Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 16, 2015 | Mar. 27, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SMG | ||
Entity Registrant Name | SCOTTS MIRACLE-GRO CO | ||
Entity Central Index Key | 825,542 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 61,512,876 | ||
Entity Public Float | $ 2,955,960,511 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 483.2 | $ 1,214.8 | $ 1,102.3 | $ 216.2 | $ 454.3 | $ 1,116.4 | $ 1,081 | $ 189.6 | $ 3,016.5 | $ 2,841.3 | $ 2,773.7 |
Cost of sales | 1,945 | 1,809.9 | 1,793.3 | ||||||||
Cost of sales-impairment, restructuring and other | 6.6 | 0 | 2.2 | ||||||||
Gross profit | 153.1 | 449.2 | 433.3 | 29.3 | 140.4 | 423.3 | 433.8 | 33.9 | 1,064.9 | 1,031.4 | 978.2 |
Operating expenses: | |||||||||||
Selling, general and administrative | 698.4 | 680.5 | 659.6 | ||||||||
Impairment, restructuring and other | 0.9 | 6.6 | 5.1 | 9.6 | 5.4 | 5.5 | 4.1 | 0.3 | 78 | 51 | 18.1 |
Other income, net | (6.1) | (14.7) | (10) | ||||||||
Income from operations | 294.6 | 314.6 | 310.5 | ||||||||
Costs related to refinancing | 10.7 | 0 | 10.7 | 0 | |||||||
Interest expense | 50.5 | 47.3 | 59.2 | ||||||||
Income from continuing operations before income taxes | 244.1 | 256.6 | 251.3 | ||||||||
Income from continuing operations before income taxes | 244.1 | 256.6 | 251.3 | ||||||||
Income tax expense from continuing operations | 85.4 | 91.2 | 91.9 | ||||||||
Income from continuing operations | 158.7 | 165.4 | 159.4 | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | (0.3) | 1 | 0 | 0.1 | 0 | 0.8 | 1.7 |
Net income | (24.6) | 133 | 124.3 | (74) | (15.5) | 121.7 | 125.7 | (65.7) | 158.7 | 166.2 | 161.1 |
Net loss attributable to noncontrolling interest | 1.1 | 0.3 | 0 | ||||||||
Net income attributable to controlling interest | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | $ (15.2) | $ 121.7 | $ 125.7 | $ (65.7) | $ 159.8 | $ 166.5 | $ 161.1 |
Basic income per common share: | |||||||||||
Income from continuing operations | $ (0.38) | $ 2.18 | $ 2.05 | $ (1.23) | $ (0.24) | $ 1.97 | $ 2.03 | $ (1.06) | $ 2.62 | $ 2.69 | $ 2.58 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0 | 0.01 | 0.03 |
Basic net income per common share | (0.38) | 2.18 | 2.05 | (1.23) | (0.24) | 1.99 | 2.03 | (1.06) | 2.62 | 2.70 | 2.61 |
Diluted income per common share: | |||||||||||
Income from continuing operations | (0.38) | 2.14 | 2.01 | (1.23) | (0.24) | 1.93 | 2 | (1.06) | 2.57 | 2.64 | 2.55 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0 | 0.01 | 0.02 |
Diluted net income per common share | $ (0.38) | $ 2.14 | $ 2.01 | $ 1.23 | $ (0.24) | $ 1.95 | $ 2 | $ (1.06) | $ 2.57 | $ 2.65 | $ 2.57 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net income | $ 158.7 | $ 166.2 | $ 161.1 |
Net foreign currency translation adjustment | (14.2) | (8.2) | (5.2) |
Net unrealized losses on derivative instruments, net of tax of $5.3, $3.0 and $2.1 for fiscal 2015, fiscal 2014 and fiscal 2013, respectively | (8.6) | (4.9) | (3.3) |
Reclassification of net unrealized losses on derivatives to net income, net of tax of $4.0, $5.9 and $5.4 for fiscal 2015, fiscal 2014 and fiscal 2013, respectively | 6.5 | 9.5 | 8.4 |
Net unrealized gains (loss) in pension and other post retirement benefits, net of tax of $4.6, $4.9 and $(2.4) for fiscal 2015, fiscal 2014 and fiscal 2013, respectively | (7.4) | (7.9) | 5.8 |
Reclassification of net pension and post-retirement benefit income (loss) to net income, net of tax of $1.9, $1.9 and $2.3 for fiscal 2015, fiscal 2014 and fiscal 2013, respectively | 3.1 | 3.1 | 3.8 |
Total other comprehensive income (loss) | (20.6) | (8.4) | 9.5 |
Comprehensive income | $ 138.1 | $ 157.8 | $ 170.6 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net unrealized losses on derivative instruments, tax | $ 5.3 | $ 3 | $ 2.1 |
Reclassification of net unrealized losses on derivatives, tax | 4 | 5.9 | 5.4 |
Net unrealized gains (losses) in pension and other post retirment benefits, tax | 4.6 | 4.9 | (2.4) |
Reclassification net pension and postretirement benefit income (loss), tax | $ 1.9 | $ 1.9 | $ 2.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
OPERATING ACTIVITIES | |||
Net income | $ 158.7 | $ 166.2 | $ 161.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Impairment, restructuring and other | 4.3 | 33.7 | 16.2 |
Costs related to refinancing | 0 | 3.5 | 0 |
Share-based compensation expense | 13.2 | 11.1 | 10.3 |
Depreciation | 51.4 | 50.6 | 54.9 |
Amortization | 13.8 | 11.2 | |
Deferred taxes | 1.3 | 12.1 | 24.2 |
Loss (gain) on sale of long-lived assets | 0 | 1.1 | (2.1) |
Gain on sale of business | 0 | (1.4) | 0 |
Gain (loss) on investment of unconsolidated affiliate | 0 | (5.7) | 0.4 |
Changes in assets and liabilities, net of acquired businesses: | |||
Accounts receivable | (12.5) | (29.4) | 17.9 |
Inventories | (17.5) | (38.7) | 89 |
Prepaid and other assets | 1.8 | (3.2) | 0.3 |
Accounts payable | 6.9 | 52.6 | (5.2) |
Other current liabilities | 12.9 | (22.9) | 5.4 |
Restructuring reserves | 12.1 | 4.9 | (8.1) |
Other non-current items | (3.4) | (14.6) | (32.6) |
Other, net | 0.1 | 7.2 | (0.9) |
Net cash provided by operating activities | 246.9 | 240.9 | 342 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 5.5 | 3.7 | 3.6 |
Proceeds from sale of business, net of transaction costs | 0 | 7.2 | 0 |
Investments in property, plant and equipment | (61.7) | (87.6) | (60.1) |
Proceeds from sale and leaseback transaction | 0 | 35.1 | 0 |
Investment in unconsolidated affiliate | 0 | 0 | (4.5) |
Investment in marketing and license agreement | (300) | 0 | 0 |
Investments in acquired businesses, net of cash acquired | (180.2) | (114) | (3.2) |
Net cash used in investing activities | (536.4) | (155.6) | (64.2) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 1,836 | 1,932.8 | 1,474.8 |
Repayments under revolving and bank lines of credit and term loans | (1,458) | (1,525.3) | (1,682.1) |
Repayment of 7.25% senior notes | 0 | 200 | 0 |
Financing and issuance fees | (0.5) | (6.1) | 0 |
Dividends paid | (111.3) | (230.8) | (87.8) |
Purchase of Common Shares | (14.8) | (120) | 0 |
Payments on sellers notes | (1.5) | (0.8) | (0.8) |
Excess tax benefits from share-based payment arrangements | 4.7 | 5.9 | 2 |
Cash received from exercise of stock options | 24.3 | 20 | 13.3 |
Net cash used in financing activities | 278.9 | (124.3) | (280.6) |
Effect of exchange rate changes on cash | (7.3) | (1.5) | 0.7 |
Net decrease in cash and cash equivalents | (17.9) | (40.5) | (2.1) |
Cash and cash equivalents at beginning of year | 89.3 | 129.8 | 131.9 |
Cash and cash equivalents at end of year | 71.4 | 89.3 | 129.8 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Interest paid | (47.6) | (46.9) | (56.6) |
Call premium on 7.25% senior notes | 0 | (7.3) | 0 |
Income taxes paid | $ (108.3) | $ (55.3) | $ (44) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 71.4 | $ 89.3 |
Accounts receivable, less allowances of $8.7 in 2015 and $7.5 in 2014 | 191.3 | 224 |
Accounts receivable pledged | 152.9 | 113.7 |
Inventories | 407.6 | 385.1 |
Prepaid and other current assets | 125.4 | 122.9 |
Total current assets | 948.6 | 935 |
Property, plant and equipment, net | 453.7 | 437 |
Goodwill | 432.4 | 350.9 |
Intangible assets, net | 663.5 | 302.7 |
Other assets | 29 | 32.7 |
Total assets | 2,527.2 | 2,058.3 |
Current liabilities: | ||
Current portion of debt | 134.8 | 91.9 |
Accounts payable | 197.9 | 193.3 |
Other current liabilities | 280.4 | 259.5 |
Total current liabilities | 613.1 | 544.7 |
Long-term debt | 1,028.5 | 692.4 |
Other liabilities | 252.5 | 254 |
Total liabilities | $ 1,894.1 | $ 1,491.1 |
Commitments and contingencies (Notes 16, 17 and 18) | ||
Shareholders' equity: | ||
Common shares and capital in excess of $.01 stated value per share; shares outstanding of 61.4 in 2015 and 60.7 in 2014 | $ 400.4 | $ 395.3 |
Retained earnings | 684.2 | 636.9 |
Treasury shares, at cost; 6.7 shares in 2015 and 7.4 shares in 2014 | (357.1) | (392.3) |
Accumulated other comprehensive loss | (106.8) | (86.2) |
Total shareholders' equity - controlling interest | 620.7 | 553.7 |
Noncontrolling interest | 12.4 | 13.5 |
Total equity | 633.1 | 567.2 |
Total liabilities and equity | $ 2,527.2 | $ 2,058.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Accounts receivable, allowances | $ 8.7 | $ 7.5 |
Common shares, stated value per share | $ 0.01 | $ 0.01 |
Common shares, shares outstanding | 61.4 | 60.7 |
Treasury shares, at cost, shares | 6.7 | 7.4 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Shares | Capital in Excess of Stated Value | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Income/(loss) | Parent | Noncontrolling Interest [Member] |
Shares, Issued | 68.1 | |||||||
Noncontrolling Interest | $ 0 | |||||||
Balance at Sep. 30, 2012 | $ 0.3 | $ 408.3 | $ 630.2 | $ (349.6) | $ (87.3) | $ 601.9 | ||
Balance at Sep. 30, 2013 | $ 710.5 | |||||||
Balance (in shares) at Sep. 30, 2012 | 6.8 | |||||||
Net income (loss) | 161.1 | 161.1 | 161.1 | |||||
Net loss attributable to noncontrolling interest | 0 | |||||||
Net income | 161.1 | |||||||
Other comprehensive income (loss) | 9.5 | 9.5 | 9.5 | |||||
Share-based compensation | 10.3 | 10.3 | 10.3 | |||||
Dividends declared ($1.8200 per share in 2015, $3.7625 per share in 2014 and $1.4125 per share in 2013) | $ (87.8) | (87.8) | $ (87.8) | |||||
Treasury share repurchases (in shares) | ||||||||
Treasury share repurchases | ||||||||
Treasury share issuances (in shares) | 0.7 | |||||||
Treasury share issuances | $ 15.6 | $ 21.4 | $ 37 | $ 15.6 | ||||
Other | (0.1) | (0.1) | (0.1) | |||||
Balance (in shares) at Sep. 30, 2013 | 6.1 | |||||||
Balance at Sep. 30, 2013 | $ 0.3 | $ 397.2 | 703.4 | $ (312.6) | (77.8) | 710.5 | ||
Balance at Sep. 30, 2012 | 601.9 | |||||||
Shares, Issued | 68.1 | |||||||
Noncontrolling Interest | 0 | |||||||
Balance at Sep. 30, 2014 | 567.2 | |||||||
Net income (loss) | 166.5 | 166.5 | 166.5 | |||||
Net loss attributable to noncontrolling interest | (0.3) | (0.3) | ||||||
Net income | 166.2 | |||||||
