BUSINESS SEGMENTS

3 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

NOTE 11 – BUSINESS SEGMENTS

Griffon’s reportable business segments are as follows:

• HBP is a leading manufacturer and marketer of residential, commercial and industrial garage doors to professional installing dealers and major home center retail chains, as well as a global provider of non-powered landscaping products that make work easier for homeowners and professionals.

• Telephonics develops, designs and manufactures high-technology integrated information, communication and sensor system solutions to military and commercial markets worldwide.

• Plastics is an international leader in the development and production of embossed, laminated and printed specialty plastic films used in a variety of hygienic, health-care and industrial applications.

Information on Griffon’s business segments is as follows:

	For the Three Months Ended December 31,
REVENUE	2012		2011
Home & Building Products:
ATT	$	77,309	$	98,741
CBP		112,867		111,647
Home & Building Products		190,176		210,388
Telephonics		96,050		104,513
Plastics		137,523		136,130
Total consolidated net sales	$	423,749	$	451,031
The following table reconciles segment operating profit to income before taxes:

INCOME BEFORE TAXES	For the Three Months Ended December 31,
Segment operating profit:	2012			2011
Home & Building Products	$	7,271		$	9,834
Telephonics		14,645			12,515
Plastics		2,642			1,880
Total segment operating profit		24,558			24,229
Net interest expense		(13,079	)		(13,000	)
Unallocated amounts		(7,587	)		(6,335	)
Loss on pension settlement		(2,142	)		—
Income before taxes	$	1,750		$	4,894

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

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

	For the Three Months Ended December 31,
	2012			2011
Segment adjusted EBITDA:
Home & Building Products	$	17,239		$	17,750
Telephonics		16,364			15,690
Plastics		9,319			8,180
Total Segment adjusted EBITDA		42,922			41,620
Net interest expense		(13,079	)		(13,000	)
Segment depreciation and amortization		(17,256	)		(15,418	)
Unallocated amounts		(7,587	)		(6,335	)
Restructuring charges		(1,108	)		(1,795	)
Acquisition costs		—			(178	)
Loss on pension settlement		(2,142	)		—
Income before taxes	$	1,750		$	4,894

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

	For the Three Months Ended December 31,
	2012		2011
DEPRECIATION and AMORTIZATION
Segment:
Home & Building Products	$	8,860	$	7,465
Telephonics		1,719		1,653
Plastics		6,677		6,300
Total segment depreciation and amortization		17,256		15,418
Corporate		101		97
Total consolidated depreciation and amortization	$	17,357	$	15,515
CAPITAL EXPENDITURES
Segment:
Home & Building Products	$	9,093	$	6,268
Telephonics		822		1,230
Plastics		7,368		12,328
Total segment		17,283		19,826
Corporate		5		66
Total consolidated capital expenditures	$	17,288	$	19,892

	At December 31, 2012		At September 30, 2012
ASSETS
Segment assets:
Home & Building Products	$	947,570	$	943,766
Telephonics		263,305		255,420
Plastics		431,010		430,395
Total segment assets		1,641,885		1,629,581
Corporate		115,592		173,088
Total continuing assets		1,757,477		1,802,669
Assets of discontinued operations		3,369		3,523
Consolidated total	$	1,760,846	$	1,806,192