Cover Page
Cover Page | 6 Months Ended |
Mar. 31, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2021 |
Document Transition Report | false |
Entity File Number | 1-06620 |
Entity Registrant Name | GRIFFON CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 11-1893410 |
Entity Address, Address Line One | 712 Fifth Ave, 18th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10019 |
City Area Code | 212 |
Local Phone Number | 957-5000 |
Title of 12(b) Security | Common Stock, $0.25 par value |
Trading Symbol | GFF |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 56,683,519 |
Current Fiscal Year End Date | --09-30 |
Amendment Flag | false |
Entity Central Index Key | 0000050725 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
CURRENT ASSETS | ||
Cash and equivalents | $ 175,564 | $ 218,089 |
Accounts receivable, net of allowances of $9,594 and $8,505 | 399,193 | 340,546 |
Contract assets, net of progress payments of $20,449 and $24,175 | 75,000 | 84,426 |
Inventories | 484,753 | 413,825 |
Prepaid and other current assets | 55,705 | 46,897 |
Assets of discontinued operations | 1,525 | 2,091 |
Total Current Assets | 1,191,740 | 1,105,874 |
PROPERTY, PLANT AND EQUIPMENT, net | 341,005 | 343,964 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 154,929 | 161,627 |
GOODWILL | 446,365 | 442,643 |
INTANGIBLE ASSETS, net | 357,506 | 355,028 |
OTHER ASSETS | 27,440 | 32,897 |
ASSETS OF DISCONTINUED OPERATIONS | 5,295 | 6,406 |
Total Assets | 2,524,280 | 2,448,439 |
CURRENT LIABILITIES | ||
Notes payable and current portion of long-term debt | 14,913 | 9,922 |
Accounts payable | 257,286 | 232,107 |
Accrued liabilities | 151,091 | 163,994 |
Current portion of operating lease liabilities | 30,685 | 31,848 |
Liabilities of discontinued operations | 4,600 | 3,797 |
Total Current Liabilities | 458,575 | 441,668 |
LONG-TERM DEBT, net | 1,043,859 | 1,037,042 |
LONG-TERM OPERATING LEASE LIABILITIES | 128,714 | 136,054 |
OTHER LIABILITIES | 122,286 | 126,510 |
LIABILITIES OF DISCONTINUED OPERATIONS | 6,415 | 7,014 |
Total Liabilities | 1,759,849 | 1,748,288 |
COMMITMENTS AND CONTINGENCIES - See Note 22 | ||
SHAREHOLDERS’ EQUITY | ||
Total Shareholders’ Equity | 764,431 | 700,151 |
Total Liabilities and Shareholders’ Equity | $ 2,524,280 | $ 2,448,439 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net allowances | $ 9,594 | $ 8,505 |
Contract costs, net of progress payments | $ 20,449 | $ 24,175 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | COMMON STOCK | CAPITAL IN EXCESS OF PAR VALUE | RETAINED EARNINGS | TREASURY SHARES | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | DEFERRED COMPENSATION |
Balance (in shares) at Sep. 30, 2019 | 82,775 | 35,969 | |||||
Balance at Sep. 30, 2019 | $ 477,763 | $ 20,694 | $ 519,017 | $ 568,516 | $ (536,308) | $ (65,916) | $ (28,240) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,612 | 10,612 | |||||
Dividend | (3,392) | (3,392) | |||||
Shares withheld on employee taxes on vested equity awards (in shares) | 80 | ||||||
Shares withheld on employee taxes on vested equity awards | (1,758) | $ (1,758) | |||||
Amortization of deferred compensation | 629 | 629 | |||||
Equity awards granted, net (in shares) | 182 | ||||||
Equity awards granted, net | 0 | $ 45 | (45) | ||||
ESOP allocation of common stock | 609 | 609 | |||||
Stock-based compensation | 3,150 | 3,150 | |||||
Stock-based consideration | 239 | 239 | |||||
Other comprehensive income, net of tax | 6,841 | 6,841 | |||||
Balance (in shares) at Dec. 31, 2019 | 82,957 | 36,049 | |||||
Balance at Dec. 31, 2019 | 494,693 | $ 20,739 | 522,970 | 575,736 | $ (538,066) | (59,075) | (27,611) |
Balance (in shares) at Sep. 30, 2019 | 82,775 | 35,969 | |||||
Balance at Sep. 30, 2019 | 477,763 | $ 20,694 | 519,017 | 568,516 | $ (536,308) | (65,916) | (28,240) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 11,507 | ||||||
Other comprehensive income, net of tax | (7,993) | ||||||
Balance (in shares) at Mar. 31, 2020 | 83,741 | 36,310 | |||||
Balance at Mar. 31, 2020 | 476,454 | $ 20,935 | 526,988 | 573,209 | $ (543,787) | (73,909) | (26,982) |
Balance (in shares) at Dec. 31, 2019 | 82,957 | 36,049 | |||||
Balance at Dec. 31, 2019 | 494,693 | $ 20,739 | 522,970 | 575,736 | $ (538,066) | (59,075) | (27,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 895 | 895 | |||||
Dividend | (3,422) | (3,422) | |||||
Shares withheld on employee taxes on vested equity awards (in shares) | 261 | ||||||
Shares withheld on employee taxes on vested equity awards | (5,721) | $ (5,721) | |||||
Amortization of deferred compensation | 629 | 629 | |||||
Equity awards granted, net (in shares) | 784 | ||||||
Equity awards granted, net | 0 | $ 196 | (196) | ||||
ESOP allocation of common stock | 435 | 435 | |||||
Stock-based compensation | 3,662 | 3,662 | |||||
Stock-based consideration | 117 | 117 | |||||
Other comprehensive income, net of tax | (14,834) | (14,834) | |||||
Balance (in shares) at Mar. 31, 2020 | 83,741 | 36,310 | |||||
Balance at Mar. 31, 2020 | 476,454 | $ 20,935 | 526,988 | 573,209 | $ (543,787) | (73,909) | (26,982) |
Balance (in shares) at Sep. 30, 2020 | 83,739 | 27,610 | |||||
Balance at Sep. 30, 2020 | 700,151 | $ 20,935 | 583,008 | 607,518 | $ (413,493) | (72,092) | (25,725) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 29,500 | 29,500 | |||||
Dividend | (4,469) | (4,469) | |||||
Shares withheld on employee taxes on vested equity awards (in shares) | 133 | ||||||
Shares withheld on employee taxes on vested equity awards | (2,909) | $ (2,909) | |||||
Amortization of deferred compensation | 609 | 609 | |||||
Equity awards granted, net (in shares) | 494 | ||||||
Equity awards granted, net | 0 | $ 123 | (123) | ||||
ESOP allocation of common stock | 596 | 596 | |||||
Stock-based compensation | 3,428 | 3,428 | |||||
Other comprehensive income, net of tax | 13,141 | 13,141 | |||||
Balance (in shares) at Dec. 31, 2020 | 84,233 | 27,743 | |||||
Balance at Dec. 31, 2020 | 740,047 | $ 21,058 | 586,909 | 632,549 | $ (416,402) | (58,951) | (25,116) |
Balance (in shares) at Sep. 30, 2020 | 83,739 | 27,610 | |||||
Balance at Sep. 30, 2020 | 700,151 | $ 20,935 | 583,008 | 607,518 | $ (413,493) | (72,092) | (25,725) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 46,612 | ||||||
Other comprehensive income, net of tax | 17,916 | ||||||
Balance (in shares) at Mar. 31, 2021 | 84,427 | 27,743 | |||||
Balance at Mar. 31, 2021 | 764,431 | $ 21,106 | 591,966 | 646,444 | $ (416,402) | (54,176) | (24,507) |
Balance (in shares) at Dec. 31, 2020 | 84,233 | 27,743 | |||||
Balance at Dec. 31, 2020 | 740,047 | $ 21,058 | 586,909 | 632,549 | $ (416,402) | (58,951) | (25,116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 17,112 | 17,112 | |||||
Dividend | (3,217) | (3,217) | |||||
Amortization of deferred compensation | 609 | 609 | |||||
Equity awards granted, net (in shares) | 194 | ||||||
Equity awards granted, net | 0 | $ 48 | (48) | ||||
ESOP allocation of common stock | 756 | 756 | |||||
Stock-based compensation | 4,349 | 4,349 | |||||
Other comprehensive income, net of tax | 4,775 | 4,775 | |||||
Balance (in shares) at Mar. 31, 2021 | 84,427 | 27,743 | |||||
Balance at Mar. 31, 2021 | $ 764,431 | $ 21,106 | $ 591,966 | $ 646,444 | $ (416,402) | $ (54,176) | $ (24,507) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 634,832 | $ 566,350 | $ 1,244,123 | $ 1,114,788 |
Cost of goods and services | 464,516 | 414,318 | 903,635 | 812,835 |
Gross profit | 170,316 | 152,032 | 340,488 | 301,953 |
Selling, general and administrative expenses | 126,827 | 126,467 | 248,384 | 244,265 |
Income from operations | 43,489 | 25,565 | 92,104 | 57,688 |
Other income (expense) | ||||
Interest expense | (15,831) | (16,871) | (31,521) | (33,082) |
Interest income | 304 | 310 | 349 | 571 |
Gain (adjustment) on sale of business | (949) | 0 | 5,291 | 0 |
Loss from debt extinguishment, net | 0 | (6,690) | 0 | (6,690) |
Other, net | 847 | 615 | 806 | 1,393 |
Total other expense, net | (15,629) | (22,636) | (25,075) | (37,808) |
Income before taxes | 27,860 | 2,929 | 67,029 | 19,880 |
Provision for income taxes | 10,748 | 2,034 | 20,417 | 8,373 |
Net income | $ 17,112 | $ 895 | $ 46,612 | $ 11,507 |
Basic earnings per common share (in dollars per share) | $ 0.34 | $ 0.02 | $ 0.92 | $ 0.28 |
Basic weighted-average shares outstanding (in shares) | 50,838 | 41,565 | 50,717 | 41,369 |
Diluted earnings per common share (in dollars per share) | $ 0.32 | $ 0.02 | $ 0.88 | $ 0.26 |
Diluted weighted-average shares outstanding (in shares) | 53,264 | 43,734 | 53,211 | 43,826 |
Dividends paid per common share (in dollars per share) | $ 0.08 | $ 0.075 | $ 0.16 | $ 0.15 |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments | $ 1,739 | $ (16,471) | $ 13,862 | $ (10,001) |
Pension and other post retirement plans | 1,245 | 669 | 2,951 | 1,341 |
Change in cash flow hedges | 1,791 | 968 | 1,103 | 667 |
Total other comprehensive income (loss), net of taxes | 4,775 | (14,834) | 17,916 | (7,993) |
Comprehensive income, net | $ 21,887 | $ (13,939) | $ 64,528 | $ 3,514 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 46,612 | $ 11,507 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 31,149 | 31,544 |
Stock-based compensation | 9,501 | 8,302 |
Asset impairment charges - restructuring | 8,291 | 4,692 |
Provision for losses on accounts receivable | 194 | 596 |
Amortization of debt discounts and issuance costs | 1,349 | 2,267 |
Loss from debt extinguishment, net | 0 | 6,690 |
Deferred income taxes | 2,334 | 408 |
Loss (gain) on sale of assets and investments | 151 | (274) |
Gain on sale of business | (5,291) | 0 |
Change in assets and liabilities, net of assets and liabilities acquired: | ||
Increase in accounts receivable and contract assets, net | (47,146) | (61,815) |
Increase in inventories | (74,186) | (21,262) |
(Increase) decrease in prepaid and other assets | 271 | (6,005) |
Increase (decrease) in accounts payable, accrued liabilities, income taxes payable and operating lease liabilities | (1,470) | (38,053) |
Other changes, net | 2,400 | 560 |
Net cash used in operating activities | (25,841) | (60,843) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant and equipment | (23,986) | (22,519) |
Acquired businesses, net of cash acquired | (2,242) | (10,531) |
Proceeds from sale of business, net | 14,725 | 0 |
Investment purchases | (2,138) | 0 |
Proceeds from the sale of property, plant and equipment | 82 | 290 |
Other, net | 27 | 0 |
Net cash used in investing activities | (13,532) | (32,760) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid | (8,678) | (7,349) |
Purchase of shares for treasury | (2,909) | (7,479) |
Proceeds from long-term debt | 14,029 | 1,061,343 |
Payments of long-term debt | (7,573) | (939,071) |
Financing costs | (571) | (13,176) |
Other, net | (214) | 83 |
Net cash provided by (used in) financing activities | (5,916) | 94,351 |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Net cash used in operating activities | (1,512) | (1,994) |
Net cash provided by investing activities | 2,749 | 0 |
Net cash provided by (used in) discontinued operations | 1,237 | (1,994) |
Effect of exchange rate changes on cash and equivalents | 1,527 | (2,107) |
NET DECREASE IN CASH AND EQUIVALENTS | (42,525) | (3,353) |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 218,089 | 72,377 |
CASH AND EQUIVALENTS AT END OF PERIOD | $ 175,564 | $ 69,024 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION About Griffon Corporation Griffon Corporation (the “Company”, “Griffon”, "we" or "us") is a diversified management and holding company that conducts business through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as in connection with divestitures. In order to further diversify, Griffon also seeks out, evaluates and, when appropriate, will acquire additional businesses that offer potentially attractive returns on capital. The Company was founded in 1959, is a Delaware corporation headquartered in New York, N.Y. and is listed on the New York Stock Exchange (NYSE:GFF). Griffon currently conducts its operations through three reportable segments: • Consumer and Professional Products ("CPP") conducts its operations through The AMES Companies, Inc. ("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 Corporation ("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. • Defense Electronics ("DE") conducts its operations through Telephonics Corporation ("Telephonics"), founded in 1933, a globally recognized leading provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers. In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, which continues to spread throughout the U.S. and the world. The impact from the rapidly changing U.S. and global market and economic conditions due to the COVID-19 outbreak is uncertain, with disruptions to the business of our customers and suppliers, which could impact our business and consolidated results of operations and financial condition in the future. While we have not incurred significant disruptions to our manufacturing or to our supply chain thus far from the COVID-19 outbreak, we are unable to accurately predict the impact COVID-19 will have due to numerous uncertainties, including the severity of the disease, the duration of the outbreak, actions that may be taken by governmental authorities, the impact to our customers’ and suppliers’ businesses and other factors identified in Part II, Item 1A “Risk Factors” in this Form 10-Q. We will continue to evaluate the nature and extent of the impact to our business, consolidated results of operations, and financial condition. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information, and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all the information and footnotes required by US GAAP for complete financial statements. As such, they should be read together with Griffon’s Annual Report on Form 10-K for the year ended September 30, 2020, which provides a more complete explanation of Griffon’s accounting policies, financial position, operating results, business, properties and other matters. In the opinion of management, these financial statements reflect all adjustments considered necessary for a fair statement of interim results. Griffon’s CPP operations are seasonal; for this and other reasons, the financial results of the Company for any interim period are not necessarily indicative of the results for the full year. The condensed consolidated balance sheet information at September 30, 2020 was derived from the audited financial statements included in Griffon’s Annual Report on Form 10-K for the year ended September 30, 2020. The condensed consolidated financial statements include the accounts of Griffon and all subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates may be adjusted due to changes in economic, industry or customer financial conditions, as well as changes in technology or demand. Significant estimates include allowances for doubtful accounts receivable and returns, net realizable value of inventories, restructuring reserves, valuation of goodwill and intangible assets, sales, profits and loss recognition for performance obligations satisfied over time, assumptions associated with pension benefit obligations and income or expenses, useful lives associated with depreciation and amortization of intangible and fixed assets, warranty reserves, sales incentive accruals, assumption associated with stock based compensation valuation, income taxes and tax valuation reserves, environmental reserves, legal reserves, insurance reserves, the valuation of assets and liabilities of discontinued operations, assumptions associated with valuation of acquired assets and assumed liabilities of acquired companies and the accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions Griffon may undertake in the future. Actual results may ultimately differ from these estimates. Certain amounts in the prior year have been reclassified to conform to current year presentation. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying values of cash and equivalents, accounts receivable, accounts and notes payable, and revolving credit and variable interest rate debt approximate fair value due to either the short-term nature of such instruments or the fact that the interest rate of the revolving credit and variable rate debt is based upon current market rates. Applicable accounting guidance establishes a fair value hierarchy requiring the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The accounting guidance establishes three levels of inputs that may be used to measure fair value, as follows: • Level 1 inputs are measured and recorded at fair value based upon quoted prices in active markets for identical assets. • Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. • Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair values of Griffon’s 2028 senior notes approximated $1,060,000 on March 31, 2021. Fair values were based upon quoted market prices (level 1 inputs). Insurance contracts with values of $3,821 at March 31, 2021 are measured and recorded at fair value based upon quoted prices in active markets for similar assets (level 2 inputs) and are included in Prepaid and other current assets on the Consolidated Balance Sheets. Items Measured at Fair Value on a Recurring Basis At March 31, 2021, trading securities, measured at fair value based on quoted prices in active markets for similar assets (level 2 inputs), with a fair value of $2,088 ($1,000 cost basis), were included in Prepaid and other current assets on the Consolidated Balance Sheets. Realized and unrealized gains and losses on trading securities are included in Other income in the Consolidated Statements of Operations and Comprehensive Income (Loss). In the normal course of business, Griffon’s operations are exposed to the effects of changes in foreign currency exchange rates. To manage these risks, Griffon may enter into various derivative contracts such as foreign currency exchange contracts, including forwards and options. As of March 31, 2021, Griffon entered into several such contracts in order to lock into a foreign currency rate for planned settlements of trade and inter-company liabilities payable in US dollars. At March 31, 2021, Griffon had $61,000 of Australian dollar contracts at a weighted average rate of $1.29 which qualified for hedge accounting (level 2 inputs). These hedges were all deemed effective as cash flow hedges with gains and losses related to changes in fair value deferred and recorded in Accumulated other comprehensive income (loss) ("AOCI") and Prepaid and other current assets, or Accrued liabilities, until settlement. Upon settlement, gains and losses are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) in Cost of goods and services ("COGS"). AOCI included deferred losses of $831 ($582, net of tax) at March 31, 2021. Upon settlement, losses of $1,741 and $2,399 were recorded in COGS during the three and six months ended March 31, 2021, respectively. All contracts expire in 30 to 180 days. At March 31, 2021, Griffon had $7,935 of Canadian dollar contracts at a weighted average rate of $1.30. The contracts, which protect Canadian operations from currency fluctuations for US dollar based purchases, do not qualify for hedge accounting. For the three and six months ended March 31, 2021, fair value gains of $520 and $244, respectively, were recorded to Other liabilities and to Other income for the outstanding contracts, based on similar contract values (level 2 inputs). Realized losses of $102 and $161 were recorded in Other income during the three and six months ended March 31, 2021, respectively, for all settled contracts. All contracts expire in 29 to 450 days. |
REVENUE
