 | ||||||||||||||
Net income | — | — | — | 14,912 | — | — | — | — | 14,912 | ||||||||||||||||||||||||
Dividends | — | — | — | (10,325 | ) | — | — | — | — | (10,325 | ) | ||||||||||||||||||||||
Tax effect from exercise/vesting of equity awards, net | — | — | (97 | ) | — | 586 | (13,641 | ) | — | — | (13,738 | ) | |||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | — | — | 3,510 | 3,510 | ||||||||||||||||||||||||
Common stock issued | 3 | — | 22 | — | — | — | — | — | 22 | ||||||||||||||||||||||||
Common stock acquired | — | — | — | — | 129 | (2,201 | ) | — | — | (2,201 | ) | ||||||||||||||||||||||
Equity awards granted, net | 694 | 174 | (174 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
Premium on settlement of convertible debt | — | — | (73,855 | ) | — | — | — | — | — | (73,855 | ) | ||||||||||||||||||||||
Issuance of treasury stock in settlement of convertible debt | — | — | 20,375 | — | (1,955 | ) | 28,483 | — | — | 48,858 | |||||||||||||||||||||||
ESOP purchase of common stock | — | — | — | — | — | — | — | (10,908 | ) | (10,908 | ) | ||||||||||||||||||||||
ESOP allocation of common stock | — | — | 2,736 | — | — | — | — | — | 2,736 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 8,090 | — | — | — | — | — | 8,090 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 20,760 | — | 20,760 | ||||||||||||||||||||||||
Balance at 9/30/2017 | 80,663 | $ | 20,166 | $ | 487,077 | $ | 480,347 | 33,557 | $ | (489,225 | ) | $ | (60,481 | ) | $ | (39,076 | ) | $ | 398,808 | ||||||||||||||
Net income (loss) | — | — | — | 125,678 | — | — | — | — | 125,678 | ||||||||||||||||||||||||
Dividends | — | — | — | (55,502 | ) | — | — | — | — | (55,502 | ) | ||||||||||||||||||||||
Shares withheld on employee taxes on vested equity awards | — | — | — | — | 200 | (4,495 | ) | — | — | (4,495 | ) | ||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | — | — | 8,110 | 8,110 | ||||||||||||||||||||||||
Common stock acquired | — | — | — | — | 2,089 | (41,110 | ) | — | — | (41,110 | ) | ||||||||||||||||||||||
Equity awards granted, net | 857 | 214 | (214 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
ESOP allocation of common stock | — | — | 4,756 | — | — | — | — | — | 4,756 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 10,078 | — | — | — | — | — | 10,078 |
Stock-based consideration | — | — | 1,699 | — | — | — | — | — | 1,699 | ||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | 26,369 | — | 26,369 | ||||||||||||||||||||||||
Balance at 9/30/2018 | 81,520 | 20,380 | 503,396 | 550,523 | 35,846 | (534,830 | ) | (34,112 | ) | (30,966 | ) | 474,391 | |||||||||||||||||||||
• | Home & Building Products (“HBP”) segment consists of two companies, The AMES Companies, Inc. (“AMES”) and CBP: |
• | Defense Electronics segment consists of Telephonics Corporation ("Telephonics"), founded in 1933, a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers. |
• | Level 1 inputs are measured and recorded at fair value based upon quoted prices in active markets for identical assets. |
• | Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. |
• | Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Accounts receivable (1) | $ | 30,400 | |
Inventories(2) | 12,336 | ||
Property, plant and equipment | 49,426 | ||
Goodwill | 42,883 | ||
Intangible assets | 67,600 | ||
Other current and non-current assets | 2,648 | ||
Total assets acquired | 205,293 | ||
Accounts payable and accrued liabilities | 12,207 | ||
Long-term liabilities | 660 | ||
Total liabilities assumed | 12,867 | ||
Total | $ | 192,426 |
Average Life (Years) | ||||||
Goodwill | $ | 42,883 | N/A | |||
Indefinite-lived intangibles | 53,500 | N/A | ||||
Definite-lived intangibles | 14,100 | 12 | ||||
Total goodwill and intangible assets | $ | 110,483 |
Proforma For the year ended September 30, 2017 (unaudited) | |||
Revenue | $ | 1,823,497 | |
Income from continuing operations | 15,070 |
• | Additional depreciation and amortization that would have been charged assuming the preliminary fair value adjustments to property, plant, and equipment, and intangible assets had been applied from October 1, 2016. |
• | Elimination of intercompany interest income recorded on ClosetMaid’s financial statements earned on an intercompany receivable due from ClosetMaid’s former parent. |
• | Additional interest and related expenses from the add-on offering of $275,000 for the aggregate principal amount of 5.25% senior notes due 2022 that Griffon used to acquire ClosetMaid. |
• | Removal of $900 of restructuring costs from ClosetMaid's historical results for the year ended September 30, 2017. |
• | The consequential tax effects of the above adjustments using a 39.7% tax rate for the year ended September 30, 2017. |
Accounts receivable (1) | $ | 32,234 | |
Inventories (2) | 28,411 | ||
Property, plant and equipment | 47,464 | ||
Goodwill | 70,159 | ||
Intangible assets | 74,580 | ||
Other current and non-current assets | 3,852 | ||
Total assets acquired | 256,700 | ||
Accounts payable and accrued liabilities | 68,251 | ||
Long-term liabilities | 2,720 | ||
Total liabilities assumed | 70,971 | ||
Total | $ | 185,729 |
Average Life (Years) | ||||||
Goodwill | $ | 70,159 | N/A | |||
Indefinite-lived intangibles | 47,740 | N/A | ||||
Definite-lived intangibles | 26,840 | 21 | ||||
Total goodwill and intangible assets | $ | 144,739 |
At September 30, 2018 | At September 30, 2017 | ||||||
Raw materials and supplies | $ | 97,645 | $ | 67,990 | |||
Work in process | 83,578 | 78,846 | |||||
Finished goods | 217,136 | 152,601 | |||||
Total | $ | 398,359 | $ | 299,437 |
At September 30, 2018 | At September 30, 2017 | ||||||
Land, building and building improvements | $ | 130,296 | $ | 71,764 | |||
Machinery and equipment | 544,875 | 462,173 | |||||
Leasehold improvements | 50,111 | 43,040 | |||||
725,282 | 576,977 | ||||||
Accumulated depreciation and amortization | (382,790 | ) | (344,842 | ) | |||
Total | $ | 342,492 | $ | 232,135 |
At September 30, 2016 | Goodwill from acquisitions | Foreign currency translation adjustments | September 30, 2017 | Goodwill from acquisitions | Foreign currency translation adjustments | September 30, 2018 | |||||||||||||||||||||
Home & Building Products | $ | 287,618 | $ | 12,417 | $ | 559 | $ | 300,594 | $ | 119,907 | $ | 349 | $ | 420,850 | |||||||||||||
Defense Electronics | 18,545 | — | — | 18,545 | — | — | 18,545 | ||||||||||||||||||||
Total | $ | 306,163 | $ | 12,417 | $ | 559 | $ | 319,139 | $ | 119,907 | $ | 349 | $ | 439,395 |
At September 30, 2018 | At September 30, 2017 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Average Life (Years) | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Customer relationships & other | $ | 186,031 | $ | 49,822 | 23 | $ | 152,025 | $ | 43,421 | ||||||||
Unpatented technology | 19,004 | 6,238 | 13 | 6,193 | 4,719 | ||||||||||||
Total amortizable intangible assets | 205,035 | 56,060 | 158,218 | 48,140 | |||||||||||||
Trademarks | 221,883 | — | 95,049 | — | |||||||||||||
Total intangible assets | $ | 426,918 | $ | 56,060 | $ | 253,267 | $ | 48,140 |
For the Year Ended September 30, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Revenue | $ | 166,262 | $ | 460,914 | $ | 480,126 | ||||||
Cost of goods and services | 132,100 | 389,416 | 407,385 | |||||||||
Gross profit | 34,162 | 71,498 | 72,741 | |||||||||
Selling, general and administrative expenses | 26,303 | 43,518 | 45,673 | |||||||||
Restructuring charges | — | — | 5,900 | |||||||||
Total operating expenses | 26,303 | 43,518 | 51,573 | |||||||||
Income from discontinued operations | 7,859 | 27,980 | 21,168 | |||||||||
Other income (expense) | ||||||||||||
Gain on sale of business | 112,964 | — | — | |||||||||
Interest expense, net | (155 | ) | (63 | ) | (1,234 | ) | ||||||
Other, net | (687 | ) | 59 | 1,018 | ||||||||
Total other income (expense) | 112,122 | (4 | ) | (216 | ) | |||||||
Income from operations of discontinued operations | 119,981 | 27,976 | 20,952 |
At September 30, 2017 | ||||
ASSETS | ||||
Accounts receivable, net | $ | 51,768 | ||
Inventories, net | 45,742 | |||
Prepaid and other current assets | 11,000 | |||
PROPERTY, PLANT AND EQUIPMENT, net | 185,940 | |||
GOODWILL | 57,087 | |||
INTANGIBLE ASSETS, net | 12,298 | |||
OTHER ASSETS | 6,889 | |||
Total Assets Held for Sale | $ | 370,724 | ||
LIABILITIES | ||||
Notes payable and current portion of long-term debt | $ | 11,163 | ||
Accounts payable | 36,619 | |||
Accrued liabilities | 14,553 | |||
LONG-TERM DEBT, net | 10,549 | |||
OTHER LIABILITIES | 11,566 | |||
Total Liabilities Held for Sale | $ | 84,450 |
At September 30, 2018 | At September 30, 2017 | ||||||
Assets of discontinued operations: | |||||||
Prepaid and other current assets | $ | 324 | $ | 329 | |||
Other long-term assets | 2,916 | 2,960 | |||||
Total assets of discontinued operations | $ | 3,240 | $ | 3,289 | |||
Liabilities of discontinued operations: | |||||||
Accrued liabilities, current | $ | 7,210 | $ | 8,342 | |||
Other long-term liabilities | 2,648 | 3,037 | |||||
Total liabilities of discontinued operations | $ | 9,858 | $ | 11,379 |
At September 30, 2018 | At September 30, 2017 | ||||||
Compensation | $ | 50,251 | $ | 37,692 | |||
Interest | 4,776 | 3,671 | |||||
Warranties and rebates | 11,227 | 6,236 | |||||
Insurance | 25,329 | 12,216 | |||||
Rent, utilities and freight | 4,830 | 2,149 | |||||
Income and other taxes | 8,016 | 6,291 | |||||
Marketing and advertising | 3,685 | 1,859 | |||||
Acquisition related accruals | 17,448 | — | |||||
Other | 13,630 | 13,144 | |||||
Total | $ | 139,192 | $ | 83,258 |
Years Ended September 30, | |||||||
2018 | 2017 | ||||||
Balance, beginning of period | $ | 6,236 | $ | 6,322 | |||
Warranties issued and changes in estimated pre-existing warranties | 8,770 | 6,393 | |||||
Actual warranty costs incurred | (7,948 | ) | (6,479 | ) | |||
Other warranty liabilities assumed from acquisitions | $ | 1,116 | $ | — | |||
Balance, end of period | $ | 8,174 | $ | 6,236 |
At September 30, 2018 | |||
Total minimum lease payments | $ | 10,586 | |
Less amount representing interest payments | (812 | ) | |
Present value of net minimum lease payments | 9,774 | ||
Current portion | (3,579 | ) | |
Capitalized lease obligation, less current portion | $ | 6,195 |
At September 30, 2018 | ||||||||||||||||||||
Outstanding Balance | Original Issuer Discount | Capitalized Fees & Expenses | Balance Sheet | Coupon Interest Rate | ||||||||||||||||
Senior note due 2022 | (a) | $ | 1,000,000 | 1,220 | $ | (12,968 | ) | $ | 988,252 | 5.25 | % | |||||||||
Revolver due 2021 | (b) | 25,000 | — | (1,413 | ) | 23,587 | n/a | |||||||||||||
ESOP Loans | (e) | 34,694 | — | (186 | ) | 34,508 | n/a | |||||||||||||
Capital lease - real estate | (f) | 7,503 | — | (80 | ) | 7,423 | 5.00 | % | ||||||||||||
Non U.S. lines of credit | (g) | 7,951 | (16 | ) | 7,935 | n/a | ||||||||||||||
Non U.S. term loans | (g) | 53,533 | — | (148 | ) | 53,385 | n/a | |||||||||||||
Other long term debt | (h) | 6,011 | — | (19 | ) | 5,992 | n/a | |||||||||||||
Totals | 1,134,692 | 1,220 | (14,830 | ) | 1,121,082 | |||||||||||||||
less: Current portion | (13,011 | ) | — | — | (13,011 | ) | ||||||||||||||
Long-term debt | $ | 1,121,681 | $ | 1,220 | $ | (14,830 | ) | $ | 1,108,071 |
At September 30, 2017 | ||||||||||||||||||||
Outstanding Balance | Original Issuer Discount | Capitalized Fees & Expenses | Balance Sheet | Coupon Interest Rate | ||||||||||||||||
Senior notes due 2022 | (a) | $ | 725,000 | $ | (1,177 | ) | $ | (9,220 | ) | $ | 714,603 | 5.25 | % | |||||||
Revolver due 2021 | (b) | 144,216 | — | (1,951 | ) | 142,265 | n/a | |||||||||||||
Real estate mortgages | (d) | 23,642 | — | (320 | ) | 23,322 | n/a | |||||||||||||
ESOP Loans | (e) | 42,675 | — | (310 | ) | 42,365 | n/a | |||||||||||||
Capital lease - real estate | (f) | 5,312 | — | (105 | ) | 5,207 | 5.00 | % | ||||||||||||
Non U.S. lines of credit | (g) | 9,402 | (31 | ) | 9,371 | n/a | ||||||||||||||
Non U.S. term loans | (g) | 35,943 | — | (108 | ) | 35,835 | n/a | |||||||||||||
Other long term debt | (h) | 6,211 | — | (21 | ) | 6,190 | ||||||||||||||
Totals | 992,401 | (1,177 | ) | (12,066 | ) | 979,158 | ||||||||||||||
less: Current portion | (11,078 | ) | — | — | (11,078 | ) | ||||||||||||||
Long-term debt | $ | 981,323 | $ | (1,177 | ) | $ | (12,066 | ) | $ | 968,080 |
Year Ended September 30, 2018 | ||||||||||||||||||||
Effective Interest Rate | Cash Interest | Amort. Debt Discount | Amort. Deferred Cost & Other Fees | Total Interest Expense | ||||||||||||||||
Senior notes due 2022 | (a) | 5.66 | % | 52,500 | 270 | 3,803 | 56,573 | |||||||||||||
Revolver due 2020 | (b) | n/a | 3,718 | — | 565 | 4,283 | ||||||||||||||
Convert. debt due 2017 | (c) | n/a | — | — | — | — | ||||||||||||||
Real estate mortgages | (d) | 3.3 | % | 349 | — | 320 | 669 | |||||||||||||
ESOP Loans | (e) | 6.3 | % | 1,802 | — | 124 | 1,926 | |||||||||||||
Capital lease - real estate | (f) | n/a | 581 | — | 25 | 606 | ||||||||||||||
Non U.S. lines of credit | (g) | n/a | 34 | — | 15 | 49 | ||||||||||||||
Non U.S. term loans | (g) | n/a | 1,420 | — | 90 | 1,510 | ||||||||||||||
Other long term debt | (h) | n/a | 494 | 7 | 501 | |||||||||||||||
Capitalized interest | (549 | ) | — | — | (549 | ) | ||||||||||||||
Totals | $ | 60,349 | $ | 270 | $ | 4,949 | $ | 65,568 |
Year Ended September 30, 2017 | ||||||||||||||||
Effective Interest Rate | Cash Interest | Amort. Debt Discount | Amort. Deferred Cost & Other Fees | Total Interest Expense | ||||||||||||
Senior notes due 2022 | (a) | 5.55 | % | 38,063 | 270 | 1,857 | 40,190 | |||||||||
Revolver due 2020 | (b) | n/a | 4,951 | — | 567 | 5,518 | ||||||||||
Convert. debt due 2017 | (c) | 8.9 | % | 1,167 | 1,248 | 148 | 2,563 | |||||||||
Real estate mortgages | (d) | 2.6 | % | 582 | — | 58 | 640 | |||||||||
ESOP Loans | (e) | 4.2 | % | 1,557 | — | 133 | 1,690 | |||||||||
Capital lease - real estate | (f) | 5.5 | % | 296 | — | 25 | 321 | |||||||||
Non U.S. lines of credit | (g) | n/a | 76 | — | 128 | 204 | ||||||||||
Non U.S. term loan | (g) | n/a | 860 | — | 67 | 927 | ||||||||||
Other long term debt | (h) | 245 | 10 | 255 | ||||||||||||
Capitalized interest | (795 | ) | — | — | (795 | ) | ||||||||||
Totals | 47,002 | 1,518 | 2,993 | 51,513 |
Year Ended September 30, 2016 | ||||||||||||||||||||
Effective Interest Rate | Cash Interest | Amort. Debt Discount | Amort. Deferred Cost & Other Fees | Total Interest Expense | ||||||||||||||||
Senior notes due 2022 | (a) | 5.48 | % | 33,906 | 103 | 1,481 | 35,490 | |||||||||||||
Revolver due 2020 | (b) | n/a | 2,564 | — | 512 | 3,076 | ||||||||||||||
Convert. debt due 2017 | (c) | 9.0 | % | 4,000 | 4,346 | 443 | 8,789 | |||||||||||||
Real estate mortgages | (d) | 2.2 | % | 439 | — | 62 | 501 | |||||||||||||
ESOP Loans | (e) | 3.1 | % | 1,090 | — | 236 | 1,326 | |||||||||||||
Capital lease - real estate | (f) | 5.5 | % | 353 | — | 25 | 378 | |||||||||||||
Non U.S. lines of credit | (g) | n/a | 553 | — | 91 | 644 | ||||||||||||||
Non U.S. term loan | (g) | n/a | 659 | — | 13 | 672 | ||||||||||||||
Other long term debt | (h) | 260 | 9 | 269 | ||||||||||||||||
Capitalized interest | (1,202 | ) | — | — | (1,202 | ) | ||||||||||||||
Totals | $ | 42,622 | $ | 4,449 | $ | 2,872 | $ | 49,943 |
(a) | On October 2, 2017, in an unregistered offering through a private placement under Rule 144A, Griffon completed the add-on offering of $275,000 principal amount of its 5.25% senior notes due 2022, at 101.0% of par, to Griffon's previously issued $125,000 principal amount of its 5.25% senior notes due 2022, at 98.76% of par, completed on May 18, 2016 and $600,000 5.25% senior notes due in 2022, at par, which was completed on February 27, 2014 (collectively the “Senior Notes”). As of September 30, 2018, outstanding Senior Notes due totaled $1,000,000; interest is payable semi-annually on March 1 and September 1. The net proceeds of the $275,000 add-on offering were used to acquire ClosetMaid with the remaining proceeds used to pay down outstanding loan borrowings under Griffon's Revolving Credit Facility (the "Credit Agreement"). The net proceeds of the previously issued $125,000 add-on offering were used to pay down outstanding revolving loan borrowings under the Credit Agreement. |
(b) | On March 22, 2016, Griffon amended its Credit Agreement to increase the credit facility from $250,000 to $350,000, extend its maturity from March 13, 2020 to March 22, 2021, and modify certain other provisions of the facility. On October 2, 2017 and on May 31, 2018, Griffon amended the Credit Agreement in connection with the ClosetMaid and the CornellCookson acquisitions, respectively, to modify the net leverage covenant. The facility includes a letter of credit sub-facility with a limit of $50,000 and a multi-currency sub-facility of $100,000. The Credit Agreement provides for same day borrowings of base rate loans. Borrowings under the Credit Agreement may be repaid and re-borrowed at any time, subject to final maturity of the facility or the occurrence of an event of default under the Credit Agreement. Interest is payable on borrowings at either a |
(c) | On December 21, 2009, Griffon issued $100,000 principal of 4% convertible subordinated notes due 2017 (the “2017 Notes”). On July 14, 2016, Griffon announced that it would settle, upon conversion, up to $125,000 of the conversion value of the 2017 Notes in cash, with amounts in excess of $125,000, if any, to be settled in shares of Griffon common stock. On January 17, 2017, Griffon settled the convertible debt for $173,855 with $125,000 in cash, utilizing borrowings under the Credit Agreement, and $48,858, or 1,954,993 shares of common stock issued from treasury. |
(d) | In September 2015 and March 2016, Griffon entered into mortgage loans in the amount of $32,280 and $8,000, respectively, and were due to mature in September 2025 and April 2018, respectively. The mortgage loans were secured and collateralized by four properties occupied by Griffon's subsidiaries and were guaranteed by Griffon. The loans had an interest at a rate of LIBOR plus 1.50%. The loans were paid off during the year ended September 30, 2018. |
(e) | In August 2016, Griffon’s ESOP entered into an agreement that refinanced the existing ESOP loan into a new Term Loan in the amount of $35,092 (the "Agreement"). The Agreement also provided for a Line Note with $10,908 available to purchase shares of Griffon common stock in the open market. During 2017, Griffon's ESOP purchased 621,875 shares of common stock for a total of $10,908 or $17.54 per share, under a borrowing line that has now been fully utilized. On June 30, 2017, the Term Loan and Line Note were combined into a single Term Loan. The Term Loan bears interest at LIBOR plus 3.0%. The Term Loan requires quarterly principal payments of $569 with a balloon payment due at maturity on March 22, 2020. As a result of the special cash dividend of $1.00 per share, paid on April 16, 2018, the outstanding balance of the Term Loan was reduced by $5,705. As of September 30, 2018, $34,508, net of issuance costs, was outstanding under the Term Loan. The Term Loan is secured by shares purchased with the proceeds of the loan and with a lien on a specific amount of Griffon assets (which lien ranks pari passu with the lien granted on such assets under the Credit Agreement) and is guaranteed by Griffon. |
(f) | Two Griffon subsidiaries have capital leases outstanding for real estate located in Troy, Ohio and Ocala, Florida. The leases mature in 2021 and 2022, respectively, and bear interest at fixed rates of approximately 5.0% and 8.0%, respectively. The Troy, Ohio lease is secured by a mortgage on the real estate and is guaranteed by Griffon. The Ocala, Florida lease contains two five-year renewal options. As of September 30, 2018, $7,423 was outstanding, net of issuance costs. |
(g) | In November 2012, Garant G.P. (“Garant”) entered into a CAD 15,000 ($11,498 as of September 30, 2018) revolving credit facility. The facility accrues interest at LIBOR (USD) or the Bankers Acceptance Rate (CDN) plus 1.3% per annum (3.70% LIBOR USD and 3.24% Bankers Acceptance Rate CDN as of September 30, 2018). The revolving facility matures in October 2019. Garant is required to maintain a certain minimum equity. As of September 30, 2018, there were no borrowings under the revolving credit facility with CAD 15,000 ($11,498 as of September 30, 2018) available for borrowing. |
Defined Benefits for the Years Ended September 30, | Supplemental Benefits for the Years Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Net periodic (benefits) costs: | |||||||||||||||||||||||
Interest cost | $ | 5,084 | $ | 4,892 | $ | 5,465 | $ | 544 | $ | 715 | $ | 1,243 | |||||||||||
Expected return on plan assets | (10,736 | ) | (10,943 | ) | (10,934 | ) | — | — | — | ||||||||||||||
Amortization of: | |||||||||||||||||||||||
Prior service costs | — | 1 | 1 | 14 | 15 | 19 | |||||||||||||||||
Actuarial loss | 755 | 1,980 | 1,131 | 628 | 1,347 | 1,224 | |||||||||||||||||
Total net periodic (benefits) costs | $ | (4,897 | ) | $ | (4,070 | ) | $ | (4,337 | ) | $ | 1,186 | $ | 2,077 | $ | 2,486 |
Defined Benefits for the Years Ended September 30, | Supplemental Benefits for the Years Ended September 30, | ||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||
Discount rate | 4.10 | % | 3.64 | % | 3.42 | % | 3.99 | % | 3.18 | % | 2.86 | % | |||||
Expected return on assets | 7.00 | % | 7.25 | % | 7.50 | % | — | % | — | % | — | % |
Defined Benefits at September 30, | Supplemental Benefits at September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of fiscal year | $ | 174,337 | $ | 189,156 | $ | 32,627 | $ | 35,774 | |||||||
Interest cost | 5,084 | 4,892 | 544 | 715 | |||||||||||
Benefits paid | (10,531 | ) | (10,393 | ) | (3,001 | ) | (4,057 | ) | |||||||
Actuarial (gain) loss | (7,562 | ) | (9,318 | ) | (14,452 | ) | 195 | ||||||||
Benefit obligation at end of fiscal year | 161,328 | 174,337 | 15,718 | 32,627 | |||||||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of fiscal year | 150,822 | 144,316 | — | — | |||||||||||
Actual return on plan assets | 7,940 | 13,152 | — | — | |||||||||||
Company contributions | 2,449 | 3,747 | 3,001 | 4,057 | |||||||||||
Benefits paid | (10,531 | ) | (10,393 | ) | (3,001 | ) | (4,057 | ) | |||||||
Fair value of plan assets at end of fiscal year | 150,680 | 150,822 | — | — | |||||||||||
Projected benefit obligation in excess of plan assets | $ | (10,648 | ) | $ | (23,515 | ) | $ | (15,718 | ) | $ | (32,627 | ) | |||
Amounts recognized in the statement of financial position consist of: | |||||||||||||||
Accrued liabilities | $ | — | $ | — | $ | (1,906 | ) | $ | (3,984 | ) | |||||
Other liabilities (long-term) | (10,648 | ) | (23,515 | ) | (13,812 | ) | (28,643 | ) | |||||||
Total Liabilities | (10,648 | ) | (23,515 | ) | (15,718 | ) | (32,627 | ) | |||||||
Net actuarial losses | 19,088 | 24,608 | 4,965 | 20,045 | |||||||||||
Prior service cost | — | — | 28 | 42 | |||||||||||
Deferred taxes | (6,103 | ) | (9,069 | ) | (1,597 | ) | (7,486 | ) | |||||||
Total Accumulated other comprehensive loss, net of tax | 12,985 | 15,539 | 3,396 | 12,601 | |||||||||||
Net amount recognized at September 30, | $ | 2,337 | $ | (7,976 | ) | $ | (12,322 | ) | $ | (20,026 | ) | ||||
Accumulated benefit obligations | $ | 161,328 | $ | 174,337 | $ | 15,718 | $ | 32,627 | |||||||
Information for plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||
ABO | $ | 161,328 | $ | 174,337 | $ | 15,718 | $ | 32,627 | |||||||
PBO | 161,328 | 174,337 | 15,718 | 32,627 | |||||||||||
Fair value of plan assets | 150,680 | 150,822 | — | — |
Defined Benefits at September 30, | Supplemental Benefits at September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Weighted average discount rate | 4.10 | % | 3.64 | % | 3.99 | % | 3.18 | % |
At September 30, | ||||||||
2018 | 2017 | Target | ||||||
Cash and equivalents | 18.0 | % | 18.0 | % | — | % | ||