Other comprehensive income (loss) | (8.4) | (8.4) | (8.4) | |||||
Share-based compensation | 11.1 | 11.1 | 11.1 | |||||
Dividends declared ($1.8200 per share in 2015, $3.7625 per share in 2014 and $1.4125 per share in 2013) | (233) | $ (233) | (233) | |||||
Treasury share repurchases (in shares) | 2.1 | |||||||
Treasury share repurchases | (120) | $ (120) | ||||||
Treasury share issuances (in shares) | 0.8 | |||||||
Treasury share issuances | 27 | 13.3 | $ 40.3 | $ 27 | ||||
Other | ||||||||
Noncontrolling Interest, Increase from Business Combination | 13.8 | 13.8 | ||||||
Balance (in shares) at Sep. 30, 2014 | 7.4 | |||||||
Balance at Sep. 30, 2014 | 553.7 | $ 0.3 | 395 | $ 636.9 | $ (392.3) | (86.2) | $ 553.7 | |
Balance at Sep. 30, 2013 | 710.5 | |||||||
Shares, Issued | 68.1 | |||||||
Noncontrolling Interest | 13.5 | 13.5 | ||||||
Balance at Sep. 30, 2015 | 633.1 | |||||||
Net income (loss) | 159.8 | 159.8 | 159.8 | |||||
Net loss attributable to noncontrolling interest | (1.1) | (1.1) | ||||||
Net income | 158.7 | |||||||
Other comprehensive income (loss) | (20.6) | (20.6) | (20.6) | |||||
Share-based compensation | 17.5 | 17.5 | 17.5 | |||||
Dividends declared ($1.8200 per share in 2015, $3.7625 per share in 2014 and $1.4125 per share in 2013) | (112.5) | (112.5) | (112.5) | |||||
Treasury share repurchases (in shares) | 0.2 | |||||||
Treasury share repurchases | (14.8) | $ (14.8) | (14.8) | |||||
Treasury share issuances (in shares) | 0.9 | |||||||
Treasury share issuances | 37.6 | 12.4 | $ 50 | 37.6 | ||||
Balance (in shares) at Sep. 30, 2015 | 6.7 | |||||||
Balance at Sep. 30, 2015 | 620.7 | $ 0.3 | $ 400.1 | $ 684.2 | $ (357.1) | $ (106.8) | $ 620.7 | |
Balance at Sep. 30, 2014 | 567.2 | |||||||
Shares, Issued | 68.1 | |||||||
Noncontrolling Interest | $ 12.4 | $ 12.4 |
Consolidated Statements of Sha9
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Dividends declared, per share | $ 2 | $ 1.8200 | $ 3.7630 | $ 1.4130 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Scotts Miracle-Gro Company (“Scotts Miracle-Gro” or “Parent”) and its subsidiaries (collectively, together with Scotts Miracle-Gro, the “Company”) are engaged in the manufacturing, marketing and sale of consumer branded products for lawn and garden care. The Company’s primary customers include home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, food and drug stores, and indoor gardening and hydroponic stores. The Company’s products are sold primarily in North America and the European Union. The Company also operates the Scotts LawnService ® business, which provides residential and commercial lawn care, tree and shrub care and pest control services in the United States. In March 2014, the Company completed the sale of its U.S. and Canadian wild bird food business. As a result, effective in the second quarter of fiscal 2014, the Company classified its results of operations for all periods presented to reflect the wild bird food business as a discontinued operation. Due to the nature of the consumer lawn and garden business, the majority of sales to customers occur in the Company’s second and third fiscal quarters. On a combined basis, net sales for the second and third quarters of the last three fiscal years represented in excess of 75% of annual net sales. Organization and Basis of Presentation The Company’s consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Scotts Miracle-Gro and its subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. The Company’s consolidation criteria are based on majority ownership (as evidenced by a majority voting interest in the entity) and an objective evaluation and determination of effective management control. AeroGrow International, Inc. (“AeroGrow”), in which the Company has a controlling interest, is consolidated, with the equity owned by other shareholders shown as noncontrolling interest in the consolidated balance sheets, and the other shareholders' portion of net earnings and other comprehensive income shown as net income/loss or comprehensive income attributable to noncontrolling interest in the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss), respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes and related disclosures. Although these estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results ultimately may differ from the estimates. Revenue Recognition Revenue is recognized when title and risk of loss transfer, which generally occurs when products or services are received by the retail customer. Provisions for estimated returns and allowances are recorded at the time revenue is recognized based on historical rates and are periodically adjusted for known changes in return levels. Outbound shipping and handling costs are included in cost of sales. Under the terms of the Amended and Restated Exclusive Agency and Marketing Agreement (the “Marketing Agreement”), the Company performs certain functions, primarily manufacturing conversion services (in North America), distribution and logistics, and selling and marketing support, on behalf of Monsanto in the conduct of the consumer Roundup ® business. The actual costs incurred for these activities are charged to and reimbursed by Monsanto. The Company records costs incurred under the Marketing Agreement for which the Company is the primary obligor on a gross basis, recognizing such costs in “Cost of sales” and the reimbursement of these costs in “Net sales,” with no effect on gross profit dollars or net income. Promotional Allowances The Company promotes its branded products through, among other things, cooperative advertising programs with retailers. Retailers may also be offered in-store promotional allowances and rebates based on sales volumes. Certain products are promoted with direct consumer rebate programs and special purchasing incentives. Promotion costs (including allowances and rebates) incurred during the year are expensed to interim periods in relation to revenues and are recorded as a reduction of net sales. Accruals for expected payouts under these programs are included in the “Other current liabilities” line in the Consolidated Balance Sheets. Advertising Advertising costs incurred during the year by our Global Consumer segment are expensed to interim periods in relation to revenues. All advertising costs, except for external production costs, are expensed within the fiscal year in which such costs are incurred. External production costs for advertising programs are deferred until the period in which the advertising is first aired. The costs deferred at September 30, 2015 and 2014 were $0.7 million and $1.9 million , respectively. Scotts LawnService ® promotes its service offerings through direct mail and direct selling campaigns. External costs associated with these campaigns that qualify as direct response advertising costs are deferred and recognized as advertising expense in proportion to revenues over a period not beyond the end of the immediately following calendar year. Costs that do not qualify as direct response advertising costs are expensed within the fiscal year incurred on a monthly basis in proportion to net sales. The costs deferred at September 30, 2015 and 2014 were $1.5 million and $1.3 million , respectively. Advertising expenses were $146.1 million in fiscal 2015 , $143.6 million in fiscal 2014 and $142.2 million in fiscal 2013 . Research and Development All costs associated with research and development are charged to expense as incurred. Expenses for fiscal 2015 , fiscal 2014 and fiscal 2013 were $46.8 million , $48.4 million and $46.4 million , respectively, including product registration costs of $13.1 million , $12.6 million and $12.4 million , respectively. Environmental Costs The Company recognizes environmental liabilities when conditions requiring remediation are probable and the amounts can be reasonably estimated. Expenditures which extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. Environmental liabilities are not discounted or reduced for possible recoveries from insurance carriers. Share-Based Compensation Awards The fair value of awards is expensed over the requisite service period which is typically the vesting period, generally three years, except in cases where employees are eligible for accelerated vesting based on having satisfied retirement requirements relating to age and years of service. Performance-based awards are expensed over the requisite service period based on achievement of performance criteria. The Company uses a binomial model to determine the fair value of its option grants. The Company classifies share-based compensation expense within selling, general and administrative expenses to correspond with the same line item as cash compensation paid to employees. Earnings per Common Share Basic earnings per Common Share is computed based on the weighted-average number of Common Shares outstanding each period. Diluted earnings per Common Share is computed based on the weighted-average number of Common Shares and dilutive potential Common Shares (stock options, stock appreciation rights, performance shares and restricted stock unit awards) outstanding each period. Cash and Cash Equivalents The Company considers all highly liquid financial instruments with original maturities of three months or less to be cash equivalents. The Company maintains cash deposits in banks which from time to time exceed the amount of deposit insurance available. Management periodically assesses the financial condition of the Company’s banks and believes that the risk of any potential credit loss is minimal. Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Allowances for doubtful accounts reflect the Company’s estimate of amounts in its existing accounts receivable that may not be collected due to customer claims or customer inability or unwillingness to pay. The allowance is determined based on a combination of factors, including the Company’s risk assessment regarding the credit worthiness of its customers, historical collection experience and length of time the receivables are past due. