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BUSINESS SEGMENTS | 9 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | BUSINESS SEGMENTS In fiscal 2019, Griffon modified its reportable segment structure to provide investors with improved visibility after a series of portfolio repositioning actions which included the divestiture of the Plastics business, the acquisition of ClosetMaid and its subsequent integration into AMES, and the acquisition of CornellCookson by Clopay. The prior year amounts have been recast to reflect the recent change in Griffon's reporting segment structure. Griffon now reports its operations through three reportable segments from continuing operations, as follows:
• | CPP conducts its operations through AMES. Founded in 1774, AMES is the leading North American manufacturer and a global provider of branded consumer and professional tools and products for home storage and organization, landscaping, and enhancing outdoor lifestyles. CPP sells products globally through a portfolio of leading brands including True Temper, AMES, and ClosetMaid.
• | HBP conducts its operations through Clopay. Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and leading home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. Rolling steel door and grille products designed for commercial, industrial, institutional, and retail use are sold under the CornellCookson brand.
• | DE conducts its operations through Telephonics, founded in 1933, a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers.
Information on Griffon’s reportable segments from continuing operations is as follows:
| For the Three Months Ended June 30, |  | For the Nine Months Ended June 30,
REVENUE | 2020 |  | 2019 |  | 2020 |  | 2019
Consumer and Professional Products | $ | 328,929 |  |  | $ | 273,710 |  |  | $ | 844,917 |  |  | $ | 777,916 |
Home and Building Products | 219,164 |  |  | 221,521 |  |  | 670,374 |  |  | 631,615 |
Defense Electronics | 83,968 |  |  | 79,739 |  |  | 231,558 |  |  | 225,594 |
Total consolidated net sales | $ | 632,061 |  |  | $ | 574,970 |  |  | $ | 1,746,849 |  |  | $ | 1,635,125 |
Disaggregation of Revenue Revenue from contracts with customers is disaggregated by end markets, segments and geographic location, as it more accurately depicts the nature and amount of the Company’s revenue. The following table presents revenue disaggregated by end market and segment:
| For the Three Months Ended June 30, | For the Nine Months Ended June 30,
| 2020 |  | 2019 | 2020 |  | 2019
Residential repair and remodel | $ | 50,709 |  |  | $ | 35,416 |  | $ | 126,304 |  |  | $ | 101,015 |
Retail | 177,271 |  |  | 148,596 |  | 441,795 |  |  | 424,537 |
Residential new construction | 14,487 |  |  | 15,345 |  | 44,344 |  |  | 43,162 |
Industrial | 9,303 |  |  | 12,880 |  | 30,461 |  |  | 34,054 |
International excluding North America | 77,159 |  |  | 61,473 |  | 202,013 |  |  | 175,148 |
Total Consumer and Professional Products | 328,929 |  |  | 273,710 |  | 844,917 |  |  | 777,916 |
Residential repair and remodel | 109,876 |  |  | 112,730 |  | 332,681 |  |  | 316,368 |
Commercial construction | 84,521 |  |  | 83,382 |  | 262,708 |  |  | 243,939 |
Residential new construction | 24,767 |  |  | 25,409 |  | 74,985 |  |  | 71,308 |
Total Home and Building Products | 219,164 |  |  | 221,521 |  | 670,374 |  |  | 631,615 |
U.S. Government | 54,802 |  |  | 46,579 |  | 151,126 |  |  | 138,515 |
International | 24,779 |  |  | 30,120 |  | 68,333 |  |  | 75,348 |
Commercial | 4,387 |  |  | 3,040 |  | 12,099 |  |  | 11,731 |
Total Defense Electronics | 83,968 |  |  | 79,739 |  | 231,558 |  |  | 225,594 |
Total Consolidated Revenue | $ | 632,061 |  |  | $ | 574,970 |  | $ | 1,746,849 |  |  | $ | 1,635,125 |
The following table presents revenue disaggregated by geography based on the location of the Company's customer:
REVENUE BY GEOGRAPHIC AREA - DESTINATION | For the Three Months Ended June 30, 2020 |  | For the Nine Months Ended June 30, 2020
| CPP | HBP | Defense Electronics | Total |  | CPP | HBP | Defense Electronics | Total
United States | $ | 232,544 |  | $ | 209,222 |  | $ | 56,294 |  | $ | 498,060 |  |  | $ | 584,114 |  | $ | 635,232 |  | $ | 157,508 |  | $ | 1,376,854 |
Europe | 29,267 |  | 81 |  | 8,636 |  | 37,984 |  |  | 60,609 |  | 109 |  | 24,501 |  | 85,219 |
Canada | 18,231 |  | 7,729 |  | 3,012 |  | 28,972 |  |  | 53,527 |  | 26,849 |  | 9,795 |  | 90,171 |
Australia | 47,614 |  | — |  | 1,012 |  | 48,626 |  |  | 140,874 |  | — |  | 1,807 |  | 142,681 |
All other countries | 1,273 |  | 2,132 |  | 15,014 |  | 18,419 |  |  | 5,793 |  | 8,184 |  | 37,947 |  | 51,924 |