REVENUE | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied. A performance obligation is a promise in a contract to transfer a distinct good or service, or a bundle of goods or services, to the customer, and is the unit of accounting. A contract with a customer is an agreement which both parties have approved, that creates enforceable rights and obligations, has commercial substance and with respect to which payment terms are identified and collectability is probable. Once the Company has entered into a contract or purchase order, it is evaluated to identify performance obligations. For each performance obligation, revenue is recognized when control of the promised products is transferred to the customer, or services are satisfied under the contract or purchase order, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). Approximately 86% of the Company’s performance obligations are recognized at a point in time related to the manufacture and sale of a broad range of products and components primarily within the CPP and HBP Segments, and revenue is recognized when title, and risk and rewards of ownership, have transferred to the customer, which is generally upon shipment. Approximately 14% of the Company’s performance obligations are recognized over time and relate to prime or subcontractors from contract awards with the U.S. Government, as well as foreign governments and other commercial customers within our DE Segment. Revenue recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. We believe that cumulative costs incurred to date as a percentage of estimated total contract costs at completion (cost-to-cost method) is an appropriate measure of progress towards satisfaction of performance obligations recognized over time, as it most accurately depicts the progress of our work and transfer of control to our customers. Accounting for the sales and profits on performance obligations for which progress is measured using the cost-to-cost method relies on the substantial use of estimates; these projections may be revised throughout the life of a contract. Adjustments to estimates for a contract's estimated costs at completion and estimated profit or loss are often required as experience is gained, more information is obtained (even though the scope of work required under the contract may or may not change) and contract modifications occur. The impact of such adjustments to estimates is made on a cumulative basis in the period when such information has become known. For the three and six months ended March 31, 2021, income from operations included net unfavorable catch up adjustments approximating $1,423 and $3,220, respectively. For the three and six months ended March 31, 2020, income from operations included net unfavorable catch up adjustments of $2,188 and $422, respectively. Gross profit is impacted by a variety of factors, including the mix of products, systems and services, production efficiencies, price competition and general economic conditions. For contracts in which anticipated total costs exceed the total expected revenue, an estimated loss is recognized in the period when identifiable. A provision for the entire amount of the estimated loss is recorded on a cumulative basis, and is recorded as a reduction to gross margin on the Consolidated Statements of Operations and Comprehensive Income (Loss). These provisions had an immaterial impact on Griffon's Consolidated Financial Statements. The estimated remaining costs to complete loss contracts as of March 31, 2021 and September 30, 2020 were approximately $8,500 and $10,800, respectively. For a complete explanation of Griffon’s revenue accounting policies, this note should be read in conjunction with Griffon’s Annual Report on Form 10-K for the year ended September 30, 2020. See Note 13 - Business Segments for revenue from contracts with customers disaggregated by end markets, segments and geographic location. Transaction Price Allocated to the Remaining Performance Obligations On March 31, 2021, we had $353,870 of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 65% of our remaining performance obligations as revenue within one year, with the balance to be completed thereafter. Backlog represents the dollar value of funded orders for which work has not been performed. Backlog generally increases with bookings, and converts into revenue as we incur costs related to contractual commitments or the shipment of product. Given the nature of our business and a larger dependency on international customers, our bookings, and therefore our backlog, is impacted by the longer maturation cycles resulting in delays in the timing and amounts of such awards, which are subject to numerous factors, including fiscal constraints placed on customer budgets; political uncertainty; the timing of customer negotiations; and the timing of governmental approvals. Contract Balances Contract assets were $75,000 as of March 31, 2021 compared to $84,426 as of September 30, 2020. The $9,426 net decrease in our contract assets balance was primarily due to the timing of billings and work performed in Surveillance programs and decrease associated with the sale of Systems Engineering Group, Inc. ("SEG"). Contract assets primarily relate to the Company's right to consideration for work completed but not billed at the reporting date and are recorded in Contract costs and recognized income not yet billed, net of progress payments in the Consolidated Balance Sheets. Contract assets are transferred to receivables when the right to consideration becomes unconditional. Contract costs and recognized income not yet billed |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 6 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions Griffon accounts for acquisitions under the acquisition method, in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition using a method substantially similar to the goodwill impairment test methodology (level 3 inputs). The operating results of the acquired companies are included in Griffon’s consolidated financial statements from the date of acquisition; in each instance, Griffon is in the process of finalizing the initial purchase price allocation unless otherwise noted. On December 22, 2020, AMES acquired Quatro Design Pty Ltd (“Quatro”), a leading Australian manufacturer and supplier of glass fiber reinforced concrete landscaping products for residential, commercial, and public sector projects for a purchase price of AUD $3,500 (approximately $2,700) in cash. The purchase price is subject to additional contingent consideration of approximately AUD $1,000 (approximately $760) based on Quatro exceeding certain EBITDA performance targets in the first year. The preliminary acquired intangibles and goodwill allocated to this acquisition was AUD $2,755 (approximately $2,082) and AUD $1,648 (approximately $1,246), respectively, which was assigned to the CPP segment, and is not deductible for income tax purposes. On November 29, 2019, AMES acquired 100% of the outstanding stock of Vatre Group Limited ("Apta"), a leading United Kingdom supplier of innovative garden pottery and associated products sold to leading UK and Ireland garden centers for approximately $10,500 (GBP 8,750), inclusive of a post-closing working capital adjustment, net of cash acquired. This acquisition broadens AMES' product offerings in the UK market and increases its in-country operational footprint. The excess of the purchase price over the fair value of the net tangible and intangible assets was recorded as goodwill and is deductible for tax purposes. The purchase price allocation was finalized and allocated to goodwill of GBP 3,449, acquired intangible assets of GBP 3,454, inventory of GBP 2,914, accounts receivable and other assets of GBP 2,492 and accounts payable and other accrued liabilities of GBP 3,765, which was assigned to the CPP segment. During the three and six months ended March 31, 2021, acquisition costs were de minimis. During both the three and six months ended March 31, 2020, the Company incurred acquisition costs of $2,960. Dispositions On December 18, 2020, Defense Electronics completed the sale of its SEG business for $15,000. SEG provides sophisticated, highly technical engineering and analytical support to the Missile Defense Agency and various U.S. military commands. SEG had sales of approximately $7,000 for the first fiscal quarter ended December 31, 2020 and $31,000 for the fiscal year ended September 30, 2020. DE recorded a pre-tax gain of $5,291 ($5,251, net of tax, or $0.10 per share) related to the divestiture of SEG. The sale does not represent a strategic shift that will have a major effect on operations and financial results. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out or average cost) or market. The following table details the components of inventory: At March 31, 2021 At September 30, 2020 Raw materials and supplies $ 155,720 $ 146,351 Work in process 86,299 83,697 Finished goods 242,734 183,777 Total $ 484,753 $ 413,825 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table details the components of property, plant and equipment, net: At March 31, 2021 At September 30, 2020 Land, building and building improvements $ 169,081 $ 167,005 Machinery and equipment 611,187 595,126 Leasehold improvements 53,952 53,386 834,220 815,517 Accumulated depreciation and amortization (493,215) (471,553) Total $ 341,005 $ 343,964 Depreciation and amortization expense for property, plant and equipment was $13,450 and $13,316 for the quarters ended March 31, 2021 and 2020, respectively, and $26,338 and $26,748 for the six months ended March 31, 2021 and 2020, respectively. Depreciation included in Selling, general and administrative ("SG&A") expenses was $5,014 and $4,910 for the quarters ended March 31, 2021 and 2020, respectively, and $9,720 and $9,861 for the six months ended March 31, 2021 and 2020, respectively. Remaining components of depreciation, attributable to manufacturing operations, are included in Cost of goods and services. |
CREDIT LOSSES
CREDIT LOSSES | 6 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
CREDIT LOSSES | CREDIT LOSSES Effective October 1, 2020, the Company adopted accounting guidance related to accounting for credit losses on financial instruments, including trade receivables (ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments). The guidance requires companies to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due, which were not considered under the previous accounting guidance. The Company is exposed to credit losses primarily through sales of products and services. Trade receivables are recorded at their stated amount, less allowances for discounts, doubtful accounts and returns. The Company’s expected loss allowance methodology for trade receivables is primarily based on the aging method of the accounts receivables balances and the financial condition of its customers. The allowances represent estimated uncollectible receivables associated with potential customer defaults on contractual obligations (usually due to customers’ potential insolvency), discounts related to early payment of accounts receivables by customers and estimates for returns. The allowance for doubtful accounts includes amounts for certain customers in which a risk of default has been specifically identified, as well as an amount for customer defaults, based on a formula, when it is determined the risk of some default is probable and estimable, but cannot yet be associated with specific customers. Allowance for discounts and returns are recorded as a reduction of revenue and the provision related to the allowance for doubtful accounts is recorded in SG&A expenses. The Company also considers current and expected future economic and market conditions, such as the COVID-19 pandemic, when determining any estimate of credit losses. Generally, estimates used to determine the allowance are based on assessment of anticipated payment and all other historical, current and future information that is reasonably available. All accounts receivable amounts are expected to be collected in less than one year. Based on a review of the Company's policies and procedures across all segments, including the aging of its trade receivables, recent write-off history and other factors related to future macroeconomic conditions, Griffon determined that its method to determine credit losses and the amount of its allowances for bad debts is in accordance with this guidance in all material respects. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected: Beginning Balance, October 1, 2020 $ 8,505 Provision for expected credit losses 1,228 Amounts written off charged against the allowance (161) Other, primarily foreign currency translation 22 Ending Balance, March 31, 2021 $ 9,594 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 6 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES The following table provides changes in the carrying value of goodwill by segment during the six months ended March 31, 2021: At September 30, 2020 Business Acquisitions (a) Business Divestitures (b) Foreign At March 31, 2021 Consumer and Professional Products $ 232,845 $ 1,246 $ — $ 3,287 $ 237,378 Home and Building Products 191,253 — — — 191,253 Defense Electronics 18,545 — (811) — 17,734 Total $ 442,643 $ 1,246 $ (811) $ 3,287 $ 446,365 (a) The increase in the CPP segment was due to the acquisition of Quatro. (b) The decrease in the DE segment was due to the divestiture of SEG. The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets: At March 31, 2021 At September 30, 2020 Gross Carrying Amount Accumulated Average Gross Carrying Amount Accumulated Customer relationships & other $ 189,189 $ 71,840 23 $ 185,940 $ 66,656 Technology and patents 19,529 8,030 13 19,464 8,360 Total amortizable intangible assets 208,718 79,870 205,404 75,016 Trademarks 228,658 — 224,640 — Total intangible assets $ 437,376 $ 79,870 $ 430,044 $ 75,016 The gross carrying amount of intangible assets was impacted by approximately $5,250 related to foreign currency translation. Amortization expense for intangible assets was $2,433 and $2,403 for the quarters ended March 31, 2021 and 2020, respectively, and $4,811 and $4,796 for the six months ended March 31, 2021 and 2020. Amortization expense for the remainder of 2021 and the next five fiscal years and thereafter, based on current intangible balances and classifications, is estimated as follows: 2021 - $4,574; 2022 - $9,376; 2023 - $9,224; 2024 - $9,198; 2025 - $9,198; 2026 - $9,198; thereafter $78,080. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESDuring the quarter ended March 31, 2021, the Company recognized a tax provision of $10,748 on income before taxes of $27,860, compared to a tax provision of $2,034 on income before taxes of $2,929 in the comparable prior year quarter. The current year quarter results included restructuring charges of $7,562 ($5,651, net of tax), reduction to gain on sale of the SEG business of $949 ($766, net of tax) and discrete and certain other tax provisions, net, that affect comparability of $1,913. The prior year quarter results included restructuring charges of $3,104 ($3,005, net of tax), acquisition costs of $2,960 ($2,321, net of tax), loss from debt extinguishment of $6,690 ($5,245, net of tax) and discrete tax and certain other tax benefits, net, that affect comparability of $1,413. Excluding these items, the effective tax rates for the quarters ended March 31, 2021 and 2020 were 30.0% and 35.9%, respectively.During the six months ended March 31, 2021, the Company recognized a tax provision of $20,417 on Income before taxes of $67,029, compared to a tax provision of $8,373 on income before taxes of $19,880 in the comparable prior year period. The six month period ended March 31, 2021 included restructuring charges of $18,362 ($13,951, net of tax), gain on sale of the SEG business of $5,291 ($5,251, net of tax) and discrete and certain other tax benefits, net, that affect comparability of $115. The six month period ended March 31, 2020 included restructuring charges of $9,538 ($7,153, net of tax), acquisition costs of $2,960 ($2,321, net of tax), loss from debt extinguishment of $6,690 ($5,245, net of tax) and discrete tax and certain other tax benefits, net, that affect comparability of $580. Excluding these items, the effective tax rates for the six months ended March 31, 2021 and 2020 were 31.1% and 34.4%, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT At March 31, 2021 At September 30, 2020 Outstanding Balance Original Issuer Premium Capitalized Fees & Expenses Balance Sheet Coupon Interest Rate Outstanding Balance Original Issuer Premium Capitalized Fees & Expenses Balance Sheet Coupon Interest Rate Senior notes due 2028 (a) $ 1,000,000 $ 339 (14,329) $ 986,010 5.75 % $ 1,000,000 $ 363 $ (15,376) $ 984,987 5.75 % Revolver due 2025 (b) 20,622 — (1,963) 18,659 Variable 12,858 — (2,209) 10,649 Variable Finance lease - real estate (c) 15,924 — (17) 15,907 5.60 % 17,218 — (30) 17,188 5.60 % Non US lines of credit (d) 4,405 — (24) 4,381 Variable — — (30) (30) Variable Non US term loans (d) 29,870 — (133) 29,737 Variable 31,086 — (160) 30,926 Variable Other long term debt (e) 4,094 — (16) 4,078 Variable 3,260 — (16) 3,244 Variable Totals 1,074,915 339 (16,482) 1,058,772 1,064,422 363 (17,821) 1,046,964 less: Current portion (14,913) — — (14,913) (9,922) — — (9,922) Long-term debt $ 1,060,002 $ 339 $ (16,482) $ 1,043,859 $ 1,054,500 $ 363 $ (17,821) $ 1,037,042 Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Effective Interest Rate Cash Interest Amort. Debt Amort. Debt Issuance Costs Total Interest Expense Effective Interest Rate Cash Interest Amort. Debt Amort. Total Interest Expense Senior notes due 2028 (a) 6.0 % $ 14,375 $ 12 $ 505 $ 14,892 6.0 % $ 5,566 $ — $ 135 $ 5,701 Senior notes due 2022 (a) — — — — — 5.7 % 8,040 45 628 8,713 Revolver due 2025 (b) Variable 287 — 122 409 Variable 1,819 — 165 1,984 Finance lease - real estate (c) 5.9 % 224 — 7 231 6.1 % 52 — 7 59 Non US lines of credit (d) Variable 4 — 4 8 Variable 3 — 8 11 Non US term loans (d) Variable 163 — 18 181 Variable 292 — 7 299 Other long term debt (e) Variable 115 — 1 116 Variable 132 — — 132 Capitalized interest (6) — — (6) (28) — — (28) Totals $ 15,162 $ 12 $ 657 $ 15,831 $ 15,876 $ 45 $ 950 $ 16,871 Six Months Ended March 31, 2021 Six Months Ended March 31, 2020 Effective Interest Rate Cash Interest Amort. Debt Amort. Debt Issuance Costs & Other Fees Total Interest Expense Effective Interest Rate Cash Interest Amort. Debt Premium Amort. Debt Issuance Costs & Other Fees Total Interest Expense Senior notes due 2028 (a) 6.0 % $ 28,750 $ 24 $ 1,023 $ 29,797 6.0 % $ 5,566 $ — $ 135 $ 5,701 Senior notes due 2022 (a) — — — — — 5.7 % 21,165 112 1,579 22,856 Revolver due 2025 (b) Variable 416 — 245 661 Variable 3,201 — 397 3,598 Finance lease - real estate (c) 5.6 % 456 — 13 469 6.0 % 113 — 13 126 Non US lines of credit (d) Variable 7 — 8 15 Variable 7 — 12 19 Non US term loans (d) Variable 334 — 35 369 Variable 564 — 19 583 Other long term debt (e) Variable 222 — 1 223 Variable 292 — — 292 Capitalized interest (13) — — (13) (93) — — (93) Totals $ 30,172 $ 24 $ 1,325 $ 31,521 $ 30,815 $ 112 $ 2,155 $ 33,082 (a) On June 22, 2020, in an unregistered offering through a private placement, Griffon completed the add-on offering of $150,000 principal amount of its 5.75% Senior Notes, at 100.25% of par, to Griffon's previously issued $850,000 principal amount of its 5.75% Senior Notes, at par, completed on February 19, 2020 (collectively, the “Senior Notes”). Proceeds from the Senior Notes were used to redeem the $1,000,000 of 5.25% 2022 senior notes. As of March 31, 2021, outstanding Senior Notes due totaled $1,000,000; interest is payable semi-annually on March 1 and September 1. The Senior Notes are senior unsecured obligations of Griffon guaranteed by certain domestic subsidiaries, and subject to certain covenants, limitations and restrictions. On April 22, 2020 and August 3, 2020, Griffon exchanged substantially all of the Senior Notes for substantially identical Senior Notes registered under the Securities Act of 1933, as amended (the "Securities Act"), via an exchange offer. The fair value of the Senior Notes approximated $1,060,000 on March 31, 2021 based upon quoted market prices (level 1 inputs). In connection with these transactions, Griffon capitalized $16,448 of underwriting fees and other expenses incurred related to the issuance and exchange of the 2028 Senior Notes, which is being amortized over the term of the 2028 Senior Notes. Furthermore, all of the obligations associated with the 2022 Senior Notes were discharged. Additionally, Griffon recognized a $7,925 loss on the early extinguishment of debt of the $1,000,000 principal