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. Inventories Inventories are stated at the lower of cost or market, principally determined by the first in, first out method of accounting. Inventories include the cost of raw materials, labor, manufacturing overhead and freight and in-bound handling costs incurred to pre-position goods in the Company’s warehouse network. The Company makes provisions for obsolete or slow-moving inventories as necessary to properly reflect inventory at the lower of cost or market value. Adjustments to reflect inventories at net realizable values were $17.8 million and $18.4 million at September 30, 2015 and 2014 , respectively. Long-lived Assets Property, plant and equipment are stated at cost. Interest capitalized in property, plant and equipment amounted to $0.4 million , $0.4 million and $0.8 million during fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. Expenditures for maintenance and repairs are charged to expense as incurred. When properties are retired or otherwise disposed of, the cost of the asset and the related accumulated depreciation are removed from the accounts with the resulting gain or loss being reflected in income from operations. Depreciation of property, plant and equipment is provided on the straight-line method and is based on the estimated useful economic lives of the assets as follows: Land improvements 10 – 25 years Buildings 10 – 40 years Machinery and equipment 3 – 15 years Furniture and fixtures 6 – 10 years Software 3 – 8 years Intangible assets subject to amortization include technology, such as patents, customer relationships, non-compete agreements and certain tradenames. These intangible assets are being amortized over their estimated useful economic lives, which typically range from 3 to 25 years . The Company’s fixed assets and intangible assets subject to amortization are required to be tested for recoverability whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. If an evaluation of recoverability was required, the estimated undiscounted future cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write-down is required. If the undiscounted cash flows are less than the carrying amount, an impairment loss is recorded to the extent that the carrying amount exceeds fair value and classified as “Impairment, restructuring and other charges” within “Operating expenses” in the Consolidated Statements of Operations. The Company had noncash investing activities of $8.5 million , $7.0 million and $7.3 million during fiscal 2015, fiscal 2014 and fiscal 2013, respectively, representing unpaid liabilities incurred during each fiscal year to acquire property, plant and equipment. Internal Use Software The costs of internal use software are expensed or capitalized depending on whether they are incurred in the preliminary project stage, application development stage or the post-implementation/operation stage. As of September 30, 2015 and September 30, 2014 , the Company had $18.6 million and $21.8 million , respectively, in unamortized capitalized internal use computer software costs. Amortization of these costs was $6.0 million , $8.3 million and $7.3 million during fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. Goodwill and Indefinite-lived Intangible Assets Goodwill and indefinite-lived intangible assets are not subject to amortization. Goodwill and indefinite-lived intangible assets are reviewed for impairment by applying a fair-value based test on an annual basis, as of the first day of the Company’s fiscal fourth quarter, or more frequently if circumstances indicate impairment may have occurred. With respect to goodwill, the Company performs either a qualitative or quantitative evaluation for each of its reporting units. Factors considered in the qualitative test include reporting unit specific operating results as well as new events and circumstances impacting the operations of the reporting units. For the quantitative test, the Company assesses goodwill for impairment by comparing the carrying value of its reporting units to their respective fair values and reviewing the Company’s market value of invested capital. A reporting unit is defined as an operating segment or one level below an operating segment. The Company has identified six reporting units. The Company determines the fair value of its reporting units under the income-based approach utilizing discounted cash flows and incorporates assumptions it believes marketplace participants would utilize. The Company also uses a comparative market-based approach using market multiples and other factors to corroborate the discounted cash flow results used. With respect to indefinite-lived intangible assets, the Company performs either a qualitative or quantitative evaluation for each of its indefinite-lived intangible assets. Factors considered in the qualitative test include indefinite-lived intangible asset specific operating results as well as new events and circumstances impacting the cash flows of the indefinite-lived intangible assets. For the quantitative test, the value of all indefinite-lived intangible assets is determined under the income-based approach utilizing discounted cash flows and incorporating assumptions the Company believes marketplace participants would utilize. For tradenames, value was determined using a royalty savings methodology similar to that employed when the associated businesses were acquired but using updated estimates of sales, cash flow and profitability. If it is determined that an impairment has occurred, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds its estimated fair value and classified as “Impairment, restructuring and other charges” within “Operating expenses” in the Consolidated Statements of Operations. Insurance and Self-Insurance The Company maintains insurance for certain risks, including workers’ compensation, general liability and vehicle liability, and is self-insured for employee-related health care benefits up to a specified level for individual claims. The Company accrues for the expected costs associated with these risks by considering historical claims experience, demographic factors, severity factors and other relevant information. Costs are recognized in the period the claim is incurred, and accruals include an actuarially determined estimate of claims incurred but not yet reported. Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax bases. Management reviews the Company’s deferred tax assets to determine whether their value can be realized based upon available evidence. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company’s tax provision in the period of change. The Company establishes a liability for tax return positions in which there is uncertainty as to whether or not the position will ultimately be sustained. Amounts for uncertain tax positions are adjusted in quarters when new information becomes available or when positions are effectively settled. The Company recognizes interest expense and penalties related to these unrecognized tax benefits within income tax expense. U.S. income tax expense and foreign withholding taxes are provided on unremitted foreign earnings that are not indefinitely reinvested at the time the earnings are generated. Where foreign earnings are indefinitely reinvested, no provision for U.S. income or foreign withholding taxes is made. When circumstances change and the Company determines that some or all of the undistributed earnings will be remitted in the foreseeable future, the Company accrues an expense in the current period for U.S. income taxes and foreign withholding taxes attributable to the anticipated remittance. Translation of Foreign Currencies The functional currency for each Scotts Miracle-Gro subsidiary is generally its local currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each fiscal year-end. Income and expense accounts are translated at the average rate of exchange prevailing during the year. Translation gains and losses arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss) within shareholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income and classified as “Other income, net” in the Consolidated Statements of Operations. Derivative Instruments The Company is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. A variety of financial instruments, including forward and swap contracts, are used to manage these exposures. These financial instruments are recognized at fair value on the Consolidated Balance Sheets, and all changes in fair value are recognized in net income or shareholders’ equity through accumulated other comprehensive income (loss). The Company’s objective in managing these exposures is to better control these elements of cost and mitigate the earnings and cash flow volatility associated with changes in the applicable rates and prices. The Company has established policies and procedures that encompass risk-management philosophy and objectives, guidelines for derivative-instrument usage, counterparty credit approval, and the monitoring and reporting of derivative activity. The Company does not enter into derivative instruments for the purpose of speculation. The Company formally designates and documents instruments at inception that qualify for hedge accounting of underlying exposures in accordance with GAAP. The Company formally assesses, both at inception and at least quarterly, whether the financial instruments used in hedging transactions are effective at offsetting changes in cash flows of the related underlying exposure. Fluctuations in the value of these instruments generally are offset by changes in the cash flows of the underlying exposures being hedged. This offset is driven by the high degree of effectiveness between the exposure being hedged and the hedging instrument. GAAP requires all derivative instruments to be recognized as either assets or liabilities at fair value in the Consolidated Balance Sheets. The Company designates commodity hedges as cash flow hedges of forecasted purchases of commodities and interest rate swap agreements as cash flow hedges of interest payments on variable rate borrowings. Any ineffective portion of a change in the fair value of a qualifying instrument is immediately recognized in earnings. RECENT ACCOUNTING PRONOUNCEMENTS Revenue Recognition from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This guidance requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The provisions are effective for the Company's financial statements no later than the fiscal year beginning October 1, 2018. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the impact of this standard on its consolidated results of operations, financial position and cash flows. Discontinued Operations Reporting In April 2014, the FASB issued an accounting standard update that amends the accounting guidance related to discontinued operations. This amendment defines discontinued operations as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. This amendment also introduces new disclosures for disposals that do not meet the criteria of discontinued operations. The provisions are effective for fiscal years beginning after December 15, 2014 and apply to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of the amended guidance impacts presentation and disclosure of future divestitures and did not have a significant impact on the Company's consolidated financial position, results of operations or cash flows. Going Concern In April 2014, the FASB issued a new accounting standard that requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. The new accounting standard will be effective as of December 31, 2016 and is not expected to have an impact on the Company's financial statement disclosures. Inventory In July 2015, the FASB issued an accounting standard update that requires inventory to be measured “at the lower of cost and net realizable value,” thereby simplifying the current guidance that requires inventory to be measured at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable value). The provisions are effective prospectively for fiscal years beginning after December 15, 2016 and are not expected to have a significant impact on the Company's consolidated financial position, results of operations or cash flows. Debt Issuance Costs In April 2015, the FASB issued an accounting standard update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the corresponding debt liability rather than as an asset. The provisions are effective for fiscal years beginning after December 15, 2015 and require retrospective application. The adoption of the amended guidance impacts presentation and disclosure of debt issuance costs and is not expected to have a significant impact on the Company's consolidated financial position, results of operations or cash flows. As of September 30, 2015 , the Company had unamortized debt issuance costs of $11.3 million . Cloud Computing Arrangements In April 2015, the FASB issued an accounting standard update that clarifies how customers in cloud computing arrangements should determine whether the arrangement includes a software license, and requires acquired software licenses to be accounted for as licenses of intangible assets. The provisions are effective for fiscal years beginning after December 15, 2015 and are not expected to have a significant impact on the Company's consolidated financial position, results of operations or cash flows. Business Combinations In September 2015, the FASB issued an accounting standard update to simplify the accounting for measurement-period adjustments by requiring an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, and requiring disclosure of the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The provisions are effective prospectively for fiscal years beginning no later than December 15, 2016 and are not expected to have a significant impact on the Company's consolidated financial position, results of operations or cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Sep. 30, 2015 | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Wild Bird Food In March 2014, the Company completed the sale of its U.S. and Canadian wild bird food business, including intangible assets, certain on-hand inventory and fixed assets, for $4.1 million in cash and an estimated $1.0 million in future earn-out payments. As a result, effective in the second quarter of fiscal 2014, the Company classified its results of operations for all periods presented to reflect the wild bird food business as a discontinued operation. In addition, in the third quarter of fiscal 2014, the Company received $3.1 million for the sale of the remaining wild bird food manufacturing facilities resulting in a gain of $1.2 million . The following table summarizes the results of the wild bird food business within discontinued operations: Year Ended September 30, 2015 2014 2013 (In millions) Net sales $ — $ 18.1 $ 42.8 Operating costs — 17.6 40.4 Gain on sale of assets — (1.2 ) — Income from discontinued operations before income taxes — 1.7 2.4 Income tax expense from discontinued operations — 0.9 0.7 Income from discontinued operations, net of tax $ — $ 0.8 $ 1.7 |
IMPAIRMENT, RESTRUCTURING AND O
IMPAIRMENT, RESTRUCTURING AND OTHER | 12 Months Ended |
Sep. 30, 2015 | |
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES | IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES Activity described herein is classified within the “Impairment, restructuring and other” lines in the Consolidated Statements of Operations. The following table details impairment, restructuring and other charges during fiscal 2015 , fiscal 2014 and fiscal 2013 : Year Ended September 30, 2015 2014 2013 (In millions) Restructuring and other $ 84.6 $ 17.3 $ 4.4 Goodwill and intangible asset impairments — 33.7 15.9 Total impairment, restructuring and other $ 84.6 $ 51.0 $ 20.3 The following table summarizes the activity related to liabilities associated with the restructuring and other charges during fiscal 2015 , fiscal 2014 and fiscal 2013 : Year Ended September 30, 2015 2014 2013 (In millions) Amounts reserved for restructuring and other at beginning of year $ 16.0 $ 11.1 $ 10.2 Restructuring and other charges 84.6 17.3 9.1 Payments and other (72.5 ) (12.4 ) (8.2 ) Amounts reserved for restructuring and other at end of year $ 28.1 $ 16.0 $ 11.1 Included in the restructuring reserves as of September 30, 2015 , is $4.0 million that is classified as long-term. Payments against the long-term reserves will be incurred as the employees covered by the restructuring plan retire or through the passage of time. The remaining amounts reserved will continue to be paid out over the course of the next twelve months. Fiscal 2015 During fiscal 2015, the Company recognized $22.2 million in restructuring costs related to termination benefits provided to U.S. and international personnel as part of the Company's restructuring of its U.S. administrative and overhead functions, the continuation of the international profitability improvement initiative, and the liquidation and exit from the U.K. Solus business. The restructuring charges include $4.3 million of costs related to the acceleration of equity compensation expense for fiscal 2015. Included within the restructuring charges for fiscal 2015 were $14.3 million for the Global Consumer segment, $1.3 million for the Scotts LawnService ® segment, and $6.6 million for Corporate & Other. Costs incurred to date since the inception of the current initiatives are $35.7 million for Global Consumer, $1.7 million for Scotts LawnService ® , and $9.2 million for Corporate & Other. During the third quarter of fiscal 2015, the Company's Global Consumer segment began experiencing an increase in certain consumer complaints related to the newly reformulated Bonus S ® lawn fertilizer product used in the southeastern United States indicating customers were experiencing damage to their lawns after application. During fiscal 2015, the Company recognized $62.4 million in costs related to resolving consumer complaints and the recognition of costs the Company expects to be incurred for current and expected consumer claims. The Company is working through the claims process with its insurers, and received reimbursement payments of $4.9 million during fiscal 2015, which was recorded as an offsetting insurance reimbursement recovery. Upon the receipt of additional reimbursement of these costs by its insurance carriers, the Company will record an offsetting insurance reimbursement recovery. During fiscal 2015, the Company paid $42.7 million to its third party administrator to pay for lawn repairs. Fiscal 2014 During the third quarter of fiscal 2014 , as a result of financial performance, the Company recognized an impairment charge for a non-recurring fair value adjustment of $33.7 million within the Global Consumer segment related to the Ortho ® brand. The fair value was calculated based upon the evaluation of the historical performance and future growth expectations of the Ortho ® business. During fiscal 2014 , the Company recognized $12.5 million in restructuring costs related to termination benefits provided to U.S. personnel as part of the Company's restructuring of its U.S. administrative and overhead functions. The Company also recognized $2.8 million of international restructuring and other adjustments during fiscal 2014 for the continuation of the profitability improvement initiative announced in December 2012, associated with the international restructuring plan to reduce headcount and streamline management decision making within the Global Consumer segment. In addition, during fiscal 2014, the Company recognized $2.0 million in additional ongoing monitoring and remediation costs for the Company's turfgrass biotechnology program. Fiscal 2013 During the first quarter of fiscal 2013 , the Company recognized income of $4.7 million related to the reimbursement by a vendor for a portion of the costs incurred for the development and commercialization of products including the active ingredient MAT 28 for the Global Consumer segment. During the first quarter of 2013, the Company also recognized a $4.3 million asset impairment charge as a result of issues with the commercialization of an insect repellent technology for the Global Consumer segment. Also, as a result of the Company's annual impairment review performed in the fourth quarter of fiscal 2013, the Company recognized an impairment charge for a non-recurring fair value adjustment of $11.6 million within the Global Consumer segment related to the Ortho ® brand and certain sub-brands of Ortho ® . The fair value was calculated based upon the evaluation of the historical performance and future growth expectations of the Ortho ® business. During fiscal 2013 , the Company recognized $9.1 million in restructuring costs related to termination benefits provided to international employees in relation to the profitability improvement initiative announced in December 2012, associated with the international restructuring plan to reduce headcount and streamline management decision making within the Global Consumer segment. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET The following table displays a rollforward of the carrying amount of goodwill by reportable segment: Global Consumer Scotts LawnService ® Total (In millions) Goodwill $ 245.9 $ 132.0 $ 377.9 Accumulated impairment losses (62.8 ) — (62.8 ) Balance at September 30, 2013 183.1 132.0 315.1 Acquisitions, net of purchase price adjustments and foreign currency translation 35.8 — 35.8 Goodwill $ 281.7 $ 132.0 $ 413.7 Accumulated impairment losses (62.8 ) — (62.8 ) Balance at September 30, 2014 218.9 132.0 350.9 Acquisitions, net of purchase price adjustments and foreign currency translation 64.8 16.7 81.5 Goodwill $ 346.5 $ 148.7 $ 495.2 Accumulated impairment losses (62.8 ) — (62.8 ) Balance at September 30, 2015 $ 283.7 $ 148.7 $ 432.4 The following table presents intangible assets, net: September 30, 2015 September 30, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Finite-lived intangible assets: Technology $ 69.7 $ (56.9 ) $ 12.8 $ 70.3 $ (56.0 ) $ 14.3 Customer accounts 122.6 (51.5 ) 71.1 74.2 (47.2 ) 27.0 Tradenames 94.9 (17.2 ) 77.7 69.0 (12.7 ) 56.3 Other 97.3 (80.2 ) 17.1 99.2 (81.4 ) 17.8 Total finite-lived intangible assets, net 178.7 115.4 Indefinite-lived intangible assets: Indefinite-lived tradenames 184.8 187.3 Marketing Agreement Amendment 188.3 — Brand Extension Agreement 111.7 — Total indefinite-lived intangible assets 484.8 187.3 Total intangible assets, net $ 663.5 $ 302.7 Fiscal 2015 As a result of the annual impairment review, in the fourth quarter of fiscal 2015, the Company determined that no charges for impairment of goodwill or intangible assets were required. The estimated fair value of each reporting unit with a significant goodwill balance was substantially in excess of its carrying value as of the annual test date. Each of the indefinite-lived tradenames had an estimated fair value substantially in excess of its carrying value as of the annual test date, with the exception of the Ortho ® brand. Fiscal 2014 During the third quarter of 2014, the Company completed an impairment review and recognized an impairment charge for a non-recurring fair value adjustment of $33.7 million , within the Global Consumer segment related to the Ortho ® brand. The fair value was calculated based upon the evaluation of the historical performance and future growth expectations of the Ortho ® business. The impact of the fair value adjustment was to reduce the carrying value of the indefinite-lived Ortho ® brand and sub-brands from $126.0 million to $92.3 million . The impairment charge is discussed further in “NOTE 3. IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES.” As a result of the annual impairment review, the Company also determined that no other charges for impairment of goodwill or intangible assets were required. The estimated fair value of each reporting unit with a significant goodwill balance was substantially in excess of its carrying value as of the annual test date. Each of the indefinite-lived tradenames had an estimated fair value substantially in excess of its carrying value as of the annual test date, with the exception of the Ortho ® brand. Fiscal 2013 During the first quarter of 2013, the Company recognized a $4.3 million asset impairment charge as a result of issues with the commercialization of an insect repellent technology for the Global Consumer segment. During the fourth quarter of fiscal 2013, the Company completed its annual impairment review and recognized an impairment charge for a non-recurring fair value adjustment of $11.6 million , which included $11.1 million for indefinite-lived tradenames and $0.5 million for finite-lived tradenames, within the Global Consumer segment related to the Ortho ® brand and certain sub-brands of Ortho ® . The impact of the fair value adjustment was to reduce the carrying value of the indefinite-lived Ortho ® brand and sub-brands from $137.1 million to $126.0 million . The impairment charge is discussed further in “NOTE 3. IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES.” As a result of the annual impairment review, the Company also determined that no other charges for impairment of goodwill or intangible assets were required. The estimated fair value of each reporting unit with a significant goodwill balance was substantially in excess of its carrying value as of the annual test date. Each of the indefinite-lived tradenames had an estimated fair value substantially in excess of its carrying value as of the annual test date, with the exception of the Ortho ® brand. Total amortization expense for the years ended September 30, 2015 , 2014 , and 2013 was $17.6 million , $13.8 million and $11.2 million , respectively. Amortization expense is estimated to be as follows for the years ending September 30 (in millions): 2016 $ 18.5 2017 16.2 2018 14.9 2019 13.2 2020 12.2 |
DETAIL OF CERTAIN FINANCIAL STA
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS | 12 Months Ended |
Sep. 30, 2015 | |
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS | DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS The following is detail of certain financial statement accounts: September 30, 2015 2014 (In millions) INVENTORIES: Finished goods $ 230.2 $ 217.5 Work-in-progress 48.3 46.2 Raw materials 129.1 121.4 $ 407.6 $ 385.1 PREPAID AND OTHER CURRENT ASSETS: Deferred tax asset $ 78.2 $ 72.2 Accounts receivable, non-trade 11.2 12.7 Other 36.0 38.0 $ 125.4 $ 122.9 September 30, 2015 2014 (In millions) PROPERTY, PLANT AND EQUIPMENT, NET: Land and improvements $ 96.5 $ 87.1 Buildings 221.7 218.8 Machinery and equipment 558.1 536.2 Furniture and fixtures 41.9 40.5 Software 113.0 123.8 Aircraft 6.7 6.7 Construction in progress 28.7 21.1 1,066.6 1,034.2 Less: accumulated depreciation (612.9 ) (597.2 ) $ 453.7 $ 437.0 September 30, 2015 2014 (In millions) OTHER CURRENT LIABILITIES: Payroll and other compensation accruals $ 66.1 $ 79.0 Advertising and promotional accruals 66.9 64.1 Other 147.4 116.4 $ 280.4 $ 259.5 OTHER NON-CURRENT LIABILITIES: Accrued pension and postretirement liabilities $ 92.5 $ 93.8 Deferred tax liabilities 125.4 120.4 Other 34.6 39.8 $ 252.5 $ 254.0 September 30, 2015 2014 2013 (In millions) ACCUMULATED OTHER COMPREHENSIVE LOSS: Unrecognized loss on derivatives, net of tax of $5.6, $4.3 and $7.1 $ (9.0 ) $ (6.9 ) $ (11.5 ) Pension and other postretirement liabilities, net of tax of $39.3, $38.6 and $31.4 (63.7 ) (62.4 ) (58.0 ) Foreign currency translation adjustment (34.1 ) (16.9 ) (8.3 ) $ (106.8 ) $ (86.2 ) $ (77.8 ) |
MARKETING AGREEMENT
MARKETING AGREEMENT | 12 Months Ended |
Sep. 30, 2015 | |
Marketing Agreement | MARKETING AGREEMENT The Scotts Company LLC and Monsanto are parties to an Amended and Restated Exclusive Agency and Marketing Agreement (the “Marketing Agreement”), pursuant to which the Company has served since its 1998 fiscal year as Monsanto’s exclusive agent for the marketing and distribution of consumer Roundup ® herbicide products (with additional rights to new products containing glyphosate or other similar non-selective herbicides) in the consumer lawn and garden market. Under the terms of the Marketing Agreement, the Company is entitled to receive an annual commission from Monsanto as consideration for the performance of the Company’s duties as agent. The annual gross commission under the Marketing Agreement is calculated as a percentage of the actual earnings before interest and income taxes of the consumer Roundup ® business in the markets covered by the Marketing Agreement subject to the achievement of annual earnings thresholds. The Marketing Agreement also requires the Company to make annual payments of $20 million to Monsanto as a contribution against the overall expenses of the consumer Roundup ® business. From 1998 until May 15, 2015, the Marketing Agreement covered the United States and other specified countries, including Australia, Austria, Belgium, Canada, France, Germany, the Netherlands and the United Kingdom. On May 15, 2015, the territories were expanded to cover additional countries as outlined below. In consideration for the rights granted to the Company under the Marketing Agreement in 1998, the Company paid a marketing fee of $32 million to Monsanto. The Company deferred this amount on the basis that the payment will provide a future benefit through commissions that will be earned under the Marketing Agreement. The economic useful life over which the marketing fee is being amortized is 20 years, with a remaining unamortized amount of $2.6 million and remaining amortization period of less than 3 years as of September 30, 2015 . On May 15, 2015, the Company and Monsanto entered into an Amendment to the Marketing Agreement (the “Marketing Agreement Amendment”), a Lawn and Garden Brand Extension Agreement (the “Brand Extension Agreement”) and a Commercialization and Technology Agreement (the “Commercialization and Technology Agreement”). In consideration for these agreements, the