Equity securities | 68.5 | % | 58.0 | % | 63.0 | % | ||
Fixed income | 9.5 | % | 19.3 | % | 37.0 | % | ||
Other | 4.0 | % | 4.7 | % | — | % | ||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
For the years ending September 30, | Defined Benefits | Supplemental Benefits | |||||
2019 | $ | 10,767 | $ | 1,906 | |||
2020 | 10,892 | 1,822 | |||||
2021 | 10,979 | 1,734 | |||||
2022 | 10,960 | 1,642 | |||||
2023 | 10,950 | 1,545 | |||||
2024 through 2028 | 53,652 | 6,068 |
At September 30, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||
Cash and equivalents | $ | 27,209 | $ | — | $ | — | $ | 27,209 | |||||||
Debt instruments | 14,269 | — | — | 14,269 | |||||||||||
Equity securities | 41,042 | — | — | 41,042 | |||||||||||
Commingled funds | — | 62,088 | — | 62,088 | |||||||||||
Limited partnerships and hedge fund investments | — | 6,026 | — | 6,026 | |||||||||||
Total | $ | 82,520 | $ | 68,114 | $ | — | $ | 150,634 |
At September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||
Cash and equivalents | $ | 27,156 | $ | — | $ | — | $ | 27,156 | |||||||
Debt instruments | 14,520 | — | — | 14,520 | |||||||||||
Equity securities | 40,423 | — | — | 40,423 | |||||||||||
Commingled funds | — | 62,907 | — | 62,907 | |||||||||||
Limited partnerships and hedge fund investments | — | 5,816 | — | 5,816 | |||||||||||
Total | $ | 82,099 | $ | 68,723 | $ | — | $ | 150,822 |
At September 30, | |||||
2018 | 2017 | ||||
Allocated shares | 3,157,530 | 2,676,486 | |||
Unallocated shares | 2,477,385 | 3,125,850 | |||
Total | 5,634,915 | 5,802,336 |
For the Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Domestic | $ | 4,942 | $ | (1,339 | ) | $ | 23,163 | ||||
Non-U.S. | 28,868 | 18,037 | 9,050 | ||||||||
$ | 33,810 | $ | 16,698 | $ | 32,213 |
For the Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Current | $ | 18,188 | $ | (3,426 | ) | $ | 6,388 | ||||
Deferred | (17,633 | ) | 2,341 | 6,044 | |||||||
Total | $ | 555 | $ | (1,085 | ) | $ | 12,432 | ||||
U.S. Federal | $ | (12,714 | ) | $ | (6,689 | ) | $ | 4,358 | |||
State and local | 5,175 | 3,307 | 3,287 | ||||||||
Non-U.S. | 8,094 | 2,297 | 4,787 | ||||||||
Total provision | $ | 555 | $ | (1,085 | ) | $ | 12,432 |
For the Years Ended September 30, | ||||||||
2018 | 2017 | 2016 | ||||||
U.S. Federal income tax provision (benefit) rate | 24.5 | % | 35.0 | % | 35.0 | % | ||
State and local taxes, net of Federal benefit | 10.2 | % | 12.4 | % | 6.6 | % | ||
Non-U.S. taxes - foreign permanent items and taxes | 3.6 | % | (12.4 | )% | (1.6 | )% | ||
Non-U.S. tax true-up | — | % | (11.4 | )% | — | % | ||
Change in domestic manufacturing deduction | — | % | (5.8 | )% | — | % | ||
Change in tax contingency reserves | (0.6 | )% | 0.7 | % | (6.3 | )% | ||
Impact of federal rate change on deferred tax balances | (60.0 | )% | — | % | — | % | ||
Repatriation of foreign earnings | 61.6 | % | — | % | — | % | ||
Change in valuation allowance | 13.4 | % | (0.6 | )% | (0.6 | )% | ||
Non-deductible/non-taxable items, net | (2.4 | )% | 8.3 | % | 2.6 | % | ||
Research and U.S. foreign tax credits | (39.4 | )% | (3.6 | )% | 8.8 | % | ||
Share based compensation | (3.8 | )% | (26.6 | )% | (5.7 | )% | ||
Other | (5.5 | )% | (2.5 | )% | (0.2 | )% | ||
Effective tax provision (benefit) rate | 1.6 | % | (6.5 | )% | 38.6 | % |
At September 30, | |||||||
2018 | 2017 | ||||||
Deferred tax assets: | |||||||
Bad debt reserves | $ | 1,404 | $ | 2,509 | |||
Inventory reserves | 7,709 | 7,615 | |||||
Deferred compensation (equity compensation and defined benefit plans) | 11,437 | 27,430 | |||||
Compensation benefits | 5,434 | 6,111 | |||||
Insurance reserve | 1,782 | 2,985 | |||||
Restructuring reserve | — | 29 | |||||
Warranty reserve | 2,598 | 2,893 | |||||
Net operating loss | 10,593 | 37,383 | |||||
Tax credits | 6,379 | 1,866 | |||||
Other reserves and accruals | 5,433 | 7,658 | |||||
52,769 | 96,479 | ||||||
Valuation allowance | (8,520 | ) | (17,466 | ) | |||
Total deferred tax assets | 44,249 | 79,013 | |||||
Deferred tax liabilities: | |||||||
Deferred income | — | (1,862 | ) | ||||
Goodwill and intangibles | (44,402 | ) | (70,560 | ) | |||
Property, plant and equipment | (39,260 | ) | (51,488 | ) | |||
Deferred gain on assets held for sale | — | (16,300 | ) | ||||
Other | (1,086 | ) | (1,016 | ) | |||
Total deferred tax liabilities | (84,748 | ) | (141,226 | ) | |||
Net deferred tax liabilities | $ | (40,499 | ) | $ | (62,213 | ) |
At September 30, | |||||||
2018 | 2017 | ||||||
Other assets | $ | 61 | $ | 6 | |||
Assets of discontinued operations held for sale | — | 6,745 | |||||
Other liabilities | (42,689 | ) | (58,505 | ) | |||
Liabilities of discontinued operations held for sale | 872 | (12,584 | ) | ||||
Liabilities of discontinued operations not held for sale | 1,257 | 2,125 | |||||
Net deferred liability | $ | (40,499 | ) | $ | (62,213 | ) |
Balance at September 30, 2016 | $ | 4,709 | |
Additions based on tax positions related to the current year | 177 | ||
Additions based on tax positions related to prior years | 69 | ||
Reductions based on tax positions related to prior years | (8 | ) | |
Lapse of Statutes | (122 | ) | |
Balance at September 30, 2017 | 4,825 | ||
Additions based on tax positions related to the current year | 152 | ||
Reductions based on tax positions related to prior years | (253 | ) | |
Additions based on tax positions related to prior years | 26 | ||
Lapse of Statutes | (194 | ) | |
Settlements | (37 | ) | |
Balance at September 30, 2018 | $ | 4,519 |
For the Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Pre-tax compensation expense | $ | 10,078 | $ | 8,090 | $ | 10,136 | |||||
Tax benefit | (2,469 | ) | (2,836 | ) | (3,553 | ) | |||||
Total stock-based compensation expense, net of tax | $ | 7,609 | $ | 5,254 | $ | 6,583 |
Shares | Weighted Average Grant- Date Fair Value | |||||
Unvested at September 30, 2017 | 2,255,796 | $ | 13.65 | |||
Granted | 1,343,929 | 17.30 | ||||
Vested | (536,958 | ) | 20.89 | |||
Forfeited | (212,939 | ) | 20.91 | |||
Unvested at September 30, 2018 | 2,849,828 | 14.89 |
2018 | 2017 | 2016 | ||||||
Weighted average shares outstanding - basic | 41,005 | 41,005 | 41,074 | |||||
Incremental shares from stock based compensation | 1,417 | 1,642 | 2,326 | |||||
Convertible debt due 2017 | — | 364 | 709 | |||||
Weighted average shares outstanding - diluted | 42,422 | 43,011 | 44,109 | |||||
Anti-dilutive options excluded from diluted EPS computation | — | — | 6 |
Quarter ended | Revenue | Gross Profit | Income from continuing operations | Per Share - Basic | Per Share - Diluted | ||||||||||||||
2018 | |||||||||||||||||||
December 31, 2017 | $ | 437,303 | $ | 120,844 | $ | 22,831 | $ | 0.54 | $ | 0.53 | |||||||||
March 31, 2018 | 478,560 | 121,473 | 1,951 | 0.05 | 0.05 | ||||||||||||||
June 30, 2018 | 516,550 | 138,792 | 7,442 | 0.18 | 0.18 | ||||||||||||||
September 30, 2018 | 545,505 | 148,451 | 1,031 | 0.03 | 0.02 | ||||||||||||||
$ | 1,977,918 | $ | 529,560 | $ | 33,255 | $ | 0.81 | $ | 0.78 | ||||||||||
2017 | |||||||||||||||||||
December 31, 2016 | $ | 352,277 | $ | 96,744 | $ | 7,044 | $ | 0.18 | $ | 0.17 | |||||||||
March 31, 2017 | 383,807 | 98,869 | 1,950 | 0.05 | 0.05 | ||||||||||||||
June 30, 2017 | 358,114 | 97,984 | 4,452 | 0.11 | 0.10 | ||||||||||||||
September 30, 2017 | 430,799 | 114,519 | 4,337 | 0.10 | 0.10 | ||||||||||||||
$ | 1,524,997 | $ | 408,116 | $ | 17,783 | $ | 0.43 | $ | 0.41 |
• | Earnings (loss) per share are computed independently for each quarter and year presented; as such the sum of the quarters may not be equal to the full year amounts. |
• | 2018 Net income, and the related per share earnings, included, net of tax, acquisition related costs of $2,348, $378, $2,320 for the first, second and third quarters, respectively, a cost of life insurance benefit of $248 for the first quarter, special dividend ESOP charges of $2,125 for the third quarter, and secondary equity offering costs of $795 for the third quarter. |
• | 2017 Net income, and the related per share earnings, included, net of tax, acquisition related costs of $6,145 and contract settlement charges of $3,300. |
• | HBP is a global provider of long-handled tools and landscaping products for homeowners and professionals; a leading North American manufacturer and marketer of wood and wire closet organization, general living storage and wire garage storage products to home center retail chains, mass merchandisers, and direct-to builder professional installers; a leading manufacturer and marketer of residential and commercial garage doors to professional dealers and to some of the largest home center retail chains in North America; as well as a leading U.S. manufacturer and marketer of rolling steel door and grille products designed for commercial, industrial, institutional, and retail use. |
• | Defense Electronics segment consists of Telephonics a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers. |
For the Years Ended September 30, | |||||||||||
REVENUE | 2018 | 2017 | 2016 | ||||||||
Home & Building Products: | |||||||||||
AMES | $ | 953,612 | $ | 545,269 | $ | 513,973 | |||||
CBP | 697,969 | 568,001 | 527,370 | ||||||||
Home & Building Products | 1,651,581 | 1,113,270 | 1,041,343 | ||||||||
Defense Electronics | 326,337 | $ | 411,727 | $ | 435,692 | ||||||
Total consolidated net sales | $ | 1,977,918 | $ | 1,524,997 | $ | 1,477,035 |
For the Years Ended September 30, | |||||||||||
INCOME BEFORE TAXES FROM CONTINUING OPERATIONS | 2018 | 2017 | 2016 | ||||||||
Segment operating profit: | |||||||||||
Home & Building Products | $ | 130,487 | $ | 89,495 | $ | 79,682 | |||||
Defense Electronics | 25,262 | 29,943 | 42,801 | ||||||||
Segment operating profit from continuing operations | 155,749 | 119,438 | 122,483 | ||||||||
Net interest expense | (63,871 | ) | (51,449 | ) | (49,877 | ) | |||||
Unallocated amounts | (45,812 | ) | (42,398 | ) | (40,393 | ) | |||||
Acquisition costs | (5,217 | ) | (8,893 | ) | — | ||||||
Special dividend charges | (3,220 | ) | — | — | |||||||
Cost of life insurance benefit | (2,614 | ) | — | — | |||||||
Secondary equity offering costs | (1,205 | ) | — | — | |||||||
Income before taxes from continuing operations | $ | 33,810 | $ | 16,698 | $ | 32,213 |
For the Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Segment adjusted EBITDA: | |||||||||||
Home & Building Products | $ | 177,400 | $ | 126,766 | $ | 114,949 | |||||
Defense Electronics | 36,063 | 45,931 | 53,385 | ||||||||
Total Segment adjusted EBITDA from continuing operations | 213,463 | 172,697 | 168,334 | ||||||||
Net interest expense | (63,871 | ) | (51,449 | ) | (49,877 | ) | |||||
Segment depreciation and amortization | (55,334 | ) | (47,398 | ) | (45,851 | ) | |||||
Unallocated amounts | (45,812 | ) | (42,398 | ) | (40,393 | ) | |||||
Acquisition costs | (7,597 | ) | (9,617 | ) | — | ||||||
Special dividend charges | (3,220 | ) | — | — | |||||||
Cost of life insurance benefit | (2,614 | ) | — | — | |||||||
Secondary equity offering costs | (1,205 | ) | — | — | |||||||
Contract settlement charges | — | (5,137 | ) | — | |||||||
Income before taxes from continuing operations | $ | 33,810 | $ | 16,698 | $ | 32,213 |
For the Years Ended September 30, | |||||||||||
DEPRECIATION and AMORTIZATION | 2018 | 2017 | 2016 | ||||||||
Segment: | |||||||||||
Home & Building Products | $ | 44,533 | $ | 36,547 | $ | 35,267 | |||||
Defense Electronics | 10,801 | 10,851 | 10,584 | ||||||||
Total segment depreciation and amortization | 55,334 | 47,398 | 45,851 | ||||||||
Corporate | 469 | 480 | 491 | ||||||||
Total consolidated depreciation and amortization | $ | 55,803 | $ | 47,878 | $ | 46,342 | |||||
CAPITAL EXPENDITURES | |||||||||||
Segment: | |||||||||||
Home & Building Products | $ | 36,587 | $ | 24,476 | $ | 49,351 | |||||
Defense Electronics | 10,941 | 8,204 | 9,007 | ||||||||
Total segment | 47,528 | 32,680 | 58,358 | ||||||||
Corporate | 2,610 | 2,257 | 918 | ||||||||
Total consolidated capital expenditures | $ | 50,138 | $ | 34,937 | $ | 59,276 |
ASSETS | At September 30, 2018 | At September 30, 2017 | At September 30, 2016 | ||||||||
Segment assets: | |||||||||||
Home & Building Products | $ | 1,631,631 | $ | 1,084,103 | $ | 1,020,297 | |||||
Defense Electronics | 346,907 | 343,445 | 334,631 | ||||||||
Total segment assets | 1,978,538 | 1,427,548 | 1,354,928 | ||||||||
Corporate | 103,112 | 71,980 | 62,257 | ||||||||
Total continuing assets | 2,081,650 | 1,499,528 | 1,417,185 | ||||||||
Assets of discontinued operations | 3,240 | 374,013 | 364,911 | ||||||||
Consolidated total | $ | 2,084,890 | $ | 1,873,541 | $ | 1,782,096 |
For the Years Ended September 30, | |||||||||||
REVENUE BY GEOGRAPHIC AREA - DESTINATION | 2018 | 2017 | 2016 | ||||||||
United States | $ | 1,521,187 | $ | 1,164,958 | $ | 1,149,448 | |||||
Europe | 102,814 | 67,048 | 68,604 | ||||||||
Canada | 123,341 | 106,080 | 102,333 | ||||||||
Australia | 166,980 | 124,757 | 106,780 | ||||||||
All other countries | 63,596 | 62,154 | 49,870 | ||||||||
Consolidated revenue | $ | 1,977,918 | $ | 1,524,997 | $ | 1,477,035 | |||||
For the Years Ended September 30, | |||||||||||
LONG-LIVED ASSETS BY GEOGRAPHIC AREA | 2018 | 2017 | 2016 | ||||||||
United States | $ | 612,294 | $ | 358,795 | $ | 370,332 | |||||
Canada | 33,884 | 36,383 | 35,984 | ||||||||
Australia | 33,288 | 35,917 | 26,196 | ||||||||
United Kingdom | 24,892 | 4,144 | — | ||||||||
Mexico | 7,017 | — | — | ||||||||
All other countries | 1,976 | 2,023 | 2,342 | ||||||||
Consolidated long-lived assets, net | $ | 713,351 | $ | 437,262 | $ | 434,854 |
Years Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | |||||||||||||||||||||
Foreign currency translation adjustments | $ | 9,403 | $ | — | $ | 9,403 | $ | 10,667 | $ | — | $ | 10,667 | $ | 17,284 | $ | — | $ | 17,284 | |||||||||||
Pension and other defined benefit plans | 24,081 | (7,700 | ) | 16,381 | 14,160 | (4,957 | ) | 9,203 | (8,694 | ) | 3,043 | (5,651 | ) | ||||||||||||||||
Cash flow hedge | 900 | (315 | ) | 585 | 1,370 | (480 | ) | 890 | (2,593 | ) | 907 | (1,686 | ) | ||||||||||||||||
Total other comprehensive income (loss) | $ | 34,384 | $ | (8,015 | ) | $ | 26,369 | $ | 26,197 | $ | (5,437 | ) | $ | 20,760 | $ | 5,997 | $ | 3,950 | $ | 9,947 |
At September 30, | |||||||
2018 | 2017 | ||||||
Foreign currency translation | $ | (22,824 | ) | $ | (32,227 | ) | |
Pension and other defined benefit plans | (11,759 | ) | (28,140 | ) | |||
Cash flow hedge | 471 | (114 | ) | ||||
$ | (34,112 | ) | $ | (60,481 | ) |
For the Years Ended September 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income (loss) | $ | 125,678 | $ | 14,912 | $ | 30,010 | |||||
Other comprehensive income (loss), net of taxes | 26,369 | 20,760 | 9,947 | ||||||||
Comprehensive income (loss) | $ | 152,047 | $ | 35,672 | $ | 39,957 |
For the Years Ended September 30, | |||||||||||
Gain (Loss) | 2018 | 2017 | 2016 | ||||||||
Pension amortization | $ | (1,397 | ) | $ | (3,343 | ) | $ | (2,375 | ) | ||
Cash flow hedges | 657 | (1,458 | ) | (752 | ) | ||||||
Total before tax | (740 | ) | (4,801 | ) | (3,127 | ) | |||||
Tax | 155 | 1,680 | 1,094 | ||||||||
Net of tax | $ | (585 | ) | $ | (3,121 | ) | $ | (2,033 | ) |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | |||||||||||||||
CURRENT ASSETS | |||||||||||||||||||
Cash and equivalents | $ | 15,976 | $ | 16,353 | $ | 37,429 | $ | — | $ | 69,758 | |||||||||
Accounts receivable, net of allowances | — | 234,885 | 69,729 | (24,105 | ) | 280,509 | |||||||||||||
Contract costs and recognized income not yet billed, net of progress payments | — | 121,393 | 410 | — | 121,803 | ||||||||||||||
Inventories | — | 332,067 | 66,373 | (81 | ) | 398,359 | |||||||||||||
Prepaid and other current assets | 12,179 | 21,313 | 6,168 | 2,461 | 42,121 | ||||||||||||||
Assets of discontinued operations not held for sale | — | — | 324 | — | 324 | ||||||||||||||
Total Current Assets | 28,155 | 726,011 | 180,433 | (21,725 | ) | 912,874 | |||||||||||||
PROPERTY, PLANT AND EQUIPMENT, net | 936 | 299,920 | 41,636 | — | 342,492 | ||||||||||||||
GOODWILL | 6,646 | 361,507 | 71,242 | — | 439,395 | ||||||||||||||
INTANGIBLE ASSETS, net | 93 | 293,093 | 77,672 | — | 370,858 | ||||||||||||||
INTERCOMPANY RECEIVABLE | 56,396 | 314,394 | (121,445 | ) | (249,345 | ) | — | ||||||||||||
EQUITY INVESTMENTS IN SUBSIDIARIES | 1,528,932 | 968,330 | 3,347,894 | (5,845,156 | ) | — | |||||||||||||
OTHER ASSETS | 8,651 | 15,942 | 374 | (8,612 | ) | 16,355 | |||||||||||||
ASSETS OF DISCONTINUED OPERATIONS NOT HELD FOR SALE | — | — | 2,916 | — | 2,916 | ||||||||||||||
Total Assets | $ | 1,629,809 | $ | 2,979,197 | $ | 3,600,722 | $ | (6,124,838 | ) | $ | 2,084,890 | ||||||||
CURRENT LIABILITIES | |||||||||||||||||||
Notes payable and current portion of long-term debt | $ | 2,276 | $ | 3,398 | $ | 7,337 | $ | — | $ | 13,011 | |||||||||
Accounts payable and accrued liabilities | 26,639 | 303,154 | 59,531 | (16,474 | ) | 372,850 | |||||||||||||
Liabilities of discontinued operations not held for sale | — | (22,327 | ) | 29,537 | — | 7,210 | |||||||||||||
Total Current Liabilities | 28,915 | 284,225 | 96,405 | (16,474 | ) | 393,071 | |||||||||||||
LONG-TERM DEBT, net | 1,044,071 | 6,110 | 57,890 | — | 1,108,071 | ||||||||||||||
INTERCOMPANY PAYABLES | 66,058 | (77,760 | ) | 263,227 | (251,525 | ) | — | ||||||||||||
OTHER LIABILITIES | 16,374 | 73,391 | 20,592 | (3,647 | ) | 106,710 | |||||||||||||
LIABILITIES OF DISCONTINUED OPERATIONS NOT HELD FOR SALE | — | — | 2,647 | — | 2,647 | ||||||||||||||
Total Liabilities | 1,155,418 | 285,966 | 440,761 | (271,646 | ) | 1,610,499 | |||||||||||||
SHAREHOLDERS’ EQUITY | 474,391 | 2,693,231 | 3,159,961 | (5,853,192 | ) | 474,391 | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,629,809 | $ | 2,979,197 | $ | 3,600,722 | $ | (6,124,838 | ) | $ | 2,084,890 |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | ||||||||||
CURRENT ASSETS | ||||||||||||||
Cash and equivalents | 3,240 | 8,066 | 36,375 | — | 47,681 | |||||||||
Accounts receivable, net of allowances | — | 168,731 | 59,929 | (20,431 | ) | 208,229 | ||||||||
Contract costs and recognized income not yet billed, net of progress payments | — | 131,383 | 279 | — | 131,662 | |||||||||
Inventories, net | — | 246,605 | 52,759 | 73 | 299,437 | |||||||||
Prepaid and other current assets | 21,131 | 15,854 | 3,002 | 80 | 40,067 | |||||||||
Assets of discontinued operations held for sale | — | 168,306 | 202,418 | — | 370,724 | |||||||||
Assets of discontinued operations not held for sale | — | — | 329 | — | 329 | |||||||||
Total Current Assets | 24,371 | 738,945 | 355,091 | (20,278 | ) | 1,098,129 | ||||||||
PROPERTY, PLANT AND EQUIPMENT, net | 645 | 200,362 | 31,128 | — | 232,135 | |||||||||
GOODWILL | — | 280,797 | 38,342 | — | 319,139 | |||||||||
INTANGIBLE ASSETS, net | 93 | 143,415 | 61,619 | — | 205,127 | |||||||||
INTERCOMPANY RECEIVABLE | 552,017 | 757,608 | 915,551 | (2,225,176 | ) | — | ||||||||
EQUITY INVESTMENTS IN SUBSIDIARIES | 863,149 | 877,641 | 1,613,891 | (3,354,681 | ) | — | ||||||||
OTHER ASSETS | 12,171 | 12,054 | (1,002 | ) | (7,172 | ) | 16,051 | |||||||
ASSETS OF DISCONTINUED OPERATIONS NOT HELD FOR SALE | — | — | 2,960 | — | 2,960 | |||||||||
Total Assets | 1,452,446 | 3,010,822 | 3,017,580 | (5,607,307 | ) | 1,873,541 | ||||||||
CURRENT LIABILITIES | ||||||||||||||
Notes payable and current portion of long-term debt | 2,854 | 1,471 | 6,753 | — | 11,078 | |||||||||
Accounts payable and accrued liabilities | 14,683 | 199,784 | 46,111 | 6,631 | 267,209 | |||||||||
Liabilities of discontinued operations held for sale | — | 47,426 | 37,024 | — | 84,450 | |||||||||
Liabilities of discontinued operations | — | — | 8,342 | — | 8,342 | |||||||||
Total Current Liabilities | 17,537 | 248,681 | 98,230 | 6,631 | 371,079 | |||||||||
LONG-TERM DEBT, net | 903,609 | 6,044 | 58,427 | — | 968,080 | |||||||||
INTERCOMPANY PAYABLES | 84,068 | 1,259,413 | 854,518 | (2,197,999 | ) | — | ||||||||
OTHER LIABILITIES | 48,424 | 76,036 | 14,135 | (6,058 | ) | 132,537 | ||||||||
LIABILITIES OF DISCONTINUED OPERATIONS NOT HELD FOR SALE | — | — | 3,037 | — | 3,037 | |||||||||
Total Liabilities | 1,053,638 | 1,590,174 | 1,028,347 | (2,197,426 | ) | 1,474,733 | ||||||||
SHAREHOLDERS’ EQUITY | 398,808 | 1,420,648 | 1,989,233 | (3,409,881 | ) | 398,808 | ||||||||
Total Liabilities and Shareholders’ Equity | 1,452,446 | 3,010,822 | 3,017,580 | (5,607,307 | ) | 1,873,541 |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | |||||||||||||||
Revenue | $ | — | $ | 1,638,792 | $ | 367,149 | $ | (28,023 | ) | $ | 1,977,918 | ||||||||
Cost of goods and services | — | 1,232,019 | 245,687 | (29,348 | ) | 1,448,358 | |||||||||||||
Gross profit | — | 406,773 | 121,462 | 1,325 | 529,560 | ||||||||||||||
Selling, general and administrative expenses | 38,691 | 303,856 | 90,933 | (370 | ) | 433,110 | |||||||||||||
Income (loss) from operations | (38,691 | ) | 102,917 | 30,529 | 1,695 | 96,450 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest income (expense), net | (23,911 | ) | (31,913 | ) | (8,047 | ) | — | (63,871 | ) | ||||||||||
Other, net | (6,515 | ) | 120,670 | (111,187 | ) | (1,737 | ) | 1,231 | |||||||||||
Total other income (expense) | (30,426 | ) | 88,757 | (119,234 | ) | (1,737 | ) | (62,640 | ) | ||||||||||
Income (loss) before taxes | (69,117 | ) | 191,674 | (88,705 | ) | (42 | ) | 33,810 | |||||||||||
Provision (benefit) for income taxes | (17,692 | ) | 9,546 | 8,743 | (42 | ) | 555 | ||||||||||||
Income (loss) before equity in net income of subsidiaries | (51,425 | ) | 182,128 | (97,448 | ) | — | 33,255 | ||||||||||||
Equity in net income (loss) of subsidiaries | 177,103 | (151,864 | ) | 182,128 | (207,367 | ) | — | ||||||||||||
Income (loss) from continuing operations | 125,678 | 30,264 | 84,680 | (207,367 | ) | 33,255 | |||||||||||||
Income (loss) from operations of discontinued businesses | — | 119,981 | — | — | 119,981 | ||||||||||||||
Provision (benefit) from income taxes | — | 27,558 | — | — | 27,558 | ||||||||||||||
Income (loss) from discontinued operations | — | 92,423 | — | — | 92,423 | ||||||||||||||
Net Income (loss) | $ | 125,678 | $ | 122,687 | $ | 84,680 | $ | (207,367 | ) | $ | 125,678 | ||||||||
Comprehensive income (loss) | $ | 152,047 | $ | 143,936 | $ | 81,389 | $ | (225,325 | ) | $ | 152,047 |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | |||||||||||||||
Revenue | $ | — | $ | 1,284,189 | $ | 270,520 | $ | (29,712 | ) | $ | 1,524,997 | ||||||||
Cost of goods and services | — | 966,293 | 181,634 | (31,046 | ) | 1,116,881 | |||||||||||||
Gross profit | — | 317,896 | 88,886 | 1,334 | 408,116 | ||||||||||||||
Selling, general and administrative expenses | 42,273 | 232,720 | 64,466 | (370 | ) | 339,089 | |||||||||||||
Restructuring and other related charges | — | — | — | — | — | ||||||||||||||
Total operating expenses | 42,273 | 232,720 | 64,466 | (370 | ) | 339,089 | |||||||||||||
Income (loss) from operations | (42,273 | ) | 85,176 | 24,420 | 1,704 | 69,027 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest income (expense), net | (13,804 | ) | (24,242 | ) | (13,403 | ) | — | (51,449 | ) | ||||||||||
Other, net | 59 | 1,395 | (630 | ) | (1,704 | ) | (880 | ) | |||||||||||
Total other income (expense) | (13,745 | ) | (22,847 | ) | (14,033 | ) | (1,704 | ) | (52,329 | ) | |||||||||
Income (loss) before taxes from continuing operations | (56,018 | ) | 62,329 | 10,387 | — | 16,698 | |||||||||||||
Provision (benefit) for income taxes | (11,338 | ) | 24,560 | (14,307 | ) | — | (1,085 | ) | |||||||||||
Income (loss) before equity in net income of subsidiaries | (44,680 | ) | 37,769 | 24,694 | — | 17,783 | |||||||||||||
Equity in net income (loss) of subsidiaries | 59,592 | (25,231 | ) | 37,770 | (72,131 | ) | — | ||||||||||||
Income (loss) from continuing operations | 14,912 | 12,538 | 62,464 | (72,131 | ) | 17,783 | |||||||||||||
Income from operations of discontinued businesses | — | 16,827 | 5,449 | — | 22,276 | ||||||||||||||