amount of 2022 Senior Notes, comprised primarily of the write-off of $6,725 of remaining deferred financing fees, $607 of tender offer net premium expense and $593 of redemption interest expense. (b) On January 30, 2020, Griffon amended its revolving credit facility (as amended, the "Credit Agreement") to increase the maximum borrowing availability from $350,000 to $400,000, and extend its maturity date from March 22, 2021 to March 22, 2025 and modify certain other provisions of the facility. The facility includes a letter of credit sub-facility with a limit of $100,000; a multi-currency sub-facility of $200,000; and contains a customary accordion feature that permits us to request, subject to each lender's consent, an increase in the maximum aggregate amount that can be borrowed by up to an additional $100,000. Borrowings under the Credit Agreement may be repaid and re-borrowed at any time. Interest is payable on borrowings at either a LIBOR or base rate benchmark rate, plus an applicable margin, which adjusts based on financial performance. Current margins are 0.50% for base rate loans and 1.50% for LIBOR loans. The Credit Agreement has certain financial maintenance tests including a maximum total leverage ratio, a maximum senior secured leverage ratio and a minimum interest coverage ratio, as well as customary affirmative and negative covenants, and events of default. The negative covenants place limits on Griffon's ability to, among other things, incur indebtedness, incur liens, and make restricted payments and investments. Borrowings under the Credit Agreement are guaranteed by Griffon’s material domestic subsidiaries and are secured, on a first priority basis, by substantially all domestic assets of the Company and the guarantors, and a pledge of not greater than 65% of the equity interest in Griffon’s material, first-tier foreign subsidiaries. At March 31, 2021, there were $20,622 of outstanding borrowings under the Credit Agreement; outstanding standby letters of credit were $16,310; and $363,068 was available, subject to certain loan covenants, for borrowing at that date. (c) Two Griffon subsidiaries have finance leases outstanding for real estate located in Troy, Ohio and Ocala, Florida. The leases mature in 2021 and 2025, respectively, and bear interest at fixed rates of approximately 5.0% and 5.6%, respectively. The Troy, Ohio lease is secured by a mortgage on the real estate and is guaranteed by Griffon. The Ocala, Florida lease contains two five (d) In November 2012, Garant G.P. (“Garant”), a Griffon wholly owned subsidiary, entered into a CAD 15,000 ($11,894 as of March 31, 2021) revolving credit facility. The facility accrues interest at LIBOR (USD) or the Bankers Acceptance Rate (CDN) plus 1.3% per annum (1.41% LIBOR USD and 1.47% Bankers Acceptance Rate CDN as of March 31, 2021). The revolving facility matures in October 2022. Garant is required to maintain a certain minimum equity. At March 31, 2021, there were no borrowings under the revolving credit facility with CAD 15,000 ($11,894 as of March 31, 2021) available for borrowing. In July 2016, Griffon Australia Holdings Pty Ltd and its Australian subsidiaries (collectively, "Griffon Australia") entered into an AUD 29,625 term loan, AUD 20,000 revolver and AUD 10,000 receivable purchase facility agreement. The term loan requires quarterly principal payments of AUD 1,250 plus interest with a balloon payment of AUD 9,625 due upon maturity in March 2022, and accrues interest at Bank Bill Swap Bid Rate “BBSY” plus 1.95% per annum (2.01% at March 31, 2021). During fiscal 2020, the term loan balance was reduced by AUD 5,000, from AUD 23,375 to AUD 18,375 with proceeds from an AUD 5,000 increase in the commitment of the receivables purchase line from AUD 10,000 to AUD 15,000. As of March 31, 2021, the term loan had an outstanding balance of AUD 13,375 ($10,192 as of March 31, 2021). The revolving facility and receivable purchase facility mature in March 2022, but are renewable upon mutual agreement with the lender. The revolving facility and receivable purchase facility accrue interest at BBSY plus 1.9% and 1.35%, respectively, per annum (1.98% and 1.41%, respectively, at March 31, 2021). At March 31, 2021, there were no balances outstanding under the revolver and the receivable purchase facility. The revolver, receivable purchase facility and the term loan are all secured by substantially all of the assets of Griffon Australia and its subsidiaries. Griffon Australia is required to maintain a certain minimum equity level and is subject to a maximum leverage ratio and a minimum fixed charges cover ratio. In July 2018, The AMES Companies UK Ltd and its subsidiaries (collectively, "AMES UK") entered into a GBP 14,000 term loan, GBP 4,000 mortgage loan and GBP 5,000 revolver. The term loan and mortgage loan require quarterly principal payments of GBP 438 and GBP 105 plus interest, respectively, and have balloon payments due upon maturity, July 2023, of GBP 7,088 and GBP 2,349, respectively. The Term Loan and Mortgage Loans each accrue interest at the GBP LIBOR Rate plus 1.8% ( 1.85% at March 31, 2021). The revolving facility matures in May 2021, but is renewable upon mutual agreement with the lender, and accrues interest at the Bank of England Base Rate plus 1.5% (1.60% as of March 31, 2021). As of March 31, 2021, the revolver had an outstanding balance of GBP $3,204 ($4,405 as of March 31, 2021) while the term and mortgage loan balances amounted to GBP 14,313 ($19,678 as of March 31, 2021). The revolver and the term loan are both secured by substantially all of the assets of AMES UK and its subsidiaries. AMES UK is subject to a maximum leverage ratio and a minimum fixed charges cover ratio. An invoice discounting arrangement was canceled and replaced by the above loan facilities. (e) Other long-term debt primarily consists of a loan with the Pennsylvania Industrial Development Authority, with the balance consisting of finance leases. On March 13, 2019, Griffon's Employee Stock Ownership Plan entered into an agreement that refinanced a term loan with a bank with an internal loan from Griffon. The internal loan interest rate is fixed at 2.91%, matures in June 2033 and requires quarterly payments of principal, currently $635, and interest. The internal loan is secured by shares purchased with the proceeds of the loan. The amount outstanding on the internal loan at March 31, 2021 was $28,608. At March 31, 2021, Griffon and its subsidiaries were in compliance with the terms and covenants of all credit and loan agreements. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY During 2021, the Company paid a quarterly cash dividend of $0.08 per share in each quarter, totaling $0.16 per share for the six months ended March 31, 2021. During 2020, the Company paid a quarterly cash dividend of $0.075 per share, totaling $0.30 per share for the year. A dividend payable was established for the holders of restricted shares; such dividends will be released upon vesting of the underlying restricted shares. On April 29, 2021, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on June 17, 2021 to shareholders of record as of the close of business on May 20, 2021. Compensation expense for restricted stock and restricted stock units is recognized ratably over the required service period based on the fair value of the grant, calculated as the number of shares granted multiplied by the stock price on the date of grant and, for performance shares, the likelihood of achieving the performance criteria. Compensation expense for restricted stock granted to two senior executives is calculated as the maximum number of shares granted, upon achieving certain performance criteria, multiplied by the stock price as valued by a Monte Carlo Simulation Model. Compensation cost related to stock-based awards with graded vesting, generally over a period of three On January 29, 2016, shareholders approved the Griffon Corporation 2016 Equity Incentive Plan ("Incentive Plan") under which awards of performance shares, performance units, stock options, stock appreciation rights, restricted shares, restricted stock units, deferred shares and other stock-based awards may be granted. On January 31, 2018, shareholders approved Amendment No. 1 to the Incentive Plan pursuant to which, among other things, 1,000,000 shares were added to the Incentive Plan; and on January 30, 2020, shareholders approved Amendment No. 2 to the Incentive Plan, pursuant to which 1,700,000 shares were added to the Incentive Plan. Options granted under the Incentive Plan may be either “incentive stock options” or nonqualified stock options, generally expire ten years after the date of grant and are granted at an exercise price of not less than 100% of the fair market value at the date of grant. The maximum number of shares of common stock available for award under the Incentive Plan is 5,050,000 (600,000 of which may be issued as incentive stock options), plus (i) any shares reserved for issuance under the 2011 Equity Incentive Plan as of the effective date of the Incentive Plan, and (ii) any shares underlying awards outstanding on such effective date under the 2011 Incentive Plan that are canceled or forfeited. As of March 31, 2021, there were 437,276 shares available for grant. During the first quarter of 2021, Griffon granted 511,624 shares of restricted stock and restricted stock units. This included 226,811 restricted stock and restricted stock units, subject to certain performance conditions, with vesting periods of three years, with a total fair value of $5,500, or a weighted average fair value of $24.25 per share. Furthermore, this included 284,813 restricted stock awards granted to five executives, with vesting periods of three years and a total fair value of $5,913 or a weighted average fair value of $20.76 per share. During the second quarter of 2021, Griffon granted 731,282 shares of restricted stock to six executives. This included 203,282 shares of restricted stock to four executives, subject to certain performance conditions, with vesting periods ranging from 34 months to 60 months, with a total fair value of $4,923, or a weighted average fair value of $24.22 per share. This also included 528,000 shares of restricted stock granted to two senior executives with a vesting period of four two The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Restricted stock $ 4,349 $ 3,662 $ 7,777 $ 6,812 ESOP 944 658 1,724 1,490 Total stock based compensation $ 5,293 $ 4,320 $ 9,501 $ 8,302 On each of August 3, 2016 and August 1, 2018, Griffon’s Board of Directors authorized the repurchase of up to $50,000 of Griffon’s outstanding common stock. Under this share repurchase program, the Company may purchase shares in the open market, including pursuant to a 10b5-1 plan, or in privately negotiated transactions. During the six months ended March 31, 2021, Griffon did not purchase any shares of common stock under these repurchase programs. As of March 31, 2021, an aggregate of $57,955 remains under Griffon's Board authorized repurchase programs. During the second quarter ended March 31, 2021, no shares were withheld to settle employee taxes due upon the vesting of restricted stock. During the six months ended March 31, 2021, 133,027 shares, with a market value of $2,774, or $20.85 per share, respectively, were withheld to settle employee taxes due upon the vesting of restricted stock, and were added to treasury stock. Furthermore, during the six months ended March 31, 2021, an additional 6,507 shares, with a market value of $135, or |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (EPS) Basic EPS was calculated by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted EPS was calculated by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding plus additional common shares that could be issued in connection with stock based compensation. The following table is a reconciliation of the share amounts (in thousands) used in computing earnings per share: Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Common shares outstanding 56,684 47,431 56,684 47,431 Unallocated ESOP shares (1,961) (2,159) (1,961) (2,159) Non-vested restricted stock (3,822) (3,562) (3,822) (3,562) Impact of weighted average shares (63) (145) (184) (341) Weighted average shares outstanding - basic 50,838 41,565 50,717 41,369 Incremental shares from stock based compensation 2,426 2,169 2,494 2,457 Weighted average shares outstanding - diluted 53,264 43,734 53,211 43,826 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Griffon reports its operations through three reportable segments, 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 is as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, REVENUE 2021 2020 2021 2020 Consumer and Professional Products $ 331,871 $ 274,912 $ 622,913 $ 515,988 Home and Building Products 242,811 209,829 493,292 451,210 Defense Electronics 60,150 81,609 127,918 147,590 Total consolidated net sales $ 634,832 $ 566,350 $ 1,244,123 $ 1,114,788 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 March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Residential repair and remodel $ 50,560 $ 40,505 $ 96,160 $ 75,595 Retail 153,746 144,904 292,994 264,524 Residential new construction 14,540 14,884 28,055 29,857 Industrial 9,958 10,535 19,489 21,158 International excluding North America 103,067 64,084 186,215 124,854 Total Consumer and Professional Products 331,871 274,912 622,913 515,988 Residential repair and remodel 120,827 100,808 246,942 222,805 Commercial construction 94,751 86,300 190,690 178,187 Residential new construction 27,233 22,721 55,660 50,218 Total Home and Building Products 242,811 209,829 493,292 451,210 U.S. Government 35,045 53,623 82,369 96,324 International 21,497 25,021 38,392 43,554 Commercial 3,608 2,965 7,157 7,712 Total Defense Electronics 60,150 81,609 127,918 147,590 Total Consolidated Revenue $ 634,832 $ 566,350 $ 1,244,123 $ 1,114,788 The following table presents revenue disaggregated by geography based on the location of the Company's customer: For the Three Months Ended March 31, 2021 2020 CPP HBP DE Total CPP HBP DE Total United States $ 205,368 $ 230,955 $ 34,166 $ 470,489 $ 191,412 $ 199,060 $ 55,071 $ 445,543 Europe 38,965 41 5,791 44,797 24,737 5 9,880 34,622 Canada 21,778 9,797 1,925 33,500 17,515 7,867 4,209 29,591 Australia 63,691 — 122 63,813 39,032 — 189 39,221 All other countries 2,069 2,018 18,146 22,233 2,216 2,897 12,260 17,373 Consolidated revenue $ 331,871 $ 242,811 $ 60,150 $ 634,832 $ 274,912 $ 209,829 $ 81,609 $ 566,350 For the Six Months Ended March 31, 2021 2020 CPP HBP DE Total CPP HBP DE Total United States $ 388,810 $ 467,486 $ 81,544 $ 937,840 $ 351,570 $ 426,010 $ 101,214 $ 878,794 Europe 52,121 41 12,696 64,858 31,342 28 15,865 47,235 Canada 43,893 21,285 3,754 68,932 35,296 19,120 6,783 61,199 Australia 133,231 — 441 133,672 93,260 — 795 94,055 All other countries 4,858 4,480 29,483 38,821 4,520 6,052 22,933 33,505 Consolidated revenue $ 622,913 $ 493,292 $ 127,918 $ 1,244,123 $ 515,988 $ 451,210 $ 147,590 $ 1,114,788 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: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Segment adjusted EBITDA: Consumer and Professional Products $ 37,423 $ 25,027 $ 70,136 $ 46,953 Home and Building Products 40,060 30,635 88,429 71,336 Defense Electronics 2,220 4,248 7,805 8,723 Segment adjusted EBITDA 79,703 59,910 166,370 127,012 Unallocated amounts, excluding depreciation * (11,922) (11,947) (23,949) (23,889) Adjusted EBITDA 67,781 47,963 142,421 103,123 Net interest expense (15,527) (16,561) (31,172) (32,511) Depreciation and amortization (15,883) (15,719) (31,149) (31,544) Loss from debt extinguishment — (6,690) — (6,690) Restructuring charges (7,562) (3,104) (18,362) (9,538) Acquisition costs — (2,960) — (2,960) Gain (adjustment) on sale of SEG business (949) — 5,291 — Income before taxes $ 27,860 $ 2,929 $ 67,029 $ 19,880 * Unallocated amounts typically include general corporate expenses not attributable to a reportable segment. For the Three Months Ended March 31, For the Six Months Ended March 31, DEPRECIATION and AMORTIZATION 2021 2020 2021 2020 Segment: Consumer and Professional Products $ 8,620 $ 8,222 $ 16,819 $ 16,453 Home and Building Products 4,379 4,668 8,720 9,468 Defense Electronics 2,734 2,676 5,410 5,320 Total segment depreciation and amortization 15,733 15,566 30,949 31,241 Corporate 150 153 200 303 Total consolidated depreciation and amortization $ 15,883 $ 15,719 $ 31,149 $ 31,544 CAPITAL EXPENDITURES Segment: Consumer and Professional Products $ 6,813 $ 3,800 $ 13,720 $ 7,532 Home and Building Products 1,998 3,556 4,113 11,495 Defense Electronics 3,247 1,921 6,151 3,210 Total segment 12,058 9,277 23,984 22,237 Corporate 2 70 2 282 Total consolidated capital expenditures $ 12,060 $ 9,347 $ 23,986 $ 22,519 ASSETS At March 31, 2021 At September 30, 2020 Segment assets: Consumer and Professional Products $ 1,408,545 $ 1,255,127 Home and Building Products 604,325 606,785 Defense Electronics 288,019 329,128 Total segment assets 2,300,889 2,191,040 Corporate 216,571 248,902 Total continuing assets 2,517,460 2,439,942 Assets of discontinued operations 6,820 8,497 Consolidated total $ 2,524,280 $ 2,448,439 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined benefit pension expense (income) included in Other Income (Expense), net was as follows: Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Interest cost $ 745 $ 1,151 $ 1,489 $ 2,302 Expected return on plan assets (2,545) (2,586) (5,089) (5,172) Amortization: Prior service cost — 4 — 8 Recognized actuarial loss 1,573 1,042 3,146 2,084 Net periodic expense (income) $ (227) $ (389) $ (454) $ (778) |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Issued but not yet effective accounting pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued guidance to clarify disclosure requirements related to defined benefit pension and other post-retirement plans. The guidance is effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is effective for the Company in our fiscal year beginning in October 1, 2021. We are currently evaluating the effects that the adoption of this guidance will have on our the related pension disclosures. In December 2019, the FASB issued guidance on simplifying the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. Our effective date for adoption of this Accounting Standards Update ("ASU") is our fiscal year beginning October 1, 2021 with early adoption permitted. We are currently evaluating the effects that the adoption of this guidance will have on our consolidated financial statements and the related disclosures. New Accounting Standards Implemented In April 2019, the FASB issued guidance relating to accounting for credit losses on financial instruments, including trade receivables, and derivatives and hedging. This guidance is effective for the Company beginning in fiscal 2021. Adoption of this standard did not have a material impact on our consolidated financial statements and the related disclosures. In August 2018, the FASB issued guidance which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. This guidance expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). This guidance is effective for the Company beginning in fiscal 2021. Adoption of this standard did not have a material impact on our consolidated financial statements and the related disclosures. In March 2020, the SEC adopted amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered in Rule 3-10 of Regulation S-X, and affiliates whose securities collateralize securities registered or being registered in Rule 3-16 of Regulation S-X (SEC Release No. 33-10762). The amendment replaces the requirement to present condensed consolidating financial statements, comprised of balance sheets and statements of operations, comprehensive income and cash flows for all periods presented, with summarized financial information of the guarantor only for the most recently completed fiscal year and any subsequent interim period. We adopted the amendments to the disclosure requirements during the first quarter of fiscal 2021. This amendment did not have an impact on our consolidated financial statements as this amendment simplifies the financial disclosures required in our guarantor and non-guarantor financial information. See Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Supplemental Guarantor Financial Information. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements, and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The following amounts summarize the total assets and liabilities related to the 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 Condensed Consolidated Balance Sheets: At March 31, 2021 At September 30, 2020 Assets of discontinued operations: Prepaid and other current assets $ 1,525 $ 2,091 Other long-term assets 5,295 6,406 Total assets of discontinued operations $ 6,820 $ 8,497 Liabilities of discontinued operations: Accrued liabilities, current $ 4,600 $ 3,797 Other long-term liabilities 6,415 7,014 Total liabilities of discontinued operations $ 11,015 $ 10,811 |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 6 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES In November 2019, Griffon announced the development of a next-generation business platform for CPP to enhance the growth, efficiency, and competitiveness of its U.S. operations, and on November 12, 2020, Griffon announced that CPP is broadening this strategic initiative to include additional North American facilities, the AMES UK and Australia businesses, and a manufacturing facility in China. The expanded focus of this initiative leverages the same three key development areas being executed within our U.S. operations. First, certain AMES global operations will be consolidated to optimize facilities footprint and talent. Second, strategic investments in automation and facilities expansion will be made to increase the efficiency of our manufacturing and fulfillment operations, and support e-commerce growth. Third, multiple independent information systems will be unified into a single data and analytics platform, which will serve the whole AMES global enterprise. Expanding the roll-out of the new business platform from our AMES U.S. operations to include AMES’ global operations will extend the duration of the project by one year, with completion now expected by the end of calendar year 2023. When fully implemented, these actions will result in annual cash savings of $30,000 to $35,000 and a reduction in inventory of $30,000 to $35,000, both based on fiscal 2020 operating levels. The cost to implement this new business platform, over the duration of the project, will include one-time charges of approximately $65,000 and capital investments of approximately $65,000. The one-time charges are comprised of $46,000 of cash charges, which includes $26,000 of personnel-related costs such as training, severance, and duplicate personnel costs as well as $20,000 of facility and lease exit costs. The remaining $19,000 of charges are non-cash and are primarily related to asset write-downs. In the quarter and six months ended March 31, 2021, CPP incurred pre-tax restructuring and related exit costs approximating $7,502 and $10,581, respectively. During the six months ended March 31, 2021, cash charges totaled $7,891 and non-cash, asset-related charges totaled $2,690; the cash charges included $1,084 for one-time termination benefits and other personnel-related costs and $6,807 for facility and lease exit costs primarily driven by the consolidation of distribution facilities. Non-cash charges of $2,690 predominantly related to inventory that have no recoverable value. During the six months ended March 31, 2021, headcount was reduced by 65. In the quarter and six months ended March 31, 2020, CPP incurred pre-tax restructuring and related exit costs approximating $3,104 and $9,538, respectively. During the six months ended March 31, 2020, cash charges totaled $4,846 and non-cash, asset-related charges totaled $4,692; the cash charges included $3,792 for one-time termination benefits and other personnel-related costs and $1,054 for facility exit costs. Non-cash charges included a $1,968 impairment charge related to a facility's operating lease as well as $671 of leasehold improvements made to the leased facility and $304 of inventory that have no recoverable value, and a $1,749 impairment charge related to machinery and equipment that have no recoverable value at one of the Company's owned manufacturing locations. 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. The combined actions resulted in severance charges of approximately $4,300, with $2,120 recognized in the fourth quarter of fiscal 2020, and the remaining $2,180 was recognized during the six months ended March 31, 2021. These actions reduced headcount by approximately 90 people. In addition, charges of $5,601 were recorded during the quarter ended December 31, 2020, primarily related to exiting our older weather radar product lines. A summary of the restructuring and other related charges included in Cost of goods and services and SG&A expenses in the Company's Condensed Consolidated Statements of Operations were as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Cost of goods and services $ 3,337 $ 1,353 $ 9,762 $ 4,076 Selling, general and administrative expenses 4,225 1,751 8,600 5,462 Total restructuring charges $ 7,562 $ 3,104 $ 18,362 $ 9,538 For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Personnel related costs $ 782 $ 1,658 $ 3,264 $ 3,792 Facilities, exit costs and other 4,283 914 6,807 1,054 Non-cash facility and other 2,497 532 8,291 4,692 Total $ 7,562 $ 3,104 $ 18,362 $ 9,538 The following table summarizes the accrued liabilities of the Company's restructuring actions: Cash Charges Non-Cash Personnel related costs Facilities & Facility and Other Costs Total Accrued liability at September 30, 2020 $ 2,701 $ 264 $ — $ 2,965 Q1 Restructuring charges 2,482 2,524 5,794 10,800 Q1 Cash payments (1,598) (2,534) — (4,132) Q1 Non-cash charges — — (5,794) (5,794) Accrued liability at December 31, 2020 $ 3,585 $ 254 $ — $ 3,839 Q2 Restructuring charges 782 4,283 2,497 7,562 Q2 Cash payments (3,840) (4,273) — (8,113) Q2 Non-cash charges — — (2,497) (2,497) Accrued liability at March 31, 2021 $ 527 $ 264 $ — $ 791 |
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE) | 6 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE) | OTHER INCOME (EXPENSE) For the quarters ended March 31, 2021 and 2020, Other income (expense) of $847 and $615, respectively, includes $320 and $745, respectively, of net currency exchange gains in connection with the translation of receivables and payables denominated in currencies other than the functional currencies of Griffon and its subsidiaries, net periodic benefit plan income of $227 and $389, respectively, as well as $55 and $(230), respectively, of net investment income (loss). |
WARRANTY LIABILITY
WARRANTY LIABILITY | 6 Months Ended |
Mar. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY LIABILITY | WARRANTY LIABILITY DE offers warranties against product defects for periods generally ranging from one one Changes in Griffon’s warranty liability, included in Accrued liabilities, were as follows: Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Balance, beginning of period $ 10,834 $ 7,344 $ 10,843 $ 7,894 Warranties issued and changes in estimated pre-existing warranties 6,477 4,862 11,216 8,227 Actual warranty costs incurred (4,633) (4,417) (9,381) (8,332) Balance, end of period $ 12,678 $ 7,789 $ 12,678 $ 7,789 |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Mar. 31, 2021 | |
OCI, Net of Tax [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The amounts recognized in other comprehensive income (loss) were as follows: For the Three Months Ended March 31, 2021 2020 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ 1,739 $ — $ 1,739 $ (16,471) $ — $ (16,471) Pension and other defined benefit plans 1,585 (340) 1,245 847 (178) 669 Cash flow hedges 2,559 (768) 1,791 1,383 (415) 968 Total other comprehensive income (loss) $ 5,883 $ (1,108) $ 4,775 $ (14,241) $ (593) $ (14,834) For the Six Months Ended March 31, 2021 2020 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ 13,862 $ — $ 13,862 $ (10,001) $ — $ (10,001) Pension and other defined benefit plans 3,735 (784) 2,951 1,694 (353) 1,341 Cash flow hedges 1,576 (473) 1,103 953 (286) 667 Total other comprehensive income (loss) $ 19,173 $ (1,257) $ 17,916 $ (7,354) $ (639) $ (7,993) The components of Accumulated other comprehensive income (loss) are as follows: At March 31, 2021 At September 30, 2020 Foreign currency translation adjustments $ (11,821) $ (25,683) Pension and other defined benefit plans (43,647) (46,598) Change in Cash flow hedges 1,292 189 $ (54,176) $ (72,092) Amounts reclassified from accumulated other comprehensive income (loss) to income were as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, Gain (Loss) 2021 2020 2021 2020 Pension amortization $ (1,573) $ (1,046) $ (3,146) $ (2,092) Cash flow hedges (1,741) 1,050 (2,399) 994 Total gain (loss) $ (3,314) $ 4 (5,545) (1,098) Tax benefit (expense) 696 (1) 1,165 231 Total $ (2,618) $ 3 $ (4,380) $ (867) |
LEASES
LEASES | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets. Variable lease cost for both operating and finance leases, if any, is recognized as incurred. The Company has lease agreements that contain both lease and non-lease components. For real estate leases, we account for lease components together with non-lease components (e.g., common-area maintenance). Components of operating lease costs are as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Fixed $ 9,970 $ 9,187 $ 20,010 $ 18,739 Variable (a), (b) 2,087 1,823 4,134 3,576 Short-term (b) 1,053 1,393 2,167 2,823 Total $ 13,110 $ 12,403 $ 26,311 $ 25,138 (a) Primarily relates to common-area maintenance and property taxes. (b) Not recorded on the balance sheet. Supplemental cash flow information were as follows: For the Six Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,099 $ 21,582 Financing cash flows from finance leases 1,865 1,940 Total $ 23,964 $ 23,522 Supplemental Condensed Consolidated Balance Sheet information related to leases were as follows: March 31, 2021 September 30, 2020 Operating Leases: Right of use assets: Operating right-of-use assets $ 154,929 $ 161,627 Lease Liabilities: Current portion of operating lease liabilities $ 30,685 $ 31,848 Long-term operating lease liabilities 128,714 136,054 Total operating lease liabilities $ 159,399 $ 167,902 Finance Leases: Property, plant and equipment, net (1) $ 18,068 $ 18,774 Lease Liabilities: Notes payable and current portion of long-term debt $ 3,110 $ 3,352 Long-term debt, net 14,950 15,339 Total financing lease liabilities $ 18,060 $ 18,691 (1) Finance lease assets are recorded net of accumulated depreciation of $4,296 and $2,383 as of March 31, 2021 and September 30, 2020, respectively. Two Griffon subsidiaries have finance leases outstanding for real estate located in Troy, Ohio and Ocala, Florida. The leases mature in 2021 and 2025, respectively, and bear interest at fixed rates of approximately 5.0% and 5.6%, respectively. The Troy, Ohio lease is secured by a mortgage on the real estate and is guaranteed by Griffon. The Ocala, Florida lease contains two five As of March 31, 2021 and September 30, 2020, $15,907 and $17,188, respectively, was outstanding, net of issuance costs. The remaining lease liability balance relates to finance equipment leases. The aggregate future maturities of lease payments for operating leases and finance leases as of March 31, 2021 are as follows (in thousands): Operating Leases Finance Leases 2020 (a) $ 19,128 $ 2,381 2021 34,484 3,087 2022 26,884 2,749 2023 20,180 2,195 2024 18,214 2,077 2025 12,376 2,075 Thereafter 63,859 7,777 Total lease payments 195,125 22,341 Less: Imputed Interest (35,726) (4,281) Present value of lease liabilities $ 159,399 $ 18,060 (a) Excluding the six months ended March 31, 2021. Average lease terms and discount rates at March 31, 2021 were as follows: Weighted-average remaining lease term (years) Operating leases 8.1 Finance Leases 8.2 Weighted-average discount rate Operating Leases 4.45 % Finance Leases 5.50 % |
LEASES | LEASES The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets. Variable lease cost for both operating and finance leases, if any, is recognized as incurred. The Company has lease agreements that contain both lease and non-lease components. For real estate leases, we account for lease components together with non-lease components (e.g., common-area maintenance). Components of operating lease costs are as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Fixed $ 9,970 $ 9,187 $ 20,010 $ 18,739 Variable (a), (b) 2,087 1,823 4,134 3,576 Short-term (b) 1,053 1,393 2,167 2,823 Total $ 13,110 $ 12,403 $ 26,311 $ 25,138 (a) Primarily relates to common-area maintenance and property taxes. (b) Not recorded on the balance sheet. Supplemental cash flow information were as follows: For the Six Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,099 $ 21,582 Financing cash flows from finance leases 1,865 1,940 Total $ 23,964 $ 23,522 Supplemental Condensed Consolidated Balance Sheet information related to leases were as follows: March 31, 2021 September 30, 2020 Operating Leases: Right of use assets: Operating right-of-use assets $ 154,929 $ 161,627 Lease Liabilities: Current portion of operating lease liabilities $ 30,685 $ 31,848 Long-term operating lease liabilities 128,714 136,054 Total operating lease liabilities $ 159,399 $ 167,902 Finance Leases: Property, plant and equipment, net (1) $ 18,068 $ 18,774 Lease Liabilities: Notes payable and current portion of long-term debt $ 3,110 $ 3,352 Long-term debt, net 14,950 15,339 Total financing lease liabilities $ 18,060 $ 18,691 (1) Finance lease assets are recorded net of accumulated depreciation of $4,296 and $2,383 as of March 31, 2021 and September 30, 2020, respectively. Two Griffon subsidiaries have finance leases outstanding for real estate located in Troy, Ohio and Ocala, Florida. The leases mature in 2021 and 2025, respectively, and bear interest at fixed rates of approximately 5.0% and 5.6%, respectively. The Troy, Ohio lease is secured by a mortgage on the real estate and is guaranteed by Griffon. The Ocala, Florida lease contains two five As of March 31, 2021 and September 30, 2020, $15,907 and $17,188, respectively, was outstanding, net of issuance costs. The remaining lease liability balance relates to finance equipment leases. The aggregate future maturities of lease payments for operating leases and finance leases as of March 31, 2021 are as follows (in thousands): Operating Leases Finance Leases 2020 (a) $ 19,128 $ 2,381 2021 34,484 3,087 2022 26,884 2,749 2023 20,180 2,195 2024 18,214 2,077 2025 12,376 2,075 Thereafter 63,859 7,777 Total lease payments 195,125 22,341 Less: Imputed Interest (35,726) (4,281) Present value of lease liabilities $ 159,399 $ 18,060 (a) Excluding the six months ended March 31, 2021. Average lease terms and discount rates at March 31, 2021 were as follows: Weighted-average remaining lease term (years) Operating leases 8.1 Finance Leases 8.2 Weighted-average discount rate Operating Leases 4.45 % Finance Leases 5.50 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal and environmental Peekskill Site. Lightron Corporation (“Lightron”), a wholly-owned subsidiary of Griffon, once conducted operations at a location in the Town of Cortlandt, New York, just outside the city of Peekskill, New York (the “Peekskill Site”) owned by ISC Properties, Inc. (“ISCP”), a wholly-owned subsidiary of Griffon. ISCP sold the Peekskill Site in November 1982. Subsequently, ISCP was advised by the Department of Environmental Conservation of New York State (the "DEC") that sampling at the Peekskill Site and in a creek near the Peekskill Site indicated concentrations of solvents and other chemicals common to prior plating operations by a Lightron subsidiary. In 1996, ISCP entered into a consent order with the DEC (the “Consent Order”), pursuant to which ISCP was required to perform a remedial investigation and prepare a feasibility study (the “Feasibility Study”). After completing the initial remedial investigation, ISCP conducted supplemental remedial investigations over the next several years, including soil vapor investigations, as required by the Consent Order. In April 2009, the DEC advised ISCP that both the DEC and the New York State Department of Health had reviewed and accepted an August 2007 Remedial Investigation Report and an Additional Data Collection Summary Report dated January 30, 2009. ISCP submitted to the DEC a draft Feasibility Study which was accepted and approved by the DEC in February 2011. ISCP satisfied its obligations under the Consent Order when DEC approved the Remedial Investigation and Feasibility Study for the Peekskill Site. In June 2011 the DEC issued a Record of Decision that set forth a Remedial Action Plan for the Peekskill Site that identified the specific remedies selected and responded to public comments. The cost of the remedy proposed by DEC in its Remedial Action Plan was approximately $10,000. Following issuance of the Remedial Action Plan, the DEC implemented a portion of its plan, and also performed additional investigation for the presence of metals in soils and sediments downstream from the Peekskill Site. During this investigation metals were found to be present in sediments further downstream from the Peekskill site than previously detected. In August 2018, the DEC sent a letter to the United States Environmental Protection Agency (the “EPA”), in which the DEC requested that the Peekskill Site be nominated by the EPA for inclusion on the National Priorities List under CERCLA (the “NPL”). Based on the DEC’s request and an analysis by a consultant retained by the EPA, on May 15, 2019 the EPA added the Peekskill Site to the NPL and has since announced that it is performing a Remedial Investigation/Feasibility Study. On August 25, 2020, the EPA sent a letter to several parties, including Lightron and ISCP, requesting that each such party inform the EPA as to whether it would be willing to enter into discussions regarding implementation of a Remedial Investigation/Feasibility Study (“RI/FS”). The EPA also sent a request for information to each party under Section 104(e) of CERCLA. Lightron and ISCP have informed the EPA that they are willing to participate in discussions regarding implementation of the RI/FS. Lightron and ISCP have also submitted responses to certain items contained in the Section 104(e) information request, with additional responses to follow. The current owner of the property, which acquired the Peekskill Site from ISCP in 1982 and has no relationship with Lightron or ISCP, has also informed the EPA that it is willing to discuss implementation of the RI/FS, and has also received, and submitted certain information in response to, a Section 104(e) information request. The EPA may decide to implement the RI/FS, on its own or through the use of consultants, may reach agreement with one or more parties to perform the RI/FS, or may offer to negotiate with one or more parties to accept a settlement addressing the potential liability of such parties for investigation and/or remediation at the Peekskill Site. Should the EPA implement the RI/FS, or perform further studies and/or subsequently remediate the site, without first reaching agreement with one or more relevant parties, the EPA would likely seek reimbursement for the costs incurred from such parties. Lightron has not engaged in any operations in over three decades. ISCP functioned solely as a real estate holding company, and has not held any real property in over three decades. Griffon does not acknowledge any responsibility to perform any investigation or remediation at the Peekskill Site. Union Fork and Hoe, Frankfort, NY site. The former Union Fork and Hoe property in Frankfort, New York was acquired by AMES in 2006 as part of a larger acquisition, and has historic site contamination involving chlorinated solvents, petroleum hydrocarbons and metals. AMES entered into an Order on Consent with the New York State Department of Environmental Conservation (“DEC”). While the Order is without admission or finding of liability or acknowledgment that there has been a release of