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REPORTABLE SEGMENTS | 12 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS Griffon conducts its operations through two reportable segments, as follows: •Consumer and Professional Products ("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. •Home and Building Products ("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. On September 27, 2021, Griffon announced it is exploring strategic alternatives, including a sale, for its Defense Electronics segment, which conducts its operations through Telephonics Corporation ("Telephonics"). As a result, Griffon classified the results of operations of the Telephonics business as a discontinued operation in the Consolidated Statements of Operations for all periods presented and classified the related assets and liabilities associated with the discontinued operation as held for sale in the Consolidated Balance Sheets. Accordingly, all references made to results and information in this Annual Report on Form 10-K are to Griffon's continuing operations, unless specifically noted. Telephonics, founded in 1933, is a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions that are deployed across a wide range of land, sea and air applications. Telephonics designs, develops, manufactures and provides logistical support and lifecycle sustainment services to defense, aerospace and commercial customers worldwide. Information on Griffon’s reportable segments from continuing operations is as follows:
| For the Years Ended September 30,
REVENUE | 2021 |  | 2020 |  | 2019
Consumer and Professional Products | $ | 1,229,518 |  |  | $ | 1,139,233 |  |  | $ | 1,000,608 |
Home and Building Products | 1,041,108 |  |  | 927,313 |  |  | 873,640 |
Defense Electronics | 271,060 |  |  | 340,976 |  |  | $ | 335,041 |
Subtotal | $ | 2,541,686 |  |  | $ | 2,407,522 |  |  | $ | 2,209,289 |
Less: Defense Electronics | (271,060) |  |  | (340,976) |  |  | (335,041) |
Total revenue | $ | 2,270,626 |  |  | $ | 2,066,546 |  |  | $ | 1,874,248 |
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 (primarily 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”). The following table provides a reconciliation of Segment Adjusted EBITDA to Income before taxes from continuing operations:
| For the Years Ended September 30,
| 2021 |  | 2020 |  | 2019
Segment Adjusted EBITDA: |  |  |  |  |
Consumer and Professional Products | $ | 115,673 |  |  | $ | 104,053 |  |  | $ | 90,677 |
Home and Building Products | 181,015 |  |  | 153,631 |  |  | 120,161 |
Defense Electronics | 20,486 |  |  | 25,228 |  |  | 35,104 |
Subtotal | 317,174 |  |  | 282,912 |  |  | 245,942 |
Less: Defense Electronics | (20,486) |  |  | (25,228) |  |  | (35,104) |
Segment Adjusted EBITDA | 296,688 |  |  | 257,684 |  |  | 210,838 |
Unallocated amounts, excluding depreciation | (49,054) |  |  | (48,262) |  |  | (47,231) |
Adjusted EBITDA | 247,634 |  |  | 209,422 |  |  | 163,607 |
Net interest expense | (62,735) |  |  | (65,795) |  |  | (67,513) |
Depreciation and amortization | (52,302) |  |  | (52,100) |  |  | (51,517) |
Restructuring charges | (21,418) |  |  | (13,670) |  |  | — |
Loss from debt extinguishment | — |  |  | (7,925) |  |  | — |
Acquisition contingent consideration | — |  |  | 1,733 |  |  | 1,646 |
Acquisition costs | — |  |  | (2,960) |  |  | — |
Income before taxes from continuing operations | $ | 111,179 |  |  | $ | 68,705 |  |  | $ | 46,223 |
| For the Years Ended September 30,
DEPRECIATION and AMORTIZATION | 2021 |  | 2020 |  | 2019
Segment: |  |  |  |  |
Consumer and Professional Products | $ | 34,433 |  |  | $ | 32,788 |  |  | $ | 32,289 |
Home and Building Products | 17,370 |  |  | 18,361 |  |  | 18,334 |
Defense Electronics | 10,762 |  |  | 10,645 |  |  | 10,667 |
Subtotal | 62,565 |  |  | 61,794 |  |  | 61,290 |
Less: Defense Electronics | (10,762) |  |  | (10,645) |  |  | (10,667) |
Total segment depreciation and amortization | 51,803 |  |  | 51,149 |  |  | 50,623 |
Corporate | 499 |  |  | 951 |  |  | 894 |
Total consolidated depreciation and amortization | $ | 52,302 |  |  | $ | 52,100 |  |  | $ | 51,517 |
CAPITAL EXPENDITURES |  |  |  |  |
Segment: |  |  |  |  |
Consumer and Professional Products | $ | 28,265 |  |  | $ | 23,321 |  |  | $ | 17,828 |
Home and Building Products | 8,648 |  |  | 17,499 |  |  | 16,498 |
Defense Electronics | 10,343 |  |  | 7,830 |  |  | 10,492 |
Subtotal | 47,256 |  |  | 48,650 |  |  | 44,818 |
Less: Defense Electronics | (10,343) |  |  | (7,830) |  |  | (10,492) |
Total segment | 36,913 |  |  | 40,820 |  |  | 34,326 |
Corporate | 38 |  |  | 348 |  |  | 543 |
Total consolidated capital expenditures | $ | 36,951 |  |  | $ | 41,168 |  |  | $ | 34,869 |
ASSETS | At September 30, 2021 |  | At September 30, 2020 |  |
Segment assets: |  |  |  |  |
Consumer and Professional Products | $ | 1,377,618 |  |  | $ | 1,255,127 |  |  |
Home and Building Products | 666,422 |  |  | 606,785 |  |  |
Total segment assets | 2,044,040 |  |  | 1,861,912 |  |  |
Corporate | 283,202 |  |  | 252,506 |  |  |
Total continuing assets | 2,327,242 |  |  | 2,114,418 |  |  |
Discontinued operations - held for sale | 273,414 |  |  | 325,678 |  |  |
Other discontinued operations | 4,029 |  |  | 8,497 |  |  |
Consolidated total | $ | 2,604,685 |  |  | $ | 2,448,593 |  |  |
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.