Company paid $300.0 million to Monsanto on August 14, 2015 using borrowings under its credit facility. Among other things, the Marketing Agreement Amendment amends the Marketing Agreement in the following significant respects: • Expands the territories in which the Company may serve as Monsanto’s exclusive agent in the consumer lawn and garden market to include all countries other than Japan and countries subject to a comprehensive U.S. trade embargo or certain other embargoes and trade restrictions. • Eliminates the initial and renewal terms that the original Marketing Agreement applied to European Union (“EU”) countries. As amended, the term of the Marketing Agreement will now continue indefinitely for all included markets, including EU countries within the included markets, unless and until otherwise terminated in accordance with the Marketing Agreement. • Revises the procedures of the Marketing Agreement relating to a potential sale of the consumer Roundup ® business to (1) require Monsanto to negotiate exclusively with the Company with respect to any potential Roundup ® sale for 60 days after the Company receives notice from Monsanto regarding a potential Roundup ® sale and (2) provide the Company with a right of first offer and a right of last look in connection with a potential Roundup ® sale to a third party. In addition, if the Company makes a bid in connection with a Roundup ® sale, the then-applicable termination fee would serve as a credit against the purchase price and the Monsanto board of directors would not be permitted to discount the value of the Company’s bid compared to a competing bid as a result of the termination fee discount. • Requires the Company to (1) provide notice to Monsanto of certain proposals and processes that may result in a sale of the Company and (2) conduct non-exclusive negotiations with Monsanto with respect to such a sale. • Increases the minimum termination fee payable under the Marketing Agreement to the greater of (1) $200 million or (2) four times (A) the average of the program earnings before interest or income taxes for the three trailing program years prior to the year of termination, minus (B) the 2015 program earnings before interest or income taxes. • Amends Monsanto’s termination rights and provides additional rights to the Company in the event of a termination, as follows: ◦ delays the effectiveness of a notice of termination given by Monsanto as a result of a change of control with respect to Monsanto or a sale of the consumer Roundup ® business to a third party from (1) the end of the later of 12 months or the next program year to (2) the end of the fifth full program year after Monsanto gives such notice; ◦ eliminates Monsanto’s termination rights for a regional performance default, a change of significant ownership of the Company or an uncured or incurable egregious injury (as each are defined in the Marketing Agreement); and ◦ eliminates Monsanto’s termination rights in connection with a change in control of the Company or Scotts Miracle-Gro as long as the Company has determined, in its reasonable commercial opinion, that the acquirer can and will fully perform the duties and obligations of the Company under the Marketing Agreement. • Expands the Company’s termination rights to include termination for a brand decline event (as defined in the Marketing Agreement Amendment) occurring before program year 2023. • Expands the Company’s assignment rights to allow the Company to transfer its rights, interests and obligations under the Marketing Agreement with respect to (1) the North America territories and (2) one or more other included markets for up to three other assignments. • Amends the commission structure by (1) eliminating the commission threshold for program years 2016, 2017 and 2018 (2) setting the commission threshold for the subsequent program years at $40 million and (3) establishing the commission payable by Monsanto to the Company for each program year at an amount equal to 50% of the program earnings before interest and income taxes for such program year. The Brand Extension Agreement provides the Company a worldwide, exclusive license to use the Roundup ® brand on additional products offered by the Company outside of the non-selective weed category within the residential lawn and garden market. The application of the Roundup ® brand to these additional products is subject to a product review and approval process developed between the Company and Monsanto. Monsanto will maintain oversight of its brand, the handling of brand registrations covering these new products and new territories, as well as primary responsibility for brand enforcement. The Brand Extension Agreement has an initial term of 20 years, which will automatically renew for additional successive 20 year terms, at the Company’s sole option, for no additional monetary consideration. The Commercialization and Technology Agreement provides for the Company and Monsanto to further develop and commercialize new products and technology developed at Monsanto and intended for introduction into the residential lawn and garden market. Under the Commercialization and Technology Agreement, the Company receives an exclusive first look at new Monsanto technology and products and an annual review of Monsanto's developing products and technologies. The Commercialization and Technology Agreement has a term of 30 years (subject to early termination upon a termination event under the Marketing Agreement or the Brand Extension Agreement). The Company recorded the $300 million consideration paid by the Company to Monsanto in connection with the entry into the Marketing Agreement Amendment, the Brand Extension Agreement and the Commercialization and Technology Agreement as intangible assets and the related economic useful life of such assets is indefinite. The identifiable intangible assets include the Marketing Agreement Amendment and the Brand Extension Agreement with allocated fair value of $188.3 million and $111.7 million , respectively. The estimated fair values of the identifiable intangible assets were determined using an income-based approach, which includes market participant expectations of cash flows that an asset will generate over the remaining useful life discounted to present value using an appropriate rate of return. Under the terms of the Marketing Agreement, the Company performs certain functions, primarily manufacturing conversion services (in North America), distribution and logistics, and selling and marketing support, on behalf of Monsanto in the conduct of the consumer Roundup ® business. The actual costs incurred for these activities are charged to and reimbursed by Monsanto. The Company records costs incurred under the Marketing Agreement for which the Company is the primary obligor on a gross basis, recognizing such costs in “Cost of sales” and the reimbursement of these costs in “Net sales,” with no effect on gross profit dollars or net income. The gross commission earned under the Marketing Agreement, the contribution payments to Monsanto and the amortization of the initial marketing fee paid to Monsanto in 1998 are included in the calculation of net sales in the Company’s Consolidated Statements of Operations. The elements of the net commission and reimbursements earned under the Marketing Agreement and included in “Net sales” are as follows: Year Ended September 30 2015 2014 2013 (In millions) Gross commission $ 88.7 $ 85.2 $ 81.8 Contribution expenses (20.0 ) (20.0 ) (20.0 ) Amortization of marketing fee (0.8 ) (0.8 ) (0.8 ) Net commission income 67.9 64.4 61.0 Reimbursements associated with Marketing Agreement 63.3 63.0 62.0 Total net sales associated with Marketing Agreement $ 131.2 $ 127.4 $ 123.0 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2015 | |
ACQUISITIONS | ACQUISITIONS Fiscal 2015 On October 16, 2014, Scotts LawnService ® acquired the assets of Action Pest Control Inc. (“Action Pest”), a residential and commercial pest control provider in the Midwest, for $21.7 million . Action Pest provides residential and commercial pest control services to homeowners and businesses throughout Indiana, Kentucky, and Illinois. This transaction provides Scotts LawnService ® an entry into the pest control market. Included in the purchase price of $21.7 million is non-cash investing activity of $4.0 million representing the deferral of a portion of the purchase price into subsequent fiscal periods. The valuation of acquired assets included finite-lived identifiable intangible assets of $6.1 million and tax deductible goodwill of $14.1 million . Identifiable intangible assets included tradename, customer relationships and non-compete agreements with useful lives ranging between 1 to 12 years. The estimated fair values of the identifiable intangible assets were determined using an income-based approach, which includes market participant expectations of cash flows that an asset will generate over the remaining useful life discounted to present value using an appropriate discount rate. Net sales for Action Pest included in the Scotts LawnService ® segment for fiscal 2015 were $12.0 million . During fiscal 2015 , Scotts LawnService ® also acquired several other businesses that individually and in the aggregate were not significant for an aggregate purchase price of $3.5 million , which included $2.6 million in tax deductible goodwill. During fiscal 2015 , the Company completed four acquisitions of growing media operations within the Global Consumer segment for an aggregate purchase price of $40.2 million . These acquisitions expand the Company's growing media operations and distribution capabilities within its Global Consumer segment. The valuation of acquired assets for the transactions included (i) $10.1 million in finite-lived identifiable intangible assets, (ii) $11.4 million in fixed assets, (iii) $9.8 million in tax deductible goodwill, and (iv) $9.7 million of inventory and accounts receivable. Identifiable intangible assets include tradenames and customer relationships