Consolidated revenue | $ | 328,929 |  | $ | 219,164 |  | $ | 83,968 |  | $ | 632,061 |  |  | $ | 844,917 |  | $ | 670,374 |  | $ | 231,558 |  | $ | 1,746,849 |
REVENUE BY GEOGRAPHIC AREA - DESTINATION | For the Three Months Ended June 30, 2019 |  | For the Nine Months Ended June 30, 2019
| CPP | HBP | Defense Electronics | Total |  | CPP | HBP | Defense Electronics | Total
United States | $ | 193,948 |  | $ | 206,489 |  | $ | 49,379 |  | $ | 449,816 |  |  | $ | 541,309 |  | $ | 592,261 |  | $ | 148,853 |  | $ | 1,282,423 |
Europe | 25,663 |  | 31 |  | 8,387 |  | 34,081 |  |  | 53,871 |  | 77 |  | 27,188 |  | 81,136 |
Canada | 16,246 |  | 9,867 |  | 2,855 |  | 28,968 |  |  | 54,456 |  | 27,832 |  | 8,542 |  | 90,830 |
Australia | 35,829 |  | 163 |  | 838 |  | 36,830 |  |  | 121,617 |  | 613 |  | 2,426 |  | 124,656 |
All other countries | 2,024 |  | 4,971 |  | 18,280 |  | 25,275 |  |  | 6,663 |  | 10,832 |  | 38,585 |  | 56,080 |
Consolidated revenue | $ | 273,710 |  | $ | 221,521 |  | $ | 79,739 |  | $ | 574,970 |  |  | $ | 777,916 |  | $ | 631,615 |  | $ | 225,594 |  | $ | 1,635,125 |
Griffon evaluates performance and allocates resources based on each segment's operating results before interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges, loss from debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, 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 from continuing operations:
| For the Three Months Ended June 30, |  | For the Nine Months Ended June 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Segment adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |
Consumer and Professional Products | $ | 37,115 |  |  | $ | 23,970 |  |  | $ | 84,068 |  |  | $ | 73,151 |
Home and Building Products | 39,299 |  |  | 33,851 |  |  | 110,635 |  |  | 85,283 |
Defense Electronics | 4,122 |  |  | 7,280 |  |  | 12,845 |  |  | 17,001 |
Segment adjusted EBITDA | 80,536 |  |  | 65,101 |  |  | 207,548 |  |  | 175,435 |
Unallocated amounts, excluding depreciation | (11,080 | ) |  | (12,033 | ) |  | (34,969 | ) |  | (34,505 | )
Adjusted EBITDA | 69,456 |  |  | 53,068 |  |  | 172,579 |  |  | 140,930 |
Net interest expense | (16,585 | ) |  | (17,087 | ) |  | (49,096 | ) |  | (50,723 | )
Depreciation and amortization | (15,523 | ) |  | (15,595 | ) |  | (47,067 | ) |  | (46,172 | )
Loss from debt extinguishment | (1,235 | ) |  | — |  |  | (7,925 | ) |  | — |
Restructuring charges | (1,633 | ) |  | — |  |  | (11,171 | ) |  | — |
Acquisition costs | — |  |  | — |  |  | (2,960 | ) |  | — |
Income before taxes from continuing operations | $ | 34,480 |  |  | $ | 20,386 |  |  | $ | 54,360 |  |  | $ | 44,035 |
Unallocated amounts typically include general corporate expenses not attributable to a reportable segment.
| For the Three Months Ended June 30, |  | For the Nine Months Ended June 30,
DEPRECIATION and AMORTIZATION | 2020 |  | 2019 |  | 2020 |  | 2019
Segment: |  |  |  |  |  |  |
Consumer and Professional Products | $ | 8,197 |  |  | $ | 8,158 |  |  | $ | 24,650 |  |  | $ | 24,148 |
Home and Building Products | 4,507 |  |  | 4,626 |  |  | 13,975 |  |  | 13,683 |
Defense Electronics | 2,666 |  |  | 2,669 |  |  | 7,986 |  |  | 7,926 |
Total segment depreciation and amortization | 15,370 |  |  | 15,453 |  |  | 46,611 |  |  | 45,757 |
Corporate | 153 |  |  | 142 |  |  | 456 |  |  | 415 |
Total consolidated depreciation and amortization | $ | 15,523 |  |  | $ | 15,595 |  |  | $ | 47,067 |  |  | $ | 46,172 |
CAPITAL EXPENDITURES |  |  |  |  |  |  |  |  |  |  |
Segment: |  |  |  |  |  |  |  |  |  |  |
Consumer and Professional Products | $ | 7,029 |  |  | $ | 3,187 |  |  | $ | 14,561 |  |  | $ | 11,327 |
Home and Building Products | 3,640 |  |  | 5,088 |  |  | 15,135 |  |  | 10,423 |
Defense Electronics | 1,538 |  |  | 2,064 |  |  | 4,748 |  |  | 5,797 |
Total segment | 12,207 |  |  | 10,339 |  |  | 34,444 |  |  | 27,547 |
Corporate | 25 |  |  | 37 |  |  | 307 |  |  | 247 |
Total consolidated capital expenditures | $ | 12,232 |  |  | $ | 10,376 |  |  | $ | 34,751 |  |  | $ | 27,794 |
ASSETS | At June 30, 2020 |  | At September 30, 2019
Segment assets: |  |  |
Consumer and Professional Products | $ | 1,269,540 |  |  | $ | 1,070,510 |
Home and Building Products | 592,038 |  |  | 571,216 |
Defense Electronics | 335,262 |  |  | 347,575 |
Total segment assets | 2,196,840 |  |  | 1,989,301 |
Corporate | 105,343 |  |  | 82,429 |
Total continuing assets | 2,302,183 |  |  | 2,071,730 |
Assets of discontinued operations | 8,037 |  |  | 3,209 |
Consolidated total | $ | 2,310,220 |  |  | $ | 2,074,939 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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