hazardous substances at the site, the Order required Ames to perform a remedial investigation of certain portions of the property and to recommend a remediation option. In 2011, remediation of chlorinated solvents in the groundwater was completed to the satisfaction of DEC. In 2018, Ames submitted a Feasibility Study recommending that the remaining soil contamination involving metals and petroleum be covered, excavated and removed to a licensed off-site location or placed under a cover on-site. DEC approved the selection of this remedy in 2019 by issuing a Record of Decision (“ROD”). In June 2020, Ames completed the remediation required by the ROD and filed a Construction Completion Report, a Site Management Plan and an environmental easement with DEC. While Ames was implementing the remediation required by the ROD, DEC requested additional investigation of a small area on the site and of an area adjacent to the site perimeter. Ames investigated the on-site area and has completed remediation of that small area under a workplan approved by DEC. At the request of DEC, Ames has also submitted a workplan to investigate the areas adjacent to the site perimeter. AMES has a number of defenses to liability in this matter, including its rights under a previous Consent Judgment entered into between DEC and a predecessor of AMES relating to the site. Ames’ insurer has accepted Ames’ claim for a substantial portion of the costs incurred and to be incurred for both the on-site and off-site activities. U.S. Government investigations and claims Defense contracts and subcontracts, including Griffon’s contracts and subcontracts, are subject to audit and review by various agencies and instrumentalities of the United States government, including among others, the Defense Contract Audit Agency, the Defense Criminal Investigative Service, and the Department of Justice which has responsibility for asserting claims on behalf of the U.S. Government. In general, departments and agencies of the U.S. Government have the authority to investigate various transactions and operations of Griffon, and the results of such investigations may lead to administrative, civil or criminal proceedings, the ultimate outcome of which could be fines, penalties, repayments or compensatory or treble damages. U.S. Government regulations provide that certain findings against a contractor may lead to suspension or debarment from future U.S. Government contracts or the loss of export privileges for a company or an operating division or subdivision. Suspension or debarment could have a material adverse effect on Telephonics because of its reliance on government contracts. General legal Griffon is subject to various laws and regulations relating to the protection of the environment and is a party to legal proceedings arising in the ordinary course of business. Management believes, based on facts presently known to it, that the resolution of the matters above and such other matters will not have a material adverse effect on Griffon’s consolidated financial position, results of operations or cash flows. |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information, and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all the information and footnotes required by US GAAP for complete financial statements. As such, they should be read together with Griffon’s Annual Report on Form 10-K for the year ended September 30, 2020, which provides a more complete explanation of Griffon’s accounting policies, financial position, operating results, business, properties and other matters. In the opinion of management, these financial statements reflect all adjustments considered necessary for a fair statement of interim results. Griffon’s CPP operations are seasonal; for this and other reasons, the financial results of the Company for any interim period are not necessarily indicative of the results for the full year. The condensed consolidated balance sheet information at September 30, 2020 was derived from the audited financial statements included in Griffon’s Annual Report on Form 10-K for the year ended September 30, 2020. The condensed consolidated financial statements include the accounts of Griffon and all subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. These estimates may be adjusted due to changes in economic, industry or customer financial conditions, as well as changes in technology or demand. Significant estimates include allowances for doubtful accounts receivable and returns, net realizable value of inventories, restructuring reserves, valuation of goodwill and intangible assets, sales, profits and loss recognition for performance obligations satisfied over time, assumptions associated with pension benefit obligations and income or expenses, useful lives associated with depreciation and amortization of intangible and fixed assets, warranty reserves, sales incentive accruals, assumption associated with stock based compensation valuation, income taxes and tax valuation reserves, environmental reserves, legal reserves, insurance reserves, the valuation of assets and liabilities of discontinued operations, assumptions associated with valuation of acquired assets and assumed liabilities of acquired companies and the accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions Griffon may undertake in the future. Actual results may ultimately differ from these estimates. Certain amounts in the prior year have been reclassified to conform to current year presentation. |
Fair Value Measurements | The carrying values of cash and equivalents, accounts receivable, accounts and notes payable, and revolving credit and variable interest rate debt approximate fair value due to either the short-term nature of such instruments or the fact that the interest rate of the revolving credit and variable rate debt is based upon current market rates. Applicable accounting guidance establishes a fair value hierarchy requiring the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The accounting guidance establishes three levels of inputs that may be used to measure fair value, as follows: • Level 1 inputs are measured and recorded at fair value based upon quoted prices in active markets for identical assets. • Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. • Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Inventories | Inventories are stated at the lower of cost (first-in, first-out or average cost) or market. |
Issued but not yet effective accounting pronouncements and New Accounting Standards Implemented | Issued but not yet effective accounting pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued guidance to clarify disclosure requirements related to defined benefit pension and other post-retirement plans. The guidance is effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is effective for the Company in our fiscal year beginning in October 1, 2021. We are currently evaluating the effects that the adoption of this guidance will have on our the related pension disclosures. In December 2019, the FASB issued guidance on simplifying the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. Our effective date for adoption of this Accounting Standards Update ("ASU") is our fiscal year beginning October 1, 2021 with early adoption permitted. We are currently evaluating the effects that the adoption of this guidance will have on our consolidated financial statements and the related disclosures. New Accounting Standards Implemented In April 2019, the FASB issued guidance relating to accounting for credit losses on financial instruments, including trade receivables, and derivatives and hedging. This guidance is effective for the Company beginning in fiscal 2021. Adoption of this standard did not have a material impact on our consolidated financial statements and the related disclosures. In August 2018, the FASB issued guidance which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. This guidance expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). This guidance is effective for the Company beginning in fiscal 2021. Adoption of this standard did not have a material impact on our consolidated financial statements and the related disclosures. In March 2020, the SEC adopted amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered in Rule 3-10 of Regulation S-X, and affiliates whose securities collateralize securities registered or being registered in Rule 3-16 of Regulation S-X (SEC Release No. 33-10762). The amendment replaces the requirement to present condensed consolidating financial statements, comprised of balance sheets and statements of operations, comprehensive income and cash flows for all periods presented, with summarized financial information of the guarantor only for the most recently completed fiscal year and any subsequent interim period. We adopted the amendments to the disclosure requirements during the first quarter of fiscal 2021. This amendment did not have an impact on our consolidated financial statements as this amendment simplifies the financial disclosures required in our guarantor and non-guarantor financial information. See Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Supplemental Guarantor Financial Information. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements, and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table details the components of inventory: At March 31, 2021 At September 30, 2020 Raw materials and supplies $ 155,720 $ 146,351 Work in process 86,299 83,697 Finished goods 242,734 183,777 Total $ 484,753 $ 413,825 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table details the components of property, plant and equipment, net: At March 31, 2021 At September 30, 2020 Land, building and building improvements $ 169,081 $ 167,005 Machinery and equipment 611,187 595,126 Leasehold improvements 53,952 53,386 834,220 815,517 Accumulated depreciation and amortization (493,215) (471,553) Total $ 341,005 $ 343,964 |
CREDIT LOSSES (Tables)
CREDIT LOSSES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Schedule of Accounts Receivable, Allowance for Credit Losses | The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected: Beginning Balance, October 1, 2020 $ 8,505 Provision for expected credit losses 1,228 Amounts written off charged against the allowance (161) Other, primarily foreign currency translation 22 Ending Balance, March 31, 2021 $ 9,594 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Value of Goodwill | The following table provides changes in the carrying value of goodwill by segment during the six months ended March 31, 2021: At September 30, 2020 Business Acquisitions (a) Business Divestitures (b) Foreign At March 31, 2021 Consumer and Professional Products $ 232,845 $ 1,246 $ — $ 3,287 $ 237,378 Home and Building Products 191,253 — — — 191,253 Defense Electronics 18,545 — (811) — 17,734 Total $ 442,643 $ 1,246 $ (811) $ 3,287 $ 446,365 (a) The increase in the CPP segment was due to the acquisition of Quatro. (b) The decrease in the DE segment was due to the divestiture of SEG. |
Summary of Gross Carrying Value and Accumulated Amortization of Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets: At March 31, 2021 At September 30, 2020 Gross Carrying Amount Accumulated Average Gross Carrying Amount Accumulated Customer relationships & other $ 189,189 $ 71,840 23 $ 185,940 $ 66,656 Technology and patents 19,529 8,030 13 19,464 8,360 Total amortizable intangible assets 208,718 79,870 205,404 75,016 Trademarks 228,658 — 224,640 — Total intangible assets $ 437,376 $ 79,870 $ 430,044 $ 75,016 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | At March 31, 2021 At September 30, 2020 Outstanding Balance Original Issuer Premium Capitalized Fees & Expenses Balance Sheet Coupon Interest Rate Outstanding Balance Original Issuer Premium Capitalized Fees & Expenses Balance Sheet Coupon Interest Rate Senior notes due 2028 (a) $ 1,000,000 $ 339 (14,329) $ 986,010 5.75 % $ 1,000,000 $ 363 $ (15,376) $ 984,987 5.75 % Revolver due 2025 (b) 20,622 — (1,963) 18,659 Variable 12,858 — (2,209) 10,649 Variable Finance lease - real estate (c) 15,924 — (17) 15,907 5.60 % 17,218 — (30) 17,188 5.60 % Non US lines of credit (d) 4,405 — (24) 4,381 Variable — — (30) (30) Variable Non US term loans (d) 29,870 — (133) 29,737 Variable 31,086 — (160) 30,926 Variable Other long term debt (e) 4,094 — (16) 4,078 Variable 3,260 — (16) 3,244 Variable Totals 1,074,915 339 (16,482) 1,058,772 1,064,422 363 (17,821) 1,046,964 less: Current portion (14,913) — — (14,913) (9,922) — — (9,922) Long-term debt $ 1,060,002 $ 339 $ (16,482) $ 1,043,859 $ 1,054,500 $ 363 $ (17,821) $ 1,037,042 |
Summary of Interest Expense Incurred | Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Effective Interest Rate Cash Interest Amort. Debt Amort. Debt Issuance Costs Total Interest Expense Effective Interest Rate Cash Interest Amort. Debt Amort. Total Interest Expense Senior notes due 2028 (a) 6.0 % $ 14,375 $ 12 $ 505 $ 14,892 6.0 % $ 5,566 $ — $ 135 $ 5,701 Senior notes due 2022 (a) — — — — — 5.7 % 8,040 45 628 8,713 Revolver due 2025 (b) Variable 287 — 122 409 Variable 1,819 — 165 1,984 Finance lease - real estate (c) 5.9 % 224 — 7 231 6.1 % 52 — 7 59 Non US lines of credit (d) Variable 4 — 4 8 Variable 3 — 8 11 Non US term loans (d) Variable 163 — 18 181 Variable 292 — 7 299 Other long term debt (e) Variable 115 — 1 116 Variable 132 — — 132 Capitalized interest (6) — — (6) (28) — — (28) Totals $ 15,162 $ 12 $ 657 $ 15,831 $ 15,876 $ 45 $ 950 $ 16,871 Six Months Ended March 31, 2021 Six Months Ended March 31, 2020 Effective Interest Rate Cash Interest Amort. Debt Amort. Debt Issuance Costs & Other Fees Total Interest Expense Effective Interest Rate Cash Interest Amort. Debt Premium Amort. Debt Issuance Costs & Other Fees Total Interest Expense Senior notes due 2028 (a) 6.0 % $ 28,750 $ 24 $ 1,023 $ 29,797 6.0 % $ 5,566 $ — $ 135 $ 5,701 Senior notes due 2022 (a) — — — — — 5.7 % 21,165 112 1,579 22,856 Revolver due 2025 (b) Variable 416 — 245 661 Variable 3,201 — 397 3,598 Finance lease - real estate (c) 5.6 % 456 — 13 469 6.0 % 113 — 13 126 Non US lines of credit (d) Variable 7 — 8 15 Variable 7 — 12 19 Non US term loans (d) Variable 334 — 35 369 Variable 564 — 19 583 Other long term debt (e) Variable 222 — 1 223 Variable 292 — — 292 Capitalized interest (13) — — (13) (93) — — (93) Totals $ 30,172 $ 24 $ 1,325 $ 31,521 $ 30,815 $ 112 $ 2,155 $ 33,082 |
SHAREHOLDERS' EQUITY SHAREHOLDE
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Compensation Expense Relating to Stock-based Incentive Plans | The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Restricted stock $ 4,349 $ 3,662 $ 7,777 $ 6,812 ESOP 944 658 1,724 1,490 Total stock based compensation $ 5,293 $ 4,320 $ 9,501 $ 8,302 |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Share Amounts Used in Earnings Per Share | The following table is a reconciliation of the share amounts (in thousands) used in computing earnings per share: Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Common shares outstanding 56,684 47,431 56,684 47,431 Unallocated ESOP shares (1,961) (2,159) (1,961) (2,159) Non-vested restricted stock (3,822) (3,562) (3,822) (3,562) Impact of weighted average shares (63) (145) (184) (341) Weighted average shares outstanding - basic 50,838 41,565 50,717 41,369 Incremental shares from stock based compensation 2,426 2,169 2,494 2,457 Weighted average shares outstanding - diluted 53,264 43,734 53,211 43,826 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segments from Continuing Operations | Information on Griffon’s reportable segments is as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, REVENUE 2021 2020 2021 2020 Consumer and Professional Products $ 331,871 $ 274,912 $ 622,913 $ 515,988 Home and Building Products 242,811 209,829 493,292 451,210 Defense Electronics 60,150 81,609 127,918 147,590 Total consolidated net sales $ 634,832 $ 566,350 $ 1,244,123 $ 1,114,788 For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Segment adjusted EBITDA: Consumer and Professional Products $ 37,423 $ 25,027 $ 70,136 $ 46,953 Home and Building Products 40,060 30,635 88,429 71,336 Defense Electronics 2,220 4,248 7,805 8,723 Segment adjusted EBITDA 79,703 59,910 166,370 127,012 Unallocated amounts, excluding depreciation * (11,922) (11,947) (23,949) (23,889) Adjusted EBITDA 67,781 47,963 142,421 103,123 Net interest expense (15,527) (16,561) (31,172) (32,511) Depreciation and amortization (15,883) (15,719) (31,149) (31,544) Loss from debt extinguishment — (6,690) — (6,690) Restructuring charges (7,562) (3,104) (18,362) (9,538) Acquisition costs — (2,960) — (2,960) Gain (adjustment) on sale of SEG business (949) — 5,291 — Income before taxes $ 27,860 $ 2,929 $ 67,029 $ 19,880 * Unallocated amounts typically include general corporate expenses not attributable to a reportable segment. For the Three Months Ended March 31, For the Six Months Ended March 31, DEPRECIATION and AMORTIZATION 2021 2020 2021 2020 Segment: Consumer and Professional Products $ 8,620 $ 8,222 $ 16,819 $ 16,453 Home and Building Products 4,379 4,668 8,720 9,468 Defense Electronics 2,734 2,676 5,410 5,320 Total segment depreciation and amortization 15,733 15,566 30,949 31,241 Corporate 150 153 200 303 Total consolidated depreciation and amortization $ 15,883 $ 15,719 $ 31,149 $ 31,544 CAPITAL EXPENDITURES Segment: Consumer and Professional Products $ 6,813 $ 3,800 $ 13,720 $ 7,532 Home and Building Products 1,998 3,556 4,113 11,495 Defense Electronics 3,247 1,921 6,151 3,210 Total segment 12,058 9,277 23,984 22,237 Corporate 2 70 2 282 Total consolidated capital expenditures $ 12,060 $ 9,347 $ 23,986 $ 22,519 ASSETS At March 31, 2021 At September 30, 2020 Segment assets: Consumer and Professional Products $ 1,408,545 $ 1,255,127 Home and Building Products 604,325 606,785 Defense Electronics 288,019 329,128 Total segment assets 2,300,889 2,191,040 Corporate 216,571 248,902 Total continuing assets 2,517,460 2,439,942 Assets of discontinued operations 6,820 8,497 Consolidated total $ 2,524,280 $ 2,448,439 |
Summary of Disaggregation of Revenue by End Market and Segment | The following table presents revenue disaggregated by end market and segment: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Residential repair and remodel $ 50,560 $ 40,505 $ 96,160 $ 75,595 Retail 153,746 144,904 292,994 264,524 Residential new construction 14,540 14,884 28,055 29,857 Industrial 9,958 10,535 19,489 21,158 International excluding North America 103,067 64,084 186,215 124,854 Total Consumer and Professional Products 331,871 274,912 622,913 515,988 Residential repair and remodel 120,827 100,808 246,942 222,805 Commercial construction 94,751 86,300 190,690 178,187 Residential new construction 27,233 22,721 55,660 50,218 Total Home and Building Products 242,811 209,829 493,292 451,210 U.S. Government 35,045 53,623 82,369 96,324 International 21,497 25,021 38,392 43,554 Commercial 3,608 2,965 7,157 7,712 Total Defense Electronics 60,150 81,609 127,918 147,590 Total Consolidated Revenue $ 634,832 $ 566,350 $ 1,244,123 $ 1,114,788 The following table presents revenue disaggregated by geography based on the location of the Company's customer: For the Three Months Ended March 31, 2021 2020 CPP HBP DE Total CPP HBP DE Total United States $ 205,368 $ 230,955 $ 34,166 $ 470,489 $ 191,412 $ 199,060 $ 55,071 $ 445,543 Europe 38,965 41 5,791 44,797 24,737 5 9,880 34,622 Canada 21,778 9,797 1,925 33,500 17,515 7,867 4,209 29,591 Australia 63,691 — 122 63,813 39,032 — 189 39,221 All other countries 2,069 2,018 18,146 22,233 2,216 2,897 12,260 17,373 Consolidated revenue $ 331,871 $ 242,811 $ 60,150 $ 634,832 $ 274,912 $ 209,829 $ 81,609 $ 566,350 For the Six Months Ended March 31, 2021 2020 CPP HBP DE Total CPP HBP DE Total United States $ 388,810 $ 467,486 $ 81,544 $ 937,840 $ 351,570 $ 426,010 $ 101,214 $ 878,794 Europe 52,121 41 12,696 64,858 31,342 28 15,865 47,235 Canada 43,893 21,285 3,754 68,932 35,296 19,120 6,783 61,199 Australia 133,231 — 441 133,672 93,260 — 795 94,055 All other countries 4,858 4,480 29,483 38,821 4,520 6,052 22,933 33,505 Consolidated revenue $ 622,913 $ 493,292 $ 127,918 $ 1,244,123 $ 515,988 $ 451,210 $ 147,590 $ 1,114,788 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Summary of Defined Benefit Plans Included in Other Income | Defined benefit pension expense (income) included in Other Income (Expense), net was as follows: Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Interest cost $ 745 $ 1,151 $ 1,489 $ 2,302 Expected return on plan assets (2,545) (2,586) (5,089) (5,172) Amortization: Prior service cost — 4 — 8 Recognized actuarial loss 1,573 1,042 3,146 2,084 Net periodic expense (income) $ (227) $ (389) $ (454) $ (778) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The following amounts summarize the total assets and liabilities related to the 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 Condensed Consolidated Balance Sheets: At March 31, 2021 At September 30, 2020 Assets of discontinued operations: Prepaid and other current assets $ 1,525 $ 2,091 Other long-term assets 5,295 6,406 Total assets of discontinued operations $ 6,820 $ 8,497 Liabilities of discontinued operations: Accrued liabilities, current $ 4,600 $ 3,797 Other long-term liabilities 6,415 7,014 Total liabilities of discontinued operations $ 11,015 $ 10,811 |