Provision (benefit) from income taxes | — | 4,476 | 20,671 | — | 25,147 | ||||||||||||||
Loss from discontinued operations | — | 12,351 | (15,222 | ) | — | (2,871 | ) | ||||||||||||
Net income (loss) | $ | 14,912 | $ | 24,889 | $ | 47,242 | $ | (72,131 | ) | $ | 14,912 | ||||||||
Comprehensive income (loss) | $ | 35,672 | $ | 35,575 | $ | 38,337 | $ | (73,912 | ) | $ | 35,672 |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | |||||||||||||||
Revenue | $ | — | $ | 1,277,241 | $ | 228,350 | $ | (28,556 | ) | $ | 1,477,035 | ||||||||
Cost of goods and services | — | 952,296 | 154,181 | (30,135 | ) | 1,076,342 | |||||||||||||
Gross profit | — | 324,945 | 74,169 | 1,579 | 400,693 | ||||||||||||||
Selling, general and administrative expenses | 26,427 | 228,961 | 63,335 | (370 | ) | 318,353 | |||||||||||||
Restructuring and other related charges | — | 1,299 | (1,299 | ) | — | — | |||||||||||||
Total operating expenses | 26,427 | 230,260 | 62,036 | (370 | ) | 318,353 | |||||||||||||
Income (loss) from operations | (26,427 | ) | 94,685 | 12,133 | 1,949 | 82,340 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest income (expense), net | (12,549 | ) | (24,050 | ) | (13,278 | ) | — | (49,877 | ) | ||||||||||
Other, net | 337 | 1,862 | (500 | ) | (1,949 | ) | (250 | ) | |||||||||||
Total other income (expense) | (12,212 | ) | (22,188 | ) | (13,778 | ) | (1,949 | ) | (50,127 | ) | |||||||||
Income (loss) before taxes | (38,639 | ) | 72,497 | (1,645 | ) | — | 32,213 | ||||||||||||
Provision (benefit) for income taxes | 4,964 | 29,445 | (21,977 | ) | — | 12,432 | |||||||||||||
Income (loss) before equity in net income of subsidiaries | (43,603 | ) | 43,052 | 20,332 | — | 19,781 | |||||||||||||
Equity in net income (loss) of subsidiaries | 73,613 | (2,858 | ) | 43,052 | (113,807 | ) | — | ||||||||||||
Income (loss) from continuing operations | $ | 30,010 | $ | 40,194 | $ | 63,384 | $ | (113,807 | ) | $ | 19,781 | ||||||||
Income from operations of discontinued businesses | — | 15,625 | 5,327 | — | 20,952 | ||||||||||||||
Provision (benefit) from income taxes | — | 4,720 | 6,003 | — | 10,723 | ||||||||||||||
Income (loss) from discontinued operations | — | 10,905 | (676 | ) | — | 10,229 | |||||||||||||
Net income (loss) | $ | 30,010 | $ | 51,099 | $ | 62,708 | $ | (113,807 | ) | $ | 30,010 | ||||||||
Comprehensive income (loss) | $ | 39,957 | $ | 44,391 | $ | 90,560 | $ | (134,951 | ) | $ | 39,957 |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net income (loss) | $ | 125,678 | $ | 122,687 | $ | 84,680 | $ | (207,367 | ) | $ | 125,678 | ||||||||
Net (income) loss from discontinued operations | — | (92,423 | ) | — | — | (92,423 | ) | ||||||||||||
Net cash provided by (used in) operating activities | 389,671 | (405,174 | ) | 108,981 | (27,032 | ) | 66,446 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Acquisition of property, plant and equipment | (544 | ) | (41,531 | ) | (8,063 | ) | — | (50,138 | ) | ||||||||||
Acquired business, net of cash acquired | (368,936 | ) | (4,843 | ) | (57,153 | ) | — | (430,932 | ) | ||||||||||
Intercompany distributions | — | — | — | — | — | ||||||||||||||
Proceeds from sale of business | — | 474,727 | — | — | 474,727 | ||||||||||||||
Proceeds from sale of assets | — | 62 | 601 | — | 663 | ||||||||||||||
Net cash provided by (used in) investing activities | (369,480 | ) | 428,415 | (64,615 | ) | — | (5,680 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from issuance of common stock | — | — | — | — | — | ||||||||||||||
Purchase of shares for treasury | (45,605 | ) | — | — | — | (45,605 | ) | ||||||||||||
Proceeds from long-term debt | 411,623 | 2,125 | 29,310 | — | 443,058 | ||||||||||||||
Payments of long-term debt | (269,478 | ) | (5,403 | ) | (26,112 | ) | — | (300,993 | ) | ||||||||||
Change in short-term borrowings | — | 144 | — | — | 144 | ||||||||||||||
Financing costs | (7,793 | ) | — | — | — | (7,793 | ) | ||||||||||||
Tax effect from exercise/vesting of equity awards, net | — | — | — | — | — | ||||||||||||||
Dividends paid | (49,797 | ) | — | — | — | (49,797 | ) | ||||||||||||
Other, net | (46,405 | ) | 4,733 | 14,691 | 27,032 | 51 | |||||||||||||
Net cash provided by (used in) financing activities | (7,455 | ) | 1,599 | 17,889 | 27,032 | 39,065 | |||||||||||||
CASH FLOWS FROM DISCONTINUED OPERATIONS: | |||||||||||||||||||
Net cash used in discontinued operations | — | (16,394 | ) | (62,533 | ) | — | (78,927 | ) | |||||||||||
Effect of exchange rate changes on cash and equivalents | — | (159 | ) | 1,332 | — | 1,173 | |||||||||||||
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 12,736 | 8,287 | 1,054 | — | 22,077 | ||||||||||||||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 3,240 | 8,066 | 36,375 | — | 47,681 | ||||||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ | 15,976 | $ | 16,353 | $ | 37,429 | $ | — | $ | 69,758 |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net income (loss) | $ | 14,912 | $ | 24,889 | $ | 47,242 | $ | (72,131 | ) | $ | 14,912 | ||||||||
Net (income) loss from discontinued operations | — | (12,351 | ) | 15,222 | — | 2,871 | |||||||||||||
Net cash provided by operating activities | (10,771 | ) | 56,320 | 3,602 | — | 49,151 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Acquisition of property, plant and equipment | (15 | ) | (27,902 | ) | (7,020 | ) | — | (34,937 | ) | ||||||||||
Acquired business, net of cash acquired | — | — | (34,719 | ) | — | (34,719 | ) | ||||||||||||
Purchase of securities | (1,824 | ) | — | — | — | (1,824 | ) | ||||||||||||
Proceeds from sale of property, plant and equipment | — | 144 | (1 | ) | — | 143 | |||||||||||||
Net cash used in investing activities | (1,839 | ) | (27,758 | ) | (41,740 | ) | — | (71,337 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Purchase of shares for treasury | (15,841 | ) | — | — | — | (15,841 | ) | ||||||||||||
Proceeds from long-term debt | 201,124 | — | 32,319 | — | 233,443 | ||||||||||||||
Payments of long-term debt | (149,109 | ) | (1,282 | ) | (20,063 | ) | — | (170,454 | ) | ||||||||||
Share premium payment on settled debt | (24,997 | ) | — | — | — | (24,997 | ) | ||||||||||||
Change in short-term borrowings | — | — | — | — | — | ||||||||||||||
Financing costs | (1,548 | ) | — | — | — | (1,548 | ) | ||||||||||||
Purchase of ESOP shares | (10,908 | ) | — | — | — | (10,908 | ) | ||||||||||||
Dividends paid | (10,325 | ) | — | — | — | (10,325 | ) | ||||||||||||
Other, net | 20,937 | (34,806 | ) | 13,799 | — | (70 | ) | ||||||||||||
Net cash used in financing activities | 9,333 | (36,088 | ) | 26,055 | — | (700 | ) | ||||||||||||
CASH FLOWS FROM DISCONTINUED OPERATIONS: | |||||||||||||||||||
Net cash provided by (used in) discontinued operations | — | (12,100 | ) | 9,950 | — | (2,150 | ) | ||||||||||||
Effect of exchange rate changes on cash and equivalents | — | — | 164 | — | 164 | ||||||||||||||
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS | (3,277 | ) | (19,626 | ) | (1,969 | ) | — | (24,872 | ) | ||||||||||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 6,517 | 27,692 | 38,344 | — | 72,553 | ||||||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ | 3,240 | $ | 8,066 | $ | 36,375 | $ | — | $ | 47,681 |
Parent Company | Guarantor Companies | Non-Guarantor Companies | Elimination | Consolidation | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net income (loss) | $ | 30,010 | $ | 51,099 | $ | 62,708 | $ | (113,807 | ) | $ | 30,010 | ||||||||
Net income (loss) from discontinued operations | — | 10,905 | (676 | ) | — | 10,229 | |||||||||||||
Net cash provided by (used in) operating activities | (11,879 | ) | 87,252 | 4,745 | — | 80,118 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Acquisition of property, plant and equipment | (259 | ) | (62,176 | ) | 3,159 | — | (59,276 | ) | |||||||||||
Intercompany distributions | — | (2,726 | ) | (1,744 | ) | — | (4,470 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 763 | 7 | — | 770 | ||||||||||||||
Investment purchases | 715 | — | — | — | 715 | ||||||||||||||
Net cash provided by (used in) investing activities | 456 | (64,139 | ) | 1,422 | — | (62,261 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Purchase of shares for treasury | (65,307 | ) | — | — | — | (65,307 | ) | ||||||||||||
Proceeds from long-term debt | 271,340 | 2,311 | 28,711 | — | 302,362 | ||||||||||||||
Payments of long-term debt | (177,513 | ) | (1,237 | ) | (29,764 | ) | — | (208,514 | ) | ||||||||||
Change in short-term borrowings | — | — | — | — | — | ||||||||||||||
Financing costs | (4,277 | ) | — | (107 | ) | — | (4,384 | ) | |||||||||||
Tax effect from exercise/vesting of equity awards, net | — | — | — | — | — | ||||||||||||||
Dividends paid | (8,798 | ) | — | — | — | (8,798 | ) | ||||||||||||
Other, net | 55 | (1,926 | ) | 1,926 | — | 55 | |||||||||||||
Net cash provided by (used in) financing activities | 15,500 | (852 | ) | 766 | — | 15,414 | |||||||||||||
CASH FLOWS FROM DISCONTINUED OPERATIONS: | |||||||||||||||||||
Net cash provided by (used in) discontinued operations | — | (5,241 | ) | (8,364 | ) | — | (13,605 | ) | |||||||||||
Effect of exchange rate changes on cash and equivalents | — | — | 886 | — | 886 | ||||||||||||||
NET DECREASE IN CASH AND EQUIVALENTS | 4,077 | 17,020 | (545 | ) | — | 20,552 | |||||||||||||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 2,440 | 10,672 | 38,889 | — | 52,001 | ||||||||||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ | 6,517 | $ | 27,692 | $ | 38,344 | $ | — | $ | 72,553 |
Description | Balance at Beginning of Year | Recorded to Cost and Expense | Accounts Written Off, net | Other (1) | Balance at End of Year | ||||||||||||||
FOR THE YEAR ENDED SEPTEMBER 30, 2018 | |||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||
Bad debts | $ | 1,109 | $ | (40 | ) | 11 | $ | 744 | $ | 1,824 | |||||||||
Sales returns and allowances | 4,857 | (5,880 | ) | 5,208 | 399 | 4,584 | |||||||||||||
$ | 5,966 | $ | (5,920 | ) | $ | 5,219 | $ | 1,143 | $ | 6,408 | |||||||||
Inventory valuation | $ | 16,419 | $ | 1,924 | $ | (306 | ) | $ | 8,028 | $ | 26,065 | ||||||||
Deferred tax valuation allowance | $ | 17,466 | $ | (8,946 | ) | $ | — | $ | — | $ | 8,520 | ||||||||
FOR THE YEAR ENDED SEPTEMBER 30, 2017 | |||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||
Bad debts | $ | 1,217 | $ | 279 | $ | (387 | ) | $ | — | $ | 1,109 | ||||||||
Sales returns and allowances | 3,475 | 1,401 | (19 | ) | — | 4,857 | |||||||||||||
$ | 4,692 | $ | 1,680 | $ | (406 | ) | $ | — | $ | 5,966 | |||||||||
Inventory valuation | $ | 15,338 | $ | 851 | $ | 203 | $ | 27 | $ | 16,419 | |||||||||
Deferred tax valuation allowance | $ | 12,832 | $ | 4,634 | $ | — | $ | — | $ | 17,466 | |||||||||
FOR THE YEAR ENDED SEPTEMBER 30, 2016 | |||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||
Bad debts | $ | 1,628 | $ | 349 | $ | (759 | ) | $ | (1 | ) | $ | 1,217 | |||||||
Sales returns and allowances | 2,277 | 1,205 | (7 | ) | — | 3,475 | |||||||||||||
$ | 3,905 | $ | 1,554 | $ | (766 | ) | $ | (1 | ) | $ | 4,692 | ||||||||
Inventory valuation | $ | 13,003 | $ | 2,820 | $ | (728 | ) | $ | 243 | $ | 15,338 | ||||||||
Deferred tax valuation allowance | $ | 10,462 | $ | 2,370 | $ | — | $ | — | $ | 12,832 | |||||||||
Note (1): For the year ended September 30, 2018, Other primarily consists of opening balances of reserves assumed from acquisitions. |
(i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of Griffon’s assets; |
(ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that Griffon’s receipts and expenditures are being made only in accordance with authorizations of Griffon’s management and directors; and |
(iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Griffon’s assets that could have a material effect on the financial statements. |
(a) | (b) | (c) | |||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (2) | Weighted- average exercise price of outstanding options, warrants and rights (2) | Number of securities remaining available for future issuance under equity plans (excluding securities reflected in column (a)) | ||||||
Equity compensation plans approved by security holders (1) | 350,000 | $ | 20.00 | 1,145,834 | |||||
Equity compensation plans not approved by security holders | — | $ | — | — |
(1) | Excludes restricted shares and restricted stock units issued in connection with Griffon’s equity compensation plans. The total reflected in column (c) includes shares available for grant as any type of equity award under the Incentive Plan. |
(2) | A stock option to purchase 350,000 shares at an exercise price of $20.00 expired on October 1, 2018. |
(a) | (1) | Financial Statements – Covered by Report of Independent Registered Public Accounting Firm | ||
(A) | Consolidated Balance Sheets at September 30, 2018 and 2017 | |||
(B) | Consolidated Statements of Operations and Comprehensive Income (Loss) for the Fiscal Years Ended September 30, 2018, 2017 and 2016 | |||
(C) | Consolidated Statements of Cash Flows for the Fiscal Years Ended September 30, 2018, 2017 and 2016 | |||
(D) | Consolidated Statements of Shareholders’ Equity for the Fiscal Years Ended September 30, 2018, 2017 and 2016 | |||
(E) | Notes to the Consolidated Financial Statements | |||
(2) | Financial Statement Schedule – Covered by Report of Independent Registered Public Accounting Firm | |||
Schedule II – Valuation and Qualifying Accounts | ||||
All other schedules are not required and have been omitted. | ||||
(3) | The information required by this Section (a)(3) of Item 15 is set forth on the exhibit index that follows the signatures page of this Form 10-K. | |||
(b) | Reference is made to the exhibit index that follows the signatures page of this Form 10-K. |
Exhibit No. | ||
3.1 | ||
3.2 | ||
4.1 | ||
4.2 | ||
4.3 | ||
10.1** | ||
10.2 | ||
10.3** | ||
10.4** | ||
10.5** |
10.6** | ||
10.7** | ||
10.8** | ||
10.9** | ||
10.10** | ||
10.11** | ||
10.12 | ||
10.13 | ||
10.14** |
10.15** | ||
10.16** | ||
10.17** |
Exhibit No. | ||
10.18** | ||
10.19** | ||
10.20** | ||
10.21** | ||
10.22** | ||
10.23** | ||
10.24 | ||
10.25 | ||
10.26 | ||
10.27 | ||
10.28 | ||
10.29 | ||
10.30 | ||
10.31 | ||
10.32 |
Exhibit No. | ||
10.33 | ||
10.34* | ||
10.35 | ||
10.36 | ||
14.1 | ||
21* | ||
23* | ||
31.1* | ||
31.2* | ||
32* |
101.INS | XBRL Instance Document*** | |
101.SCH | XBRL Taxonomy Extension Schema Document*** | |
101.CAL | XBRL Taxonomy Extension Calculation Document*** | |
101.DEF | XBRL Taxonomy Extension Definitions Document*** | |
101.LAB | XBRL Taxonomy Extension Labels Document*** | |
101.PRE | XBRL Taxonomy Extension Presentation Document*** |
_______________________ | |
* | Filed herewith. All other exhibits are incorporated herein by reference to the exhibit indicated in the parenthetical references. |
** | Indicates a management contract or compensatory plan or arrangement. |
*** | In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Annual Report on Form 10-K shall be deemed to be “furnished” and not “filed.” |
Griffon Corporation | ||
By: | /s/ Ronald J. Kramer | |
Ronald J. Kramer, | ||
Chief Executive Officer |
/s/ Ronald J. Kramer | Chairman of the Board and Chief Executive Officer | |
Ronald J. Kramer | (Principal Executive Officer) | |
/s/ Robert F. Mehmel | President, Chief Operating Officer and | |
Robert F. Mehmel | Director | |
/s/ Brian G. Harris | Senior Vice President and Chief Financial Officer | |
Brian G. Harris | (Principal Financial Officer) | |
/s/ W. Christopher Durborow | Vice President, Controller and Chief Accounting Officer | |
W. Christopher Durborow | (Principal Accounting Officer) | |
/s/ Henry A. Alpert | Director | |
Henry A. Alpert | ||
/s/ Thomas Brosig | Director | |
Thomas Brosig | ||
/s/ Blaine V. Fogg | Director | |
Blaine V. Fogg | ||
/s/ Louis J. Grabowsky | Director | |
Louis J. Grabowsky | ||
/s/ Robert G. Harrison | Director | |
Robert G. Harrison | ||
/s/ Donald J. Kutyna | Director | |
Donald J. Kutyna | ||
/s/ Victor Eugene Renuart | Director | |
Victor Eugene Renuart | ||
/s/ Kevin F. Sullivan | Director | |
Kevin F. Sullivan | ||
/s/ Samanta Hegedus Stewart | Director | |
Samanta Hegedus Stewart | ||
/s/ Cheryl L. Turnbull | Director | |
Cheryl L. Turnbull | ||
/s/ William H. Waldorf | Director | |
William H. Waldorf |
GRIFFON CORPORATION | ||
By: | /s/ Thomas D. Gibbons | |
Name: | Thomas D. Gibbons | |
Title: | Vice President and Treasurer |
JPMORGAN CHASE BANK, N.A., as Administrative Agent and a Lender | |
By: | /s/ Joon Hur |
Name: Joon Hur Title: Executive Director |
DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender | ||
By: | /s/ Alicia Schug | |
Name: Alicia Schug Title: Vice President | ||
By: | /s/ Maria Guinchard | |
Name: Maria Guinchard Title: Vice President |
Wells Fargo Bank, NA, as a Lender | |
By: | /s/ Stephanie Allegra |
Name: Stephanie Allegra Title: Senior Vice President |
BANK OF AMERICA, N.A., as a Lender | |
By: | /s/ John Falke |
Name: John Falke Title: Senior Vice President |
Capital One, National Association, as a Lender | |
By: | /s/ Paul Darrigo |
Name: Paul Darrigo Title: Senior Vice President |
Citizens Bank, N.A., as a Lender | |
By: | /s/ Angela Reilly |
Name: Angela Reilly Title: Senior Vice President |
Manufacturers and Traders Trust Company, as a Lender | |
By: | /s/ William Terraglio |
Name: William Terraglio Title: Vice President |
KeyBank National Association, as a Lender | |
By: | /s/ David J. Opatrny |
Name: David J. Opatrny Title: Senior Vice President |
BMO Harris Bank N.A., as a Lender | |
By: | /s/ Joshua Hovermale |
Name: Joshua Hovermale Title: Director |
Name of Subsidiary | Jurisdiction of Incorporation | |
Clopay Corporation | Delaware | |
Clopay Ames True Temper LLC | Delaware | |
Clopay Ames True Temper Holding Corp. | Delaware | |
Clopay Building Products Company, Inc. | Delaware | |
Clopay Acquisition Company, Inc. | Delaware | |
CornellCookson, LLC | Delaware | |
Cornell Real Estate Holdings, LLC | Arizona | |
Cornell Storefront Systems, Inc. | Delaware | |
CC Installation Company, Inc. | Delaware | |
The Ames Companies, Inc. | Delaware | |
ATT Southern, Inc. | Delaware | |
1346039 Alberta ULC | Canada | |
Garant GP | Canada | |
Griffon Australia Holdings PTY Ltd | Australia | |
AMES Australasia Pty Ltd. | Australia | |
Northcote Pots Australia Pty Ltd. | Australia | |
Northcote Imports Pty Ltd. | Australia | |
Ames New Zealand Ltd. | New Zealand | |
Ames True Temper Australia Pty Ltd. | Australia | |
The Ames Companies UK Ltd. | United Kingdom | |
Altia Holdings Limited | United Kingdom | |
Kelkay Limited | United Kingdom | |
La Hacienda Limited | United Kingdom | |
ClosetMaid LLC | Delaware | |
Comercializadora ClosetMaid S. de R.L. de C.V. | Mexico | |
ClosetMaid Reynosa S. de R.L. de C.V. | Mexico | |
ClosetMaid (Jiangmen) Storage Limited | China | |
Gritel Holding Company, Inc. | Delaware | |
Telephonics Corporation | Delaware | |
Systems Engineering Group, Inc. | Maryland |
1. | I have reviewed this annual report on Form 10-K of Griffon Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Ronald J. Kramer | |
Ronald J. Kramer | |
Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this annual report on Form 10-K of Griffon Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Brian G. Harris | |
Brian G. Harris | |
Chief Financial Officer | |
(Principal Financial Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Griffon. |
/s/ Ronald J. Kramer | |
Name: | Ronald J. Kramer |
Title: | Chief Executive Officer |
(Principal Executive Officer) | |
Date: | November 16, 2018 |
/s/ Brian G. Harris | |
Name: | Brian G. Harris |
Title: | Chief Financial Officer |
(Principal Financial Officer) | |
Date: | November 16, 2018 |
Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Oct. 31, 2018 |
Mar. 31, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GRIFFON CORP | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Common Stock, Shares Outstanding | 45,674,821 | ||
Entity Public Float | $ 656,000,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000050725 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, net allowances | $ 6,408 | $ 5,966 |
Contract costs, net of progress payments | $ 3,172 | $ 4,407 |
Preferred stock, par value (in Dollars per share) | $ 0.25 | $ 0.25 |
Preferred stock, share authorized (in Shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.25 | $ 0.25 |
Common stock, share authorized (in Shares) | 85,000,000 | 85,000,000 |
Common stock, shares issued (in Shares) | 81,520,000 | 80,663,000 |
Treasury shares (in Shares) | 33,846,000 | 33,557,000 |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of business Griffon Corporation (the “Company” or “Griffon”) is a diversified management and holding company that conducts business through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as in connection with divestitures. In order to further diversify, Griffon also seeks out, evaluates and, when appropriate, will acquire additional businesses that offer potentially attractive returns on capital. Headquartered in New York, N.Y., the Company was founded in 1959 and is incorporated in Delaware. Griffon is listed on the New York Stock Exchange and trades under the symbol GFF. On June 4, 2018, Clopay Building Products Company, Inc. ("CBP") acquired CornellCookson, Inc. ("CornellCookson"), a leading US manufacturer and marketer of rolling steel door and grille products designed for commercial, industrial, institutional and retail use. The accounts, affected for preliminary adjustments to reflect fair market values assigned to assets purchased and liabilities assumed, and results of operations of CornellCookson, are included in the Company’s consolidated financial statements from the date of acquisition of June 4, 2018. See Note 2, Acquisitions. On November 16, 2017, Griffon announced it entered into a definitive agreement to sell Clopay Plastic Products Company, Inc. ("PPC") and on February 6, 2018, completed the sale to Berry Global, Inc. ("Berry") for approximately $475,000. As a result, Griffon classified the results of operations of the PPC business as discontinued operations in the Consolidated Statements of Operations for all periods presented and classified the related assets and liabilities associated with the discontinued operations in the consolidated balance sheets. All results and information presented exclude PPC unless otherwise noted. See Note 6, Discontinued Operations. On October 2, 2017, Griffon acquired ClosetMaid LLC ("ClosetMaid"). ClosetMaid, founded in 1965, is a leading North American manufacturer and marketer of wood and wire closet organization, general living storage and wire garage storage products and sells to some of the largest home center retail chains, mass merchandisers, and direct-to-builder professional installers in North America. The accounts, affected for preliminary adjustments to reflect fair market values assigned to assets purchased and liabilities assumed, and results of operations of ClosetMaid are included in the Company’s consolidated financial statements from the date of acquisition of October 2, 2017. See Note 2, Acquisitions. Griffon currently conducts its operations through two reportable segments:
AMES, founded in 1774, is the leading U.S. manufacturer and a global provider of branded consumer and professional tools, landscaping products, and outdoor lifestyle solutions. In 2018, we acquired ClosetMaid, a leader in wood and wire closet organization, general living storage and wire garage storage products for homeowners and professionals. CBP, since 1964, is a leading manufacturer and marketer of residential and commercial garage doors and sells to professional dealers and some of the largest home center retail chains in North America. In 2018, we acquired CornellCookson, a leading U.S. manufacturer and marketer of rolling steel door and grille products designed for commercial, industrial, institutional, and retail use.