| For the Year Ended September 30, 2021 | For the Year Ended September 30, 2020 | For the Year Ended September 30, 2019
Residential repair and remodel | $ | 185,896 |  | $ | 173,859 |  | $ | 140,369 |
Retail | 577,839 |  | 575,947 |  | 528,279 |
Residential new construction | 50,437 |  | 59,907 |  | 58,709 |
Industrial | 43,411 |  | 40,285 |  | 45,129 |
International excluding North America | 371,935 |  | 289,235 |  | 228,122 |
Total Consumer and Professional Products | 1,229,518 |  | 1,139,233 |  | 1,000,608 |
Residential repair and remodel | 516,995 |  | 467,112 |  | 439,287 |
Commercial construction | 407,585 |  | 354,916 |  | 335,339 |
Residential new construction | 116,528 |  | 105,285 |  | 99,014 |
Total Home and Building Products | 1,041,108 |  | 927,313 |  | 873,640 |
Total Revenue | $ | 2,270,626 |  | $ | 2,066,546 |  | $ | 1,874,248 |
The following table presents revenue disaggregated by geography based on the location of the Company's customer:
|  | For the Year Ended September 30, 2021
Revenue by Geographic Area - Destination |  | Consumer and Professional Products | Home and Building Products |  | Total
United States |  | $ | 766,150 |  | $ | 986,925 |  |  | $ | 1,753,075 |
Europe |  | 123,607 |  | 72 |  |  | 123,679 |
Canada |  | 85,676 |  | 44,661 |  |  | 130,337 |
Australia |  | 244,674 |  | — |  |  | 244,674 |
All other countries |  | 9,411 |  | 9,450 |  |  | 18,861 |
Total Revenue |  | $ | 1,229,518 |  | $ | 1,041,108 |  |  | $ | 2,270,626 |
| For the Year Ended September 30, 2020
Revenue by Geographic Area - Destination | Consumer and Professional Products | Home and Building Products |  | Total
United States | $769,100 | $877,115 |  | $1,646,215
Europe | 85,339 | 130 |  | 85,469
Canada | 74,072 | 38,662 |  | 112,734
Australia | 203,012 | — |  | 203,012
All other countries | 7,710 | 11,406 |  | 19,116
Total Revenue | $1,139,233 | $927,313 |  | $2,066,546
| For the Year Ended September 30, 2019
Revenue by Geographic Area - Destination | Consumer and Professional Products | Home and Building Products |  | Total
United States | $ | 690,772 |  | $ | 820,396 |  |  | $ | 1,511,168 |
Europe | 63,284 |  | 109 |  |  | 63,393 |
Canada | 72,327 |  | 39,472 |  |  | 111,799 |
Australia | 165,291 |  | 16 |  |  | 165,307 |
All other countries | 8,934 |  | 13,647 |  |  | 22,581 |
Total Revenue | $ | 1,000,608 |  | $ | 873,640 |  |  | $ | 1,874,248 |
As a percentage of segment revenue, CPP sales to The Home Depot approximated 26%, 27% and 28% in 2021, 2020 and 2019, respectively; HBP sales to The Home Depot approximated 10%, 12% and 13% in 2021, 2020 and 2019, respectively. As a percentage of Griffon's consolidated revenue, CPP sales to The Home Depot approximated 14% in 2021, and approximated 13% in both 2020 and 2019; HBP sales to The Home Depot approximated 5% in 2021, 2020 and 2019.

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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