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REPORTABLE SEGMENTS | 12 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS Griffon’s reportable segments from continuing operations are as follows:
• | 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.
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:
| 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 |
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:
| 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 |
Segment information by geographic region was as follows:
| 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 |
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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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