Consolidation The consolidated financial statements include the accounts of Griffon and all subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The results of operations of acquired businesses are included from the dates of acquisitions. Earnings per share Due to rounding, the sum of earnings per share may not equal earnings per share of Net income. Discontinued operations Installation Services In 2008, as a result of the downturn in the residential housing market, Griffon exited substantially all operating activities of its Installation Services segment which sold, installed and serviced garage doors and openers, fireplaces, floor coverings, cabinetry and a range of related building products, primarily for the new residential housing market. Operating results of substantially all of this segment have been reported as discontinued operations in the Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented; Installation Services is excluded from segment reporting. During the year ended September 30, 2017, Griffon recorded $5,700 of reserves in discontinued operations related to historical environmental remediation efforts and to increase the reserve for homeowner association claims related to the Clopay Services Corporation discontinued operations in 2008. Clopay Plastic Products Company, Inc. ("PPC") On November 16, 2017, Griffon announced it entered into a definitive agreement to sell PPC and on February 6, 2018, completed the sale to Berry for approximately $475,000. As a result, Griffon classified the results of operations of the PPC business as discontinued operations in the Consolidated Statements of Operations for all periods presented and classified the related assets and liabilities associated with the discontinued operations in the consolidated balance sheets. All results and information presented exclude PPC unless otherwise noted. See Note 6, Discontinued Operations. Reclassifications Certain amounts in prior years have been reclassified to conform to the current year presentation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates may be adjusted due to changes in economic, industry or customer financial conditions, as well as changes in technology or demand. Significant estimates include allowances for doubtful accounts receivable and returns, net realizable value of inventories, restructuring reserves, valuation of goodwill and intangible assets, percentage of completion method of accounting, pension assumptions, useful lives associated with depreciation and amortization of intangible and fixed assets, warranty reserves, sales incentive accruals, stock based compensation assumptions, income taxes and tax valuation reserves, environmental reserves, legal reserves, insurance reserves, the valuation of assets and liabilities of discontinued operations, acquisition assumptions used and the accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions Griffon may undertake in the future. Actual results may ultimately differ from these estimates. Cash and equivalents Griffon considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. Cash equivalents primarily consist of overnight commercial paper, highly-rated liquid money market funds backed by U.S. Treasury securities and U.S. Agency securities, as well as insured bank deposits. Griffon had cash in non-U.S. bank accounts of approximately $24,900 and $26,500 at September 30, 2018 and 2017, respectively. Substantially all U.S. cash and equivalents are in excess of FDIC insured limits. Griffon regularly evaluates the financial stability of all institutions and funds that hold its cash and equivalents. Fair value of financial instruments The carrying values of cash and cash equivalents, accounts receivable, accounts and notes payable and revolving credit debt approximate fair value due to either the short-term nature of such instruments or the fact that the interest rate of the revolving credit debt is based upon current market rates. The fair value hierarchy, as outlined in the applicable accounting guidance, establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The accounting guidance establishes three levels of inputs that may be used to measure fair value, as follows:
The fair value of Griffon’s 2022 senior notes approximated $990,000, on September 30, 2018. Fair values were based upon quoted market prices (level 1 inputs). Insurance contracts with a value of $3,032 at September 30, 2018 are measured and recorded at fair value based upon quoted prices in active markets for similar assets (level 2 inputs) and are included in Other current assets on the consolidated balance sheet. Items Measured at Fair Value on a Recurring Basis At September 30, 2018 and 2017, trading securities, measured at fair value based on quoted prices in active markets for similar assets (level 2 inputs), with a fair value of $2,644 ($2,086 cost basis) and $3,352 ($1,000 cost basis) were included in Prepaid and other current assets on the Consolidated Balance Sheets. During the year ended September 30, 2018, the Company settled trading securities with proceeds totaling $4,126 and recognized a loss of $1,251 in Other income (expense). During the year ended September 30, 2016, the Company settled trading securities with proceeds totaling $715 and recognized a loss of $13 in Other income (expense). Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in Other income in the Consolidated Statements of Operations and Comprehensive Income (Loss). In the normal course of business, Griffon’s operations are exposed to the effect of changes in foreign currency exchange rates. To manage these risks, Griffon may enter into various derivative contracts such as foreign currency exchange contracts, including forwards and options. During 2018 and 2017, Griffon entered into several such contracts in order to lock into a foreign currency rate for planned settlements of trade and inter-company liabilities payable in USD. At September 30, 2018 and 2017, Griffon had $12,000 and $14,500 of Australian dollar contracts at a weighted average rate of $1.38 and $1.28, respectively, which qualified for hedge accounting. These hedges were all deemed effective as cash flow hedges with gains and losses related to changes in fair value deferred and recorded in Other comprehensive income (loss) and Prepaid and other current assets, or Accrued liabilities, until settlement. Upon settlement, gains and losses were recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) in Cost of goods and services. AOCI included deferred gains of $443 ($288, net of tax) and deferred gains of $175 ($114, net of tax) at September 30, 2018 and 2017, respectively. Upon settlement, gains (losses) of $657 and $(1,458) were recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) in Cost of goods and services ("COGS") during the years ended September 30, 2018 and September 30, 2017, respectively. All contracts expire in 31 to 92 days. At September 30, 2018 and 2017, Griffon had $700 and $4,690, respectively, of Canadian dollar contracts at a weighted average rate of $1.29 and $1.25. These contracts, which protect Canadian operations from currency fluctuations for U.S. dollar based purchases, do not qualify for hedge accounting and fair value losses of $7 and $378 were recorded in Other assets and to Other income for the outstanding contracts, based on similar contract values (level 2 inputs), for the years ended September 30, 2018 and 2017, respectively. Realized gains (losses) of $(161) and $200, were recorded in Other income during the years ended September 30, 2018 and September 30, 2017, respectively. All contracts expire in 30 to 358 days. Pension plan assets with a fair value of $150,634 at September 30, 2018, are measured and recorded at fair value based upon quoted prices in active markets for identical assets (level 1 inputs) and quoted market prices for similar assets (level 2 inputs). Non-U.S. currency translation Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates and profit and loss accounts have been translated using weighted average exchange rates. Adjustments resulting from currency translation have been recorded in the equity section of the balance sheet in AOCI as cumulative translation adjustments. Cumulative translation adjustments were gains of $9,403 and $10,667 for the year ended September 30, 2018 and 2017, respectively. As of September 30, 2018 and 2017, the foreign currency translation components of Accumulated other comprehensive loss were $22,824 and $32,227, respectively. Assets and liabilities of an entity that are denominated in currencies other than that entity’s functional currency are re-measured into the functional currency using period end exchange rates, or historical rates where applicable to certain balances. Gains and losses arising on remeasurements are recorded within the Consolidated Statement of Operations and Comprehensive Income (Loss) as a component of Other income (expense). Revenue recognition Revenue is recognized when the following circumstances are satisfied: a) persuasive evidence of an arrangement exists, b) delivery has occurred, title has transferred or services are rendered, c) price is fixed and determinable and d) collectability is reasonably assured. Goods are sold on terms that transfer title and risk of loss at a specified location. Revenue recognition from product sales occurs when all factors are met, including transfer of title and risk of loss, which occurs either upon shipment or upon receipt by customers at the location specified in the terms of sale. Other than standard product warranty provisions, sales arrangements provide for no other significant post-shipment obligations. From time to time and for certain customers, rebates and other sales incentives, promotional allowances or discounts are offered, typically related to customer purchase volumes, all of which are fixed or determinable and are classified as a reduction of revenue and recorded at the time of sale. Griffon provides for sales returns allowances based upon historical returns experience. Telephonics earns a substantial portion of its revenue as either a prime or subcontractor from contract awards with the U.S. Government, as well as non-U.S. governments and other commercial customers. These formal contracts are typically long-term in nature, usually greater than one year. Revenue and profits from these long-term fixed price contracts are recognized under the percentage-of-completion method of accounting. Revenue and profits on fixed-price contracts that contain engineering as well as production requirements are recorded based on the ratio of total actual incurred costs to date to the total estimated costs for each contract (cost-to-cost method). Using the cost-to-cost method, revenue is recorded at amounts equal to the ratio of actual cumulative costs incurred divided by total estimated costs at completion, multiplied by the total estimated contract revenue, less the cumulative revenue recognized in prior periods. The profit recorded on a contract using this method is equal to the current estimated total profit margin multiplied by the cumulative revenue recognized, less the amount of cumulative profit previously recorded for the contract in prior periods. As this method relies on the substantial use of estimates, these projections may be revised throughout the life of a contract. Components of this formula and ratio that may be estimated include gross profit margin and total costs at completion. The cost performance and estimates to complete on long-term contracts are reviewed, at a minimum, on a quarterly basis, as well as when information becomes available that would necessitate a review of the current estimate. Adjustments to estimates for a contract’s estimated costs at completion and estimated profit or loss often are required as experience is gained, and as more information is obtained, even though the scope of work required under the contract may or may not change, or if contract modifications occur. The impact of such adjustments or changes to estimates is made on a cumulative basis in the period when such information has become known. In 2018, 2017 and 2016, income from operations included net favorable/(unfavorable) catch-up adjustments approximating $1,400, $600 and $(700), respectively. Gross profit is affected by a variety of factors, including the mix of products, systems and services, production efficiencies, price competition and general economic conditions. Revenue and profits on cost-reimbursable type contracts are recognized as allowable costs, and are incurred on the contract at an amount equal to the allowable costs plus the estimated profit on those costs. The estimated profit on a cost-reimbursable contract may be fixed or variable based on the contractual fee arrangement. Incentive and award fees on these contracts are recorded as revenue when the criteria under which they are earned are reasonably assured of being met and can be estimated. For contracts in which anticipated total costs exceed the total expected revenue, an estimated loss is recognized in the period when identifiable. A provision for the entire amount of the estimated loss is recorded on a cumulative basis. The estimated remaining costs to complete loss contracts as of September 30, 2018 was $12,200 and is recorded as a reduction to gross margin on the Consolidated Statements of Operations and Comprehensive Income (Loss). This loss had an immaterial impact on Griffon's Consolidated Financial Statements. Amounts representing contract change orders or claims are included in revenue only when they can be reliably estimated and their realization is probable, and are determined on a percentage-of-completion basis measured by the cost-to-cost method. From time to time, Telephonics may combine contracts if they are negotiated together, have specific requirements to combine, or are otherwise closely related. Contracts are segmented based on customer requirements. Accounts receivable, allowance for doubtful accounts and concentrations of credit risk Accounts receivable is composed principally of trade accounts receivable, that arise from the sale of goods or services on account, and is stated at historical cost. A substantial portion of Griffon’s trade receivables are from customers of HBP, of which the largest customer is Home Depot, whose financial condition is dependent on the construction and related retail sectors of the economy. As a percentage of consolidated accounts receivable, U.S. Government related programs were 8% and Home Depot was 20%. Griffon performs continuing evaluations of the financial condition of its customers, and although Griffon generally does not require collateral, letters of credit may be required from customers in certain circumstances. Trade receivables are recorded at the stated amount, less allowance for doubtful accounts and, when appropriate, for customer program reserves and cash discounts. The allowance represents estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency). The allowance for doubtful accounts includes amounts for certain customers where a risk of default has been specifically identified, as well as an amount for customer defaults based on a formula when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The provision related to the allowance for doubtful accounts is recorded in Selling, general and administrative ("SG&A") expenses. The Company writes-off accounts receivable when they are deemed to be uncollectible. Customer program reserves and cash discounts are netted against accounts receivable when it is customer practice to reduce invoices for these amounts. The amounts netted against accounts receivable in 2018 and 2017 were $15,530 and $11,249, respectively. All accounts receivable amounts are expected to be collected in less than one year. The Company does not currently have customers or contracts that prescribe specific retainage provisions. Contract costs and recognized income not yet billed Contract costs and recognized income not yet billed consists of amounts accounted for under the percentage of completion method of accounting, recoverable costs and accrued profit that cannot yet be invoiced under the terms of certain long-term contracts. Amounts will be invoiced when applicable contract terms, such as the achievement of specified milestones or product delivery, are met. At September 30, 2018 and 2017, approximately $29,500 and $20,100, respectively, of contract costs and recognized income not yet billed were expected to be collected after one year. As of September 30, 2018 and 2017, the unbilled receivable balance included $400 and $2,850, respectively, of reserves for contract risk. Inventories Inventories, stated at the lower of cost (first-in, first-out or average) or market, include material, labor and manufacturing overhead costs. Griffon’s businesses typically do not require inventory that is susceptible to becoming obsolete or dated. In general, Telephonics sells products in connection with programs authorized and approved under contracts awarded by the U.S. Government or agencies thereof and in accordance with customer specifications. HBP produces doors, organizational and storage products and long-handled tools and landscaping products in response to orders from customers of retailers and dealers or based on expected orders, as applicable. Property, plant and equipment Property, plant and equipment includes the historical cost of land, buildings, equipment and significant improvements to existing plant and equipment or, in the case of acquisitions, a fair market value appraisal of such assets completed at the time of acquisition. Expenditures for maintenance, repairs and minor renewals are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts and the gain or loss is recognized. No event or indicator of impairment occurred during the three years ended September 30, 2018, which would require additional impairment testing of property, plant and equipment. Depreciation expense, which includes amortization of assets under capital leases, was $46,733, $41,220 and $39,734 for the years ended September 30, 2018, 2017 and 2016, respectively, and was calculated on a straight-line basis over the estimated useful lives of the assets. Depreciation included in SG&A expenses was $16,306, $12,995 and $11,721 for the years ended September 30, 2018, 2017 and 2016. The remaining components of depreciation, attributable to manufacturing operations, are included in Cost of goods and services. Estimated useful lives for property, plant and equipment are as follows: buildings and building improvements, 25 to 40 years; machinery and equipment, 2 to 15 years and leasehold improvements, over the term of the lease or life of the improvement, whichever is shorter. Capitalized interest costs included in Property, plant and equipment were $2,896, $4,891 and $3,956 for the years ended September 30, 2018, 2017 and 2016, respectively. The original cost of fully-depreciated property, plant and equipment remaining in use at September 30, 2018 was approximately $213,501. Goodwill and indefinite-lived intangibles Goodwill is the excess of the acquisition cost of a business over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but is subject to an annual impairment test unless during an interim period, impairment indicators such as a significant change in the business climate exist. Griffon performed its annual impairment testing of goodwill as of September 30, 2018. The performance of the test involves a two-step process. The first step involves comparing the fair value of Griffon’s reporting units with the reporting unit’s carrying amount, including goodwill. Griffon generally determines the fair value of its reporting units using the income approach methodology of valuation that includes the present value of expected future cash flows. This method uses market assumptions specific to Griffon’s reporting units. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, Griffon performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. Griffon defines its reporting units as its two reportable segments: HBP and Defense Electronics. At September 30, 2018, HBP consisted of two components, AMES and CBP, because of their similar economic and qualitative characteristics. Griffon used 5 year projections and a 3.0% terminal value to which discount rates between 7% and 9.5% were applied to calculate each unit’s fair value. To substantiate fair values derived from the income approach methodology of valuation, the implied fair value was compared to the marketplace fair value of a comparable industry grouping for reasonableness. Further, the fair values were reconciled to Griffon’s market capitalization. Both market comparisons supported the implied fair values. Any changes in key assumptions or management judgment with respect to a reporting unit or its prospects, which may result from a decline in Griffon’s stock price, a change in market conditions, market trends, interest rates or other factors outside Griffon’s control, or significant underperformance relative to historical or project future operating results, could result in a significantly different estimate of the fair value of the reporting units, which could result in a future impairment charge (level 3 inputs). Based upon the results of the annual impairment review, it was determined that the fair value of each reporting unit substantially exceeded the carrying value of the assets, as performed under step one, and no impairment existed. Similar to goodwill, Griffon tests indefinite-lived intangible assets at least annually and when indicators of impairment exist. Griffon uses a relief from royalty method to calculate and compare the fair value of the intangible to its book value. This method uses market assumptions specific to Griffon’s reporting units, which are reasonable and supportable. If the fair value is less than the book value of the indefinite-lived intangibles, an impairment charge would be recognized. There was no impairment related to goodwill or indefinite-lived intangibles during the three years ending September 30, 2018. Definite-lived long-lived assets Amortizable intangible assets are carried at cost less accumulated amortization. For financial reporting purposes, definite-lived intangible assets are amortized on a straight-line basis over their useful lives, generally eight to twenty-five years. Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. There were no indicators of impairment during the three years ending September 30, 2018. Income taxes Income taxes are accounted for under the liability method. Deferred taxes reflect the tax consequences on future years of differences between the tax basis of assets and liabilities and their financial reporting amounts. The carrying value of Griffon’s deferred tax assets is dependent upon Griffon’s ability to generate sufficient future taxable income in certain tax jurisdictions. Should Griffon determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. Griffon provides for uncertain tax positions and any related interest and penalties based upon Management’s assessment of whether a tax benefit is more likely than not of being sustained upon examination by tax authorities. At September 30, 2018 Griffon believes that it has appropriately accounted for all unrecognized tax benefits. As of September 30, 2018, 2017 and 2016, Griffon has recorded unrecognized tax benefits in the amount of $4,519, $4,825 and $4,709, respectively. Accrued interest and penalties related to income tax matters are recorded in the provision for income taxes. On December 22, 2017, the "Tax Cuts and Jobs Act" ("TCJA") was signed into law, significantly impacting several sections of the Internal Revenue Code. ASC 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017, or in the case of certain other provisions, January 1, 2018. Though certain key aspects of the TCJA are effective January 1, 2018 and have an immediate accounting effect, other significant provisions are not effective or may not result in accounting effects for September 30 fiscal year companies until October 1, 2018. Given the significance of the TCJA, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which allows registrants to record provisional amounts during a one year “measurement period”. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. Among the significant changes to the U.S. Internal Revenue Code, the TCJA lowers the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The Company computed its income tax expense for the September 30, 2018 fiscal year using a blended Federal Tax Rate of 24.5%. The 21% Federal Tax Rate will apply to fiscal years ending September 30, 2019 and each year thereafter. The Company has recorded provisional amounts for the effects of the TCJA where accounting is not complete, but a reasonable estimate has been determined. As of September 30, 2018, the Company recorded a $20,587 benefit on the revaluation of deferred tax liabilities as a provisional amount for the re-measurement of deferred tax assets and liabilities, as well as an amount for deductible executive compensation expense, both of which have been reflected in the tax provision for the year ended September 30, 2018. The TCJA requires companies to pay a one-time transition tax on mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits (“E&P”). The Company has recorded a provisional transition tax charge of $13,100 net of foreign tax credits. These have been included in income the tax provision for the year ended September 30, 2018. The Company continues to refine its calculation of the total post-1986 foreign E&P for its foreign subsidiaries and the foreign tax credits. Under the TCJA, the Company will elect to pay the transition tax interest-free over eight years. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the TCJA and may change as the Company receives additional clarification and implementation guidance. In accordance with SAB 118 adjustments recorded to the provisional amounts will be reflected within the measurement period ending December 31, 2018 and will be included in income from continuing operations and net income as an adjustment to tax expense. Research and development costs, shipping and handling costs and advertising costs Research and development costs not recoverable under contractual arrangements are charged to SG&A expense as incurred and amounted to $15,400, $17,700 and $18,000 in 2018, 2017 and 2016, respectively. SG&A expenses include shipping and handling costs of $59,600 in 2018, $32,500 in 2017 and $30,600 in 2016 and advertising costs, which are expensed as incurred, of $21,000 in 2018, $22,000 in 2017 and $23,000 in 2016. Risk, retention and insurance Griffon’s property and casualty insurance programs contain various deductibles that, based on Griffon’s experience, are reasonable and customary for a company of its size and risk profile. Griffon generally maintains deductibles for claims and liabilities related primarily to workers’ compensation, general, product and automobile liability as well as property damage and business interruption losses resulting from certain events. Griffon does not consider any of the deductibles to represent a material risk to Griffon. Griffon accrues for claim exposures that are probable of occurrence and can be reasonably estimated. Insurance is maintained to transfer risk beyond the level of self-retention and provides protection on both an individual claim and annual aggregate basis. Pension benefits Griffon sponsors defined and supplemental benefit pension plans for certain retired employees. Annual amounts relating to these plans are recorded based on actuarial projections, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases and turnover rates. Actuarial assumptions used to determine pension liabilities, assets and expense are reviewed annually and modified based on current economic conditions and trends. The expected return on plan assets is determined based on the nature of the plan's investments and expectations for long-term rates of return. The discount rate used to measure obligations is based on a corporate bond spot-rate yield curve that matches projected future benefit payments, with the appropriate spot rate applicable to the timing of the projected future benefit payments. Assumptions used in determining Griffon’s obligations under the defined benefit pension plans are believed to be reasonable, based on experience and advice from independent actuaries; however, differences in actual experience or changes in assumptions may materially impact Griffon’s financial position or results of operations. All of the defined benefit plans are frozen and have ceased accruing benefits. Newly issued but not yet effective accounting pronouncements In August 2018, the FASB issued guidance on changes to the disclosure requirements for Fair Value Measurement, which eliminates, amends, and adds disclosure requirements for fair value measurements. The amended and new disclosure requirements primarily relate to Level 3 fair value measurements. The removal and amendment of certain disclosures may be early adopted with retrospective application while the new disclosure requirements are to be applied prospectively. The guidance is effective for the Company in fiscal 2021.We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In August 2018, the FASB issued guidance on changes to the disclosure requirements for defined benefit plans, which makes minor changes to the disclosure requirements related to defined benefit pension and other post-retirement plans. The guidance requires a retrospective transition approach and is effective for the Company in fiscal 2022. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In August 2018, the FASB issued guidance related to customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance permits either a prospective or retrospective transition approach and is effective for the Company in fiscal 2021. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income (AOCI) arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017. An entity that elects to make this reclassification must consider all items in AOCI that have tax effects stranded as a result of the tax rate change, and must disclose the reclassification of these tax effects as well as the entity’s policy for releasing income tax effects from AOCI. This guidance may be applied either retrospectively or as of the beginning of the period of adoption. The new guidance is effective for the Company beginning in fiscal 2020. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In May 2017, the FASB issued guidance to address the situation when a company modifies the terms of a stock compensation award previously granted to an employee. This guidance is effective, and should be applied prospectively, for fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period. The new guidance is effective for the Company beginning in fiscal 2019. We believe the implementation of this guidance will not have a material effect on the Company’s financial condition or results of operations. In March 2017, the FASB issued amendments to the Compensation - Retirement Benefits guidance which requires companies to retrospectively present the service cost component of net periodic benefit cost for pension and retiree medical plans along with other compensation costs in operating income and present the other components of net periodic benefit cost below operating income in the income statement. The guidance also allows only the service cost component of net periodic benefit cost to be eligible for capitalization within inventory or fixed assets on a prospective basis. This guidance is effective, and should be applied retroactively, for fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period. The new guidance is effective for the Company beginning in fiscal 2019. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In January 2017, the FASB issued guidance that simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. This guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those periods and will be effective for the Company beginning in 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In January 2017, the FASB issued guidance that clarifies the definition of a business, which will impact many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new standard is intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods and will be effective for the Company beginning in fiscal 2019. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In August 2016, the Financial Accounting Standards Board ("FASB") issued guidance on the Statement of Cash Flows Classification of certain cash receipts and cash payments (a consensus of the emerging issues take force). This guidance addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company beginning in fiscal 2019. We are currently evaluating the impact of the guidance on the Company's financial condition, results of operations and related disclosures. In February 2016, the FASB issued guidance on lease accounting requiring lessees to recognize a right-of-use asset and a lease liability for long-term leases. The liability will be equal to the present value of lease payments. This guidance must be applied using a modified retrospective transition approach to all annual and interim periods presented and is effective for the company beginning in fiscal 2020. We are currently evaluating the impact of the guidance on the Company's financial condition, results of operations and related disclosures. In May 2014, the FASB issued an Accounting Standards Update related to new revenue recognition guidance that supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance, an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The core principle of the guidance is that the recognition of revenue should depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods and services. The converged standard also includes more robust disclosure requirements which will require entities to provide sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Subsequently, the FASB has issued amendments to certain aspects of the guidance including the effective date. The effective date of this revised standard is for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The converged standard can be adopted using a full retrospective method or a modified retrospective method, which applies the new guidance to contracts that are not completed at the adoption date without adjusting prior reporting periods. The Company has completed its assessment of the impact of this standard which will become effective for the Company in the first quarter of its 2019 fiscal year and will adopt this guidance using the modified retrospective method. Beginning in the second half of fiscal 2016, the Company used a team to analyze the impact of the standard, and the related guidance issued, across all revenue streams and to evaluate the impact of the new standard on revenue contracts. This team reviewed current accounting policies and practices, identifying potential differences that would result from applying the requirements under the new standard. As noted above, the Company will adopt this new standard in the first quarter of 2019 using the modified retrospective method of adoption. The standard will not impact revenue recognition practices at the Company’s Home and Building Products Segment but will have an impact at its Defense Electronics Segment. We will adopt the new standard by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. We expect this adjustment to opening retained earnings to be approximately $5,000 with an immaterial impact to our net income on an ongoing basis. Recently adopted accounting pronouncements In March 2018, the FASB issued ASU 2018-05, Income Taxes Amendments to SEC Paragraphs Pursuant to the SEC SAB 118. This ASU provides guidance on income tax accounting implications under the TCJA. SAB 118 addressed the application of GAAP to situations when a registrant does not have the necessary information available, prepared and analyzed in reasonable detail to complete the accounting for certain income tax effects of the TCJA and allows companies to record provisional amounts during the re-measurement period not to exceed one year after the enactment date while the accounting impact remains under analysis. This guidance was effective immediately upon issuance. See Note 11 Income Taxes for further details. In March 2016, the FASB issued guidance on Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2016 using either prospective, retrospective or modified retrospective transition method, depending on the area covered in this guidance. The Company early adopted this guidance in fiscal 2016 in order to simplify the accounting for employee share-based payments. Under this guidance all excess tax benefits (“windfalls”) and deficiencies (“shortfalls”) related to employee stock compensation was recognized within income tax expense for the year ended September 30, 2016. Under prior guidance, windfalls were recognized to Capital in excess of par value and shortfalls were only recognized to the extent they exceed the pool of windfall tax benefits. As a result of the adoption, a tax benefit of $2,193 was recognized within income tax expense reflecting the excess tax benefits for the year ended September 30, 2016. The adoption was on a prospective basis and therefore had no impact on prior years. Additionally, income tax benefits at settlement of an award were previously reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. Griffon has elected to apply that change in cash flow classification on a prospective basis, which has resulted in a $2,291 increase to net cash provided by operating activities and a corresponding increase to net cash used in financing activities in the accompanying condensed consolidated statement of cash flows for the year ended September 30, 2016, as compared to the amounts previously reported. The remaining provisions of this accounting standard did not have a material impact on the accompanying condensed consolidated financial statements. In August 2014, the FASB issued guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and related footnote disclosures. Management is required to evaluate, at each reporting period, whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. This guidance was effective prospectively for annual and interim reporting periods beginning in 2017; implementation of this guidance did not have a material effect on the Company’s financial condition or results of operations. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements. |
ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS Griffon accounts for acquisitions under the acquisition method, in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition using a method substantially similar to the goodwill impairment test methodology (level 3 inputs). The operating results of the acquired companies are included in Griffon’s consolidated financial statements from the date of acquisition; in each instance, Griffon is in the process of finalizing the initial purchase price allocation. On June 4, 2018, CBP completed the acquisition of 100% of the outstanding stock of CornellCookson, a leading US manufacturer and marketer of rolling steel door and grille products designed for commercial, industrial, institutional and retail use, for approximately $180,000, excluding the estimated present value of tax benefits, and $12,426 of post-closing adjustments, primarily consisting of a working capital adjustment, of which $9,219 was paid in October 2018. 2018 CornellCookson revenue was $66,654. The acquisition of CornellCookson substantially expanded CBP’s non-residential product offerings, and added an established professional dealer network focused on rolling steel door and grille products for commercial, industrial, institutional and retail use. There is no other contingent consideration arrangement relative to the acquisition of CornellCookson. CornellCookson’s accounts, affected for preliminary adjustments to reflect fair market values assigned to assets purchased and liabilities assumed, and results of operations are included in the Company’s consolidated financial statements from the date of acquisition. The Company has recorded a preliminary allocation of the purchase price to the Company’s tangible and identifiable intangible assets acquired and liabilities assumed based on their fair market values (level 3 inputs) at the acquisition date. The excess of the purchase price over the fair value of the net tangible and intangible assets was recorded as goodwill and is deductible for tax purposes. Goodwill recognized at the acquisition date represents the other intangible benefits that the Company will derive from the ownership of CornellCookson, however, such intangible benefits do not meet the criteria for recognition of separately identifiable intangible assets. The calculation of the preliminary purchase price allocation, which is pending finalization of tax-related items and completion of the related final valuation, is as follows:
(1) Includes $30,818 of gross accounts receivable of which $418 was not expected to be collected. The fair value of accounts receivable approximated book value acquired. (2) Includes $13,433 of gross inventory of which $1,098 was reserved for obsolete items. The preliminary amounts assigned to goodwill and major intangible asset classifications, all of which are tax deductible, for the CornellCookson acquisition are as follows:
On February 13, 2018, AMES acquired 100% of the outstanding stock of Kelkay Limited ("Kelkay"), a leading United Kingdom manufacturer and distributor of decorative outdoor landscaping products sold to garden centers, retailers and grocers in the UK and Ireland for $56,118 (GBP 40,452), subject to contingent consideration of up to GBP 7,000. This acquisition broadened AMES' product offerings in the market and increased its in-country operational footprint. The purchase price was primarily allocated to tradenames of GBP 19,000, customer related intangibles of GBP 6,640, accounts receivable and inventory of GBP 8,894 and fixed assets and land of GBP 8,241. On November 6, 2017, AMES acquired 100% of the assets of Harper Brush Works ("Harper"), a division of Horizon Global, for $4,383, inclusive of post-closing adjustments. Harper is a leading U.S. manufacturer of cleaning products for professional, home, and industrial use. The acquisition expanded AMES’ long-handled tool offering in North America to include brooms, brushes, and other cleaning tools and accessories. The purchase price was primarily allocated to intangible assets of $2,300. On October 2, 2017, Griffon Corporation completed the acquisition of 100% of the outstanding stock of ClosetMaid, a market leader of home storage and organization products, for approximately $185,700, inclusive of certain post-closing adjustments and excluding the present value of net tax benefits resulting from the transaction. The acquisition of ClosetMaid expanded Griffon’s Home and Building Products segment into the highly complementary home storage and organization category with a leading brand and product portfolio. 2018 ClosetMaid revenue was $311,568. ClosetMaid's accounts, affected for preliminary adjustments to reflect fair market values assigned to assets purchased and liabilities assumed, and results of operations, are included in the Company’s consolidated financial statements from the date of acquisition. The Company has recorded a preliminary allocation of the purchase price to the Company’s tangible and identifiable intangible assets acquired and liabilities assumed based on their fair market values (level 3 inputs) at the acquisition date. The excess of the purchase price over the fair value of the net tangible and intangible assets was recorded as goodwill and is deductible for tax purposes. Goodwill recognized at the acquisition date represents the other intangible benefits that the Company will derive from the ownership of ClosetMaid, however, such intangible benefits do not meet the criteria for recognition of separately identifiable intangible assets. The following unaudited proforma summary from continuing operations presents consolidated information as if the Company acquired ClosetMaid on October 1, 2016:
Griffon did not include any material, nonrecurring proforma adjustments directly attributable to the business combination in the proforma revenue and earnings. These proforma amounts have been compiled by adding the historical results from continuing operations of Griffon, restated for classifying the results of operations of the PPC business as a discontinued operation, to the historical results of ClosetMaid after applying Griffon’s accounting policies and the following proforma adjustments:
The calculation of the preliminary purchase price allocation, which is pending finalization of tax-related items and completion of the related final valuation, is as follows:
(1) Includes $32,298 of gross accounts receivable of which $332 was not expected to be collected. The fair value of accounts receivable approximated book value acquired. (2) Includes $1,500 in inventory basis step-up, which was charged to cost of goods sold over the inventory turns of the acquired entity. The amounts assigned to goodwill and major intangible asset classifications, all of which are tax deductible, for the ClosetMaid acquisition are as follows:
On September 29, 2017, AMES Australia completed the acquisition of Tuscan Landscape Group Pty, Ltd. ("Tuscan Path") for approximately $18,000 (AUD 22,250). Tuscan Path is a leading Australian provider of pots, planters, pavers, decorative stone, and garden decor products. The acquisition of Tuscan Path broadens AMES' outdoor living and lawn and garden business, and will strengthen AMES' industry leading position in Australia. The purchase price was primarily allocated to intangible assets of AUD 3,900 and inventory and accounts receivable of AUD 7,900. On July 31, 2017, The AMES Companies, Inc. acquired La Hacienda Limited, a leading United Kingdom outdoor living brand of unique heating and garden decor products, for approximately $11,400 (GBP 9,175), including an approximate contingent earn out payment of $790 (GBP 600). The acquisition of La Hacienda broadens AMES' global outdoor living and lawn and garden business and supports AMES' UK expansion strategy. The purchase price allocation was primarily allocated to intangible assets of approximately GBP 3,100 and inventory and accounts receivable of GBP 4,200. On December 30, 2016, AMES Australia acquired Home Living ("Hills") for approximately $6,051 (AUD 8,400). The purchase price has been allocated to acquired assets and assumed liabilities and primarily consists of inventory, tooling and identifiable intangible assets, including trademarks, intellectual property and customer relationships. Hills, founded in 1946, is a market leader in the supply of clothesline, laundry and garden products. The Hills acquisition adds to AMES' existing broad category of products and enhances its lawn and garden product offerings in Australia. The purchase price was primarily allocated to intangible assets of approximately AUD 6,400 with the remainder primarily inventory. On February 14, 2016, AMES Australia acquired substantially all of the Intellectual Property (IP) assets of Australia-based Nylex Plastics Pty Ltd. for $1,744 (AUD 2,452). Through this acquisition, AMES and Griffon secured the ownership of the trademark “Nylex” for certain categories of AMES products, principally in the country of Australia. Previously, the Nylex name was licensed. The acquisition of the Nylex IP was contemplated as a post-closing activity of the Cyclone acquisition and supports AMES' Australian watering products strategy. The purchase price was allocated to indefinite lived trademarks and is not deductible for income taxes. In December 2015, Telephonics invested an additional $2,726 increasing its equity stake from 26% to 49% in Mahindra Telephonics Integrated Systems ("MTIS"), a joint venture with Mahindra Defence Systems, a Mahindra Group Company. MTIS is an aerospace and defense manufacturing and development facility in Prithla, India. This investment is accounted for using the equity method. SG&A and Cost of goods and services included $6,097 and $1,500 of acquisition-related costs, respectively, in 2018. SG&A included $9,617 acquisition-related costs in 2017 and acquisition-related costs included in SG&A in 2016 were not material. |
INVENTORIES |
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INVENTORIES | INVENTORIES The following table details the components of inventory:
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PROPERTY, PLANT AND EQUIPMENT |
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PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table details the components of property, plant and equipment, net:
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GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES The following table provides changes in carrying value of goodwill by segment through the year ended September 30, 2018:
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset:
Amortization expense for intangible assets subject to amortization was $9,070, $6,658 and $6,608 for the years ended September 30, 2018, 2017 and 2016, respectively. Amortization expense for each of the next five years and thereafter, based on current intangible balances and classifications, is estimated as follows: 2019 - $9,285; 2020 - $8,825; 2021 - $8,825; 2022 - $8,825 and 2023 - $8,746; thereafter - $104,469. No event or indicator or impairment occurred during the current year, which would require impairment testing of long-lived intangible assets including goodwill. |
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DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS PPC On November 16, 2017, Griffon announced it entered into a definitive agreement to sell PPC and on February 6, 2018, completed the sale to Berry for approximately $475,000. As a result, Griffon classified the results of operations of the PPC business as discontinued operations in the Consolidated Statements of Operations for all periods presented and classified the related assets and liabilities associated with the discontinued operations in the consolidated balance sheets. PPC is a global leader in the development and production of embossed, laminated and printed specialty plastic films for hygienic, health-care and industrial products and sells to some of the world's largest consumer products companies. In connection with the sale of PPC, the Company recorded a gain of $112,964 (81,041, net of tax) during the year ended September 30, 2018. The tax computed on the PPC gain is preliminary and is subject to finalization. The following amounts related to the PPC segment have been segregated from Griffon's continuing operations and are reported as discontinued operations:
The Company has no assets or liabilities classified as held for sale as of September 30, 2018. The following amounts related to PPC have been segregated from Griffon's continuing operations and are reported as assets and liabilities of discontinued operations held for sale in the consolidated balance sheet at September 30, 2017:
Installation Services and Other Discontinued Activities In 2008, as a result of the downturn in the residential housing market, Griffon exited substantially all operating activities of its Installation Services segment which sold, installed and serviced garage doors and openers, fireplaces, floor coverings, cabinetry and a range of related building products, primarily for the new residential housing market. In 2008, Griffon sold eleven units, closed one unit and merged two units into CBP. Griffon substantially concluded its remaining disposal activities in 2009. Installation Services operating results have been reported as discontinued operations in the Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented; Installation Services is excluded from segment reporting. There was no reported revenue in 2018, 2017 and 2016. During the year ended September 30, 2017, Griffon recorded $5,700 of reserves in discontinued operations related to historical environmental remediation efforts and to increase the reserve for homeowner association claims (HOA) related to the Clopay Services Corporation discontinued operations in 2008. The following amounts summarize the total assets and liabilities of PPC and Installation Services and other discontinued activities which have been segregated from Griffon’s continuing operations and are reported as assets and liabilities of discontinued operations in the consolidated balance sheets:
At September 30, 2018, Griffon’s liabilities for PPC and Installations Services and other discontinued operations primarily related to insurance claims, income taxes and product liability, warranty and environmental reserves and stay and transaction bonuses totaling liabilities of approximately $9,858. |
ACCRUED LIABILITIES |
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ACCRUED LIABILITIES | ACCRUED LIABILITIES The following table details the components of accrued liabilities:
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WARRANTY LIABILITY |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WARRANTY LIABILITY | WARRANTY LIABILITY Telephonics offers warranties against product defects for periods generally ranging from one to two years, depending on the specific product and terms of the customer purchase agreement. CBP also offers warranties against product defects for periods generally ranging from one to ten years, with limited lifetime warranties on certain door models. Typical warranties require AMES, CBP and Telephonics to repair or replace the defective products during the warranty period at no cost to the customer. At the time revenue is recognized, Griffon records a liability for warranty costs, estimated based on historical experience, and periodically assesses its warranty obligations and adjusts the liability as necessary. AMES offers an express limited warranty for a period of ninety days on all products from the date of the original purchase unless otherwise stated on the product or packaging from the date of original purchase. Changes in Griffon’s warranty liability, included in Accrued liabilities, were as follows:
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NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT | NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT The present value of the net minimum payments on capitalized leases as of September 30, 2018 was follows:
Minimum payments under capital leases for the next five years are as follows: $4,242 in 2019, $3,764 in 2020, $2,102 in 2021, $443 in 2022, $35 in 2023 and $0 thereafter. Included in the consolidated balance sheet at September 30, 2018 under Property, plant and equipment, are costs and accumulated depreciation subject to capitalized leases of $41,742 and $31,969, respectively, and included in Other assets are deferred interest charges of $80. Included in the consolidated balance sheet at September 30, 2017, under Property, plant and equipment are costs and accumulated depreciation subject to capitalized leases of $19,238 and $11,831, respectively, and included in Other assets are deferred interest charges of $105. Amortization expense was $3,514, $1,683, and $1,628 in 2018, 2017 and 2016 respectively. In October 2006, a subsidiary of Griffon entered into a capital lease totaling $14,290 for real estate it occupies in Troy, Ohio. Approximately $10,000 was used to acquire the building and the remaining amount was used for improvements. The lease matures in 2022, bears interest at a fixed rate of 5.0%, is secured by a mortgage on the real estate and is guaranteed by Griffon. Debt at September 30, 2018 and 2017 consisted of the following:
Interest expense consists of the following for the years ended September 30, 2018, 2017 and 2016.