RESTRUCTURING CHARGES RESTRUCTU
RESTRUCTURING CHARGES RESTRUCTURING CHARGES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Restructuring and Other Related Charges | A summary of the restructuring and other related charges included in Cost of goods and services and SG&A expenses in the Company's Condensed Consolidated Statements of Operations were as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Cost of goods and services $ 3,337 $ 1,353 $ 9,762 $ 4,076 Selling, general and administrative expenses 4,225 1,751 8,600 5,462 Total restructuring charges $ 7,562 $ 3,104 $ 18,362 $ 9,538 For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Personnel related costs $ 782 $ 1,658 $ 3,264 $ 3,792 Facilities, exit costs and other 4,283 914 6,807 1,054 Non-cash facility and other 2,497 532 8,291 4,692 Total $ 7,562 $ 3,104 $ 18,362 $ 9,538 |
Summary of Accrued Liability for the Restructuring and Related Charges | The following table summarizes the accrued liabilities of the Company's restructuring actions: Cash Charges Non-Cash Personnel related costs Facilities & Facility and Other Costs Total Accrued liability at September 30, 2020 $ 2,701 $ 264 $ — $ 2,965 Q1 Restructuring charges 2,482 2,524 5,794 10,800 Q1 Cash payments (1,598) (2,534) — (4,132) Q1 Non-cash charges — — (5,794) (5,794) Accrued liability at December 31, 2020 $ 3,585 $ 254 $ — $ 3,839 Q2 Restructuring charges 782 4,283 2,497 7,562 Q2 Cash payments (3,840) (4,273) — (8,113) Q2 Non-cash charges — — (2,497) (2,497) Accrued liability at March 31, 2021 $ 527 $ 264 $ — $ 791 |
WARRANTY LIABILITY (Tables)
WARRANTY LIABILITY (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Summary of Changes in Warranty Liability, Included in Accrued Liabilities | Changes in Griffon’s warranty liability, included in Accrued liabilities, were as follows: Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Balance, beginning of period $ 10,834 $ 7,344 $ 10,843 $ 7,894 Warranties issued and changes in estimated pre-existing warranties 6,477 4,862 11,216 8,227 Actual warranty costs incurred (4,633) (4,417) (9,381) (8,332) Balance, end of period $ 12,678 $ 7,789 $ 12,678 $ 7,789 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
OCI, Net of Tax [Abstract] | |
Summary of Comprehensive Income (Loss) | The amounts recognized in other comprehensive income (loss) were as follows: For the Three Months Ended March 31, 2021 2020 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ 1,739 $ — $ 1,739 $ (16,471) $ — $ (16,471) Pension and other defined benefit plans 1,585 (340) 1,245 847 (178) 669 Cash flow hedges 2,559 (768) 1,791 1,383 (415) 968 Total other comprehensive income (loss) $ 5,883 $ (1,108) $ 4,775 $ (14,241) $ (593) $ (14,834) For the Six Months Ended March 31, 2021 2020 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ 13,862 $ — $ 13,862 $ (10,001) $ — $ (10,001) Pension and other defined benefit plans 3,735 (784) 2,951 1,694 (353) 1,341 Cash flow hedges 1,576 (473) 1,103 953 (286) 667 Total other comprehensive income (loss) $ 19,173 $ (1,257) $ 17,916 $ (7,354) $ (639) $ (7,993) The components of Accumulated other comprehensive income (loss) are as follows: At March 31, 2021 At September 30, 2020 Foreign currency translation adjustments $ (11,821) $ (25,683) Pension and other defined benefit plans (43,647) (46,598) Change in Cash flow hedges 1,292 189 $ (54,176) $ (72,092) |
Reclassification from Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive income (loss) to income were as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, Gain (Loss) 2021 2020 2021 2020 Pension amortization $ (1,573) $ (1,046) $ (3,146) $ (2,092) Cash flow hedges (1,741) 1,050 (2,399) 994 Total gain (loss) $ (3,314) $ 4 (5,545) (1,098) Tax benefit (expense) 696 (1) 1,165 231 Total $ (2,618) $ 3 $ (4,380) $ (867) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of Operating Lease Cost, Cash Flow Information, and Average Lease Terms and Discount Rates | Components of operating lease costs are as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, 2021 2020 2021 2020 Fixed $ 9,970 $ 9,187 $ 20,010 $ 18,739 Variable (a), (b) 2,087 1,823 4,134 3,576 Short-term (b) 1,053 1,393 2,167 2,823 Total $ 13,110 $ 12,403 $ 26,311 $ 25,138 (a) Primarily relates to common-area maintenance and property taxes. (b) Not recorded on the balance sheet. Supplemental cash flow information were as follows: For the Six Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,099 $ 21,582 Financing cash flows from finance leases 1,865 1,940 Total $ 23,964 $ 23,522 Average lease terms and discount rates at March 31, 2021 were as follows: Weighted-average remaining lease term (years) Operating leases 8.1 Finance Leases 8.2 Weighted-average discount rate Operating Leases 4.45 % Finance Leases 5.50 % |
Supplemental Condensed Consolidated Balance Sheet Information | Supplemental Condensed Consolidated Balance Sheet information related to leases were as follows: March 31, 2021 September 30, 2020 Operating Leases: Right of use assets: Operating right-of-use assets $ 154,929 $ 161,627 Lease Liabilities: Current portion of operating lease liabilities $ 30,685 $ 31,848 Long-term operating lease liabilities 128,714 136,054 Total operating lease liabilities $ 159,399 $ 167,902 Finance Leases: Property, plant and equipment, net (1) $ 18,068 $ 18,774 Lease Liabilities: Notes payable and current portion of long-term debt $ 3,110 $ 3,352 Long-term debt, net 14,950 15,339 Total financing lease liabilities $ 18,060 $ 18,691 (1) Finance lease assets are recorded net of accumulated depreciation of $4,296 and $2,383 as of March 31, 2021 and September 30, 2020, respectively. |
Aggregate Future Maturities of Lease Payments for Operating Leases | The aggregate future maturities of lease payments for operating leases and finance leases as of March 31, 2021 are as follows (in thousands): Operating Leases Finance Leases 2020 (a) $ 19,128 $ 2,381 2021 34,484 3,087 2022 26,884 2,749 2023 20,180 2,195 2024 18,214 2,077 2025 12,376 2,075 Thereafter 63,859 7,777 Total lease payments 195,125 22,341 Less: Imputed Interest (35,726) (4,281) Present value of lease liabilities $ 159,399 $ 18,060 (a) Excluding the six months ended March 31, 2021. |
Aggregate Future Maturities of Lease Payments for Finance Leases | The aggregate future maturities of lease payments for operating leases and finance leases as of March 31, 2021 are as follows (in thousands): Operating Leases Finance Leases 2020 (a) $ 19,128 $ 2,381 2021 34,484 3,087 2022 26,884 2,749 2023 20,180 2,195 2024 18,214 2,077 2025 12,376 2,075 Thereafter 63,859 7,777 Total lease payments 195,125 22,341 Less: Imputed Interest (35,726) (4,281) Present value of lease liabilities $ 159,399 $ 18,060 (a) Excluding the six months ended March 31, 2021. |
DESCRIPTION OF BUSINESS AND B_3
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) | 6 Months Ended |
Mar. 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($)$ / shares | |
Designated as Hedging Instrument | Australian Dollar Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, notional amount | $ 61,000 | $ 61,000 |
Contracts weighted average rate price (in dollars per share) | $ / shares | $ 1.29 | |
Deferred gain (loss) from currency translation included in AOCI | (831) | $ (831) |
Deferred gain (loss) from currency translation included in AOCI, net of tax | (582) | (582) |
Designated as Hedging Instrument | Australian Dollar Forward Contracts | Cost of goods and services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) reclassified for settled contracts | (1,741) | $ (2,399) |
Designated as Hedging Instrument | Australian Dollar Forward Contracts | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts duration | 30 days | |
Designated as Hedging Instrument | Australian Dollar Forward Contracts | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts duration | 180 days | |
Not Designated as Hedging Instrument | Canadian Dollar Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, notional amount | $ 7,935 | $ 7,935 |
Derivative, average forward exchange rate | 1.30 | 1.30 |
Not Designated as Hedging Instrument | Canadian Dollar Forward Contracts | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts duration | 29 days | |
Not Designated as Hedging Instrument | Canadian Dollar Forward Contracts | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts duration | 450 days | |
Not Designated as Hedging Instrument | British Pound Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, notional amount | $ 5,200 | $ 5,200 |
Derivative, average forward exchange rate | 0.75 | 0.75 |
Not Designated as Hedging Instrument | British Pound Forward Contracts | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts duration | 6 days | |
Not Designated as Hedging Instrument | British Pound Forward Contracts | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts duration | 104 days | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Insurance contracts fair value | $ 3,821 | $ 3,821 |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | Canadian Dollar Forward Contracts | Other income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | (520) | 244 |
Realized gains (losses) | (102) | (161) |
Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | British Pound Forward Contracts | Other income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | 386 | 141 |
Realized gains (losses) | (211) | (281) |
Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,088 | 2,088 |
Fair Value, Inputs, Level 2 | Portion at Other than Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 1,000 | 1,000 |
Senior notes due 2028 | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior note, fair value disclosure | $ 1,060,000 | $ 1,060,000 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | |||||
Net favorable (unfavorable) catch-up adjustments to income from operations | $ 1,423 | $ 2,188 | $ 3,220 | $ 422 | |
Accumulated estimated costs to complete loss contracts | $ 8,500 | $ 8,500 | $ 10,800 | ||
Customer Concentration Risk | CPP and HBP | |||||
Concentration Risk [Line Items] | |||||
Percentage of performance obligations recognized at a point in time | 86.00% | ||||
Revenue from Contract with Customer Benchmark | Government Contracts Concentration Risk | Transferred over Time | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (in percentage) | 14.00% |
REVENUE - Transaction Price All
REVENUE - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations (backlog) | $ 353,870 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations (backlog), percentage to be satisfied within one year | 65.00% |
Remaining performance obligations (backlog), expected timing of satisfaction, period | 12 months |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract costs and recognized income not yet billed, net of progress payments | $ 75,000 | $ 84,426 |
Increase (decrease) in contract assets balance | (9,426) | |
Contract costs and recognized income not yet billed, noncurrent | 7,700 | 7,500 |
Contract liabilities | 22,964 | $ 24,386 |
Increase (decrease) in contract liabilities | $ (1,422) |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Acquisitions (Details) £ in Thousands, $ in Thousands, $ in Thousands | Dec. 22, 2020USD ($) | Dec. 22, 2020AUD ($) | Nov. 29, 2019USD ($) | Nov. 29, 2019GBP (£) | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 22, 2020AUD ($) | Sep. 30, 2020USD ($) |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ | $ 446,365 | $ 442,643 | |||||||
Acquisition costs | $ | $ 2,960 | $ 2,960 | |||||||
Quatro Design Pty Ltd | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash payment to acquire business | $ 2,700 | $ 3,500 | |||||||
Additional contingent consideration | 760 | $ 1,000 | |||||||
Intangible assets | 2,082 | 2,755 | |||||||
Goodwill | $ 1,246 | $ 1,648 | |||||||
Vatre Group Limited | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | £ 3,454 | ||||||||
Goodwill | £ 3,449 | ||||||||
Percentage of outstanding stock acquired | 100.00% | ||||||||
Business combination, consideration transferred | $ 10,500 | £ 8,750 | |||||||
Inventory | 2,914 | ||||||||
Accounts receivable and other assets | 2,492 | ||||||||
Accounts payable and accrued liabilities | £ 3,765 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Dispositions (Details) - Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations - Systems Engineering Group, Inc. - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2021 | Sep. 30, 2020 | Dec. 18, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration received from business dispositions | $ 15,000 | |||
Revenue from disposed business | $ 7,000 | $ 31,000 | ||
Gain (adjustment) on sale of SEG business | $ 5,291 | |||
Gain, net of tax, from business dispositions | $ 5,251 | |||
Gain per share from business dispositions | $ 0.10 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories Stated at Lower Cost (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 155,720 | $ 146,351 |
Work in process | 86,299 | 83,697 |
Finished goods | 242,734 | 183,777 |
Total | $ 484,753 | $ 413,825 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Property Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 834,220 | $ 815,517 |
Accumulated depreciation and amortization | (493,215) | (471,553) |
Total | 341,005 | 343,964 |
Land, building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 169,081 | 167,005 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 611,187 | 595,126 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 53,952 | $ 53,386 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 13,450 | $ 13,316 | $ 26,338 | $ 26,748 |
Selling, general and administrative expenses | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 5,014 | $ 4,910 | $ 9,720 | $ 9,861 |
CREDIT LOSSES (Details)
CREDIT LOSSES (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning Balance, October 1, 2020 | $ 8,505 |
Provision for expected credit losses | 1,228 |
Amounts written off charged against the allowance | (161) |
Other, primarily foreign currency translation | 22 |
Ending Balance, March 31, 2021 | $ 9,594 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Summary of Changes in Carrying Value of Goodwill (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 442,643 |
Business Acquisitions | 1,246 |
Business Divestitures | (811) |
Foreign currency translations adjustments | 3,287 |
Goodwill, ending balance | 446,365 |
Consumer and Professional Products | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 232,845 |
Business Acquisitions | 1,246 |
Business Divestitures | 0 |
Foreign currency translations adjustments | 3,287 |
Goodwill, ending balance | 237,378 |
Home and Building Products | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 191,253 |
Business Acquisitions | 0 |
Business Divestitures | 0 |
Foreign currency translations adjustments | 0 |
Goodwill, ending balance | 191,253 |
Defense Electronics | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 18,545 |
Business Acquisitions | 0 |
Business Divestitures | (811) |
Foreign currency translations adjustments | 0 |
Goodwill, ending balance | $ 17,734 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Summary of Gross Carrying Value and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 208,718 | $ 205,404 |
Accumulated Amortization | 79,870 | 75,016 |
Trademarks | 228,658 | 224,640 |
Total intangible assets | 437,376 | 430,044 |
Customer relationships & other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 189,189 | 185,940 |
Accumulated Amortization | $ 71,840 | 66,656 |
Average Life (Years) | 23 years | |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 19,529 | 19,464 |
Accumulated Amortization | $ 8,030 | $ 8,360 |
Average Life (Years) | 13 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($)unit | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Carry amount of intangible assets related to foreign currency translation | $ 5,250,000 | |||
Amortization expense | 2,433,000 | $ 2,403,000 | $ 4,811,000 | $ 4,796,000 |
Estimated amortization expense, remainder of fiscal year | 4,574,000 | 4,574,000 | ||
Estimated amortization expense, year one | 9,376,000 | 9,376,000 | ||
Estimated amortization expense, year two | 9,224,000 | 9,224,000 | ||
Estimated amortization expense, year three | 9,198,000 | 9,198,000 | ||
Estimated amortization expense, year four | 9,198,000 | 9,198,000 | ||
Estimated amortization expense, year five | 9,198,000 | 9,198,000 | ||
Estimated amortization expense, thereafter | $ 78,080,000 | 78,080,000 | ||
Number of reporting units for goodwill impairment testing | unit | 3 | |||
Goodwill impairment | 0 | |||
Indefinite-lived intangible asset (excluding goodwill) impairment | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 10,748 | $ 2,034 | $ 20,417 | $ 8,373 |
Income before taxes | 27,860 | 2,929 | 67,029 | 19,880 |
Restructuring charges | 7,562 | 3,104 | 18,362 | 9,538 |
Restructuring charges, net of tax | 5,651 | 3,005 | 13,951 | 7,153 |
Effective income tax rate reconciliation, disposition of business | 949 | (5,291) | ||
Effective income tax rate reconciliation, disposition of business, net of tax | 766 | (5,251) | ||
Other tax expense (benefit) that affect comparability | $ 1,913 | (1,413) | $ (115) | (580) |
Effective income tax rate reconciliation, acquisition cost | 2,960 | 2,960 | ||
Effective income tax rate reconciliation, acquisition cost, net of tax | 2,321 | 2,321 | ||
Effective income tax rate reconciliation, debt extinguishment loss | 6,690 | 6,690 | ||
Effective income tax rate reconciliation, debt extinguishment loss, net of tax | $ 5,245 | $ 5,245 | ||
Effective tax rate | 30.00% | 35.90% | 31.10% | 34.40% |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 22, 2020 | Feb. 19, 2020 |
Debt Instrument [Line Items] | ||||
Long-term debt, Outstanding Balance | $ 1,074,915 | $ 1,064,422 | ||
less: Current portion, Outstanding Balance | (14,913) | (9,922) | ||
Long-term debt, Outstanding Balance, Non-current | 1,060,002 | 1,054,500 | ||
Original Issuer Premium | 339 | 363 | ||
less: Current portion, Original Issuer Premium | 0 | 0 | ||
Long-term debt, Original Issuer Premium, Non-current | 339 | 363 | ||
Capitalized Fees & Expenses | (16,482) | (17,821) | ||
Long-term debt, Balance Sheet | 1,058,772 | 1,046,964 | ||
less: Current portion, Balance Sheet | (14,913) | (9,922) | ||
Long-term debt, Balance Sheet, Non-current | 1,043,859 | 1,037,042 | ||
Senior notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Outstanding Balance | 1,000,000 | 1,000,000 | ||
Original Issuer Premium | 339 | 363 | ||
Capitalized Fees & Expenses | (14,329) | (15,376) | ||
Long-term debt, Balance Sheet | $ 986,010 | $ 984,987 | ||
Coupon Interest Rate | 5.75% | 5.75% | 5.75% | 5.75% |
Revolver due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Outstanding Balance | $ 20,622 | $ 12,858 | ||
Original Issuer Premium | 0 | 0 | ||
Capitalized Fees & Expenses | (1,963) | (2,209) | ||
Long-term debt, Balance Sheet | 18,659 | 10,649 | ||
Finance lease - real estate | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Outstanding Balance | 15,924 | 17,218 | ||