with useful lives ranging between 7 to 20 years. The estimated fair values of the identifiable intangible assets were determined using an income-based approach, which includes market participant expectations of cash flows that an asset will generate over the remaining useful life discounted to present value using an appropriate discount rate. Net sales for these acquired businesses included in the Global Consumer segment for fiscal 2015 were $21.2 million . On March 30, 2015, the Company acquired the assets of General Hydroponics, Inc. (“General Hydroponics”) and Bio-Organic Solutions, Inc. (“Vermicrop”) for $120.0 million and $15.0 million , respectively. This transaction provides the Company's Global Consumer segment with an additional entry in the indoor and urban gardening market, which is a part of the Global Consumer segment's long-term growth strategy. General Hydroponics and Vermicrop are leading producers of liquid plant food products, growing media, and accessories for the hydroponics markets. The General Hydroponics purchase price includes non-cash investing activity of $1.0 million representing the deferral of a portion of the purchase price into fiscal 2016. Included in the Vermicrop purchase price is $5.0 million of contingent consideration, the payment of which will depend on the performance of the business through calendar year 2015. Additionally, the Vermicrop purchase price was paid in common shares of Scotts Miracle-Gro (“Common Shares”) based on the average share price at the time of payment. The valuation of acquired assets was determined during the third quarter of fiscal 2015 and included (i) $14.2 million of inventory and accounts receivable, (ii) $5.7 million in fixed assets, (iii) $65.0 million of finite-lived identifiable intangible assets, and (iv) $53.7 million of tax-deductible goodwill. Identifiable intangible assets included tradenames, customer relationships and non-compete arrangements with useful lives ranging between 5 to 26 years. The estimated fair values of the identifiable intangible assets were determined using an income-based approach, which includes market participant expectations of cash flows that an asset will generate over the remaining useful life discounted to present value using an appropriate discount rate. Net sales for General Hydroponics and Vermicrop included within the Global Consumer segment for fiscal 2015 were $30.9 million . The Consolidated Financial Statements include the results of operations for these business combinations from the date of each acquisition. Fiscal 2014 During the fourth quarter of fiscal 2014, the Company obtained control of the operations of AeroGrow through its increased involvement, influence, and working capital loan of $4.5 million provided in July 2014. AeroGrow is a developer, marketer, direct-seller, and wholesaler of advanced indoor garden systems designed for consumer use in gardening, cooking, healthy eating, and home and office décor markets. AeroGrow operates primarily in the United States and Canada, as well as Australia and select countries in Europe and Asia. The valuation of acquired assets included finite-lived identifiable intangible assets of $13.7 million , and goodwill of $11.6 million . Identifiable intangible assets included tradename and customer relationships with useful lives ranging between 9 to 20 years. The estimated fair values of the identifiable intangible assets were determined using an income-based approach, which includes market participant expectations of cash flows that an asset will generate over the remaining useful life discounted to present value using an appropriate discount rate. Net sales for AeroGrow included in the Global Consumer segment for fiscal 2015 and 2014 were $17.1 million and $1.7 million , respectively. The Company completed an acquisition of the assets of the U.K. based Solus Garden and Leisure Limited (“Solus”) in the fourth quarter of fiscal 2014 within its Global Consumer segment for $7.4 million , $1.1 million of which was paid in cash and $6.3 million of which was paid through the forgiveness of outstanding accounts receivable owed by Solus to the Company. Solus is a supplier of garden and leisure products and offers a diverse mix of brands. Net sales for Solus included in the Global Consumer segment for fiscal 2015 and 2014 were $21.2 million and $3.3 million , respectively. On September 30, 2014, Scotts Miracle-Gro's wholly-owned subsidiary, Scotts Canada Ltd., acquired Fafard & Brothers Ltd. (“Fafard”) for $59.8 million . Fafard is a Canadian based producer of peat moss and growing media products for the consumer and professional markets, including peat-based and bark-based mixes, composts and premium soils. The acquisition of Fafard increases the Company's presence within Canada as Fafard serves customers primarily across Ontario, Quebec and New Brunswick. The valuation of acquired assets included working capital of $17.6 million , property, plant, and equipment of $23.4 million , finite-lived identifiable intangible assets of $12.6 million , and tax deductible goodwill of $7.9 million . Working capital included accounts receivable of $4.7 million , inventory of $17.7 million , and accounts payable of $4.8 million . Identifiable intangible assets included tradename, customer relationships, non-compete agreements, and peat harvesting rights with useful lives ranging between 1 to 20 years. The estimated fair values of the identifiable intangible assets were determined using an income-based approach, which includes market participant expectations of cash flows that an asset will generate over the remaining useful life discounted to present value using an appropriate discount rate. Included in the purchase price of Fafard is $7.1 million of contingent consideration, the payment of which will depend on the performance of the business through fiscal 2016. Net sales for Fafard included in the Global Consumer segment for fiscal 2015 were $37.8 million . The Consolidated Financial Statements include the results of operations for these business combinations from the date of each acquisition. Fiscal 2013 During fiscal 2013 , the Company completed several acquisitions within its controls, growing media and Scotts LawnService ® businesses that individually and in the aggregate were not significant. The aggregate purchase price of these acquisitions was $7.2 million . The Consolidated Financial Statements include the results of operations for these business combinations from the date of each acquisition. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Sep. 30, 2015 | |
RETIREMENT PLANS | RETIREMENT PLANS The Company sponsors a defined contribution 401(k) plan for substantially all U.S. associates. The Company matches 150% of associates’ initial 4% contribution and 50% of their remaining contribution up to 6%. The Company may make additional discretionary profit sharing matching contributions to eligible employees on their initial 4% contribution. The Company recorded charges of $14.1 million , $13.8 million and $13.1 million under the plan in fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. The Company sponsors two defined benefit pension plans for certain U.S. associates. Benefits under these plans have been frozen and closed to new associates since 1997. The benefits under the primary plan are based on years of service and the associates’ average final compensation or stated amounts. The Company’s funding policy, consistent with statutory requirements and tax considerations, is based on actuarial computations using the Projected Unit Credit method. The second frozen plan is a non-qualified supplemental pension plan. This plan provides for incremental pension payments so that total pension payments equal amounts that would have been payable from the Company’s pension plan if it were not for limitations imposed by the income tax regulations. In connection with the restructuring plans discussed in “NOTE 3. IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES,” the Company recognized a plan curtailment gain of $0.5 million in fiscal 2013 for a change in the benefit obligations associated with these plans. The Company sponsors defined benefit pension plans associated with its international businesses in the United Kingdom, Germany, France and the Netherlands. These plans generally cover all associates of the respective businesses, with retirement benefits primarily based on years of service and compensation levels. In fiscal 2013, the Company's remaining obligations were settled for the defined benefit pension plan associated with its Netherlands business. On July 1, 2010, the Company froze its two U.K. defined benefit pension plans and transferred participants to an amended defined contribution plan. Under the frozen defined benefit plans, participants are no longer credited for future service; however, future salary increases will continue to be factored into each participant’s final pension benefit. In October 2014, the Society of Actuaries released an updated report on mortality tables and a mortality improvement scale to reflect increasing life expectancies in the United States. As of September 30, 2015, the Company revised assumed mortality rates to reflect the updated information, resulting in an increase in the projected benefit obligation. The following tables present information about benefit obligations, plan assets, annual expense, assumptions and other information about the Company’s defined benefit pension plans. The defined benefit pension plans are valued using a September 30 measurement date. U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2015 2014 2015 2014 (In millions) Change in projected benefit obligation: Benefit obligation at beginning of year $ 109.2 $ 106.7 $ 208.3 $ 190.7 Service cost — — 1.2 1.2 Interest cost 4.0 4.5 7.3 8.3 Actuarial loss 11.4 5.1 4.5 17.7 Benefits paid (7.3 ) (7.1 ) (6.4 ) (6.5 ) Other — — (1.1 ) (0.6 ) Foreign currency translation — — (15.7 ) (2.5 ) Projected benefit obligation at end of year $ 117.3 $ 109.2 $ 