Minimum payments under debt agreements for the next five years are as follows: $13,011 in 2019, $43,330 in 2020, $6,802 in 2021, $5,233 in 2022, $4,827 in 2023 and $1,061,489 thereafter.
Proceeds from the $600,000 5.25% senior notes due in 2022 were used to redeem $550,000 of 7.125% senior notes due 2018, to pay a call and tender offer premium of $31,530 and to make interest payments of $16,716, with the balance used to pay a portion of the related transaction fees and expenses. In connection with the issuance of the Senior Notes, all obligations under the $550,000 of 7.125% senior notes due in 2018 were discharged. The Senior Notes are senior unsecured obligations of Griffon guaranteed by certain domestic subsidiaries, and subject to certain covenants, limitations and restrictions. On February 5, 2018, July 20, 2016 and June 18, 2014, Griffon exchanged all of the $275,000, $125,000 and $600,000 Senior Notes, respectively, for substantially identical Senior Notes registered under the Securities Act of 1933 via an exchange offer. The fair value of the Senior Notes approximated $990,000 on September 30, 2018 based upon quoted market prices (level 1 inputs). In connection with the issuance and exchange of the $275,000 senior notes, Griffon capitalized $8,472 of underwriting fees and other expenses; in addition to $13,329 capitalized under the previously issued $725,000 Senior Notes. All capitalized fees for the Senior Notes will amortize over the term of the notes and, at September 30, 2018, $14,830 remained to be amortized.
In July 2016, Griffon Australia Holdings Pty Ltd and its Australian subsidiaries ("Griffon Australia") entered into an AUD 30,000 term loan and an AUD 10,000 revolver. The term loan refinanced two existing term loans and the revolver replaced two existing lines. In December 2016, the amount available under the revolver was increased from AUD 10,000 to AUD 20,000 and, in March 2017 the term loan commitment was increased by AUD 5,000. In September 2017, the term commitment was increased by AUD 15,000. The term loan requires quarterly principal payments of AUD 1,250 plus interest with a balloon payment of AUD 37,125 due upon maturity in October 2019, and accrues interest at Bank Bill Swap Bid Rate “BBSY” plus 2.00% per annum (3.99% at September 30, 2018). As of September 30, 2018, the term had an outstanding balance of AUD 40,875 ($29,546 as of September 30, 2018). The revolving facility matures in March 2019, but is renewable upon mutual agreement with the lender, and accrues interest at BBSY plus 2.0% per annum (3.90% at September 30, 2018). At September 30, 2018, the revolver had an outstanding balance of AUD 11,000 ($7,951 at September 30, 2018). The revolver and the term loan are both secured by substantially all of the assets of Griffon Australia and its subsidiaries. Griffon guarantees the term loan. Griffon Australia is required to maintain a certain minimum equity level and is subject to a maximum leverage ratio and a minimum fixed charges cover ratio. A UK subsidiary of Griffon maintained an invoice discounting arrangement secured by trade receivables. Interest was variable at 2.0% over the Sterling base rate. This facility was canceled in July 2018. In July 2018, the AMES Companies UK Ltd and its subsidiaries ("Ames UK") entered into a GBP 14,000 term loan, GBP 4,000 mortgage loan and GBP 5,000 revolver. The term loan and mortgage loan require quarterly principal payments of GBP 350 and GBP 83 plus interest, respectively, and have balloon payments due upon maturity, July 2023, of GBP 7,000 and GBP 2,333, respectively. The Term Loan and Mortgage Loans accrue interest at the GBP LIBOR Rate plus 2.25% and 1.8%, respectively (3.05% and 2.60% at September 30, 2018, respectively). The revolving facility matures in July 2019, but is renewable upon mutual agreement with the lender, and accrues interest at the Bank of England Base Rate plus 1.5% (2.25% as of September 30, 2018). The revolver and the term loan are both secured by substantially all of the assets of Ames UK and its subsidiaries. Ames UK is subject to a maximum leverage ratio and a minimum fixed charges cover ratio. The invoice discounting arrangement was canceled and replaced by the above loan facilities. As of September 30, 2018, outstanding borrowings on these facilities totaled $23,987. (h) Other long-term debt primarily consists of a loan with the Pennsylvania Industrial Development Authority, with the balance consisting of capital leases. At September 30, 2018, Griffon and its subsidiaries were in compliance with the terms and covenants of its credit and loan agreements. |
EMPLOYEE BENEFIT PLANS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Griffon offers defined contribution plans to most of its U.S. employees. In addition to employee contributions to the plans, Griffon makes contributions based upon various percentages of compensation and/or employee contributions, which were $8,328 in 2018, $8,714 in 2017 and $8,301 in 2016. The Company also provides healthcare and life insurance benefits for certain groups of retirees through several plans. For certain employees, the benefits are at fixed amounts per retiree and are partially contributory by the retiree. The post-retirement benefit obligation was $1,699 and $2,014 as of September 30, 2018 and 2017. The accumulated other comprehensive income (loss) for these plans was $(60) and ($107) as of September 30, 2018 and 2017, respectively, and the 2018 and 2017 benefit expense was $45 and $41, respectively. It is the Company’s practice to fund these benefits as incurred. Griffon also has qualified and non-qualified defined benefit plans covering certain employees with benefits based on years of service and employee compensation. Over time, these amounts will be recognized as part of net periodic pension costs in the Consolidated Statements of Operations and Comprehensive Income (Loss). Griffon is responsible for overseeing the management of the investments of the qualified defined benefit plan and uses the services of an investment manager to manage these assets based on agreed upon risk profiles. The primary objective of the qualified defined benefit plan is to secure participant retirement benefits. As such, the key objective in this plan’s financial management is to promote stability and, to the extent appropriate, growth in the funded status. Financial objectives are established in conjunction with a review of current and projected plan financial requirements. The fair values of a majority of the plan assets were determined by the plans’ trustee using quoted market prices for identical instruments (level 1 inputs) as of September 30, 2018 and 2017. The fair value of various other investments was determined by the plan’s trustee using direct observable market corroborated inputs, including quoted market prices for similar assets (level 2 inputs). There were no pension assets measured using level 3 inputs. Effective January 1, 2012, the Clopay Pension Plan merged with the Ames True Temper Inc. Pension Plan. The merged qualified defined benefit plan was named the Clopay Ames Pension Plan (the “Clopay AMES Plan”). The Clopay portion of the Clopay AMES Plan has been frozen to new entrants since December 2000. Certain employees who were part of the plan prior to December 2000 continued to accrue a service benefit through December 2010, at which time all plan participants stopped accruing service benefits. The AMES portion of the Clopay AMES Plan has been frozen to all new entrants since November 2009 and stopped accruing benefits in December 2009. The AMES supplemental executive retirement plan was frozen to new entrants and participants in the plan stopped accruing benefits in 2008. In 2016, the Company changed the method used to estimate the service and interest components of net periodic benefit cost for pension and other post-retirement benefits from the single weighted-average discount rate to the spot rate method. There was no impact on the total benefit obligation. Griffon uses judgment to establish the assumptions used in determining the future liability of the plan, as well as the investment returns on the plan assets. The expected return on assets assumption used for pension expense was developed through analysis of historical market returns, current market conditions and past experience of plan investments. The long-term rate of return assumption represents the expected average rate of earnings on the funds invested, or to be invested, to provide for the benefits included in the benefit obligations. The assumption is based on several factors including historical market index returns, the anticipated long-term asset allocation of plan assets and the historical return. The discount rate assumption is determined by developing a yield curve based on high quality bonds with maturities matching the plans’ expected benefit payment stream. The plans’ expected cash flows are then discounted by the resulting year-by-year spot rates. A 10% change in the discount rate, average wage increase or return on assets would not have a material effect on the financial statements of Griffon. Net periodic costs (benefits) were as follows:
The tax benefits in 2018, 2017 and 2016 for the amortization of pension costs in Other comprehensive income (loss) were $342, $1,170 and $831, respectively. The estimated net actuarial loss and prior service cost that will be amortized from AOCI into Net periodic pension cost during 2019 is $887 and $14, respectively. The weighted-average assumptions used in determining the net periodic (benefits) costs were as follows:
Plan assets and benefit obligation of the defined and supplemental benefit plans were as follows:
The weighted-average assumptions used in determining the benefit obligations were as follows:
The actual and weighted-average asset allocation for qualified benefit plans were as follows:
Estimated future benefit payments to retirees, which reflect expected future service, are as follows:
During 2018, Griffon expects to contribute $1,906 in payments related to Supplemental Benefits that will be funded from the general assets of Griffon. Griffon expects to contribute $3,114 to the Defined Benefit plan in 2019. The Clopay AMES Plan is covered by the Pension Protection Act of 2006. The Adjusted Funding Target Attainment Percent for the plan as of January 1, 2018 was 95.8%. Since the plan was in excess of the 80% funding threshold there were no plan restrictions. The expected level of 2019 catch up contributions is $1,100. The following is a description of the valuation methodologies used for plan assets measured at fair value: Short-term investment funds – The fair value is determined using the Net Asset Value (“NAV”) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. The NAV is a quoted price in a market that is not active and is primarily classified as Level 2. These investments can be liquidated on demand. Government and agency securities – When quoted market prices are available in an active market, the investments are classified as Level 1. When quoted market prices are not available in an active market, the investments are classified as Level 2. Equity securities – The fair values reflect the closing price reported on a major market where the individual mutual fund securities are traded in equity securities. These investments are classified within Level 1 of the valuation hierarchy. Debt securities – The fair values are based on a compilation of primarily observable market information or a broker quote in a non-active market where the individual mutual fund securities are invested in debt securities. These investments are primarily classified within Level 2 of the valuation hierarchy. Commingled funds – The fair values are determined using NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the trust/entity, minus its liabilities, and then divided by the number of shares outstanding. These investments are generally classified within Level 2 of the valuation hierarchy and can be liquidated on demand. Interest in limited partnerships and hedge funds - One limited partnership investment is a private equity fund and the fair value is determined by the fund managers based on the estimated value of the various holdings of the fund portfolio. These investments are classified within Level 2 of the valuation hierarchy. The following table presents the fair values of Griffon’s pension and post-retirement plan assets by asset category:
Griffon has an ESOP that covers substantially all domestic employees. All U.S. employees of Griffon, who are not members of a collective bargaining unit, automatically become eligible to participate in the plan on the October 1st following completion of one qualifying year of service (as defined in the plan). Securities are allocated to participants’ individual accounts based on the proportion of each participant’s aggregate compensation (not to exceed $275 for the plan year ended September 30, 2018), to the total of all participants’ compensation. Shares of the ESOP which have been allocated to employee accounts are charged to expense based on the fair value of the shares transferred and are treated as outstanding in determining earnings per share. Dividends paid on shares held by the ESOP are used to offset debt service on ESOP Loans. Dividends paid on shares held in participant accounts are utilized to allocate shares from the aggregate number of shares to be released, equal in value to those dividends, based on the closing price of Griffon common stock on the dividend payment date. Compensation expense under the ESOP was $9,532 in 2018, $5,643 in 2017 and $3,689 in 2016. The cost of the shares held by the ESOP and not yet allocated to employees is reported as a reduction of Shareholders’ Equity. The fair value of the unallocated ESOP shares as of September 30, 2018 and 2017 based on the closing stock price of Griffon’s stock was $47,916 and $69,394, respectively. The ESOP shares were as follows:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES On December 22, 2017, the "Tax Cuts and Jobs Act" ("TCJA") was signed into law, significantly impacting several sections of the Internal Revenue Code. ASC 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017, or in the case of certain other provisions, January 1, 2018. Though certain key aspects of the TCJA are effective January 1, 2018 and have an immediate accounting effect, other significant provisions are not effective or may not result in accounting effects for September 30 fiscal year companies until October 1, 2018. Given the significance of the TCJA, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allows registrants to record provisional amounts during a one year “measurement period”. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. Among the significant changes to the U.S. Internal Revenue Code, the TCJA lowers the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the September 30, 2018 fiscal year using a blended Federal Tax Rate of 24.5%. The 21% Federal Tax Rate will apply to fiscal years ending September 30, 2019 and each year thereafter. The Company has recorded provisional amounts for the effects of the TCJA where accounting is not complete, but a reasonable estimate has been determined. As of September 30, 2018, the company recorded a $20,587 benefit on the revaluation of deferred tax liabilities as a provisional amount for the re-measurement of deferred tax assets and liabilities, as well as an amount for deductible executive compensation expense, both of which have been reflected in the tax provision for the year ended September 30, 2018. The TCJA requires companies to pay a one-time transition tax on mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits (“E&P”). The Company has recorded a provisional transition tax charge of $13,100 net of foreign tax credits. These have been included in the income tax provision for the year ended September 30, 2018. The Company will refine its calculation of the total post-1986 foreign E&P for any adjustments impacting its foreign subsidiaries and foreign tax credits. Under the TCJA, the Company will elect to pay the transition tax interest-free over eight years. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the TCJA and may change as the Company receives additional clarification and implementation guidance. In accordance with SAB 118 adjustments recorded to the provisional amounts will be reflected within the measurement period ending December 31, 2018 and will be included in income from continuing operations and net income as an adjustment to tax expense. Income taxes have been based on the following components of Income before taxes from continuing operations:
Provision (benefit) for income taxes on income was comprised of the following from continuing operations:
Griffon's income tax provision for the years ended September 30, 2018, 2017 and 2016 included a $1,299, $4,440 and $2,193 benefit, respectively, from the early adoption of the new FASB accounting guidance which now requires excess tax benefits from vesting of equity awards to be recognized within income tax expense. Under this guidance all excess tax benefits (“windfalls”) and deficiencies (“shortfalls”) related to employee stock compensation are recognized within income tax expense. Under prior guidance windfalls were recognized to Additional Paid In Capital and shortfalls were only recognized to the extent they exceed the pool of windfall tax benefits. Griffon’s income tax provision included benefits of ($421) in 2018, ($122) in 2017, and ($2,172) in 2016 reflecting the reversal of previously recorded tax liabilities including the resolution of various tax audits and the closing of certain statutes for prior years’ tax returns. Differences between the effective income tax rate applied to Income and U.S. Federal income statutory rate from continuing operations were as follows:
The tax effect of temporary differences that give rise to future deferred tax assets and liabilities are as follows:
The decrease in the valuation allowance of $8,946 is primarily the result of the disposition of PPC and its related valuation allowance on accumulated Germany net operating losses. The deferred tax gain on assets held for sale results from the book versus tax outside basis difference and was removed concurrent with the sale of PPC. The components of the net deferred tax liability, by balance sheet account, were as follows:
At both September 30, 2018 and 2017, Griffon has a policy election to indefinitely reinvest the undistributed earnings of foreign subsidiaries with operations outside the U.S. Griffon considers the earnings of these foreign subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs. The majority of the amounts held outside the U.S. are generally utilized to support non U.S. liquidity needs in order to fund operations and growth of the foreign subsidiaries, and for funding of acquisitions. Griffon has not recorded deferred income taxes on the undistributed earnings of its non-U.S. subsidiaries because of management’s ability and intent to indefinitely reinvest such earnings outside the U.S. At September 30, 2018, Griffon’s share of the undistributed earnings of the non-U.S. subsidiaries amounted to approximately $64,204. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. If a determination is made to repatriate some or all of these foreign earnings, the income tax provision would be adjusted in the period of that determination to accrue for the taxes payable on such earnings. At September 30, 2018 and 2017, Griffon had loss carryforwards for U.S. tax purposes of $6,089 and $1,264, respectively, and non-U.S. tax purposes of $7,319 and $7,941, respectively. The U.S. losses expire beginning in 2033. The non-U.S. loss carryforwards are available for carryforward indefinitely. At September 30, 2018 and 2017, Griffon had state and local loss carryforwards of $124,442 and $114,837, respectively, which expire in varying amounts through 2038. At September 30, 2018 and 2017, Griffon had federal tax credit carryforwards of $5,740 and $1,762, respectively, which expire beginning in 2028. We believe it is more likely than not that the benefit from certain state net operating losses and federal tax credits will not be realized. In recognition of this risk, we have provided a valuation allowance as of September 30, 2018 and 2017 of $7,597 and $1,343, respectively, on the deferred tax assets relating to these state net operating loss carryforwards and federal credits. If our assumptions change and we determine we will be able to realize these state net operating loss carryforwards or federal credits, the benefits relating to the reversal of the valuation allowance will be recognized as a reduction of income tax expense. If certain substantial changes in Griffon's ownership occur, there would be an annual limitation on the amount of carryforward(s) that can be utilized. Griffon files U.S. Federal, state and local tax returns, as well as applicable returns in Canada, Australia, Ireland and other non-U.S. jurisdictions. Griffon’s U.S. Federal income tax returns are no longer subject to income tax examination for years before 2013. Griffon's major U.S. state and other non-U.S. jurisdictions are no longer subject to income tax examinations for years before 2011. Various U.S. state and non-U.S. statutory tax audits are currently underway. The following is a roll forward of unrecognized tax benefits:
If recognized, the amount of potential tax benefits that would impact Griffon’s effective tax rate is $1,248. Griffon recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. At September 30, 2018 and 2017, the combined amount of accrued interest and penalties related to tax positions taken or to be taken on Griffon’s tax returns and recorded as part of the reserves for uncertain tax positions was $122 and $174, respectively. Griffon cannot reasonably estimate the extent to which existing liabilities for uncertain tax positions may increase or decrease within the next twelve months as a result of the progression of ongoing tax audits or other events. Griffon believes that it has adequately provided for all open tax years by tax jurisdiction. |
STOCKHOLDERS' EQUITY AND EQUITY COMPENSATION |
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STOCKHOLDERS’ EQUITY AND EQUITY COMPENSATION | STOCKHOLDERS’ EQUITY AND EQUITY COMPENSATION During 2018, 2017 and 2016, the Company declared and paid cash dividends totaling $0.28 per share, $0.24 per share and $0.20 per share, respectively. In addition, on March 7, 2018, the Board of Directors declared a special cash dividend of $1.00 per share, totaling $38,073 and paid on April 16, 2018 to shareholders of record as of the close of business on March 29, 2018. The Company currently intends to pay dividends each quarter; however, payment of dividends is determined by the Board of Directors at its discretion based on various factors, and no assurance can be provided as to the payment of future dividends. Dividends paid on shares in the ESOP, including the special dividend, were used to offset ESOP loan payments and prepay principal and recorded as a reduction of debt service payments and compensation expense. A dividend payable was established for the holders of restricted shares; such dividends will be released upon vesting of the underlying restricted shares. On November 14, 2018, the Board of Directors declared a cash dividend of $0.0725 per share, payable on December 20, 2018 to shareholders of record as of the close of business on November 29, 2018. On January 29, 2016, shareholders approved the Griffon Corporation 2016 Equity Incentive Plan ("Incentive Plan") under which awards of performance shares, performance units, stock options, stock appreciation rights, restricted shares, restricted stock units, deferred shares and other stock-based awards may be granted. On January 31, 2018, shareholders approved Amendment No. 1 to the Incentive Plan pursuant which, among other things, added 1,000,000 shares to the Incentive Plan. Options granted under the Incentive Plan may be either “incentive stock options” or nonqualified stock options, generally expire ten years after the date of grant and are granted at an exercise price of not less than 100% of the fair market value at the date of grant. The maximum number of shares of common stock available for award under the Incentive Plan is 3,350,000 (600,000 of which may be issued as incentive stock options), plus (i) any shares reserved for issuance under the 2011 Equity Incentive Plan as of the effective date of the Incentive Plan, and (ii) any shares underlying awards outstanding on such effective date under the 2011 Incentive Plan that are canceled or forfeited. As of September 30, 2018, 1,145,834 shares were available for grant. All grants outstanding under former equity plans will continue under their terms; no additional awards will be granted under such plans. Compensation expense for restricted stock and restricted stock units ("RSUs") is recognized ratably over the required service period based on the fair value of the grant, calculated as the number of shares (or RSUs) granted multiplied by the stock price on date of grant, and for performance shares (or performance RSUs), the likelihood of achieving the performance criteria. Compensation cost related to stock-based awards with graded vesting, generally over a period of three to four years, is recognized using the straight-line attribution method and recorded within Selling, general and administrative expenses. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans:
As of ended September 30, 2018 and 2017, a stock option to purchase 350,000 shares was outstanding and exercisable at a weighted average exercise price of $20.00. This option expired on October 1, 2018. A summary of restricted stock activity, inclusive of restricted stock units, for the year ended September 30, 2018, is as follows:
The fair value of restricted stock which vested during the year ended September 30, 2018, 2017, and 2016 was $11,216, $29,508 and $23,965, respectively. Unrecognized compensation expense related to non-vested shares of restricted stock was $22,869 at September 30, 2018 and will be recognized over a weighted average vesting period of 2.3 years. At September 30, 2018, a total of approximately 4,345,662 shares of Griffon’s authorized Common Stock were reserved for issuance in connection with stock compensation plans. During 2018, Griffon granted 1,343,929 shares of restricted stock and restricted stock units. This included 815,929 shares of restricted stock and restricted stock units, subject to certain performance conditions, with vesting periods of three years, with a total fair value of $16,238, or a weighted average fair value of $19.90 per share. Also, this included 528,000 shares of restricted stock granted to two senior executives with a vesting period of four years and a two year post-vesting holding period, subject to the achievement of certain absolute and relative performance conditions relating to the price of Griffon's common stock. The Monte Carlo Simulation model was chosen to value the two senior executive awards; the total fair value of these restricted shares is approximately $7,008, or a weighted average fair value of $13.27. So long as the minimum performance condition is attained, the amount of shares that can vest will range from 384,000 to 528,000. On each of August 3, 2016 and August 1, 2018, Griffon’s Board of Directors authorized the repurchase of up to $50,000 of Griffon’s outstanding common stock. Under these share repurchase programs, the Company may purchase shares of its common stock, depending upon market conditions, in open market or privately negotiated transactions, including pursuant to a 10b5-1 plan. Shares repurchased are recorded at cost. During 2018, Griffon purchased 2,088,739 shares of common stock under these repurchase programs, for a total of $41,110 or $19.68 per share. At September 30, 2018, an aggregate of $58,327 remains under Griffon's Board authorized repurchase authorizations. In addition to the repurchases under Board authorized programs, during 2018, 199,978 shares, with a market value of $4,495, or $22.48 per share, were withheld to settle employee taxes due upon the vesting of restricted stock. On December 10, 2013 Griffon repurchased 4,444,444 shares of common stock from GS Direct in a private transaction at a per share price of $11.25, an approximate 9.2% discount to the stock’s closing price on November 12, 2013, the day before announcement of the transaction. On June 19, 2018, GS Direct completed an underwritten secondary offering to sell 5,583,375 shares of Griffon's common stock, inclusive of the underwriters’ 30-day option to purchase additional shares. Following the closing of the offering, GS Direct no longer owns any shares of Griffon. GS Direct's initial 10,000,000 share investment was in 2008. On December 21, 2009, Griffon issued $100,000 principal of 4% convertible subordinated notes due 2017 (the “2017 Notes”). On July 14, 2016, Griffon announced that it would settle, upon conversion, up to $125,000 of the conversion value of the 2017 Notes in cash, with amounts in excess of $125,000, if any, to be settled in shares of Griffon common stock. On January 17, 2017, Griffon settled the convertible debt for $173,855 with $125,000 in cash, utilizing borrowings under the Credit Agreement, and $48,858, or 1,954,993 shares of common stock issued from treasury. During the year ended September 30, 2017, Griffon's ESOP purchased 621,875 shares of common stock for a total of $10,908 or $17.54 per share, under a borrowing line that has now been fully utilized. |
COMMITMENTS AND CONTINGENT LIABILITIES |
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Operating leases Griffon rents real property and equipment under operating leases expiring at various dates. Most of the real property leases have escalation clauses related to increases in real property taxes. Rent expense for all operating leases totaled approximately $35,726, $26,297 and $26,180 in 2018, 2017 and 2016, respectively. Aggregate future minimum lease payments for operating leases at September 30, 2018 are $32,189 in 2019, $26,365 in 2020, $16,600 in 2021, $10,811 in 2022, $6,082 in 2023 and $12,135 thereafter. Purchase Commitments Purchase obligations are generally for the purchase of goods and services in the ordinary course of business. Griffon uses blanket purchase orders to communicate expected requirements to certain vendors. Purchase obligations reflect those purchase orders where the commitment is considered to be firm. Purchase obligations that extend beyond 2017 are principally related to long-term contracts received from customers of Telephonics. Aggregate future minimum purchase obligations at September 30, 2018 are $226,026 in 2019, $5,569 in 2020, $2 in 2021, $1 in 2022 and $1,470 in 2023. Legal and environmental Department of Environmental Conservation of New York State (“DEC”), with ISC Properties, Inc. Lightron Corporation (“Lightron”), a wholly-owned subsidiary of Griffon, once conducted operations at a location in Peekskill in the Town of Cortlandt, New York (the “Peekskill Site”) owned by ISC Properties, Inc. (“ISC”), a wholly-owned subsidiary of Griffon. ISC sold the Peekskill Site in November 1982. Subsequently, ISC was advised by the DEC that random sampling at the Peekskill Site and in a creek near the Peekskill Site indicated concentrations of solvents and other chemicals common to Lightron’s prior plating operations. ISC then entered into a consent order with the DEC in 1996 (the “Consent Order”) to perform a remedial investigation and prepare a feasibility study. After completing the initial remedial investigation pursuant to the Consent Order, ISC was required by the DEC, and did accordingly conduct over the next several years, supplemental remedial investigations, including soil vapor investigations, under the Consent Order. In April 2009, the DEC advised ISC’s representatives that both the DEC and the New York State Department of Health had reviewed and accepted an August 2007 Remedial Investigation Report and an Additional Data Collection Summary Report dated January 30, 2009. With the acceptance of these reports, ISC completed the remedial investigation required under the Consent Order and was authorized, accordingly, by the DEC to conduct the Feasibility Study required by the Consent Order. Pursuant to the requirements of the Consent Order and its obligations thereunder, ISC, without acknowledging any responsibility to perform any remediation at the Site, submitted to the DEC in August 2009, a draft feasibility study which recommended for the soil, groundwater and sediment media, remediation alternatives having a current net capital cost value, in the aggregate, of approximately $5,000. In February 2011, DEC advised ISC it has accepted and approved the feasibility study. Accordingly, ISC has no further obligations under the consent order. Upon acceptance of the feasibility study, DEC issued a Proposed Remedial Action Plan (“PRAP”) that sets forth the proposed remedy for the site. The PRAP accepted the recommendation contained in the feasibility study for remediation of the soil and groundwater media, but selected a different remediation alternative for the sediment medium. After receiving public comments on the PRAP, the DEC issued a Record of Decision (“ROD”) in June 2011 that set forth the specific remedies selected and responded to public comments. The remedies selected by the DEC in the ROD are the same remedies as those set forth in the PRAP. At the time of adoption of the ROD, the approximate cost of the remedy proposed by DEC in the PRAP was approximately $10,000. It is now expected that DEC will enter into negotiations with potentially responsible parties to request they undertake performance of the remedies selected in the ROD, and if such parties do not agree to implement such remedies, then the State of New York may use State Superfund money to remediate the Peekskill site and seek recovery of costs from such parties. Griffon does not acknowledge any responsibility to perform any remediation at the Peekskill Site. Improper Advertisement Claim involving Union Tools® Products. Beginning in December 2004, a customer of AMES had been named in various litigation matters relating to certain Union Tools products. The plaintiffs in those litigation matters asserted causes of action against the customer of AMES for improper advertisement to end consumers. The allegations suggested that advertisements led the consumers to believe that Union Tools’ hand tools were wholly manufactured within boundaries of the United States. The complaints asserted various causes of action against the customer of AMES under federal and state law, including common law fraud. At some point, the customer may seek indemnity (including recovery of its legal fees and costs) against AMES for an unspecified amount. Presently, AMES cannot estimate the amount of loss, if any, if the customer were to seek legal recourse against AMES. Union Fork and Hoe, Frankfort, NY site. The former Union Fork and Hoe property in Frankfort, NY was acquired by Ames in 2006 as part of a larger acquisition, and has historic site contamination involving chlorinated solvents, petroleum hydrocarbons and metals. AMES has entered into an Order on Consent with the New York State Department of Environmental Conservation. While the Order is without admission or finding of liability or acknowledgment that there has been a release of hazardous substances at the site, AMES is required to perform a remedial investigation of certain portions of the property and to recommend a remediation option. At the conclusion of the remediation phase to the satisfaction of the DEC, the DEC will issue a Certificate of Completion. AMES has performed significant investigative and remedial activities in the last few years under work plans approved by the DEC, and the DEC has approved the final remedial investigation and feasibility study reports. AMES’ recommended remedial option of excavation and offsite disposal of lead contaminated soils, capping of other areas of the site impacted by other metals and performing limited groundwater monitoring was accepted by the DEC in a Record of Decision issued March 1, 2018. The Company has submitted a final design and implementation workplan to the State of New York and is awaiting approval. Implementation of the selected remedial alternative is expected to be completed in 2019. AMES has a number of defenses to liability in this matter, including its rights under a previous Consent Judgment entered into between the DEC and a predecessor of AMES relating to the site. U.S. Government investigations and claims Defense contracts and subcontracts, including Griffon’s contracts and subcontracts, are subject to audit and review by various agencies and instrumentalities of the United States government, including among others, the Defense Contract Audit Agency, the Defense Criminal Investigative Service, and the Department of Justice which has responsibility for asserting claims on behalf of the US government. In general, departments and agencies of the US Government have the authority to investigate various transactions and operations of Griffon, and the results of such investigations may lead to administrative, civil or criminal proceedings, the ultimate outcome of which could be fines, penalties, repayments or compensatory or treble damages. US Government regulations provide that certain findings against a contractor may lead to suspension or debarment from future US Government contracts or the loss of export privileges for a company or an operating division or subdivision. Suspension or debarment could have a material adverse effect on Telephonics because of its reliance on government contracts. General legal Griffon is subject to various laws and regulations relating to the protection of the environment and is a party to legal proceedings arising in the ordinary course of business. Management believes, based on facts presently known to it, that the resolution of the matters above and such other matters will not have a material adverse effect on Griffon’s consolidated financial position, results of operations or cash flows. |
EARNINGS PER SHARE |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted EPS for the years ended September 30, 2018, 2017 and 2016 were determined using the following information (in thousands):
Shares of the ESOP that have been allocated to employee accounts are treated as outstanding in determining earnings per share. |
RELATED PARTIES |
12 Months Ended |
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Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES On May 10, 2017, Griffon entered into an engagement letter with Goldman Sachs & Co. LLC (“Goldman Sachs”) pursuant to which Goldman Sachs agreed to act as Griffon’s financial advisor in connection with the acquisition of ClosetMaid. Griffon subsequently paid a customary financial advisory fee to Goldman Sachs under the terms of this engagement letter following consummation of the acquisition. On September 5, 2017, Griffon entered into an engagement letter with Goldman Sachs pursuant to which Goldman Sachs agreed to act as Griffon’s financial advisor in connection with the exploration of strategic alternatives for Clopay Plastics. On November 15, 2017, Griffon signed an agreement to sell Clopay Plastics for approximately $475,000 to Berry. Under the terms of the engagement letter, upon the closing of the transaction a customary advisory fee will be payable by Griffon to Goldman Sachs. Goldman Sachs acted as a joint lead manager and as an initial purchaser in connection with Griffon’s add-on offering of $275,000 aggregate principal amount of 5.25% senior notes due 2022 that closed on October 2, 2017, and received a customary fee upon closing of the offering. On June 19, 2018, GS Direct completed an underwritten secondary offering to sell 5,583,375 shares of Griffon's common stock, inclusive of the underwriters' 30-day option to purchase additional shares. Following the closing of the offering, GS Direct no longer owns any shares of Griffon. GS Direct's initial 10,000,000 share investment was in 2008. |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarterly results of continuing operations for the years ended September 30, 2018 and 2017 were as follows:
Notes to Quarterly Financial Information (unaudited):
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REPORTABLE SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS Griffon’s reportable segments from continuing operations are as follows:
On November 16, 2017, Griffon announced it entered into a definitive agreement to sell PPC and on February 6, 2018, completed the sale to Berry for approximately $475,000. As a result, Griffon classified the results of operations of the PPC business as discontinued operations in the Consolidated Statements of Operations for all periods presented and classified the related assets and liabilities associated with the discontinued operations in the consolidated balance sheets. All results and information presented exclude PPC unless otherwise noted. See Note 6, Discontinued Operations to the Notes of the Financial Statements. On October 2, 2017, Griffon acquired ClosetMaid. ClosetMaid, founded in 1965, is a leading North American manufacturer and marketer of wood and wire closet organization, general living storage and wire garage storage products and sells to some of the largest home center retail chains, mass merchandisers, and direct-to-builder professional installers in North America. The accounts of ClosetMaid, affected for preliminary adjustments to reflect fair market values assigned to assets purchased and liabilities assumed, are included in the Company’s consolidated financial statements from the date of acquisition. On June 4, 2018, CBP acquired CornellCookson, a leading US manufacturer and marketer of rolling steel door and grille products designed for commercial, industrial, institutional and retail use. The accounts, affected for preliminary adjustments to reflect fair market values assigned to assets purchased and liabilities assumed, and results of operations of CornellCookson, are included in the Company’s consolidated financial statements from the date of acquisition. Information on Griffon’s reportable segments from continuing operations is as follows:
Griffon evaluates performance and allocates resources based on each segment's operating results from continuing operations before interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges, loss on debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, as applicable (“Segment adjusted EBITDA”, a non-GAAP measure). The following table provides a reconciliation of Segment adjusted EBITDA to Income before taxes and discontinued operations:
Segment information by geographic region was as follows:
As a percentage of consolidated revenue from continuing operations, HBP sales to Home Depot approximated 19% in 2018 and 17% in both 2017 and 2016, respectively; and Telephonics aggregate sales to the United States Government and its agencies approximated 10% in 2018, 18% in 2017 and 21% in 2016. |
OTHER INCOME (EXPENSE) |
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Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE) | OTHER INCOME (EXPENSE) Other income (expense) included ($200), ($723) and $(550) for the years ended September 30, 2018, 2017 and 2016, respectively, of currency exchange gains (losses) in connection with the translation of receivables and payables denominated in currencies other than the functional currencies of Griffon and its subsidiaries, as well as $1,184, $53 and $316, respectively, of investment income. |
OTHER COMPREHENSIVE INCOME (LOSS) |
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The amounts recognized in other comprehensive income (loss) were as follows:
The components of Accumulated other comprehensive income (loss) are as follows:
Total comprehensive income (loss) were as follows:
Amounts reclassified from accumulated other comprehensive income (loss) to income (loss) were as follows:
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CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION |
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Consolidating Guarantor And Non Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION Griffon’s Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by the domestic assets of Clopay Building Products Company, Inc., Telephonics Corporation, The AMES Companies, Inc., ATT Southern, Inc., Clopay Ames True Temper Holding, Corp., ClosetMaid, LLC, CornellCookson, LLC and Cornell Real Estate Holdings, LLC. all of which are indirectly 100% owned by Griffon. In accordance with Rule 3-10 of Regulation S-X promulgated under the Securities Act of 1933, presented below are condensed consolidating financial information as of September 30, 2018 and 2017, and for the years ended September 30, 2018, 2017 and 2016. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor companies or non-guarantor companies operated as independent entities. The guarantor companies and the non-guarantor companies include the consolidated financial results of their wholly owned subsidiaries accounted for under the equity method. The indenture relating to the Senior Notes (the “Indenture”) contains terms providing that, under certain limited circumstances, a guarantor will be released from its obligations to guarantee the Senior Notes. These circumstances include (i) a sale of at least a majority of the stock, or all or substantially all the assets, of the subsidiary guarantor as permitted by the Indenture; (ii) a public equity offering of a subsidiary guarantor that qualifies as a “Minority Business” as defined in the Indenture (generally, a business the EBITDA of which constitutes less than 50% of the segment adjusted EBITDA of the Company for the most recently ended four fiscal quarters), and that meets certain other specified conditions as set forth in the Indenture; (iii) the designation of a guarantor as an “unrestricted subsidiary” as defined in the Indenture, in compliance with the terms of the Indenture; (iv) Griffon exercising its right to defease the Senior Notes, or to otherwise discharge its obligations under the Indenture, in each case in accordance with the terms of the Indenture; and (v) upon obtaining the requisite consent of the holders of the Senior Notes. CONDENSED CONSOLIDATING BALANCE SHEETS At September 30, 2018
CONDENSED CONSOLIDATING BALANCE SHEETS At September 30, 2017
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Year Ended September 30, 2018
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Year Ended September 30, 2017
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Year Ended September 30, 2016
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended September 30, 2018
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended September 30, 2017
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended September 30, 2016
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SUBSEQUENT EVENTS |
12 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On November 14, 2018, the Board of Directors declared a cash dividend of $0.0725 per share, payable on December 20, 2018 to shareholders of record as of the close of business on November 29, 2018. Griffon currently intends to pay dividends each quarter; however, payment of dividends is determined by the Board of Directors, at its discretion, based on various factors, and no assurance can be provided as to the payment of future dividends. ***** |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS |
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II GRIFFON CORPORATION VALUATION AND QUALIFYING ACCOUNTS For the Years Ended September 30, 2018, 2017 and 2016 (in thousands)
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DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Consolidation | Consolidation The consolidated financial statements include the accounts of Griffon and all subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The results of operations of acquired businesses are included from the dates of acquisitions. |
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Earnings per share | Earnings per share Due to rounding, the sum of earnings per share may not equal earnings per share of Net income. |
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Discontinued operations – Installation Services | Discontinued operations Installation Services In 2008, as a result of the downturn in the residential housing market, Griffon exited substantially all operating activities of its Installation Services segment which sold, installed and serviced garage doors and openers, fireplaces, floor coverings, cabinetry and a range of related building products, primarily for the new residential housing market. Operating results of substantially all of this segment have been reported as discontinued operations in the Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented; Installation Services is excluded from segment reporting. During the year ended September 30, 2017, Griffon recorded $5,700 of reserves in discontinued operations related to historical environmental remediation efforts and to increase the reserve for homeowner association claims related to the Clopay Services Corporation discontinued operations in 2008. |
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Reclassifications | Reclassifications Certain amounts in prior years have been reclassified to conform to the current year presentation. |
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Use of estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates may be adjusted due to changes in economic, industry or customer financial conditions, as well as changes in technology or demand. Significant estimates include allowances for doubtful accounts receivable and returns, net realizable value of inventories, restructuring reserves, valuation of goodwill and intangible assets, percentage of completion method of accounting, pension assumptions, useful lives associated with depreciation and amortization of intangible and fixed assets, warranty reserves, sales incentive accruals, stock based compensation assumptions, income taxes and tax valuation reserves, environmental reserves, legal reserves, insurance reserves, the valuation of assets and liabilities of discontinued operations, acquisition assumptions used and the accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions Griffon may undertake in the future. Actual results may ultimately differ from these estimates. |
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Cash and equivalents | Cash and equivalents Griffon considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. Cash equivalents primarily consist of overnight commercial paper, highly-rated liquid money market funds backed by U.S. Treasury securities and U.S. Agency securities, as well as insured bank deposits. Griffon had cash in non-U.S. bank accounts of approximately $24,900 and $26,500 at September 30, 2018 and 2017, respectively. Substantially all U.S. cash and equivalents are in excess of FDIC insured limits. Griffon regularly evaluates the financial stability of all institutions and funds that hold its cash and equivalents. |
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Fair value of financial instruments | Fair value of financial instruments The carrying values of cash and cash equivalents, accounts receivable, accounts and notes payable and revolving credit debt approximate fair value due to either the short-term nature of such instruments or the fact that the interest rate of the revolving credit debt is based upon current market rates. The fair value hierarchy, as outlined in the applicable accounting guidance, establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The accounting guidance establishes three levels of inputs that may be used to measure fair value, as follows:
The fair value of Griffon’s 2022 senior notes approximated $990,000, on September 30, 2018. Fair values were based upon quoted market prices (level 1 inputs). Insurance contracts with a value of $3,032 at September 30, 2018 are measured and recorded at fair value based upon quoted prices in active markets for similar assets (level 2 inputs) and are included in Other current assets on the consolidated balance sheet. Items Measured at Fair Value on a Recurring Basis At September 30, 2018 and 2017, trading securities, measured at fair value based on quoted prices in active markets for similar assets (level 2 inputs), with a fair value of $2,644 ($2,086 cost basis) and $3,352 ($1,000 cost basis) were included in Prepaid and other current assets on the Consolidated Balance Sheets. During the year ended September 30, 2018, the Company settled trading securities with proceeds totaling $4,126 and recognized a loss of $1,251 in Other income (expense). During the year ended September 30, 2016, the Company settled trading securities with proceeds totaling $715 and recognized a loss of $13 in Other income (expense). Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in Other income in the Consolidated Statements of Operations and Comprehensive Income (Loss). In the normal course of business, Griffon’s operations are exposed to the effect of changes in foreign currency exchange rates. To manage these risks, Griffon may enter into various derivative contracts such as foreign currency exchange contracts, including forwards and options. During 2018 and 2017, Griffon entered into several such contracts in order to lock into a foreign currency rate for planned settlements of trade and inter-company liabilities payable in USD. At September 30, 2018 and 2017, Griffon had $12,000 and $14,500 of Australian dollar contracts at a weighted average rate of $1.38 and $1.28, respectively, which qualified for hedge accounting. These hedges were all deemed effective as cash flow hedges with gains and losses related to changes in fair value deferred and recorded in Other comprehensive income (loss) and Prepaid and other current assets, or Accrued liabilities, until settlement. Upon settlement, gains and losses were recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) in Cost of goods and services. AOCI included deferred gains of $443 ($288, net of tax) and deferred gains of $175 ($114, net of tax) at September 30, 2018 and 2017, respectively. Upon settlement, gains (losses) of $657 and $(1,458) were recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) in Cost of goods and services ("COGS") during the years ended September 30, 2018 and September 30, 2017, respectively. All contracts expire in 31 to 92 days. At September 30, 2018 and 2017, Griffon had $700 and $4,690, respectively, of Canadian dollar contracts at a weighted average rate of $1.29 and $1.25. These contracts, which protect Canadian operations from currency fluctuations for U.S. dollar based purchases, do not qualify for hedge accounting and fair value losses of $7 and $378 were recorded in Other assets and to Other income for the outstanding contracts, based on similar contract values (level 2 inputs), for the years ended September 30, 2018 and 2017, respectively. Realized gains (losses) of $(161) and $200, were recorded in Other income during the years ended September 30, 2018 and September 30, 2017, respectively. All contracts expire in 30 to 358 days. Pension plan assets with a fair value of $150,634 at September 30, 2018, are measured and recorded at fair value based upon quoted prices in active markets for identical assets (level 1 inputs) and quoted market prices for similar assets (level 2 inputs). |
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Non-U.S. currency translation | Non-U.S. currency translation Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates and profit and loss accounts have been translated using weighted average exchange rates. Adjustments resulting from currency translation have been recorded in the equity section of the balance sheet in AOCI as cumulative translation adjustments. Cumulative translation adjustments were gains of $9,403 and $10,667 for the year ended September 30, 2018 and 2017, respectively. As of September 30, 2018 and 2017, the foreign currency translation components of Accumulated other comprehensive loss were $22,824 and $32,227, respectively. Assets and liabilities of an entity that are denominated in currencies other than that entity’s functional currency are re-measured into the functional currency using period end exchange rates, or historical rates where applicable to certain balances. Gains and losses arising on remeasurements are recorded within the Consolidated Statement of Operations and Comprehensive Income (Loss) as a component of Other income (expense). |
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Revenue recognition | Revenue recognition Revenue is recognized when the following circumstances are satisfied: a) persuasive evidence of an arrangement exists, b) delivery has occurred, title has transferred or services are rendered, c) price is fixed and determinable and d) collectability is reasonably assured. Goods are sold on terms that transfer title and risk of loss at a specified location. Revenue recognition from product sales occurs when all factors are met, including transfer of title and risk of loss, which occurs either upon shipment or upon receipt by customers at the location specified in the terms of sale. Other than standard product warranty provisions, sales arrangements provide for no other significant post-shipment obligations. From time to time and for certain customers, rebates and other sales incentives, promotional allowances or discounts are offered, typically related to customer purchase volumes, all of which are fixed or determinable and are classified as a reduction of revenue and recorded at the time of sale. Griffon provides for sales returns allowances based upon historical returns experience. Telephonics earns a substantial portion of its revenue as either a prime or subcontractor from contract awards with the U.S. Government, as well as non-U.S. governments and other commercial customers. These formal contracts are typically long-term in nature, usually greater than one year. Revenue and profits from these long-term fixed price contracts are recognized under the percentage-of-completion method of accounting. Revenue and profits on fixed-price contracts that contain engineering as well as production requirements are recorded based on the ratio of total actual incurred costs to date to the total estimated costs for each contract (cost-to-cost method). Using the cost-to-cost method, revenue is recorded at amounts equal to the ratio of actual cumulative costs incurred divided by total estimated costs at completion, multiplied by the total estimated contract revenue, less the cumulative revenue recognized in prior periods. The profit recorded on a contract using this method is equal to the current estimated total profit margin multiplied by the cumulative revenue recognized, less the amount of cumulative profit previously recorded for the contract in prior periods. As this method relies on the substantial use of estimates, these projections may be revised throughout the life of a contract. Components of this formula and ratio that may be estimated include gross profit margin and total costs at completion. The cost performance and estimates to complete on long-term contracts are reviewed, at a minimum, on a quarterly basis, as well as when information becomes available that would necessitate a review of the current estimate. Adjustments to estimates for a contract’s estimated costs at completion and estimated profit or loss often are required as experience is gained, and as more information is obtained, even though the scope of work required under the contract may or may not change, or if contract modifications occur. The impact of such adjustments or changes to estimates is made on a cumulative basis in the period when such information has become known. In 2018, 2017 and 2016, income from operations included net favorable/(unfavorable) catch-up adjustments approximating $1,400, $600 and $(700), respectively. Gross profit is affected by a variety of factors, including the mix of products, systems and services, production efficiencies, price competition and general economic conditions. Revenue and profits on cost-reimbursable type contracts are recognized as allowable costs, and are incurred on the contract at an amount equal to the allowable costs plus the estimated profit on those costs. The estimated profit on a cost-reimbursable contract may be fixed or variable based on the contractual fee arrangement. Incentive and award fees on these contracts are recorded as revenue when the criteria under which they are earned are reasonably assured of being met and can be estimated. For contracts in which anticipated total costs exceed the total expected revenue, an estimated loss is recognized in the period when identifiable. A provision for the entire amount of the estimated loss is recorded on a cumulative basis. The estimated remaining costs to complete loss contracts as of September 30, 2018 was $12,200 and is recorded as a reduction to gross margin on the Consolidated Statements of Operations and Comprehensive Income (Loss). This loss had an immaterial impact on Griffon's Consolidated Financial Statements. Amounts representing contract change orders or claims are included in revenue only when they can be reliably estimated and their realization is probable, and are determined on a percentage-of-completion basis measured by the cost-to-cost method. From time to time, Telephonics may combine contracts if they are negotiated together, have specific requirements to combine, or are otherwise closely related. Contracts are segmented based on customer requirements. |
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Accounts receivable, allowance for doubtful accounts and concentrations of credit risk | Accounts receivable, allowance for doubtful accounts and concentrations of credit risk Accounts receivable is composed principally of trade accounts receivable, that arise from the sale of goods or services on account, and is stated at historical cost. A substantial portion of Griffon’s trade receivables are from customers of HBP, of which the largest customer is Home Depot, whose financial condition is dependent on the construction and related retail sectors of the economy. As a percentage of consolidated accounts receivable, U.S. Government related programs were 8% and Home Depot was 20%. Griffon performs continuing evaluations of the financial condition of its customers, and although Griffon generally does not require collateral, letters of credit may be required from customers in certain circumstances. Trade receivables are recorded at the stated amount, less allowance for doubtful accounts and, when appropriate, for customer program reserves and cash discounts. The allowance represents estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency). The allowance for doubtful accounts includes amounts for certain customers where a risk of default has been specifically identified, as well as an amount for customer defaults based on a formula when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. The provision related to the allowance for doubtful accounts is recorded in Selling, general and administrative ("SG&A") expenses. The Company writes-off accounts receivable when they are deemed to be uncollectible. |
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Contract costs and recognized income not yet billed | Contract costs and recognized income not yet billed Contract costs and recognized income not yet billed consists of amounts accounted for under the percentage of completion method of accounting, recoverable costs and accrued profit that cannot yet be invoiced under the terms of certain long-term contracts. Amounts will be invoiced when applicable contract terms, such as the achievement of specified milestones or product delivery, are met. |
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Inventories | Inventories Inventories, stated at the lower of cost (first-in, first-out or average) or market, include material, labor and manufacturing overhead costs. Griffon’s businesses typically do not require inventory that is susceptible to becoming obsolete or dated. In general, Telephonics sells products in connection with programs authorized and approved under contracts awarded by the U.S. Government or agencies thereof and in accordance with customer specifications. HBP produces doors, organizational and storage products and long-handled tools and landscaping products in response to orders from customers of retailers and dealers or based on expected orders, as applicable. |
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Property, plant and equipment | Property, plant and equipment Property, plant and equipment includes the historical cost of land, buildings, equipment and significant improvements to existing plant and equipment or, in the case of acquisitions, a fair market value appraisal of such assets completed at the time of acquisition. Expenditures for maintenance, repairs and minor renewals are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts and the gain or loss is recognized. No event or indicator of impairment occurred during the three years ended September 30, 2018, which would require additional impairment testing of property, plant and equipment. Depreciation expense, which includes amortization of assets under capital leases, was $46,733, $41,220 and $39,734 for the years ended September 30, 2018, 2017 and 2016, respectively, and was calculated on a straight-line basis over the estimated useful lives of the assets. Depreciation included in SG&A expenses was $16,306, $12,995 and $11,721 for the years ended September 30, 2018, 2017 and 2016. The remaining components of depreciation, attributable to manufacturing operations, are included in Cost of goods and services. Estimated useful lives for property, plant and equipment are as follows: buildings and building improvements, 25 to 40 years; machinery and equipment, 2 to 15 years and leasehold improvements, over the term of the lease or life of the improvement, whichever is shorter. |
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Goodwill and indefinite-lived intangibles | Goodwill and indefinite-lived intangibles Goodwill is the excess of the acquisition cost of a business over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but is subject to an annual impairment test unless during an interim period, impairment indicators such as a significant change in the business climate exist. Griffon performed its annual impairment testing of goodwill as of September 30, 2018. The performance of the test involves a two-step process. The first step involves comparing the fair value of Griffon’s reporting units with the reporting unit’s carrying amount, including goodwill. Griffon generally determines the fair value of its reporting units using the income approach methodology of valuation that includes the present value of expected future cash flows. This method uses market assumptions specific to Griffon’s reporting units. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, Griffon performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. Griffon defines its reporting units as its two reportable segments: HBP and Defense Electronics. At September 30, 2018, HBP consisted of two components, AMES and CBP, because of their similar economic and qualitative characteristics. Griffon used 5 year projections and a 3.0% terminal value to which discount rates between 7% and 9.5% were applied to calculate each unit’s fair value. To substantiate fair values derived from the income approach methodology of valuation, the implied fair value was compared to the marketplace fair value of a comparable industry grouping for reasonableness. Further, the fair values were reconciled to Griffon’s market capitalization. Both market comparisons supported the implied fair values. Any changes in key assumptions or management judgment with respect to a reporting unit or its prospects, which may result from a decline in Griffon’s stock price, a change in market conditions, market trends, interest rates or other factors outside Griffon’s control, or significant underperformance relative to historical or project future operating results, could result in a significantly different estimate of the fair value of the reporting units, which could result in a future impairment charge (level 3 inputs). Based upon the results of the annual impairment review, it was determined that the fair value of each reporting unit substantially exceeded the carrying value of the assets, as performed under step one, and no impairment existed. Similar to goodwill, Griffon tests indefinite-lived intangible assets at least annually and when indicators of impairment exist. Griffon uses a relief from royalty method to calculate and compare the fair value of the intangible to its book value. This method uses market assumptions specific to Griffon’s reporting units, which are reasonable and supportable. If the fair value is less than the book value of the indefinite-lived intangibles, an impairment charge would be recognized. |
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Definite-lived long-lived assets | Definite-lived long-lived assets Amortizable intangible assets are carried at cost less accumulated amortization. For financial reporting purposes, definite-lived intangible assets are amortized on a straight-line basis over their useful lives, generally eight to twenty-five years. Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. |
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Income taxes | Income taxes Income taxes are accounted for under the liability method. Deferred taxes reflect the tax consequences on future years of differences between the tax basis of assets and liabilities and their financial reporting amounts. The carrying value of Griffon’s deferred tax assets is dependent upon Griffon’s ability to generate sufficient future taxable income in certain tax jurisdictions. Should Griffon determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. Griffon provides for uncertain tax positions and any related interest and penalties based upon Management’s assessment of whether a tax benefit is more likely than not of being sustained upon examination by tax authorities. At September 30, 2018 Griffon believes that it has appropriately accounted for all unrecognized tax benefits. As of September 30, 2018, 2017 and 2016, Griffon has recorded unrecognized tax benefits in the amount of $4,519, $4,825 and $4,709, respectively. Accrued interest and penalties related to income tax matters are recorded in the provision for income taxes. |
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Research and development costs, shipping and handling costs and advertising costs | Research and development costs, shipping and handling costs and advertising costs Research and development costs not recoverable under contractual arrangements are charged to SG&A expense as incurred and amounted to $15,400, $17,700 and $18,000 in 2018, 2017 and 2016, respectively. SG&A expenses include shipping and handling costs of $59,600 in 2018, $32,500 in 2017 and $30,600 in 2016 and advertising costs, which are expensed as incurred, of $21,000 in 2018, $22,000 in 2017 and $23,000 in 2016. |
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Risk, retention and insurance | Risk, retention and insurance Griffon’s property and casualty insurance programs contain various deductibles that, based on Griffon’s experience, are reasonable and customary for a company of its size and risk profile. Griffon generally maintains deductibles for claims and liabilities related primarily to workers’ compensation, general, product and automobile liability as well as property damage and business interruption losses resulting from certain events. Griffon does not consider any of the deductibles to represent a material risk to Griffon. Griffon accrues for claim exposures that are probable of occurrence and can be reasonably estimated. Insurance is maintained to transfer risk beyond the level of self-retention and provides protection on both an individual claim and annual aggregate basis. |
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Pension benefits | Pension benefits Griffon sponsors defined and supplemental benefit pension plans for certain retired employees. Annual amounts relating to these plans are recorded based on actuarial projections, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases and turnover rates. Actuarial assumptions used to determine pension liabilities, assets and expense are reviewed annually and modified based on current economic conditions and trends. The expected return on plan assets is determined based on the nature of the plan's investments and expectations for long-term rates of return. The discount rate used to measure obligations is based on a corporate bond spot-rate yield curve that matches projected future benefit payments, with the appropriate spot rate applicable to the timing of the projected future benefit payments. Assumptions used in determining Griffon’s obligations under the defined benefit pension plans are believed to be reasonable, based on experience and advice from independent actuaries; however, differences in actual experience or changes in assumptions may materially impact Griffon’s financial position or results of operations. All of the defined benefit plans are frozen and have ceased accruing benefits. |
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Recently issued effective accounting pronouncements | Newly issued but not yet effective accounting pronouncements In August 2018, the FASB issued guidance on changes to the disclosure requirements for Fair Value Measurement, which eliminates, amends, and adds disclosure requirements for fair value measurements. The amended and new disclosure requirements primarily relate to Level 3 fair value measurements. The removal and amendment of certain disclosures may be early adopted with retrospective application while the new disclosure requirements are to be applied prospectively. The guidance is effective for the Company in fiscal 2021.We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In August 2018, the FASB issued guidance on changes to the disclosure requirements for defined benefit plans, which makes minor changes to the disclosure requirements related to defined benefit pension and other post-retirement plans. The guidance requires a retrospective transition approach and is effective for the Company in fiscal 2022. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In August 2018, the FASB issued guidance related to customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance permits either a prospective or retrospective transition approach and is effective for the Company in fiscal 2021. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income (AOCI) arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017. An entity that elects to make this reclassification must consider all items in AOCI that have tax effects stranded as a result of the tax rate change, and must disclose the reclassification of these tax effects as well as the entity’s policy for releasing income tax effects from AOCI. This guidance may be applied either retrospectively or as of the beginning of the period of adoption. The new guidance is effective for the Company beginning in fiscal 2020. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In May 2017, the FASB issued guidance to address the situation when a company modifies the terms of a stock compensation award previously granted to an employee. This guidance is effective, and should be applied prospectively, for fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period. The new guidance is effective for the Company beginning in fiscal 2019. We believe the implementation of this guidance will not have a material effect on the Company’s financial condition or results of operations. In March 2017, the FASB issued amendments to the Compensation - Retirement Benefits guidance which requires companies to retrospectively present the service cost component of net periodic benefit cost for pension and retiree medical plans along with other compensation costs in operating income and present the other components of net periodic benefit cost below operating income in the income statement. The guidance also allows only the service cost component of net periodic benefit cost to be eligible for capitalization within inventory or fixed assets on a prospective basis. This guidance is effective, and should be applied retroactively, for fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period. The new guidance is effective for the Company beginning in fiscal 2019. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In January 2017, the FASB issued guidance that simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. This guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those periods and will be effective for the Company beginning in 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In January 2017, the FASB issued guidance that clarifies the definition of a business, which will impact many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new standard is intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods and will be effective for the Company beginning in fiscal 2019. We are currently evaluating the impact of the guidance and do not expect this guidance to have a material impact on the Company's financial condition, results of operations and related disclosures. In August 2016, the Financial Accounting Standards Board ("FASB") issued guidance on the Statement of Cash Flows Classification of certain cash receipts and cash payments (a consensus of the emerging issues take force). This guidance addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company beginning in fiscal 2019. We are currently evaluating the impact of the guidance on the Company's financial condition, results of operations and related disclosures. In February 2016, the FASB issued guidance on lease accounting requiring lessees to recognize a right-of-use asset and a lease liability for long-term leases. The liability will be equal to the present value of lease payments. This guidance must be applied using a modified retrospective transition approach to all annual and interim periods presented and is effective for the company beginning in fiscal 2020. We are currently evaluating the impact of the guidance on the Company's financial condition, results of operations and related disclosures. In May 2014, the FASB issued an Accounting Standards Update related to new revenue recognition guidance that supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance, an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The core principle of the guidance is that the recognition of revenue should depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods and services. The converged standard also includes more robust disclosure requirements which will require entities to provide sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Subsequently, the FASB has issued amendments to certain aspects of the guidance including the effective date. The effective date of this revised standard is for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The converged standard can be adopted using a full retrospective method or a modified retrospective method, which applies the new guidance to contracts that are not completed at the adoption date without adjusting prior reporting periods. The Company has completed its assessment of the impact of this standard which will become effective for the Company in the first quarter of its 2019 fiscal year and will adopt this guidance using the modified retrospective method. Beginning in the second half of fiscal 2016, the Company used a team to analyze the impact of the standard, and the related guidance issued, across all revenue streams and to evaluate the impact of the new standard on revenue contracts. This team reviewed current accounting policies and practices, identifying potential differences that would result from applying the requirements under the new standard. As noted above, the Company will adopt this new standard in the first quarter of 2019 using the modified retrospective method of adoption. The standard will not impact revenue recognition practices at the Company’s Home and Building Products Segment but will have an impact at its Defense Electronics Segment. We will adopt the new standard by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. We expect this adjustment to opening retained earnings to be approximately $5,000 with an immaterial impact to our net income on an ongoing basis. Recently adopted accounting pronouncements In March 2018, the FASB issued ASU 2018-05, Income Taxes Amendments to SEC Paragraphs Pursuant to the SEC SAB 118. This ASU provides guidance on income tax accounting implications under the TCJA. SAB 118 addressed the application of GAAP to situations when a registrant does not have the necessary information available, prepared and analyzed in reasonable detail to complete the accounting for certain income tax effects of the TCJA and allows companies to record provisional amounts during the re-measurement period not to exceed one year after the enactment date while the accounting impact remains under analysis. This guidance was effective immediately upon issuance. See Note 11 Income Taxes for further details. In March 2016, the FASB issued guidance on Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2016 using either prospective, retrospective or modified retrospective transition method, depending on the area covered in this guidance. The Company early adopted this guidance in fiscal 2016 in order to simplify the accounting for employee share-based payments. Under this guidance all excess tax benefits (“windfalls”) and deficiencies (“shortfalls”) related to employee stock compensation was recognized within income tax expense for the year ended September 30, 2016. Under prior guidance, windfalls were recognized to Capital in excess of par value and shortfalls were only recognized to the extent they exceed the pool of windfall tax benefits. As a result of the adoption, a tax benefit of $2,193 was recognized within income tax expense reflecting the excess tax benefits for the year ended September 30, 2016. The adoption was on a prospective basis and therefore had no impact on prior years. Additionally, income tax benefits at settlement of an award were previously reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. Griffon has elected to apply that change in cash flow classification on a prospective basis, which has resulted in a $2,291 increase to net cash provided by operating activities and a corresponding increase to net cash used in financing activities in the accompanying condensed consolidated statement of cash flows for the year ended September 30, 2016, as compared to the amounts previously reported. The remaining provisions of this accounting standard did not have a material impact on the accompanying condensed consolidated financial statements. In August 2014, the FASB issued guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and related footnote disclosures. Management is required to evaluate, at each reporting period, whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. This guidance was effective prospectively for annual and interim reporting periods beginning in 2017; implementation of this guidance did not have a material effect on the Company’s financial condition or results of operations. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements. |
ACQUISITIONS (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following unaudited proforma summary from continuing operations presents consolidated information as if the Company acquired ClosetMaid on October 1, 2016:
Griffon did not include any material, nonrecurring proforma adjustments directly attributable to the business combination in the proforma revenue and earnings. These proforma amounts have been compiled by adding the historical results from continuing operations of Griffon, restated for classifying the results of operations of the PPC business as a discontinued operation, to the historical results of ClosetMaid after applying Griffon’s accounting policies and the following proforma adjustments:
The calculation of the preliminary purchase price allocation, which is pending finalization of tax-related items and completion of the related final valuation, is as follows:
The calculation of the preliminary purchase price allocation, which is pending finalization of tax-related items and completion of the related final valuation, is as follows:
(1) Includes $30,818 of gross accounts receivable of which $418 was not expected to be collected. The fair value of accounts receivable approximated book value acquired. (2) Includes $13,433 of gross inventory of which $1,098 was reserved for obsolete items. |
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Schedule of Goodwill And Intangible Assets Acquired as Part of Business Combination | The preliminary amounts assigned to goodwill and major intangible asset classifications, all of which are tax deductible, for the CornellCookson acquisition are as follows:
The amounts assigned to goodwill and major intangible asset classifications, all of which are tax deductible, for the ClosetMaid acquisition are as follows:
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Business Acquisition, Pro Forma Information | The following unaudited proforma summary from continuing operations presents consolidated information as if the Company acquired ClosetMaid on October 1, 2016:
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INVENTORIES (Tables) |
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Schedule of Inventory, Current | The following table details the components of inventory:
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Property, Plant and Equipment | The following table details the components of property, plant and equipment, net:
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GOODWILL AND OTHER INTANGIBLES (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table provides changes in carrying value of goodwill by segment through the year ended September 30, 2018:
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Schedule Of Identifiable Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset:
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DISCONTINUED OPERATIONS (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The following amounts summarize the total assets and liabilities of PPC and Installation Services and other discontinued activities which have been segregated from Griffon’s continuing operations and are reported as assets and liabilities of discontinued operations in the consolidated balance sheets:
The following amounts related to the PPC segment have been segregated from Griffon's continuing operations and are reported as discontinued operations:
The following amounts related to PPC have been segregated from Griffon's continuing operations and are reported as assets and liabilities of discontinued operations held for sale in the consolidated balance sheet at September 30, 2017:
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Restructuring and Related Cost | The following amounts related to the PPC segment have been segregated from Griffon's continuing operations and are reported as discontinued operations:
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ACCRUED LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | The following table details the components of accrued liabilities:
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WARRANTY LIABILITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | Changes in Griffon’s warranty liability, included in Accrued liabilities, were as follows:
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NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | The present value of the net minimum payments on capitalized leases as of September 30, 2018 was follows:
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Schedule of Debt |
Proceeds from the $600,000 5.25% senior notes due in 2022 were used to redeem $550,000 of 7.125% senior notes due 2018, to pay a call and tender offer premium of $31,530 and to make interest payments of $16,716, with the balance used to pay a portion of the related transaction fees and expenses. In connection with the issuance of the Senior Notes, all obligations under the $550,000 of 7.125% senior notes due in 2018 were discharged. The Senior Notes are senior unsecured obligations of Griffon guaranteed by certain domestic subsidiaries, and subject to certain covenants, limitations and restrictions. On February 5, 2018, July 20, 2016 and June 18, 2014, Griffon exchanged all of the $275,000, $125,000 and $600,000 Senior Notes, respectively, for substantially identical Senior Notes registered under the Securities Act of 1933 via an exchange offer. The fair value of the Senior Notes approximated $990,000 on September 30, 2018 based upon quoted market prices (level 1 inputs). In connection with the issuance and exchange of the $275,000 senior notes, Griffon capitalized $8,472 of underwriting fees and other expenses; in addition to $13,329 capitalized under the previously issued $725,000 Senior Notes. All capitalized fees for the Senior Notes will amortize over the term of the notes and, at September 30, 2018, $14,830 remained to be amortized.