Original Issuer Premium | 0 | 0 | ||
Capitalized Fees & Expenses | (17) | (30) | ||
Long-term debt, Balance Sheet | $ 15,907 | $ 17,188 | ||
Coupon Interest Rate | 5.60% | 5.60% | ||
Non US lines of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Outstanding Balance | $ 4,405 | $ 0 | ||
Original Issuer Premium | 0 | 0 | ||
Capitalized Fees & Expenses | (24) | (30) | ||
Long-term debt, Balance Sheet | 4,381 | (30) | ||
Non US term loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Outstanding Balance | 29,870 | 31,086 | ||
Original Issuer Premium | 0 | 0 | ||
Capitalized Fees & Expenses | (133) | (160) | ||
Long-term debt, Balance Sheet | 29,737 | 30,926 | ||
Other long term debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Outstanding Balance | 4,094 | 3,260 | ||
Original Issuer Premium | 0 | 0 | ||
Capitalized Fees & Expenses | (16) | (16) | ||
Long-term debt, Balance Sheet | $ 4,078 | $ 3,244 |
LONG-TERM DEBT - Summary of Int
LONG-TERM DEBT - Summary of Interest Expense Incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Cash Interest, Capitalized Interest | $ (6) | $ (28) | $ (13) | $ (93) |
Cash Interest | 15,162 | 15,876 | 30,172 | 30,815 |
Amort. Debt Premium | 12 | 45 | 24 | 112 |
Amort. Debt Issuance Costs & Other Fees | 657 | 950 | 1,325 | 2,155 |
Total Interest Expense | $ 15,831 | $ 16,871 | $ 31,521 | $ 33,082 |
Senior notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 6.00% | 6.00% | 6.00% | 6.00% |
Cash Interest, Including Amounts Capitalized | $ 14,375 | $ 5,566 | $ 28,750 | $ 5,566 |
Amort. Debt Premium | 12 | 0 | 24 | 0 |
Amort. Debt Issuance Costs & Other Fees | 505 | 135 | 1,023 | 135 |
Total Interest Expense | 14,892 | $ 5,701 | 29,797 | $ 5,701 |
Senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 5.70% | 5.70% | ||
Cash Interest, Including Amounts Capitalized | 0 | $ 8,040 | 0 | $ 21,165 |
Amort. Debt Premium | 0 | 45 | 0 | 112 |
Amort. Debt Issuance Costs & Other Fees | 0 | 628 | 0 | 1,579 |
Total Interest Expense | 0 | 8,713 | 0 | 22,856 |
Revolver due 2025 | ||||
Debt Instrument [Line Items] | ||||
Cash Interest, Including Amounts Capitalized | 287 | 1,819 | 416 | 3,201 |
Amort. Debt Premium | 0 | 0 | 0 | 0 |
Amort. Debt Issuance Costs & Other Fees | 122 | 165 | 245 | 397 |
Total Interest Expense | $ 409 | $ 1,984 | $ 661 | $ 3,598 |
Finance lease - real estate | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 5.90% | 6.10% | 5.60% | 6.00% |
Cash Interest, Including Amounts Capitalized | $ 224 | $ 52 | $ 456 | $ 113 |
Amort. Debt Premium | 0 | 0 | 0 | 0 |
Amort. Debt Issuance Costs & Other Fees | 7 | 7 | 13 | 13 |
Total Interest Expense | 231 | 59 | 469 | 126 |
Non US lines of credit | ||||
Debt Instrument [Line Items] | ||||
Cash Interest, Including Amounts Capitalized | 4 | 3 | 7 | 7 |
Amort. Debt Premium | 0 | 0 | 0 | 0 |
Amort. Debt Issuance Costs & Other Fees | 4 | 8 | 8 | 12 |
Total Interest Expense | 8 | 11 | 15 | 19 |
Non US term loans | ||||
Debt Instrument [Line Items] | ||||
Cash Interest, Including Amounts Capitalized | 163 | 292 | 334 | 564 |
Amort. Debt Premium | 0 | 0 | 0 | 0 |
Amort. Debt Issuance Costs & Other Fees | 18 | 7 | 35 | 19 |
Total Interest Expense | 181 | 299 | 369 | 583 |
Other long term debt | ||||
Debt Instrument [Line Items] | ||||
Cash Interest, Including Amounts Capitalized | 115 | 132 | 222 | 292 |
Amort. Debt Premium | 0 | 0 | 0 | 0 |
Amort. Debt Issuance Costs & Other Fees | 1 | 0 | 1 | 0 |
Total Interest Expense | $ 116 | $ 132 | $ 223 | $ 292 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) $ in Thousands | Jun. 22, 2020USD ($) | Jul. 31, 2018GBP (£) | Jul. 31, 2016AUD ($) | Nov. 30, 2012CAD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)renewalOption | Mar. 31, 2020USD ($) | Sep. 30, 2020AUD ($) | Mar. 31, 2021CAD ($) | Mar. 31, 2021AUD ($) | Mar. 31, 2021GBP (£) | Sep. 30, 2020USD ($) | Sep. 30, 2020AUD ($) | Feb. 19, 2020USD ($) | Jan. 30, 2020USD ($) | Jan. 29, 2020USD ($) | Sep. 30, 2019AUD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2016AUD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt outstanding | $ 1,074,915,000 | $ 1,074,915,000 | $ 1,064,422,000 | |||||||||||||||||
Loss from debt extinguishment | 0 | $ 6,690,000 | 0 | $ 6,690,000 | ||||||||||||||||
Basis spread on variable rate | 1.30% | |||||||||||||||||||
Mortgage loan balance | $ 1,058,772,000 | $ 1,058,772,000 | $ 1,046,964,000 | |||||||||||||||||
Troy, Ohio | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage bearing fixed interest, percentage rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||||||||
Ocala, Florida | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage bearing fixed interest, percentage rate | 5.60% | 5.60% | 5.60% | 5.60% | 5.60% | |||||||||||||||
Number of option to extend | renewalOption | 2 | |||||||||||||||||||
Lease renewal term | 5 years | 5 years | 5 years | 5 years | 5 years | |||||||||||||||
Revolver due 2025 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 400,000 | $ 350,000,000 | ||||||||||||||||||
Maximum borrowing capacity, accordion feature | 100,000,000 | |||||||||||||||||||
Maximum percentage of equity interest of subsidiaries borrowings guaranteed | 65.00% | |||||||||||||||||||
Long-term line of credit | $ 20,622,000 | $ 20,622,000 | ||||||||||||||||||
Outstanding standby letters of credit | 16,310,000 | 16,310,000 | ||||||||||||||||||
Remaining borrowing capacity | 363,068,000 | $ 363,068,000 | ||||||||||||||||||
Revolver due 2025 | Base Rate | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||||||||
Revolver due 2025 | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||||||||
Term Loan | Northcote Holdings Pty. Ltd | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Face amount | $ 29,625,000 | |||||||||||||||||||
Basis spread on variable rate | 1.95% | |||||||||||||||||||
Long-term line of credit | $ 10,192,000 | $ 10,192,000 | $ 13,375,000 | $ 18,375,000 | $ 23,375,000 | |||||||||||||||
Debt instrument, periodic payment, principal | $ 1,250,000 | |||||||||||||||||||
Periodic payment terms, balloon payment to be paid | 9,625,000 | |||||||||||||||||||
Debt instrument, interest rate, effective percentage | 2.01% | 2.01% | 2.01% | 2.01% | 2.01% | |||||||||||||||
Term loan balance change | $ 5,000,000 | |||||||||||||||||||
Term Loan | Ames UK | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Face amount | £ | £ 14,000,000 | |||||||||||||||||||
Debt instrument, periodic payment, principal | £ | 438,000 | |||||||||||||||||||
Periodic payment terms, balloon payment to be paid | £ | £ 7,088,000 | |||||||||||||||||||
Mortgages | London Interbank Offered Rate (LIBOR) | Ames UK | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 1.80% | |||||||||||||||||||
Revolving Credit Facility | Northcote Holdings Pty. Ltd | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Face amount | $ 20,000,000 | |||||||||||||||||||
Basis spread on variable rate | 1.90% | |||||||||||||||||||
Mortgage loan balance | $ 0 | $ 0 | ||||||||||||||||||
Debt instrument, interest rate, effective percentage | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | |||||||||||||||
Revolving Credit Facility | Ames UK | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Face amount | £ | £ 5,000,000 | |||||||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||||||||
Mortgage loan balance | $ 4,405,000 | $ 4,405,000 | £ 3,204,000 | |||||||||||||||||
Interest rate at period end | 1.60% | 1.60% | 1.60% | 1.60% | 1.60% | |||||||||||||||
Long-term line of credit, revolver outstanding balance | $ 0 | $ 0 | ||||||||||||||||||
Term and Mortgage Loans | Ames UK | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Mortgage loan balance | 19,678,000 | 19,678,000 | £ 14,313,000 | |||||||||||||||||
Letter of Credit Subfacility | Revolver due 2025 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | 100,000,000 | |||||||||||||||||||
Multicurrency Subfacility | Revolver due 2025 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||||||||||||||
Receivables Purchase Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Mortgage loan balance | $ 0 | $ 0 | ||||||||||||||||||
Receivables Purchase Facility | Northcote Holdings Pty. Ltd | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Face amount | $ 10,000,000 | |||||||||||||||||||
Basis spread on variable rate | 1.35% | |||||||||||||||||||
Mortgage loan balance | $ 15,000,000 | $ 10,000,000 | ||||||||||||||||||
Debt instrument, interest rate, effective percentage | 1.41% | 1.41% | 1.41% | 1.41% | 1.41% | |||||||||||||||
Increase in receivables purchase line | $ (5,000,000) | |||||||||||||||||||
Senior notes due 2028 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Face amount | $ 150,000,000 | $ 850,000,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | |||||||||||
Debt instrument, issuance price (in percentage) | 100.25% | |||||||||||||||||||
Debt outstanding | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||||||||
Capitalized fees and expenses | 16,448,000 | 16,448,000 | ||||||||||||||||||
Mortgage loan balance | 986,010,000 | 986,010,000 | 984,987,000 | |||||||||||||||||
Senior notes due 2028 | Fair Value, Inputs, Level 1 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Senior note, fair value disclosure | 1,060,000,000 | 1,060,000,000 | ||||||||||||||||||
Senior notes due 2022 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.25% | |||||||||||||||||||
Debt redeemed | $ 1,000,000,000 | |||||||||||||||||||
Loss from debt extinguishment | 7,925,000 | |||||||||||||||||||
Write off of debt issuance costs | 6,725,000 | |||||||||||||||||||
Tender offer net premium expense | 607,000 | |||||||||||||||||||
Redemption interest expense | 593,000 | |||||||||||||||||||
Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt outstanding | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||
ESOP Loans | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Mortgage loan balance | 28,608,000 | 28,608,000 | ||||||||||||||||||
Debt instrument, periodic payment, principal | $ 635,000 | |||||||||||||||||||
ESOP Loans | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 2.91% | |||||||||||||||||||
Non US lines of credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt outstanding | 4,405,000 | $ 4,405,000 | 0 | |||||||||||||||||
Remaining borrowing capacity | 11,894,000 | 11,894,000 | $ 15,000 | |||||||||||||||||
Mortgage loan balance | $ 4,381,000 | 4,381,000 | $ (30,000) | |||||||||||||||||
Proceeds from long-term lines of credit | $ 15,000 | $ 11,894,000 | ||||||||||||||||||
Non US lines of credit | LIBOR Rate | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate at period end | 1.41% | 1.41% | 1.41% | 1.41% | 1.41% | |||||||||||||||
Non US lines of credit | Bankers Acceptance Rate | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate at period end | 1.47% | 1.47% | 1.47% | 1.47% | 1.47% | |||||||||||||||
Mortgages | Ames UK | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Face amount | £ | £ 4,000,000 | |||||||||||||||||||
Interest rate at period end | 1.85% | 1.85% | 1.85% | 1.85% | 1.85% | |||||||||||||||
Debt instrument, periodic payment, principal | £ | 105,000 | |||||||||||||||||||
Periodic payment terms, balloon payment to be paid | £ | £ 2,349,000 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) | Apr. 29, 2021$ / shares | Jan. 30, 2020shares | Mar. 31, 2021USD ($)executive$ / sharesshares | Dec. 31, 2020USD ($)executive$ / sharesshares | Sep. 30, 2020$ / shares | Jun. 30, 2020$ / shares | Mar. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020$ / shares | Sep. 30, 2020$ / shares | Aug. 01, 2018USD ($) | Jan. 31, 2018shares | Aug. 03, 2016USD ($) |
Class of Stock [Line Items] | ||||||||||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ / shares | $ 0.08 | $ 0.075 | $ 0.16 | $ 0.15 | ||||||||||
Stock repurchase program, authorized amount | $ | $ 50,000,000 | $ 50,000,000 | ||||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 57,955,000 | $ 57,955,000 | ||||||||||||
Shares paid for tax withholding for share based compensation, value | $ | $ 0 | |||||||||||||
Restricted Stock and Restricted Stock Units | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Equity instruments other than options, grants in period (in shares) | 511,624 | |||||||||||||
Restricted Stock and Restricted Stock Units, Subject to Performance Conditions | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 3 years | |||||||||||||
Equity instruments other than options, grants in period (in shares) | 226,811 | |||||||||||||
Equity instruments other than options, granted in period, fair value | $ | $ 5,500,000 | |||||||||||||
Equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 24.25 | |||||||||||||
Restricted Stock and Restricted Stock Units, Subject to Performance Conditions | Executive Officer | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Equity instruments other than options, grants in period (in shares) | 203,282 | |||||||||||||
Equity instruments other than options, granted in period, fair value | $ | $ 4,923,000 | |||||||||||||
Equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 24.22 | |||||||||||||
Number of executive officers granted shares | executive | 4 | |||||||||||||
Restricted Stock and Restricted Stock Units, Subject to Performance Conditions | Senior Executives | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 4 years | |||||||||||||
Equity instruments other than options, grants in period (in shares) | 528,000 | |||||||||||||
Number of executive officers granted shares | executive | 2 | |||||||||||||
Award post-vesting holding period | 2 years | |||||||||||||
Restricted Stock and Restricted Stock Units, Subject to Performance Conditions | Minimum | Executive Officer | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 34 months | |||||||||||||
Restricted Stock and Restricted Stock Units, Subject to Performance Conditions | Maximum | Executive Officer | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 60 months | |||||||||||||
Restricted Stock and Restricted Stock Units, Not Subject to Performance Conditions | Executive Officer | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 3 years | |||||||||||||
Equity instruments other than options, grants in period (in shares) | 284,813 | |||||||||||||
Equity instruments other than options, granted in period, fair value | $ | $ 5,913,000 | |||||||||||||
Equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.76 | |||||||||||||
Number of executive officers granted shares | executive | 5 | |||||||||||||
Restricted Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Equity instruments other than options, grants in period (in shares) | 731,282 | |||||||||||||
Equity instruments other than options, granted in period, fair value | $ | $ 7,824,000 | |||||||||||||
Equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.82 | |||||||||||||
Shares paid for tax withholding for share based compensation (in shares) | 133,027 | |||||||||||||
Shares paid for tax withholding for share based compensation, value | $ | $ 2,774,000 | |||||||||||||
Shares paid for tax withholding for share based compensation, value per share (in dollars per share) | $ / shares | $ 20.85 | |||||||||||||
Restricted Stock | Non-employees, directors | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 3 years | |||||||||||||
Equity instruments other than options, grants in period (in shares) | 44,424 | |||||||||||||
Equity instruments other than options, granted in period, fair value | $ | $ 1,080,000 | |||||||||||||
Equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 24.31 | |||||||||||||
Restricted Stock | Executive Officer | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of executive officers granted shares | executive | 6 | |||||||||||||
Restricted Stock | Minimum | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 3 years | |||||||||||||
Number of shares vested in period | 384,000 | |||||||||||||
Restricted Stock | Maximum | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 4 years | |||||||||||||
Number of shares vested in period | 528,000 | |||||||||||||
Restricted Stock Units | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Shares paid for tax withholding for share based compensation (in shares) | 6,507 | |||||||||||||
Shares paid for tax withholding for share based compensation, value | $ | $ 135,000 | |||||||||||||
Shares paid for tax withholding for share based compensation, value per share (in dollars per share) | $ / shares | $ 20.75 | |||||||||||||
Incentive Plan | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of shares authorized for award (in shares) | 5,050,000 | 5,050,000 | 1,000,000 | |||||||||||
Number of additional shares authorized for award (in shares) | 1,700,000 | |||||||||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |||||||||||||
Maximum percentage of exercise price at grant date fair value | 100.00% | |||||||||||||
Number of shares available for grant (in shares) | 437,276 | 437,276 | ||||||||||||
Incentive Plan | Incentive Stock Options | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of shares authorized for award (in shares) | 600,000 | 600,000 | ||||||||||||
Quarterly Dividend | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ / shares | $ 0.08 | $ 0.08 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.16 | $ 0.30 | ||||||
Quarterly Dividend | Subsequent Event | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Dividends declared, amount per share (in dollars per share) | $ / shares | $ 0.08 |
SHAREHOLDERS' EQUITY SHAREHOL_2
SHAREHOLDERS' EQUITY SHAREHOLDERS EQUITY - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | ||||
Restricted stock | $ 4,349 | $ 3,662 | $ 7,777 | $ 6,812 |
ESOP | 944 | 658 | 1,724 | 1,490 |
Total stock based compensation | $ 5,293 | $ 4,320 | $ 9,501 | $ 8,302 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Common shares outstanding (in shares) | 56,684 | 47,431 | 56,684 | 47,431 |
Unallocated ESOP shares (in shares) | (1,961) | (2,159) | (1,961) | (2,159) |
Non-vested restricted stock (in shares) | (3,822) | (3,562) | (3,822) | (3,562) |
Impact of weighted average shares (in shares) | (63) | (145) | (184) | (341) |
Weighted average shares outstanding - basic (in shares) | 50,838 | 41,565 | 50,717 | 41,369 |
Incremental shares from stock based compensation (in shares) | 2,426 | 2,169 | 2,494 | 2,457 |
Weighted average shares outstanding - diluted (in shares) | 53,264 | 43,734 | 53,211 | 43,826 |
BUSINESS SEGMENTS - Revenues (D
BUSINESS SEGMENTS - Revenues (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Revenue | $ 634,832 | $ 566,350 | $ 1,244,123 | $ 1,114,788 |
Consumer and Professional Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 331,871 | 274,912 | 622,913 | 515,988 |
Home and Building Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 242,811 | 209,829 | 493,292 | 451,210 |
Defense Electronics | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 60,150 | $ 81,609 | $ 127,918 | $ 147,590 |
BUSINESS SEGMENTS - Disaggregat
BUSINESS SEGMENTS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 634,832 | $ 566,350 | $ 1,244,123 | $ 1,114,788 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 470,489 | 445,543 | 937,840 | 878,794 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,797 | 34,622 | 64,858 | 47,235 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,500 | 29,591 | 68,932 | 61,199 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 63,813 | 39,221 | 133,672 | 94,055 |
All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,233 | 17,373 | 38,821 | 33,505 |
Consumer and Professional Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 331,871 | 274,912 | 622,913 | 515,988 |
Consumer and Professional Products | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 205,368 | 191,412 | 388,810 | 351,570 |
Consumer and Professional Products | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 38,965 | 24,737 | 52,121 | 31,342 |
Consumer and Professional Products | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,778 | 17,515 | 43,893 | 35,296 |
Consumer and Professional Products | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 63,691 | 39,032 | 133,231 | 93,260 |
Consumer and Professional Products | All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,069 | 2,216 | 4,858 | 4,520 |
