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DISCONTINUED OPERATIONS | 12 Months Ended
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Sep. 30, 2021
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS In accordance with ASC 205-20 Presentation of Financial Statements: Discontinued Operations, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component of an entity meets the criteria in paragraph 205-20-45-10. In the period in which the component meets held-for-sale or discontinued operations criteria the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations. Defense Electronics (DE or Telephonics) The following amounts related to Telephonics have been segregated from Griffon's continuing operations and are reported as discontinued operations:
|  | For the Year Ended September 30, |
|  | 2021 |  | 2020 |  | 2019 |
Revenue |  | $ | 271,060 |  |  | $ | 340,976 |  |  | $ | 335,041 |  |
Cost of goods and services |  | 232,075 |  |  | 285,022 |  |  | 269,890 |  |
Gross profit |  | 38,985 |  |  | 55,954 |  |  | 65,151 |  |
Selling, general and administrative expenses |  | 35,532 |  |  | 42,314 |  |  | 39,194 |  |
Income from discontinued operations |  | 3,453 |  |  | 13,640 |  |  | 25,957 |  |
Other income (expense) |  |  |  |  |  |  |
Gain on sale of business |  | 5,291 |  |  | — |  |  | — |  |
Interest income, net |  | 117 |  |  | 4 |  |  | 253 |  |
Other, net |  | 36 |  |  | 408 |  |  | (255) |  |
Total other income (expense) |  | 5,444 |  |  | 412 |  |  | (2) |  |
Income from discontinued operations before tax |  | $ | 8,897 |  |  | $ | 14,052 |  |  | $ | 25,955 |  |
The gain on sale of business relates to the divestiture of the SEG business on December 18, 2020, SEG had sales of approximately $6,713, $31,758, and $27,450 for the years ended 2021, 2020 and 2019. Income from discontinued operations includes severance charges of approximately $4,300, with $2,100 recognized in fiscal 2020, and the remaining $2,200 recognized in fiscal 2021. In September 2020, the DE Voluntary Employee Retirement Plan was initiated, which was subsequently followed by a reduction in force in November 2020, to improve efficiencies by combining functions and responsibilities. These actions reduced headcount by approximately 90 people. Income from discontinued operations includes charges of $5,601 recorded in fiscal 2021 primarily related to exiting our older weather radar product lines. The following amounts related to Telephonics 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 sheets:
|  | At September 30, |  | At September 30,
|  | 2021 |  | 2020
CURRENT ASSETS |  |  |  |
Accounts receivable, net |  | 42,020 |  |  | 62,127 |
Contract assets, net of progress payments |  | 72,983 |  |  | 84,426 |
Inventories |  | 83,970 |  |  | 93,637 |
Prepaid and other current assets |  | 4,409 |  |  | 5,536 |
PROPERTY, PLANT AND EQUIPMENT, net |  | 45,371 |  |  | 46,880 |
OPERATING LEASE RIGHT-OF-USE ASSETS |  | 1,167 |  |  | 7,278 |
GOODWILL |  | 17,734 |  |  | 18,545 |
INTANGIBLE ASSETS, net |  | 131 |  |  | 826 |
OTHER ASSETS |  | 5,629 |  |  | 6,423 |
Total Assets Held for Sale |  | $ | 273,414 |  |  | $ | 325,678 |
CURRENT LIABILITIES |  |  |  |
Accounts payable |  | 60,486 |  |  | 59,724 |
Accrued liabilities |  | 15,153 |  |  | 20,023 |
Current portion of operating lease liabilities |  | 287 |  |  | 2,176 |
LONG-TERM OPERATING LEASE LIABILITIES |  | 867 |  |  | 5,466 |
OTHER LIABILITIES |  | 3,955 |  |  | 4,972 |
Total Liabilities Held for Sale |  | $ | 80,748 |  |  | $ | 92,361 |
Installation Services and Other Discontinued Activities During 2019, Griffon recorded an $11,050 charge ($8,335, net of tax) to discontinued operations. The charge consisted primarily of a purchase price adjustment to resolve a claim related to the Plastics divestiture and included an additional reserve for a legacy environmental matter. The following amounts summarize the total assets and liabilities of 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, 2021 |  | At September 30, 2020
Assets of discontinued operations: |  |  |
Prepaid and other current assets | $ | 605 |  |  | $ | 2,091 |
Other long-term assets | 3,424 |  |  | 6,406 |
Total assets of discontinued operations | $ | 4,029 |  |  | $ | 8,497 |
Liabilities of discontinued operations: |  |  |
Accrued liabilities, current | $ | 3,280 |  |  | $ | 3,797 |
Other long-term liabilities | 3,794 |  |  | 7,014 |
Total liabilities of discontinued operations | $ | 7,074 |  |  | $ | 10,811 |
At September 30, 2021, Griffon’s liabilities for Installations Services and other discontinued operations primarily related to insurance claims, income taxes and product liability, warranty and environmental reserves totaling liabilities of approximately $7,074. The decrease in assets and liabilities were primarily associated with insurance claims receivable and payable. There was no reported revenue in 2021, 2020 and 2019.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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