In July 2016, Griffon Australia Holdings Pty Ltd and its Australian subsidiaries ("Griffon Australia") entered into an AUD 30,000 term loan and an AUD 10,000 revolver. The term loan refinanced two existing term loans and the revolver replaced two existing lines. In December 2016, the amount available under the revolver was increased from AUD 10,000 to AUD 20,000 and, in March 2017 the term loan commitment was increased by AUD 5,000. In September 2017, the term commitment was increased by AUD 15,000. The term loan requires quarterly principal payments of AUD 1,250 plus interest with a balloon payment of AUD 37,125 due upon maturity in October 2019, and accrues interest at Bank Bill Swap Bid Rate “BBSY” plus 2.00% per annum (3.99% at September 30, 2018). As of September 30, 2018, the term had an outstanding balance of AUD 40,875 ($29,546 as of September 30, 2018). The revolving facility matures in March 2019, but is renewable upon mutual agreement with the lender, and accrues interest at BBSY plus 2.0% per annum (3.90% at September 30, 2018). At September 30, 2018, the revolver had an outstanding balance of AUD 11,000 ($7,951 at September 30, 2018). The revolver and the term loan are both secured by substantially all of the assets of Griffon Australia and its subsidiaries. Griffon guarantees the term loan. Griffon Australia is required to maintain a certain minimum equity level and is subject to a maximum leverage ratio and a minimum fixed charges cover ratio. A UK subsidiary of Griffon maintained an invoice discounting arrangement secured by trade receivables. Interest was variable at 2.0% over the Sterling base rate. This facility was canceled in July 2018. In July 2018, the AMES Companies UK Ltd and its subsidiaries ("Ames UK") entered into a GBP 14,000 term loan, GBP 4,000 mortgage loan and GBP 5,000 revolver. The term loan and mortgage loan require quarterly principal payments of GBP 350 and GBP 83 plus interest, respectively, and have balloon payments due upon maturity, July 2023, of GBP 7,000 and GBP 2,333, respectively. The Term Loan and Mortgage Loans accrue interest at the GBP LIBOR Rate plus 2.25% and 1.8%, respectively (3.05% and 2.60% at September 30, 2018, respectively). The revolving facility matures in July 2019, but is renewable upon mutual agreement with the lender, and accrues interest at the Bank of England Base Rate plus 1.5% (2.25% as of September 30, 2018). The revolver and the term loan are both secured by substantially all of the assets of Ames UK and its subsidiaries. Ames UK is subject to a maximum leverage ratio and a minimum fixed charges cover ratio. The invoice discounting arrangement was canceled and replaced by the above loan facilities. As of September 30, 2018, outstanding borrowings on these facilities totaled $23,987. (h) Other long-term debt primarily consists of a loan with the Pennsylvania Industrial Development Authority, with the balance consisting of capital leases. Debt at September 30, 2018 and 2017 consisted of the following:
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EMPLOYEE BENEFIT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Net periodic costs (benefits) were as follows:
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Schedule of Assumptions Used | The weighted-average assumptions used in determining the net periodic (benefits) costs were as follows:
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Schedule Of Plan Assets And Benefit Obligation Of Defined Benefit Plan | Plan assets and benefit obligation of the defined and supplemental benefit plans were as follows:
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Schedule Of Weighted Average Assumptions Used in Defined And Supplemental Benefit Obligations | The weighted-average assumptions used in determining the benefit obligations were as follows:
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Schedule Of Actual And Weighted Average Assets Allocation for Qualified Benefit plans | The actual and weighted-average asset allocation for qualified benefit plans were as follows:
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Schedule of Expected Benefit Payments | Estimated future benefit payments to retirees, which reflect expected future service, are as follows:
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Schedule Of Fair Value Of Pension And Post Retirement Plan Assets By Asset Category | The following table presents the fair values of Griffon’s pension and post-retirement plan assets by asset category:
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Employee Stock Ownership Plan (ESOP) Disclosures | The ESOP shares were as follows:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Income Loss From Continuing Operations Before Taxes | Income taxes have been based on the following components of Income before taxes from continuing operations:
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Schedule of Components of Income Tax Expense (Benefit) | Provision (benefit) for income taxes on income was comprised of the following from continuing operations:
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Schedule of Effective Income Tax Rate Reconciliation | Differences between the effective income tax rate applied to Income and U.S. Federal income statutory rate from continuing operations were as follows:
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Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to future deferred tax assets and liabilities are as follows:
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Schedule Of Components of Net Deferred Tax Asset Liability By Balance Sheet Account | The components of the net deferred tax liability, by balance sheet account, were as follows:
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Schedule of Unrecognized Tax Benefits Roll Forward | The following is a roll forward of unrecognized tax benefits:
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STOCKHOLDERS' EQUITY AND EQUITY COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock activity, inclusive of restricted stock units, for the year ended September 30, 2018, is as follows:
|
EARNINGS PER SHARE EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted EPS for the years ended September 30, 2018, 2017 and 2016 were determined using the following information (in thousands):
|
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | Quarterly results of continuing operations for the years ended September 30, 2018 and 2017 were as follows:
|
REPORTABLE SEGMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Information on Griffon’s reportable segments from continuing operations is as follows:
The following table provides a reconciliation of Segment adjusted EBITDA to Income before taxes and discontinued operations:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
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Schedule Of Segment Information By Geographic Region | Segment information by geographic region was as follows:
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OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | The amounts recognized in other comprehensive income (loss) were as follows:
Total comprehensive income (loss) were as follows:
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Accumulated other comprehensive income | The components of Accumulated other comprehensive income (loss) are as follows:
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Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive income (loss) to income (loss) were as follows:
|
CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Consolidating Guarantor And Non Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet |
CONDENSED CONSOLIDATING BALANCE SHEETS At September 30, 2017
|
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Condensed Income Statement |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Year Ended September 30, 2017
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Year Ended September 30, 2016
|
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Condensed Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended September 30, 2018
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended September 30, 2017
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended September 30, 2016
|
ACQUISITIONS (Details) - Acquisition of CornellCookson, Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Jun. 04, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 439,395 | $ 319,139 | $ 306,163 | |
Cornell Cookson [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 30,400 | |||
Inventories | 12,336 | |||
Property, plant and equipment | 49,426 | |||
Goodwill | 42,883 | |||
Intangible assets | 67,600 | |||
Other current and non-current assets | 2,648 | |||
Total assets acquired | 205,293 | |||
Accounts payable and accrued liabilities | 12,207 | |||
Long-term liabilities | 660 | |||
Total liabilities assumed | 12,867 | |||
Total | 192,426 | |||
Receivables gross | 30,818 | |||
Allowance for accounts receivable | 418 | |||
Inventory, gross | 13,433 | |||
Inventory valuation reserves | $ 1,098 |
ACQUISITIONS (Details) - Schedule of Intangible Assets Acquired in Cornell Cookson Acquisition (Details) - USD ($) $ in Thousands |
Jun. 04, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 439,395 | $ 319,139 | $ 306,163 | |
Cornell Cookson [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 42,883 | |||
Indefinite-lived intangibles | 53,500 | |||
Definite-lived intangibles | $ 14,100 | |||
Amortization Period (Years) | 12 years | |||
Total goodwill and intangible assets | $ 110,483 |
ACQUISITIONS (Details) - Pro Forma $ in Thousands |
12 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
Business Combinations [Abstract] | |
Revenue | $ 1,823,497 |
Income from continuing operations | $ 15,070 |
ACQUISITIONS (Details) - Summary of Fair Values of Assets Acquired - USD ($) $ in Thousands |
Sep. 30, 2018 |
Oct. 02, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 439,395 | $ 319,139 | $ 306,163 | |
ClosetMaid LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable (1) | $ 32,234 | |||
Inventories (2) | 28,411 | |||
Property, plant and equipment | 47,464 | |||
Goodwill | 70,159 | |||
Intangible assets | 74,580 | |||
Other current and non-current assets | 3,852 | |||
Total assets acquired | 256,700 | |||
Accounts payable and accrued liabilities | (68,251) | |||
Long-term liabilities | 2,720 | |||
Total liabilities assumed | (70,971) | |||
Total | 185,729 | |||
Receivables gross | 32,298 | |||
Allowance for accounts receivable | 332 | |||
Inventory step-up | $ 1,500 |
ACQUISITIONS (Details) - Summary of Goodwill and Intangible Asset Classifications - USD ($) $ in Thousands |
Oct. 02, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 439,395 | $ 319,139 | $ 306,163 | |
ClosetMaid LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 70,159 | |||
Indefinite-lived intangibles | 47,740 | |||
Definite-lived intangibles | 26,840 | |||
Total goodwill and intangible assets | $ 144,739 | |||
Amortization Period (Years) | 21 years |
INVENTORIES (Details) - Summary of Inventories stated at lower cost - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 97,645 | $ 67,990 |
Work in process | 83,578 | 78,846 |
Finished goods | 217,136 | 152,601 |
Total | $ 398,359 | $ 299,437 |
PROPERTY, PLANT AND EQUIPMENT (Details) - Summary of property plant and equipment - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Gross | $ 725,282 | $ 576,977 |
Accumulated depreciation and amortization | (382,790) | (344,842) |
Total | 342,492 | 232,135 |
Land, building and building improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Gross | 130,296 | 71,764 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Gross | 544,875 | 462,173 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Gross | $ 50,111 | $ 43,040 |
GOODWILL AND OTHER INTANGIBLES (Details) - Summary of changes in carrying value of goodwill - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Goodwill [Roll Forward] | ||
Goodwill | $ 319,139 | $ 306,163 |
Goodwill from acquisitions | 119,907 | 12,417 |
Foreign currency translation adjustments | 349 | 559 |
Goodwill | 439,395 | 319,139 |
Home & Building Products [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 300,594 | 287,618 |
Goodwill from acquisitions | 119,907 | 12,417 |
Foreign currency translation adjustments | 349 | 559 |
Goodwill | 420,850 | 300,594 |
Telephonics [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 18,545 | 18,545 |
Goodwill from acquisitions | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 |
Goodwill | $ 18,545 | $ 18,545 |
GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 9,070 | $ 6,658 | $ 6,608 |
Amortization expense estimated for 2018 | 9,285 | ||
Amortization expense estimated for 2019 | 8,825 | ||
Amortization expense estimated for 2020 | 8,825 | ||
Amortization expense estimated for 2021 | 8,825 | ||
Amortization expense estimated for 2022 | 8,746 | ||
Amortization expense estimated thereafter | $ 104,469 |
DISCONTINUED OPERATIONS (Details) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2008
unit
|
Nov. 16, 2017
USD ($)
|
Nov. 15, 2017
USD ($)
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of units sold | unit | 11 | |||||
Number of closed units | unit | 1 | |||||
Number of merged units | unit | 2 | |||||
Environmental exit costs, costs accrued to date | $ 5,700 | |||||
Plastics [Member] | Discontinued Operations, Held-for-sale [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal group, including discontinued operation, consideration | $ 475,000 | $ 475,000 | ||||
Gain on sale of business | $ 112,964 | $ 0 | $ 0 | |||
Gain on sale of business net of tax | 81,041 | |||||
Stay and transaction bonuses and other accrued liabilities | $ 9,858 |
DISCONTINUED OPERATIONS (Details) - Summary of discontinued operations - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Assets of discontinued operations: | ||
Assets of discontinued operations not held for sale | $ 324 | $ 329 |
ASSETS OF DISCONTINUED OPERATIONS | 2,916 | 2,960 |
Liabilities of discontinued operations: | ||
Liabilities of discontinued operations | 7,210 | 8,342 |
LIABILITIES OF DISCONTINUED OPERATIONS | 2,647 | 3,037 |
Discontinued Operations [Member] | ||
Assets of discontinued operations: | ||
Assets of discontinued operations not held for sale | 324 | 329 |
ASSETS OF DISCONTINUED OPERATIONS | 2,916 | 2,960 |
Total assets of discontinued operations | 3,240 | 3,289 |
Liabilities of discontinued operations: | ||
Liabilities of discontinued operations | 7,210 | 8,342 |
LIABILITIES OF DISCONTINUED OPERATIONS | $ 2,648 | 3,037 |
Total liabilities of discontinued operations | $ 11,379 |
ACCRUED LIABILITIES (Details) - Schedule of accrued liabilities - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Compensation | $ 50,251 | $ 37,692 |
Interest | 4,776 | 3,671 |
Warranties and rebates | 11,227 | 6,236 |
Insurance | 25,329 | 12,216 |
Rent, utilities and freight | 4,830 | 2,149 |
Income and other taxes | 8,016 | 6,291 |
Marketing and advertising | 3,685 | 1,859 |
Acquisition related accruals | 17,448 | 0 |
Other | 13,630 | 13,144 |
Total | $ 139,192 | $ 83,258 |
WARRANTY LIABILITY (Details) - Summary of changes in warrant liability included in Accrued liabilities - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of period | $ 6,236 | $ 6,322 |
Warranties issued and changes in estimated pre-existing warranties | 8,770 | 6,393 |
Actual warranty costs incurred | (7,948) | (6,479) |
Other warranty liabilities assumed from acquisitions | 1,116 | 0 |
Balance, end of period | $ 8,174 | $ 6,236 |
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of net minimum payments on capitalized leases $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Total minimum lease payments | $ 10,586 |
Less amount representing interest payments | (812) |
Present value of net minimum lease payments | 9,774 |
Current portion | (3,579) |
Capitalized lease obligation, less current portion | $ 6,195 |
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) $ / shares in Units, £ in Thousands |
1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018
AUD ($)
|
Apr. 16, 2018
USD ($)
$ / shares
|
Oct. 02, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jan. 17, 2017
USD ($)
shares
|
Jul. 31, 2016
AUD ($)
loan
|
Jul. 14, 2016
USD ($)
|
Mar. 13, 2015 |
Feb. 27, 2014
USD ($)
|
Jul. 31, 2018
GBP (£)
|
Aug. 31, 2016
USD ($)
|
Jul. 31, 2016
AUD ($)
loan
|
Nov. 30, 2012
CAD ($)
|
Oct. 31, 2006
USD ($)
|
Jun. 30, 2018 |
Sep. 30, 2018
USD ($)
$ / shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
$ / shares
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2018
CAD ($)
|
Feb. 05, 2018
USD ($)
|
Dec. 18, 2017
USD ($)
|
Sep. 30, 2017
AUD ($)
|
Sep. 30, 2017
USD ($)
|
Mar. 31, 2017
AUD ($)
|
Dec. 31, 2016
AUD ($)
|
Nov. 30, 2016
AUD ($)
|
Jul. 20, 2016
USD ($)
|
May 18, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
property
|
Mar. 22, 2016
USD ($)
|
Mar. 21, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 18, 2014
USD ($)
|
Dec. 21, 2009
USD ($)
|
||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument exercised period | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under capital leases for 2018 | $ 4,242,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under capital leases for 2019 | 3,764,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under capital leases for 2020 | 2,102,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under capital leases for 2021 | 443,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under capital leases for 2022 | 35,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under capital leases thereafter | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital leased assets, gross | 41,742,000 | $ 19,238,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital leases, lessee balance sheet, assets by major class, accumulated depreciation | 31,969,000 | 11,831,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred interest charges | 80,000 | 105,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization | $ 3,514,000 | $ 1,683,000 | $ 1,628,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from long-term debt | $ 443,058,000 | $ 233,443,000 | 302,362,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire buildings | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital lease maturity year | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, percentage bearing fixed interest, percentage rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under debt agreements for 2018 | 13,011,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under debt agreements for 2019 | 43,330,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payment under debt engagement for 2020 | 6,802,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under debt agreements for 2021 | 5,233,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under debt agreements for 2022 | 4,827,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum payments under debt agreements thereafter | 1,061,489,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 35,092,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | 14,830,000 | 12,066,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting fees and other expense capitalized | $ 13,329,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum percentage of equity interest of subsidiaries borrowings guaranteed | 65.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, amount outstanding | $ 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.30% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 1,121,082,000 | 979,158,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | 1,134,692,000 | 992,401,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of line note available to purchase common stock in open market | $ 10,908,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock, dividends, per share, cash paid (in Dollars per share) | $ / shares | $ 0.28 | $ 0.24 | $ 0.20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, shares, ESOP | shares | 621,875 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate during period | 5.55% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of treasury stock in settlement of convertible debt | $ 48,858,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | £ | £ 7,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loan [Member] | Ames UK [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | £ | 14,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | £ | £ 350 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Line of Credit, Noncurrent | 23,987,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolver due 2019 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 310,377,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.25% | 1.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility [Member] | Ames UK [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | £ | £ 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letter Of Credit Subfacility [Member] | Revolver due 2019 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, current borrowing capacity | $ 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, amount outstanding | 14,623,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multicurrency Subfacility [Member] | Revolver due 2019 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, current borrowing capacity | 100,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Margin Rate [Member] | Revolver due 2019 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate during period | 1.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIBOR Rate [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate during period | 2.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convert. debt due 2017 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 100,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated percentage | 4.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Loans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, ESOP | $ 10,908,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP, weighted average purchase price of shares purchased (in Dollars per share) | $ / shares | $ 17.54 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Facility, June 2017 [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, amount outstanding | $ 11,000,000 | 7,951,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | $ 20,000 | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Debt [Member] | Term Loan 1 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | $ 5,705,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital lease - real estate [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from long-term debt | $ 14,290,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | 80,000 | [1] | 105,000 | [2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 7,423,000 | 5,207,000 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | $ 7,503,000 | [1] | $ 5,312,000 | [2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate during period | [2] | 5.50% | 5.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate at period end | 5.00% | [1] | 5.00% | [1] | 5.00% | [1] | 5.00% | [2] | 5.00% | [2] | ||||||||||||||||||||||||||||||||||||||||||||||
Senior notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 275,000,000 | $ 125,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes [Member] | Level 1 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable, fair value disclosure | $ 990,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes [Member] | Reissued Senior Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 725,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes [Member] | Senior Notes due 2022, May 2016 Add-On Issuance [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 275,000,000 | $ 125,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance price, percentage | 101.00% | 98.76% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes [Member] | Senior note due 2022 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized debt issuance expense | 14,830,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated percentage | 5.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | $ 275,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 1,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes [Member] | Senior note due 2022 [Member] | Senior notes due 2018 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 550,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated percentage | 7.125% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of tender offer premium | $ 31,530,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, interest | $ 16,716,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior note due 2022 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | 12,968,000 | [3] | $ 8,472,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 988,252,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | [3] | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate during period | 5.66% | [3] | 5.48% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate at period end | [3] | 5.25% | 5.25% | 5.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes Two Thousand Twenty Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated percentage | 5.25% | 5.25% | 5.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Original debt, amount | $ 125,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes 2017 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 173,855,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, converted instrument, cash received | 125,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of treasury stock in settlement of convertible debt | $ 48,858,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Converted instrument, shares issued | shares | 1,954,993,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes due 2018 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | [3] | $ 9,220,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | [3] | 714,603,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | [3] | $ 725,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate at period end | [3] | 5.25% | 5.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolver due 2019 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | $ 1,413,000 | [4] | $ 1,951,000 | [3] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, current borrowing capacity | $ 350,000 | $ 250,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 23,587,000 | [4] | 142,265,000 | [3] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | 25,000,000 | [4] | 144,216,000 | [3] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate mortgages [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 8,000,000 | $ 32,280,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of secured properties | property | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | [5] | 320,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, description of variable rate basis | LIBOR plus 2.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | [5] | 23,322,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | [5] | 23,642,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate during period | [5] | 3.30% | 2.60% | 2.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP Loans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | 186,000 | [2] | 310,000 | [6] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, description of variable rate basis | The loan bears interest at a) LIBOR plus 2.38% or b) the lender’s prime rate, at Griffon’s option. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 34,508,000 | 42,365,000 | [6] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | 34,694,000 | [2] | 42,675,000 | [6] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 569,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate during period | [6] | 6.30% | 4.20% | 3.10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolver due 2013 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, description of variable rate basis | The revolving credit facility accrues interest at EURIBOR plus 2.20% per annum. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non U.S. term loans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | 148,000 | [7] | 108,000 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 53,385,000 | 35,835,000 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | 53,533,000 | [7] | 35,943,000 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non U.S. lines of credit [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized fees & expenses | [1] | 16,000 | 31,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 11,498,000 | $ 15,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding debt | 7,935,000 | 9,371,000 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | [1] | $ 7,951,000 | $ 9,402,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from long-term lines of credit (in Euro) | $ 15,000,000 | $ 11,498 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate description | The facility accrues interest at LIBOR (USD) or the Bankers Acceptance Rate (CDN) plus 1.3% per annum. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non U.S. lines of credit [Member] | LIBOR Rate [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate at period end | 3.70% | 3.70% | 3.70% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non U.S. lines of credit [Member] | Bankers Acceptance Rate [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate at period end | 3.24% | 3.24% | 3.24% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Medium-term Notes [Member] | Term Loan Due 2019 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 30,000,000 | $ 30,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of loans refinanced with new debt instrument | loan | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, amount outstanding | $ 40,875,000 | $ 29,546,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 1,250,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 37,125,000 | $ 37,125,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loan May 2014 [Member] | Northcote Holdings Pty. Ltd [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity increase | $ 15,000,000 | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages [Member] | Ames UK [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | £ | 4,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | £ | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | £ | £ 2,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.60% | 1.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 3.05% | 2.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan 1 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Bill Swap Bid Rate [Member] | Revolving Facility, June 2017 [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate at period end | 3.90% | 3.90% | 3.90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Bill Swap Bid Rate [Member] | Medium-term Notes [Member] | Term Loan Due 2019 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate at period end | 3.99% | 3.99% | 3.99% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sterling Base Rate [Member] | Invoice Discounting Arrangement [Member] | Secured Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Dividends [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock, dividends, per share, cash paid (in Dollars per share) | $ / shares | $ 1.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troy, Ohio [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, percentage bearing fixed interest, percentage rate | 5.00% | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ocala, Florida [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, percentage bearing fixed interest, percentage rate | 8.00% | 8.00% | 8.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt - USD ($) |