Consumer and Professional Products | Residential repair and remodel | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 50,560 | 40,505 | 96,160 | 75,595 |
Consumer and Professional Products | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 153,746 | 144,904 | 292,994 | 264,524 |
Consumer and Professional Products | Residential new construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,540 | 14,884 | 28,055 | 29,857 |
Consumer and Professional Products | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,958 | 10,535 | 19,489 | 21,158 |
Consumer and Professional Products | International excluding North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 103,067 | 64,084 | 186,215 | 124,854 |
Home and Building Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 242,811 | 209,829 | 493,292 | 451,210 |
Home and Building Products | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 230,955 | 199,060 | 467,486 | 426,010 |
Home and Building Products | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 41 | 5 | 41 | 28 |
Home and Building Products | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,797 | 7,867 | 21,285 | 19,120 |
Home and Building Products | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Home and Building Products | All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,018 | 2,897 | 4,480 | 6,052 |
Home and Building Products | Residential repair and remodel | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 120,827 | 100,808 | 246,942 | 222,805 |
Home and Building Products | Residential new construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,233 | 22,721 | 55,660 | 50,218 |
Home and Building Products | Commercial construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 94,751 | 86,300 | 190,690 | 178,187 |
Defense Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 60,150 | 81,609 | 127,918 | 147,590 |
Defense Electronics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 34,166 | 55,071 | 81,544 | 101,214 |
Defense Electronics | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,791 | 9,880 | 12,696 | 15,865 |
Defense Electronics | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,925 | 4,209 | 3,754 | 6,783 |
Defense Electronics | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 122 | 189 | 441 | 795 |
Defense Electronics | All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18,146 | 12,260 | 29,483 | 22,933 |
Defense Electronics | U.S. Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 35,045 | 53,623 | 82,369 | 96,324 |
Defense Electronics | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,497 | 25,021 | 38,392 | 43,554 |
Defense Electronics | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,608 | $ 2,965 | $ 7,157 | $ 7,712 |
BUSINESS SEGMENTS - Segment EBI
BUSINESS SEGMENTS - Segment EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 67,781 | $ 47,963 | $ 142,421 | $ 103,123 |
Depreciation and amortization | (15,883) | (15,719) | (31,149) | (31,544) |
Loss from debt extinguishment, net | 0 | (6,690) | 0 | (6,690) |
Income before taxes | 27,860 | 2,929 | 67,029 | 19,880 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 79,703 | 59,910 | 166,370 | 127,012 |
Depreciation and amortization | (15,733) | (15,566) | (30,949) | (31,241) |
Operating Segments | Consumer and Professional Products | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 37,423 | 25,027 | 70,136 | 46,953 |
Depreciation and amortization | (8,620) | (8,222) | (16,819) | (16,453) |
Operating Segments | Home and Building Products | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 40,060 | 30,635 | 88,429 | 71,336 |
Depreciation and amortization | (4,379) | (4,668) | (8,720) | (9,468) |
Operating Segments | Defense Electronics | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 2,220 | 4,248 | 7,805 | 8,723 |
Depreciation and amortization | (2,734) | (2,676) | (5,410) | (5,320) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated Expenses | (11,922) | (11,947) | (23,949) | (23,889) |
Net interest expense | (15,527) | (16,561) | (31,172) | (32,511) |
Depreciation and amortization | (15,883) | (15,719) | (31,149) | (31,544) |
Loss from debt extinguishment, net | 0 | (6,690) | 0 | (6,690) |
Restructuring charges | (7,562) | (3,104) | (18,362) | (9,538) |
Acquisition costs | 0 | 2,960 | 0 | 2,960 |
Gain (adjustment) on sale of SEG business | $ (949) | $ 0 | $ 5,291 | $ 0 |
BUSINESS SEGMENTS - Depreciatio
BUSINESS SEGMENTS - Depreciation, Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
DEPRECIATION and AMORTIZATION | $ 15,883 | $ 15,719 | $ 31,149 | $ 31,544 |
CAPITAL EXPENDITURES | 12,060 | 9,347 | 23,986 | 22,519 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION and AMORTIZATION | 15,733 | 15,566 | 30,949 | 31,241 |
CAPITAL EXPENDITURES | 12,058 | 9,277 | 23,984 | 22,237 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION and AMORTIZATION | 150 | 153 | 200 | 303 |
CAPITAL EXPENDITURES | 2 | 70 | 2 | 282 |
Consumer and Professional Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION and AMORTIZATION | 8,620 | 8,222 | 16,819 | 16,453 |
CAPITAL EXPENDITURES | 6,813 | 3,800 | 13,720 | 7,532 |
Home and Building Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION and AMORTIZATION | 4,379 | 4,668 | 8,720 | 9,468 |
CAPITAL EXPENDITURES | 1,998 | 3,556 | 4,113 | 11,495 |
Defense Electronics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION and AMORTIZATION | 2,734 | 2,676 | 5,410 | 5,320 |
CAPITAL EXPENDITURES | $ 3,247 | $ 1,921 | $ 6,151 | $ 3,210 |
BUSINESS SEGMENTS - Summary of
BUSINESS SEGMENTS - Summary of Segment Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Continuing assets | $ 2,517,460 | $ 2,439,942 |
Assets of discontinued operations | 6,820 | 8,497 |
Total Assets | 2,524,280 | 2,448,439 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Continuing assets | 2,300,889 | 2,191,040 |
Operating Segments | Consumer and Professional Products | ||
Segment Reporting Information [Line Items] | ||
Continuing assets | 1,408,545 | 1,255,127 |
Operating Segments | Home and Building Products | ||
Segment Reporting Information [Line Items] | ||
Continuing assets | 604,325 | 606,785 |
Operating Segments | Defense Electronics | ||
Segment Reporting Information [Line Items] | ||
Continuing assets | 288,019 | 329,128 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Continuing assets | $ 216,571 | $ 248,902 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||||
Interest cost | $ 745 | $ 1,151 | $ 1,489 | $ 2,302 |
Expected return on plan assets | (2,545) | (2,586) | (5,089) | (5,172) |
Amortization: | ||||
Prior service cost | 0 | 4 | 0 | 8 |
Recognized actuarial loss | 1,573 | 1,042 | 3,146 | 2,084 |
Net periodic expense (income) | $ (227) | $ (389) | $ (454) | $ (778) |
DISCONTINUED OPERATIONS - Balan
DISCONTINUED OPERATIONS - Balance Sheets Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Assets of discontinued operations: | ||
Prepaid and other current assets | $ 1,525 | $ 2,091 |
Other long-term assets | 5,295 | 6,406 |
Total assets of discontinued operations | 6,820 | 8,497 |
Liabilities of discontinued operations: | ||
Accrued liabilities, current | 4,600 | 3,797 |
Other long-term liabilities | 6,415 | 7,014 |
Total liabilities of discontinued operations | $ 11,015 | $ 10,811 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) $ in Thousands | Nov. 12, 2020USD ($) | Sep. 30, 2020USD ($)position | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)position | Mar. 31, 2020USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 7,562 | $ 3,104 | $ 18,362 | $ 9,538 | ||||
Non-cash charges | 2,497 | $ 5,794 | ||||||
Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 7,502 | 3,104 | 10,581 | 9,538 | ||||
Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | 7,891 | 4,846 | ||||||
Non-cash charges | $ 2,690 | 4,692 | ||||||
Impairment charge, operating lease | 1,968 | |||||||
Impairment charge, leasehold improvements | 671 | |||||||
Inventory write down | 304 | |||||||
Impairment charge, manufacturing assets | 1,749 | |||||||
Reduction of headcount | position | 65 | |||||||
Voluntary Employee Retirement Plan | Defense Electronics | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related cost, expected cost | $ 4,300 | $ 4,300 | ||||||
Restructuring charges | $ 2,120 | $ 2,180 | ||||||
Reduction of headcount | position | 90 | |||||||
Exit of Older Weather Radar Product Lines | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Business exit costs | 5,601 | |||||||
Minimum | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Annual cash savings | $ 30,000 | |||||||
Reduction in inventory | 30,000 | |||||||
Maximum | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Annual cash savings | 35,000 | |||||||
Reduction in inventory | 35,000 | |||||||
One-time charges | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related cost, expected cost | 65,000 | |||||||
Capital investments | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related cost, expected cost | 65,000 | |||||||
Cash charges | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related cost, expected cost | 46,000 | |||||||
Personnel related costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 782 | 1,658 | 3,264 | 3,792 | ||||
Non-cash charges | 0 | 0 | ||||||
Personnel related costs | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related cost, expected cost | 26,000 | |||||||
Restructuring costs | 1,084 | 3,792 | ||||||
Facilities, exit costs and other | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 4,283 | $ 914 | 6,807 | 1,054 | ||||
Non-cash charges | $ 0 | $ 0 | ||||||
Facilities, exit costs and other | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related cost, expected cost | 20,000 | |||||||
Restructuring costs | $ 6,807 | $ 1,054 | ||||||
Asset write-downs | Next-generation Business Platform | Consumer and Professional Products | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related cost, expected cost | $ 19,000 |
RESTRUCTURING CHARGES - Summary
RESTRUCTURING CHARGES - Summary of the Restructuring and Other Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 7,562 | $ 3,104 | $ 18,362 | $ 9,538 |
Personnel related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 782 | 1,658 | 3,264 | 3,792 |
Facilities, exit costs and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4,283 | 914 | 6,807 | 1,054 |
Non-cash facility and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,497 | 532 | 8,291 | 4,692 |
Cost of goods and services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3,337 | 1,353 | 9,762 | 4,076 |
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 4,225 | $ 1,751 | $ 8,600 | $ 5,462 |
RESTRUCTURING CHARGES - Summa_2
RESTRUCTURING CHARGES - Summary of Accrued Liability for the Restructuring and Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Accrued liability beginning balance | $ 3,839 | $ 2,965 | $ 2,965 |
Restructuring charges | 7,562 | 10,800 | |
Cash payment | (8,113) | (4,132) | |
Non-cash charges | (2,497) | (5,794) | |
Accrued liability ending balance | 791 | 3,839 | 791 |
Personnel related costs | |||
Restructuring Reserve [Roll Forward] | |||
Accrued liability beginning balance | 3,585 | 2,701 | 2,701 |
Restructuring charges | 782 | 2,482 | |
Cash payment | (3,840) | (1,598) | |
Non-cash charges | 0 | 0 | |
Accrued liability ending balance | 527 | 3,585 | 527 |
Facilities, exit costs and other | |||
Restructuring Reserve [Roll Forward] | |||
Accrued liability beginning balance | 254 | 264 | 264 |
Restructuring charges | 4,283 | 2,524 | |
Cash payment | (4,273) | (2,534) | |
Non-cash charges | 0 | 0 | |
Accrued liability ending balance | 264 | 254 | 264 |
Facility and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accrued liability beginning balance | 0 | 0 | 0 |
Restructuring charges | 2,497 | 5,794 | |
Cash payment | 0 | 0 | |
Non-cash charges | (2,497) | (5,794) | |
Accrued liability ending balance | $ 0 | $ 0 | $ 0 |
OTHER INCOME (EXPENSE) (Details
OTHER INCOME (EXPENSE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | ||||
Other income (expense) | $ 847 | $ 615 | $ 806 | $ 1,393 |
Foreign currency transaction gain (loss), before tax | 320 | 745 | (379) | 369 |
Net periodic benefit income | 227 | 389 | 454 | 778 |
Investment income, net | $ 55 | $ (230) | 386 | $ (149) |
Technology recognition award | $ 700 |
WARRANTY LIABILITY - Narrative
WARRANTY LIABILITY - Narrative (Details) | 6 Months Ended |
Mar. 31, 2021 | |
DE | Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty period | 1 year |
DE | Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty period | 2 years |
HBP | Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty period | 1 year |
HBP | Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty period | 10 years |
CPP | |
Product Warranty Liability [Line Items] | |
Product warranty period | 90 days |
WARRANTY LIABILITY - Changes in
WARRANTY LIABILITY - Changes in Warrant Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Balance, beginning of period | $ 10,834 | $ 7,344 | $ 10,843 | $ 7,894 |
Warranties issued and changes in estimated pre-existing warranties | 6,477 | 4,862 | 11,216 | 8,227 |
Actual warranty costs incurred | (4,633) | (4,417) | (9,381) | (8,332) |
Balance, end of period | $ 12,678 | $ 7,789 | $ 12,678 | $ 7,789 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Summary of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total other comprehensive income (loss), pre-tax | $ 5,883 | $ (14,241) | $ 19,173 | $ (7,354) | ||
Total other comprehensive income (loss), tax | (1,108) | (593) | (1,257) | (639) | ||
Total other comprehensive income (loss), net of taxes | 4,775 | $ 13,141 | (14,834) | $ 6,841 | 17,916 | (7,993) |
Foreign currency translation adjustments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total other comprehensive income (loss), pre-tax | 1,739 | (16,471) | 13,862 | (10,001) | ||
Total other comprehensive income (loss), tax | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of taxes | 1,739 | (16,471) | 13,862 | (10,001) | ||
Pension and other defined benefit plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total other comprehensive income (loss), pre-tax | 1,585 | 847 | 3,735 | 1,694 | ||
Total other comprehensive income (loss), tax | (340) | (178) | (784) | (353) | ||
Total other comprehensive income (loss), net of taxes | 1,245 | 669 | 2,951 | 1,341 | ||
Cash flow hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total other comprehensive income (loss), pre-tax | 2,559 | 1,383 | 1,576 | 953 | ||
Total other comprehensive income (loss), tax | (768) | (415) | (473) | (286) | ||
Total other comprehensive income (loss), net of taxes | $ 1,791 | $ 968 | $ 1,103 | $ 667 |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - AOCI (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Class of Stock [Line Items] | ||||||
Accumulated other comprehensive income (loss) | $ 764,431 | $ 740,047 | $ 700,151 | $ 476,454 | $ 494,693 | $ 477,763 |
Foreign currency translation adjustments | ||||||
Class of Stock [Line Items] | ||||||
Accumulated other comprehensive income (loss) | (11,821) | (25,683) | ||||
Pension and other defined benefit plans | ||||||
Class of Stock [Line Items] | ||||||
Accumulated other comprehensive income (loss) | (43,647) | (46,598) | ||||
Cash flow hedges | ||||||
Class of Stock [Line Items] | ||||||
Accumulated other comprehensive income (loss) | 1,292 | 189 | ||||
Accumulated other comprehensive income (loss), attributable to parent | ||||||
Class of Stock [Line Items] | ||||||
Accumulated other comprehensive income (loss) | $ (54,176) | $ (58,951) | $ (72,092) | $ (73,909) | $ (59,075) | $ (65,916) |
OTHER COMPREHENSIVE INCOME (L_5
OTHER COMPREHENSIVE INCOME (LOSS) - Amounts Reclassified from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total gain (loss) | $ 27,860 | $ 2,929 | $ 67,029 | $ 19,880 | ||
Tax benefit (expense) | (10,748) | (2,034) | (20,417) | (8,373) | ||
Net income | 17,112 | $ 29,500 | 895 | $ 10,612 | 46,612 | 11,507 |
Pension and other defined benefit plans | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total gain (loss) | (1,573) | (1,046) | (3,146) | (2,092) | ||
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total gain (loss) | (1,741) | 1,050 | (2,399) | 994 | ||
Accumulated other comprehensive income (loss), attributable to parent | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total gain (loss) | (3,314) | 4 | (5,545) | (1,098) | ||
Tax benefit (expense) | 696 | (1) | 1,165 | 231 | ||
Net income | $ (2,618) | $ 3 | $ (4,380) | $ (867) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021USD ($)renewalOption | Sep. 30, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Long-term debt | $ | $ 1,058,772 | $ 1,046,964 |
Finance Lease Obligation | ||
Lessee, Lease, Description [Line Items] | ||
Long-term debt | $ | $ 15,907 | $ 17,188 |
Troy, Ohio | ||
Lessee, Lease, Description [Line Items] | ||
Percentage bearing fixed interest, percentage rate | 5.00% | |
Troy, Ohio | Finance Lease Obligation | ||
Lessee, Lease, Description [Line Items] | ||
Percentage bearing fixed interest, percentage rate | 5.00% | |
Ocala, Florida | ||
Lessee, Lease, Description [Line Items] | ||
Percentage bearing fixed interest, percentage rate | 5.60% | |
Number of option to extend | renewalOption | 2 | |
Lease renewal term | 5 years | |
Ocala, Florida | Finance Lease Obligation | ||
Lessee, Lease, Description [Line Items] | ||
Percentage bearing fixed interest, percentage rate | 5.60% | |
Number of option to extend | renewalOption | 2 |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Lease Cost | ||||
Fixed | $ 9,970 | $ 9,187 | $ 20,010 | $ 18,739 |
Variable | 2,087 | 1,823 | 4,134 | 3,576 |
Short-term | 1,053 | 1,393 | 2,167 | 2,823 |
Total | $ 13,110 | $ 12,403 | $ 26,311 | $ 25,138 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 22,099 | $ 21,582 |
Financing cash flows from finance leases | 1,865 | 1,940 |
Total | $ 23,964 | $ 23,522 |
LEASES - Summary of Supplementa
LEASES - Summary of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Operating Leases: | ||
Operating right-of-use assets | $ 154,929 | $ 161,627 |
Lease Liabilities: | ||
Current portion of operating lease liabilities | 30,685 | 31,848 |
Long-term operating lease liabilities | 128,714 | 136,054 |
Total operating lease liabilities | 159,399 | 167,902 |
Finance Leases: | ||
Property, plant and equipment, net | $ 18,068 | $ 18,774 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | PROPERTY, PLANT AND EQUIPMENT, net | PROPERTY, PLANT AND EQUIPMENT, net |
Lease Liabilities: | ||
Lease liabilities, notes payable and current portion of long-term debt | $ 3,110 | $ 3,352 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Notes payable and current portion of long-term debt | Notes payable and current portion of long-term debt |
Lease liabilities, long-term debt, net | $ 14,950 | $ 15,339 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent |
Total financing lease liabilities | $ 18,060 | $ 18,691 |
Accumulated depreciation | $ 4,296 | $ 2,383 |
LEASES - Summary of Future Matu
LEASES - Summary of Future Maturities of Lease Payments for Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Operating Leases | ||
2020 | $ 19,128 | |
2021 | 34,484 | |
2022 | 26,884 | |
2023 | 20,180 | |
2024 | 18,214 | |
2025 | 12,376 | |
Thereafter | 63,859 | |
Total lease payments | 195,125 | |
Less: Imputed Interest | (35,726) | |
Present value of lease liabilities | 159,399 | $ 167,902 |
Finance Leases | ||
2021 | 2,381 | |
2021 | 3,087 | |
2022 | 2,749 | |
2023 | 2,195 | |
2024 | 2,077 | |
2025 | 2,075 | |
Thereafter | 7,777 | |
Total lease payments | 22,341 | |
Less: Imputed Interest | (4,281) | |
Present value of lease liabilities | $ 18,060 | $ 18,691 |
LEASES - Weighted Average Lease
LEASES - Weighted Average Lease Terms and Discount Rates (Details) | Mar. 31, 2021 |
Weighted-average remaining lease term (years) | |
Operating leases | 8 years 1 month 6 days |
Finance Leases | 8 years 2 months 12 days |
Weighted-average discount rate | |
Operating Leases | 4.45% |
Finance Leases | 5.50% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Apr. 30, 2009USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Net capital cost value in proposed remedial action plan | $ 10,000 |