GRIFFON CORPGFF
GRIFFON CORP Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLES
Goodwill at September 30, 2025 and 2024 was $192,917 and $329,393, respectively.
During the third quarter of fiscal 2025, indicators of goodwill impairment were present for the Hunter Fan reporting unit within the CPP reportable segment, driven by a decrease in year-to-date and forecasted sales and operating results primarily due to ongoing weak consumer demand coupled with the impact of increased tariffs disrupting historical customer ordering patterns. As such, we performed a quantitative assessment of the Hunter Fan reporting unit goodwill using both an income-based and market-based valuation approach. This impairment test resulted in a pre-tax, non-cash goodwill impairment charge of $136,612, representing the remaining goodwill of the Hunter Fan reporting unit. In connection with the preparation of our financial statements for the fiscal year ended September 30, 2025, Griffon performed a qualitative assessment of the CPP reporting units and determined that indicators that fair value was less than the carrying amount were not present. For the fiscal years ended September 30, 2024 and 2023, the Company performed a quantitative assessment of the CPP reporting units using both an income-based and market-based approach, which did not result in a goodwill impairment.
For the HBP reporting unit, we performed a qualitative assessment and determined that indicators that fair value was less than the carrying amount were not present in fiscal years 2025, 2024 and 2023.
The following table provides a summary of the carrying value of goodwill by segment as of September 30, 2025, 2024 and 2023.
| At September 30, 2023 | Goodwill from acquisitions (a) | Foreign currency translation adjustments | At September 30, 2024 | Impairment Charges | Goodwill from acquisitions (b) | Foreign currency translation adjustments | At September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Consumer and Professional Products | $ | 136,611 | $ | 1,483 | $ | 46 | $ | 138,140 | $ | (136,612) | $ | 230 | $ | (94) | $ | 1,664 | |||||||||||||||||||||||||||||||
| Home and Building Products | 191,253 | — | — | 191,253 | — | — | — | 191,253 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 327,864 | $ | 1,483 | $ | 46 | $ | 329,393 | $ | (136,612) | $ | 230 | $ | (94) | $ | 192,917 | |||||||||||||||||||||||||||||||
(a) The change in goodwill for the CPP segment relates to the initial purchase price allocation of the Pope acquisition in 2024.
(b) The change in goodwill for the CPP segment is due to final purchase price allocation adjustments recorded during the year ended September 30, 2025 related to the 2024 Pope acquisition.
Indicators of impairment were present for our Hunter Fan indefinite-lived intangible asset during the third quarter of fiscal 2025 due to the reasons discussed above. As such, we determined the fair value of Hunter Fan's indefinite-lived intangible asset by using a relief from royalty method, which estimates the value of a trademark by discounting to present value the hypothetical royalty payments that are saved by owning the asset rather than licensing it. We compared the estimated fair value to the carrying amount, resulting in a pre-tax, non-cash impairment charge of $107,000 to the carrying amount of Hunter Fan's trademark recorded in the third quarter of fiscal 2025. In preparation of the financial statements for the year ended September 30, 2025, Griffon performed qualitative assessments for the CPP indefinite-lived intangibles and determined that indicators that fair value was less than the carrying amount were not present. For the year ended September 30, 2024, the impairment tests did not result in impairment charges to CPP's gross carrying amount of intangible assets; however, for the year ended September 30, 2023, the impairment tests resulted in a pre-tax non-cash impairment charge of $109,200 to the gross carrying amount of our trademarks in the CPP segment.
Griffon performed qualitative assessments for the HBP indefinite-lived intangibles and determined that indicators that fair value was less than the carrying amount were not present during 2025, 2024 and 2023.
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset:
| At September 30, 2025 | At September 30, 2024 | ||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Average Life (Years) | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||||||||
Customer relationships & other | $ | 449,203 | $ | 153,507 | 17 | $ | 450,784 | $ | 134,296 | ||||||||||||||||||||
| Unpatented technology | 18,596 | 10,147 | 10 | 17,350 | 6,859 | ||||||||||||||||||||||||
| Total amortizable intangible assets | 467,799 | 163,654 | 468,134 | 141,155 | |||||||||||||||||||||||||
Trademarks | 183,969 | — | 291,803 | — | |||||||||||||||||||||||||
| Total intangible assets | $ | 651,768 | $ | 163,654 | $ | 759,937 | $ | 141,155 | |||||||||||||||||||||
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In 2025, the gross carrying amount of intangible assets was unfavorably impacted by $1,169 related to foreign currency translation.
We also evaluated our definite-lived intangible assets for potential impairment in connection with the goodwill impairment event noted above. The review did not result in any impairment charges related to definite-lived intangible assets.
Amortization expense for intangible assets subject to amortization was $23,280, $22,803 and $22,389 in 2025, 2024, and 2023, respectively. Amortization expense for each of the next five years and thereafter, based on current intangible balances and classifications, is estimated as follows: 2026 - $23,600; 2027 - $23,600; 2028 - $23,600; 2029 - $23,500 and 2030 - $23,300; thereafter - $186,545.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 19, 2025 | Showing above |
| 2024 | Nov 13, 2024 | |
| 2023 | Nov 16, 2023 | |
| 2022 | Nov 18, 2022 | |
| 2021 | Nov 17, 2021 | |
| 2020 | Nov 13, 2020 | |
| 2019 | Nov 22, 2019 | |
| 2018 | Nov 19, 2018 | |
| 2017 | Nov 20, 2017 | |
| 2016 | Nov 17, 2016 | |
| 2015 | Nov 12, 2015 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.