12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 18, 2017 |
||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 60,349,000 | $ 47,002,000 | $ 42,622,000 | ||||||||||||||||||
Amortization of Debt Discount (Premium) | 270,000 | 1,518,000 | 4,449,000 | ||||||||||||||||||
Amortization of Debt Issuance Costs | 4,949,000 | 2,993,000 | 2,872,000 | ||||||||||||||||||
Interest Expense, Debt | 65,568,000 | 51,513,000 | 49,943,000 | ||||||||||||||||||
Capitalized interest | (549,000) | $ (795,000) | (1,202,000) | ||||||||||||||||||
Effective Interest Rate | 5.55% | ||||||||||||||||||||
Outstanding Balance | 1,134,692,000 | $ 992,401,000 | |||||||||||||||||||
less: Current portion | (13,011,000) | (11,078,000) | |||||||||||||||||||
Long-term debt | 1,121,681,000 | 981,323,000 | |||||||||||||||||||
Original Issuer Discount | 1,220,000 | 1,177,000 | |||||||||||||||||||
less: Current portion | 0 | 0 | |||||||||||||||||||
Capitalized Fees & Expenses, Current | 0 | 0 | |||||||||||||||||||
Long-term debt | (1,220,000) | (1,177,000) | |||||||||||||||||||
Capitalized Fees & Expenses, Noncurrent | (14,830,000) | (12,066,000) | |||||||||||||||||||
Balance Sheet | 1,121,082,000 | 979,158,000 | |||||||||||||||||||
less: Current portion | (13,011,000) | (11,078,000) | |||||||||||||||||||
Long-term debt | 1,108,071,000 | 968,080,000 | |||||||||||||||||||
Capitalized fees & expenses | (14,830,000) | (12,066,000) | |||||||||||||||||||
Senior note due 2022 [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 52,500,000 | [1] | 38,063,000 | [1] | 33,906,000 | ||||||||||||||||
Amortization of Debt Discount (Premium) | 270,000 | [1] | 270,000 | [1] | 103 | ||||||||||||||||
Amortization of Debt Issuance Costs | 3,803,000 | [1] | 1,857,000 | [1] | 1,481,000 | ||||||||||||||||
Interest Expense, Debt | $ 56,573,000 | [1] | 40,190,000 | [1] | $ 35,490,000 | ||||||||||||||||
Effective Interest Rate | 5.66% | [1] | 5.48% | ||||||||||||||||||
Outstanding Balance | [1] | $ 1,000,000,000 | |||||||||||||||||||
Original Issuer Discount | 1,220,000 | ||||||||||||||||||||
Balance Sheet | 988,252,000 | ||||||||||||||||||||
Capitalized fees & expenses | $ (12,968,000) | [1] | $ (8,472,000) | ||||||||||||||||||
Coupon Interest Rate | [1] | 5.25% | |||||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 4,951,000 | ||||||||||||||||||||
Amortization of Debt Discount (Premium) | 0 | ||||||||||||||||||||
Amortization of Debt Issuance Costs | 567,000 | ||||||||||||||||||||
Interest Expense, Debt | 5,518,000 | ||||||||||||||||||||
Senior notes due 2018 [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Outstanding Balance | [1] | 725,000,000 | |||||||||||||||||||
Original Issuer Discount | [1] | 1,177,000 | |||||||||||||||||||
Balance Sheet | [1] | 714,603,000 | |||||||||||||||||||
Capitalized fees & expenses | [1] | $ (9,220,000) | |||||||||||||||||||
Coupon Interest Rate | [1] | 5.25% | |||||||||||||||||||
Revolver due 2019 [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Outstanding Balance | $ 25,000,000 | [2] | $ 144,216,000 | [1] | |||||||||||||||||
Original Issuer Discount | 0 | [2] | 0 | [1] | |||||||||||||||||
Balance Sheet | 23,587,000 | [2] | 142,265,000 | [1] | |||||||||||||||||
Capitalized fees & expenses | (1,413,000) | [2] | (1,951,000) | [1] | |||||||||||||||||
Convert. debt due 2017 [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | [2] | 0 | 1,167,000 | $ 4,000,000 | |||||||||||||||||
Amortization of Debt Discount (Premium) | [2] | 0 | 1,248,000 | 4,346,000 | |||||||||||||||||
Amortization of Debt Issuance Costs | [2] | 0 | 148,000 | 443,000 | |||||||||||||||||
Interest Expense, Debt | [2] | 0 | $ 2,563,000 | $ 8,789,000 | |||||||||||||||||
Effective Interest Rate | [2] | 8.90% | 9.00% | ||||||||||||||||||
Real estate mortgages [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | [3] | 349,000 | $ 582,000 | $ 439,000 | |||||||||||||||||
Amortization of Debt Discount (Premium) | [3] | 0 | 0 | 0 | |||||||||||||||||
Amortization of Debt Issuance Costs | [3] | 320,000 | 58,000 | 62,000 | |||||||||||||||||
Interest Expense, Debt | [3] | $ 669,000 | $ 640,000 | $ 501,000 | |||||||||||||||||
Effective Interest Rate | [3] | 3.30% | 2.60% | 2.20% | |||||||||||||||||
Outstanding Balance | [3] | $ 23,642,000 | |||||||||||||||||||
Original Issuer Discount | [3] | 0 | |||||||||||||||||||
Balance Sheet | [3] | 23,322,000 | |||||||||||||||||||
Capitalized fees & expenses | [3] | (320,000) | |||||||||||||||||||
ESOP Loans [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | [4] | $ 1,802,000 | 1,557,000 | $ 1,090,000 | |||||||||||||||||
Amortization of Debt Discount (Premium) | [4] | 0 | 0 | 0 | |||||||||||||||||
Amortization of Debt Issuance Costs | [4] | 124,000 | 133,000 | 236,000 | |||||||||||||||||
Interest Expense, Debt | [4] | $ 1,926,000 | $ 1,690,000 | $ 1,326,000 | |||||||||||||||||
Effective Interest Rate | [4] | 6.30% | 4.20% | 3.10% | |||||||||||||||||
Outstanding Balance | $ 34,694,000 | [5] | $ 42,675,000 | [4] | |||||||||||||||||
Original Issuer Discount | 0 | [5] | 0 | [4] | |||||||||||||||||
Balance Sheet | 34,508,000 | 42,365,000 | [4] | ||||||||||||||||||
Capitalized fees & expenses | (186,000) | [5] | (310,000) | [4] | |||||||||||||||||
Capital lease - real estate [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | [5] | 581,000 | 296,000 | $ 353,000 | |||||||||||||||||
Amortization of Debt Discount (Premium) | [5] | 0 | 0 | 0 | |||||||||||||||||
Amortization of Debt Issuance Costs | [5] | 25,000 | 25,000 | 25,000 | |||||||||||||||||
Interest Expense, Debt | [5] | 606,000 | $ 321,000 | $ 378,000 | |||||||||||||||||
Effective Interest Rate | [5] | 5.50% | 5.50% | ||||||||||||||||||
Outstanding Balance | 7,503,000 | [6] | $ 5,312,000 | [5] | |||||||||||||||||
Original Issuer Discount | 0 | [6] | 0 | [5] | |||||||||||||||||
Balance Sheet | 7,423,000 | 5,207,000 | [5] | ||||||||||||||||||
Capitalized fees & expenses | $ (80,000) | [6] | $ (105,000) | [5] | |||||||||||||||||
Coupon Interest Rate | 5.00% | [6] | 5.00% | [5] | |||||||||||||||||
Non U.S. lines of credit [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | [7] | $ 34,000 | $ 76,000 | $ 553,000 | |||||||||||||||||
Amortization of Debt Discount (Premium) | [7] | 0 | 0 | 0 | |||||||||||||||||
Amortization of Debt Issuance Costs | [7] | 15,000 | 128,000 | 91,000 | |||||||||||||||||
Interest Expense, Debt | [7] | 49,000 | 204,000 | 644,000 | |||||||||||||||||
Outstanding Balance | [6] | 7,951,000 | 9,402,000 | ||||||||||||||||||
Original Issuer Discount | [6] | ||||||||||||||||||||
Balance Sheet | 7,935,000 | 9,371,000 | [6] | ||||||||||||||||||
Capitalized fees & expenses | [6] | (16,000) | (31,000) | ||||||||||||||||||
Non U.S. term loans [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | [7] | 1,420,000 | 860,000 | 659,000 | |||||||||||||||||
Amortization of Debt Discount (Premium) | [7] | 0 | 0 | 0 | |||||||||||||||||
Amortization of Debt Issuance Costs | [7] | 90,000 | 67,000 | 13,000 | |||||||||||||||||
Interest Expense, Debt | [7] | 1,510,000 | 927,000 | 672,000 | |||||||||||||||||
Outstanding Balance | 53,533,000 | [7] | 35,943,000 | [6] | |||||||||||||||||
Original Issuer Discount | 0 | [7] | 0 | [6] | |||||||||||||||||
Balance Sheet | 53,385,000 | 35,835,000 | [6] | ||||||||||||||||||
Capitalized fees & expenses | (148,000) | [7] | (108,000) | [6] | |||||||||||||||||
Other long term debt [Member] | |||||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Long-Term Debt [Line Items] | |||||||||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 494,000 | 245,000 | 260,000 | ||||||||||||||||||
Amortization of Debt Discount (Premium) | |||||||||||||||||||||
Amortization of Debt Issuance Costs | 7,000 | 10,000 | 9,000 | ||||||||||||||||||
Interest Expense, Debt | 501,000 | 255,000 | $ 269,000 | ||||||||||||||||||
Outstanding Balance | [7] | 6,011,000 | 6,211,000 | ||||||||||||||||||
Original Issuer Discount | [7] | 0 | 0 | ||||||||||||||||||
Balance Sheet | 5,992,000 | 6,190,000 | [7] | ||||||||||||||||||
Capitalized fees & expenses | [7] | $ (19,000) | $ (21,000) | ||||||||||||||||||
|
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred - USD ($) |
12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Effective Interest Rate | 5.55% | |||||||||||||||||
Cash Interest | $ 60,349,000 | $ 47,002,000 | $ 42,622,000 | |||||||||||||||
Amort. Debt Discount | 270,000 | 1,518,000 | 4,449,000 | |||||||||||||||
Amort. Deferred Cost & Other Fees | 4,949,000 | 2,993,000 | 2,872,000 | |||||||||||||||
Total Interest Expense | $ 65,568,000 | 51,513,000 | $ 49,943,000 | |||||||||||||||
Senior note due 2022 [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Effective Interest Rate | 5.66% | [1] | 5.48% | |||||||||||||||
Cash Interest | $ 52,500,000 | [1] | 38,063,000 | [1] | $ 33,906,000 | |||||||||||||
Amort. Debt Discount | 270,000 | [1] | 270,000 | [1] | 103 | |||||||||||||
Amort. Deferred Cost & Other Fees | 3,803,000 | [1] | 1,857,000 | [1] | 1,481,000 | |||||||||||||
Total Interest Expense | 56,573,000 | [1] | $ 40,190,000 | [1] | 35,490,000 | |||||||||||||
Revolver due 2018 [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Cash Interest | [1] | 3,718,000 | 2,564,000 | |||||||||||||||
Amort. Debt Discount | [1] | 0 | 0 | |||||||||||||||
Amort. Deferred Cost & Other Fees | [1] | 565,000 | 512,000 | |||||||||||||||
Total Interest Expense | [1] | 4,283,000 | $ 3,076,000 | |||||||||||||||
Convert. debt due 2017 [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Effective Interest Rate | [2] | 8.90% | 9.00% | |||||||||||||||
Cash Interest | [2] | 0 | $ 1,167,000 | $ 4,000,000 | ||||||||||||||
Amort. Debt Discount | [2] | 0 | 1,248,000 | 4,346,000 | ||||||||||||||
Amort. Deferred Cost & Other Fees | [2] | 0 | 148,000 | 443,000 | ||||||||||||||
Total Interest Expense | [2] | $ 0 | $ 2,563,000 | $ 8,789,000 | ||||||||||||||
Real estate mortgages [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Effective Interest Rate | [3] | 3.30% | 2.60% | 2.20% | ||||||||||||||
Cash Interest | [3] | $ 349,000 | $ 582,000 | $ 439,000 | ||||||||||||||
Amort. Debt Discount | [3] | 0 | 0 | 0 | ||||||||||||||
Amort. Deferred Cost & Other Fees | [3] | 320,000 | 58,000 | 62,000 | ||||||||||||||
Total Interest Expense | [3] | $ 669,000 | $ 640,000 | $ 501,000 | ||||||||||||||
ESOP Loans [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Effective Interest Rate | [4] | 6.30% | 4.20% | 3.10% | ||||||||||||||
Cash Interest | [4] | $ 1,802,000 | $ 1,557,000 | $ 1,090,000 | ||||||||||||||
Amort. Debt Discount | [4] | 0 | 0 | 0 | ||||||||||||||
Amort. Deferred Cost & Other Fees | [4] | 124,000 | 133,000 | 236,000 | ||||||||||||||
Total Interest Expense | [4] | 1,926,000 | $ 1,690,000 | $ 1,326,000 | ||||||||||||||
Capital lease - real estate [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Effective Interest Rate | [5] | 5.50% | 5.50% | |||||||||||||||
Cash Interest | [5] | 581,000 | $ 296,000 | $ 353,000 | ||||||||||||||
Amort. Debt Discount | [5] | 0 | 0 | 0 | ||||||||||||||
Amort. Deferred Cost & Other Fees | [5] | 25,000 | 25,000 | 25,000 | ||||||||||||||
Total Interest Expense | [5] | 606,000 | 321,000 | 378,000 | ||||||||||||||
Non U.S. lines of credit [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Cash Interest | [6] | 34,000 | 76,000 | 553,000 | ||||||||||||||
Amort. Debt Discount | [6] | 0 | 0 | 0 | ||||||||||||||
Amort. Deferred Cost & Other Fees | [6] | 15,000 | 128,000 | 91,000 | ||||||||||||||
Total Interest Expense | [6] | 49,000 | 204,000 | 644,000 | ||||||||||||||
Non U.S. term loans [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Cash Interest | [6] | 1,420,000 | 860,000 | 659,000 | ||||||||||||||
Amort. Debt Discount | [6] | 0 | 0 | 0 | ||||||||||||||
Amort. Deferred Cost & Other Fees | [6] | 90,000 | 67,000 | 13,000 | ||||||||||||||
Total Interest Expense | [6] | 1,510,000 | 927,000 | 672,000 | ||||||||||||||
Other long term debt [Member] | ||||||||||||||||||
NOTES PAYABLE, CAPITALIZED LEASES AND LONG-TERM DEBT (Details) - Summary of Interest Expense Incurred [Line Items] | ||||||||||||||||||
Cash Interest | 494,000 | 245,000 | 260,000 | |||||||||||||||
Amort. Debt Discount | ||||||||||||||||||
Amort. Deferred Cost & Other Fees | 7,000 | 10,000 | 9,000 | |||||||||||||||
Total Interest Expense | $ 501,000 | $ 255,000 | $ 269,000 | |||||||||||||||
|
EMPLOYEE BENEFIT PLANS (Details) - Schedule of net periodic costs - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Net periodic (benefits) costs: | |||
Service cost | $ 14 | ||
Pension Plan [Member] | |||
Net periodic (benefits) costs: | |||
Interest cost | 5,084 | $ 4,892 | $ 5,465 |
Expected return on plan assets | (10,736) | (10,943) | (10,934) |
Amortization of: | |||
Prior service costs | 0 | 1 | 1 |
Actuarial loss | 755 | 1,980 | 1,131 |
Total net periodic (benefits) costs | (4,897) | (4,070) | (4,337) |
Supplemental Employee Retirement Plan [Member] | |||
Net periodic (benefits) costs: | |||
Interest cost | 544 | 715 | 1,243 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: | |||
Prior service costs | 14 | 15 | 19 |
Actuarial loss | 628 | 1,347 | 1,224 |
Total net periodic (benefits) costs | $ 1,186 | $ 2,077 | $ 2,486 |
EMPLOYEE BENEFIT PLANS (Details) - Weighted-average assumptions used in determining the net periodic benefit costs |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Pension Plan [Member] | |||
EMPLOYEE BENEFIT PLANS (Details) - Weighted-average assumptions used in determining the net periodic benefit costs [Line Items] | |||
Discount rate | 4.10% | 3.64% | 3.42% |
Expected return on assets | 7.00% | 7.25% | 7.50% |
Supplemental Employee Retirement Plan [Member] | |||
EMPLOYEE BENEFIT PLANS (Details) - Weighted-average assumptions used in determining the net periodic benefit costs [Line Items] | |||
Discount rate | 3.99% | 3.18% | 2.86% |
Expected return on assets | 0.00% | 0.00% | 0.00% |
EMPLOYEE BENEFIT PLANS (Details) - Schedule of weighted average assumptions used in determining benefit obligations |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Pension Plan [Member] | ||
EMPLOYEE BENEFIT PLANS (Details) - Schedule of weighted average assumptions used in determining benefit obligations [Line Items] | ||
Weighted average discount rate | 4.10% | 3.64% |
Supplemental Employee Retirement Plan [Member] | ||
EMPLOYEE BENEFIT PLANS (Details) - Schedule of weighted average assumptions used in determining benefit obligations [Line Items] | ||
Weighted average discount rate | 3.99% | 3.18% |
EMPLOYEE BENEFIT PLANS (Details) - Estimated future benefit payments to retirees $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Pension Plan [Member] | |
EMPLOYEE BENEFIT PLANS (Details) - Estimated future benefit payments to retirees [Line Items] | |
2018 | $ 10,767 |
2019 | 10,892 |
2020 | 10,979 |
2021 | 10,960 |
2022 | 10,950 |
2024 through 2028 | 53,652 |
Supplemental Employee Retirement Plan [Member] | |
EMPLOYEE BENEFIT PLANS (Details) - Estimated future benefit payments to retirees [Line Items] | |
2018 | 1,906 |
2019 | 1,822 |
2020 | 1,734 |
2021 | 1,642 |
2022 | 1,545 |
2024 through 2028 | $ 6,068 |
EMPLOYEE BENEFIT PLANS (Details) - ESOP Shares - shares |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Retirement Benefits [Abstract] | ||
Allocated shares | 3,157,530 | 2,676,486 |
Unallocated shares | 2,477,385 | 3,125,850 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 5,634,915 | 5,802,336 |
INCOME TAXES (Details) - Components of Income before taxes and discontinued operations - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ 4,942 | $ (1,339) | $ 23,163 |
Non-U.S. | 28,868 | 18,037 | 9,050 |
Income (loss) before taxes from continuing operations | $ 33,810 | $ 16,698 | $ 32,213 |
INCOME TAXES (Details) - Provision (benefit) for income taxes on income from continuing operations - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Current | $ 18,188 | $ (3,426) | $ 6,388 |
Deferred | (17,633) | 2,341 | 6,044 |
Total provision | 555 | (1,085) | 12,432 |
U.S. Federal | (12,714) | (6,689) | 4,358 |
State and local | 5,175 | 3,307 | 3,287 |
Non-U.S. | $ 8,094 | $ 2,297 | $ 4,787 |
INCOME TAXES (Details) - Schedule of effective income tax rate reconciliation |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
U.S. Federal income tax provision (benefit) rate | 24.50% | 35.00% | 35.00% |
State and local taxes, net of Federal benefit | 10.20% | 12.40% | 6.60% |
Non-U.S. taxes | 3.60% | (12.40%) | (1.60%) |
Non-U.S. taxes - foreign permanent items and taxes | 0.00% | (11.40%) | 0.00% |
Change in domestic manufacturing deduction | (0.00%) | (5.80%) | (0.00%) |
Change in tax contingency reserves | (0.60%) | 0.70% | (6.30%) |
Impact of federal rate change on deferred tax balances | (60.00%) | 0.00% | 0.00% |
Repatriation of foreign earnings | 61.60% | 0.00% | 0.00% |
Change in valuation allowance | 13.40% | (0.60%) | (0.60%) |
Non-deductible/non-taxable items, net | (2.40%) | 8.30% | 2.60% |
Research credits | (39.40%) | (3.60%) | 8.80% |
Share based compensation | (3.80%) | (26.60%) | (5.70%) |
Other | (5.50%) | (2.50%) | (0.20%) |
Effective tax provision (benefit) rate | 1.60% | (6.50%) | 38.60% |
INCOME TAXES (Details) - Schedule of deferred tax assets and liabilities - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Deferred tax assets: | ||
Bad debt reserves | $ 1,404 | $ 2,509 |
Inventory reserves | 7,709 | 7,615 |
Deferred compensation (equity compensation and defined benefit plans) | 11,437 | 27,430 |
Compensation benefits | 5,434 | 6,111 |
Insurance reserve | 1,782 | 2,985 |
Restructuring reserve | 0 | 29 |
Warranty reserve | 2,598 | 2,893 |
Net operating loss | 10,593 | 37,383 |
Tax credits | 6,379 | 1,866 |
Other reserves and accruals | 5,433 | 7,658 |
Deferred Tax Assets, Gross | 52,769 | 96,479 |
Valuation allowance | (8,520) | (17,466) |
Total deferred tax assets | 44,249 | 79,013 |
Deferred tax liabilities: | ||
Deferred income | 0 | (1,862) |
Goodwill and intangibles | (44,402) | (70,560) |
Property, plant and equipment | (39,260) | (51,488) |
Deferred gain on assets held for sale | 0 | (16,300) |
Other | (1,086) | (1,016) |
Total deferred tax liabilities | (84,748) | (141,226) |
Net deferred liability | $ (40,499) | $ (62,213) |
INCOME TAXES (Details) - Components of net deferred tax asset (liability), by balance sheet account - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Income Tax Contingency [Line Items] | ||
Net deferred liability | $ (40,499) | $ (62,213) |
Other Assets [Member] | ||
Income Tax Contingency [Line Items] | ||
Net deferred liability | 61 | 6 |
Assets Of Discontinued Operations Held For Sale [Member] | ||
Income Tax Contingency [Line Items] | ||
Net deferred liability | 0 | 6,745 |
Other Liabilities [Member] | ||
Income Tax Contingency [Line Items] | ||
Net deferred liability | (42,689) | (58,505) |
Liabilities Of Discontinued Operations Held For Sale [Member] | ||
Income Tax Contingency [Line Items] | ||
Net deferred liability | 872 | (12,584) |
Liabilities Of Discontinued Operations Not Held For Sale [Member] | ||
Income Tax Contingency [Line Items] | ||
Net deferred liability | $ 1,257 | $ 2,125 |
INCOME TAXES (Details) - Schedule of unrecognized tax benefits - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance | $ 4,825 | $ 4,709 | |
Additions based on tax positions related to the current year | 152 | 177 | |
Additions based on tax positions related to prior years | 26 | 69 | $ (253) |
Reductions based on tax positions related to prior years | (8) | ||
Lapse of Statutes | (194) | (122) | |
Settlements | (37) | ||
Balance | $ 4,519 | $ 4,825 | $ 4,709 |
STOCKHOLDERS' EQUITY AND EQUITY COMPENSATION (Details) - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Stockholders' Equity Note [Abstract] | |||
Pre-tax compensation expense | $ 10,078 | $ 8,090 | $ 10,136 |
Tax benefit | (2,469) | (2,836) | (3,553) |
Total stock-based compensation expense, net of tax | $ 7,609 | $ 5,254 | $ 6,583 |
STOCKHOLDERS' EQUITY AND EQUITY COMPENSATION (Details) - Summary of restricted stock activity - Restricted Stock [Member] |
12 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Shares | |
Unvested (in Shares) | shares | 2,255,796 |
Granted (in Shares) | shares | 1,343,929 |
Vested (in Shares) | shares | (536,958) |
Forfeited (in Shares) | shares | (212,939) |
Unvested (in Shares) | shares | 2,849,828 |
Weighted Average Grant- Date Fair Value | |
Unvested (in Dollars per share) | $ / shares | $ 13.65 |
Granted (in Dollars per share) | $ / shares | 17.30 |
Vested (in Dollars per share) | $ / shares | 20.89 |
Forfeited (in Dollars per share) | $ / shares | 20.91 |
Unvested (in Dollars per share) | $ / shares | $ 14.89 |
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - Basic and diluted EPS from continuing operations - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
EARNINGS (LOSS) PER SHARE (Details) - Basic and diluted EPS from continuing operations [Line Items] | |||
Weighted average shares outstanding - basic | 41,005 | 41,005 | 41,074 |
Incremental shares from stock based compensation | 1,417 | 1,642 | 2,326 |
Convertible debt due 2017 | 0 | 364 | 709 |
Weighted average shares outstanding - diluted | 42,422 | 43,011 | 44,109 |
Employee Stock Option [Member] | |||
EARNINGS (LOSS) PER SHARE (Details) - Basic and diluted EPS from continuing operations [Line Items] | |||
Anti-dilutive awards excluded from diluted EPS computation | 0 | 0 | 6 |
RELATED PARTIES (Details) - USD ($) $ in Thousands |
Oct. 02, 2017 |
Jun. 19, 2018 |
Nov. 16, 2017 |
Nov. 15, 2017 |
May 18, 2016 |
Feb. 27, 2014 |
Dec. 31, 2008 |
---|---|---|---|---|---|---|---|
RELATED PARTIES (Details) [Line Items] | |||||||
Common Stock, Number of Shares Held by Shareholder | 5,583,375 | ||||||
GS Direct [Member] | |||||||
RELATED PARTIES (Details) [Line Items] | |||||||
Investment Owned, Balance, Shares | 10,000,000 | ||||||
Discontinued Operations, Held-for-sale [Member] | Plastics [Member] | |||||||
RELATED PARTIES (Details) [Line Items] | |||||||
Disposal group, including discontinued operation, consideration | $ 475,000 | $ 475,000 | |||||
Senior Notes Two Thousand Twenty Two [Member] | |||||||
RELATED PARTIES (Details) [Line Items] | |||||||
Stated percentage | 5.25% | 5.25% | 5.25% | ||||
Senior note due 2022 [Member] | Senior notes [Member] | |||||||
RELATED PARTIES (Details) [Line Items] | |||||||
Proceeds from issuance of debt | $ 275,000 | ||||||
Stated percentage | 5.25% |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | ||||||
Acquisition related costs | $ 2,320,000 | $ 378,000 | $ 2,348,000 | $ 6,145,000 | ||
Proceeds from life insurance policy | $ 248 | |||||
Special dividend ESOP charges | 2,125,000 | |||||
Equity offering costs | $ 795 | $ 1,205,000 | 0 | $ 0 | ||
Contract settlement charges | $ 3,300,000 |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - Schedule of quarterly financial information - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 545,505 | $ 516,550 | $ 478,560 | $ 437,303 | $ 430,799 | $ 358,114 | $ 383,807 | $ 352,277 | $ 1,977,918 | $ 1,524,997 | $ 1,477,035 |
Gross Profit | 148,451 | 138,792 | 121,473 | 120,844 | 114,519 | 97,984 | 98,869 | 96,744 | 529,560 | 408,116 | 400,693 |
Income from continuing operations | $ 1,031 | $ 7,442 | $ 1,951 | $ 22,831 | $ 4,337 | $ 4,452 | $ 1,950 | $ 7,044 | $ 33,255 | $ 17,783 | $ 19,781 |
Per Share - Basic (in usd per share) | $ 0.03 | $ 0.18 | $ 0.05 | $ 0.54 | $ 0.10 | $ 0.11 | $ 0.05 | $ 0.18 | $ 0.81 | $ 0.43 | $ 0.48 |
Per Share - Diluted (in usd per share) | $ 0.02 | $ 0.18 | $ 0.05 | $ 0.53 | $ 0.10 | $ 0.10 | $ 0.05 | $ 0.17 | $ 0.78 | $ 0.41 | $ 0.45 |
REPORTABLE SEGMENTS (Details) - Schedule of summary of segment assets - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|---|
REPORTABLE SEGMENTS (Details) - Schedule of summary of segment assets [Line Items] | |||
Continuing assets | $ 2,081,650 | $ 1,499,528 | $ 1,417,185 |
Assets of discontinued operations | 3,240 | 374,013 | 364,911 |
Total Assets | 2,084,890 | 1,873,541 | 1,782,096 |
Home & Building Products [Member] | |||
REPORTABLE SEGMENTS (Details) - Schedule of summary of segment assets [Line Items] | |||
Continuing assets | 1,631,631 | 1,084,103 | 1,020,297 |
Telephonics [Member] | |||
REPORTABLE SEGMENTS (Details) - Schedule of summary of segment assets [Line Items] | |||
Continuing assets | 346,907 | 343,445 | 334,631 |
Operating [Member] | |||
REPORTABLE SEGMENTS (Details) - Schedule of summary of segment assets [Line Items] | |||
Continuing assets | 1,978,538 | 1,427,548 | 1,354,928 |
Corporate [Member] | |||
REPORTABLE SEGMENTS (Details) - Schedule of summary of segment assets [Line Items] | |||
Continuing assets | $ 103,112 | $ 71,980 | $ 62,257 |
REPORTABLE SEGMENTS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Nov. 16, 2017 |
Nov. 15, 2017 |
|
Home & Building Products [Member] | |||||
REPORTABLE SEGMENTS (Details) [Line Items] | |||||
Concentration risk, percentage | 19.00% | 17.00% | 17.00% | ||
Telephonics [Member] | |||||
REPORTABLE SEGMENTS (Details) [Line Items] | |||||
Concentration risk, percentage | 10.00% | 18.00% | 21.00% | ||
Discontinued Operations, Held-for-sale [Member] | Plastics [Member] | |||||
REPORTABLE SEGMENTS (Details) [Line Items] | |||||
Disposal group, including discontinued operation, consideration | $ 475,000 | $ 475,000 |
OTHER INCOME (EXPENSE) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Other Income and Expenses [Abstract] | |||
Currency exchange gains (losses) | $ (200) | $ (723) | $ (550) |
Investment income (loss) | $ 1,184 | $ 53 | $ 316 |
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - Summary of Other Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments, Pre-tax | $ 9,403 | $ 10,667 | $ 17,284 |
Pension and other defined benefit plans, Pre-tax | 24,081 | 14,160 | (8,694) |
Cash flow hedge, Pre-tax | 900 | 1,370 | (2,593) |
Total other comprehensive income (loss), Pre-tax | 34,384 | 26,197 | 5,997 |
Foreign currency translation adjustments, Tax | 0 | 0 | 0 |
Pension and other defined benefit plans, Tax | (7,700) | (4,957) | 3,043 |
Cash flow hedge, Tax | (315) | (480) | 907 |
Total other comprehensive income (loss), Tax | (8,015) | (5,437) | 3,950 |
Foreign currency translation adjustments, Net of Tax | 9,403 | 10,667 | 17,284 |
Pension and other defined benefit plans, Net of Tax | 16,381 | 9,203 | (5,651) |
Cash flow hedge, Net of Tax | 585 | 890 | (1,686) |
Total other comprehensive income, net of taxes | $ 26,369 | $ 20,760 | $ 9,947 |
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - Accumulated Other Comprehensive Income - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | $ (34,112) | $ (60,481) |
Foreign currency translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | (22,824) | (32,227) |
Pension and other defined benefit plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | (11,759) | (28,140) |
Cash flow hedge [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | $ 471 | $ (114) |
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - Total Comprehensive Income (Loss) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Net income | $ 125,678 | $ 14,912 | $ 30,010 |
Other comprehensive income (loss), net of taxes | 26,369 | 20,760 | 9,947 |
Comprehensive income | $ 152,047 | $ 35,672 | $ 39,957 |
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - Summary of Amounts Reclassified from Accumulated Other Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Pension amortization | $ (1,397) | $ (3,343) | $ (2,375) |
Cash flow hedges | 657 | (1,458) | (752) |
Total before tax | (740) | (4,801) | (3,127) |
Tax | 155 | 1,680 | 1,094 |
Net of tax | $ (585) | $ (3,121) | $ (2,033) |
CONSOLIDATING GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Details) |
12 Months Ended |
---|---|
Sep. 30, 2018 | |
Clopay Ames True Temper Holding, Corp. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary percentage ownership | 100.00% |
AMES Southern, Inc. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary percentage ownership | 100.00% |
The AMES Companies, Inc. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary percentage ownership | 100.00% |
Telephonics Corporation [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary percentage ownership | 100.00% |
Clopay Building Products [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary percentage ownership | 100.00% |
SUBSEQUENT EVENTS (Details) |
Nov. 14, 2018
$ / shares
|
---|---|
Subsequent Event [Member] | |
SUBSEQUENT EVENTS (Details) [Line Items] | |
Dividends payable, amount per share (in Dollars per share) | $ 0.0725 |
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