198.1 $ 208.3 Accumulated benefit obligation at end of year $ 117.3 $ 109.2 $ 192.0 $ 200.8 Change in plan assets: Fair value of plan assets at beginning of year $ 89.8 $ 84.3 $ 166.3 $ 148.8 Actual return on plan assets (1.4 ) 9.2 13.9 16.4 Employer contribution 2.4 3.4 7.4 8.9 Benefits paid (7.3 ) (7.1 ) (6.4 ) (6.5 ) Foreign currency translation — — (11.5 ) (0.4 ) Other — — (1.1 ) (0.9 ) Fair value of plan assets at end of year $ 83.5 $ 89.8 $ 168.6 $ 166.3 Underfunded status at end of year $ (33.8 ) $ (19.4 ) $ (29.5 ) $ (42.0 ) Information for pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 117.3 $ 109.2 $ 198.1 $ 208.3 Accumulated benefit obligation 117.3 109.2 192.0 200.8 Fair value of plan assets 83.5 89.8 168.6 166.3 Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ — $ — $ 2.4 $ — Current liabilities (0.2 ) (0.2 ) (0.9 ) (1.1 ) Noncurrent liabilities (33.6 ) (19.2 ) (31.0 ) (40.9 ) Total amount accrued $ (33.8 ) $ (19.4 ) $ (29.5 ) $ (42.0 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 49.2 $ 34.3 $ 57.8 $ 64.7 Prior service cost — — 0.3 0.4 Total amount recognized $ 49.2 $ 34.3 $ 58.1 $ 65.1 U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2015 2014 2015 2014 (In millions, except percentage figures) Total change in other comprehensive loss attributable to: Pension benefit (loss) gain during the period $ (18.2 ) $ (1.1 ) $ 0.5 $ (10.7 ) Reclassification of pension benefit losses to net income 3.3 3.7 1.7 1.4 Foreign currency translation — — 4.8 0.7 Total change in other comprehensive loss $ (14.9 ) $ 2.6 $ 7.0 $ (8.6 ) Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2016 are as follows: Actuarial loss $ 1.8 $ 1.7 Prior service cost — — Amount to be amortized into net periodic benefit cost $ 1.8 $ 1.7 Weighted average assumptions used in development of projected benefit obligation: Discount rate 3.82 % 3.81 % 3.52 % 3.73 % Rate of compensation increase n/a n/a 3.49 % 3.65 % U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2015 2014 2013 2015 2014 2013 (In millions, except percentage figures) Components of net periodic benefit cost: Service cost $ — $ — $ — $ 1.2 $ 1.2 $ 1.2 Interest cost 4.0 4.5 3.8 7.3 8.3 7.8 Expected return on plan assets (5.4 ) (5.2 ) (5.2 ) (8.9 ) (9.4 ) (8.7 ) Net amortization 3.3 3.7 4.8 1.7 1.4 1.2 Net periodic benefit cost 1.9 3.0 3.4 1.3 1.5 1.5 Curtailment loss (gain) — — — — — (0.5 ) Settlement — — — — — (0.5 ) Contractual termination benefits — — — — 0.3 — Total benefit cost $ 1.9 $ 3.0 $ 3.4 $ 1.3 $ 1.8 $ 0.5 Weighted average assumptions used in development of net periodic benefit cost: Discount rate 3.81 % 4.32 % 3.39 % 3.73 % 4.32 % 4.45 % Expected return on plan assets 6.25 % 6.25 % 6.25 % 5.63 % 6.17 % 6.52 % Rate of compensation increase n/a n/a n/a 3.7 % 3.7 % 3.4 % U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans (In millions, except percentage figures) Other information: Plan asset allocations: Target for September 30, 2016: Equity securities 25 % 32 % Debt securities 70 % 66 % Real estate securities 5 % — % Cash and cash equivalents — % — % Insurance contracts — % 2 % September 30, 2015: Equity securities 23 % 31 % Debt securities 70 % 67 % Real estate securities 4 % — % Cash and cash equivalents 3 % — % Insurance contracts — % 2 % September 30, 2014: Equity securities 25 % 52 % Debt securities 69 % 45 % Real estate securities 4 % — % Cash and cash equivalents 2 % 1 % Insurance contracts — % 2 % Expected Company contributions in fiscal 2016 $ 3.2 $ 5.5 Expected future benefit payments: 2016 $ 7.6 $ 6.1 2017 7.7 6.4 2018 7.7 6.7 2019 7.7 7.0 2020 7.7 7.3 2021 – 2026 37.8 43.7 The following tables set forth the fair value of the Company’s pension plan assets, segregated by level within the fair value hierarchy: September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) U.S. Defined Benefit Pension Plan Assets Cash and cash equivalents $ 2.6 $ — $ — $ 2.6 Mutual funds—real estate — 3.5 — 3.5 Mutual funds—equities — 19.0 — 19.0 Mutual funds—fixed income — 58.4 — 58.4 Total $ 2.6 $ 80.9 $ — $ 83.5 International Defined Benefit Pension Plan Assets Cash and cash equivalents $ 0.6 $ — $ — $ 0.6 Insurance contracts — 2.6 — 2.6 Mutual funds—equities — 52.3 — 52.3 Mutual funds—fixed income — 113.1 — 113.1 Total $ 0.6 $ 168.0 $ — $ 168.6 September 30, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) U.S. Defined Benefit Pension Plan Assets Cash and cash equivalents $ 2.0 $ — $ — $ 2.0 Mutual funds—real estate — 3.7 — 3.7 Mutual funds—equities — 22.2 — 22.2 Mutual funds—fixed income — 61.9 — 61.9 Total $ 2.0 $ 87.8 $ — $ 89.8 International Defined Benefit Pension Plan Assets Cash and cash equivalents $ 1.7 $ — $ — $ 1.7 Insurance contracts — 3.0 — 3.0 Mutual funds—equities — 87.4 — 87.4 Mutual funds—fixed income — 74.2 — 74.2 Total $ 1.7 $ 164.6 $ — $ 166.3 The fair value of the mutual funds are valued at the exchange-listed year end closing price or at the net asset value of shares held by the fund at the end of the year. Insurance contracts are valued by discounting the related cash flows using a current year end market rate or at cash surrender value, which is presumed to equal fair value. Investment Strategy Target allocation percentages among various asset classes are maintained based on an individual investment policy established for each of the various pension plans. Asset allocations are designed to achieve long-term objectives of return while mitigating against downside risk and considering expected cash requirements necessary to fund benefit payments. However, the Company cannot predict future investment returns and therefore cannot determine whether future pension plan funding requirements could materially and adversely affect its financial condition, results of operations or cash flows. Basis for Long-Term Rate of Return on Asset Assumptions The Company’s expected long-term rate of return on asset assumptions are derived from studies conducted by third parties. The studies include a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the plans to determine the average rate of earnings expected. While the studies give appropriate consideration to recent fund performance and historical returns, the assumptions primarily represent expectations about future rates of return over the long term. |
ASSOCIATE MEDICAL BENEFITS
ASSOCIATE MEDICAL BENEFITS | 12 Months Ended |
Sep. 30, 2015 | |
ASSOCIATE MEDICAL BENEFITS | ASSOCIATE MEDICAL BENEFITS The Company provides comprehensive major medical benefits to certain of its retired associates and their dependents. Substantially all of the Company’s domestic associates who were hired before January 1, 1998 become eligible for these benefits if they retire at age 55 or older with more than 10 years of service. The retiree medical plan requires certain minimum contributions from retired associates and includes provisions to limit the overall cost increases the Company is required to cover. The Company funds its portion of retiree medical benefits on a pay-as-you-go basis. The following table sets forth information about the retiree medical plan for domestic associates. The retiree medical plan is valued using a September 30 measurement date. 2015 2014 (In millions, except percentage figures) Change in Accumulated Plan Benefit Obligation (APBO): Benefit obligation at beginning of year $ 32.4 $ 31.6 Service cost 0.4 0.4 Interest cost 1.3 1.4 Plan participants’ contributions 1.2 1.1 Actuarial loss 2.0 0.7 Benefits paid (net of federal subsidy of $0.3 and $0.3) (3.1 ) (2.9 ) Plan changes (8.2 ) 0.1 Benefit obligation at end of year $ 26.0 $ 32.4 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contribution 2.2 2.1 Plan participants’ contributions 1.2 1.1 Gross benefits paid (3.4 ) (3.2 ) Fair value of plan assets at end of year $ — $ — Unfunded status at end of year $ (26.0 ) $ (32.4 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ (2.1 ) $ (2.3 ) Noncurrent liabilities (23.9 ) (30.1 ) Total amount accrued $ (26.0 ) $ (32.4 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 3.4 $ 1.3 Unamortized prior service cost (credit) (8.1 ) 0.1 Total amount recognized $ (4.7 ) $ 1.4 Total change in other comprehensive loss attributable to: Benefit loss during the period $ 2.1 $ 0.9 Net prior service cost (credit) (8.2 ) 0.1 Total change in other comprehensive loss (income) $ (6.1 ) $ 1.0 Discount rate used in development of APBO 4.03 % 4.08 % 2015 2014 2013 Components of net periodic benefit cost Service cost $ 0.4 $ 0.4 $ 0.5 Interest cost 1.3 1.4 1.3 Amortization of actuarial loss — — 0.1 Total postretirement benefit cost $ 1.7 $ 1.8 $ 1.9 Discount rate used in development of net periodic benefit cost 4.08 % 4.54 % 3.66 % The estimated actuarial loss that will be amortized from accumulated loss into net periodic benefit cost over the next fiscal year is $0.1 million . On January 1, 2016, a plan change will become effective whereby Medicare eligible participants will be covered under a Health Reimbursement Arrangement (“HRA”) and a catastrophic prescription drug plan provided by the Company that will be used by retirees to purchase individual insurance policies that supplement or replace Medicare through a private exchange. This plan change resulted in a decrease in the benefit obligation of $8.2 million . On December 8, 2003, the Medicare Prescription Drug, Improvement and Modernization Act (the “Act”) became law. The Act provides for a federal subsidy to sponsors of retiree health care benefit plans that provide a prescription drug benefit that is at least actuarially equivalent to the benefit established by the Act. The APBO at September 30, 2015 , has been reduced by $0.3 million to reflect the effect of the subsidy. The reduction of service and interest costs and decrease in amortization of the actuarial loss served to reduce net periodic post retirement benefit cost for fiscal 2015 , fiscal 2014 and fiscal 2013 by $0.1 million , $0.1 million and $0.3 million , respectively. For measurement as of September 30, 2015, management has assumed that health care costs will increase at an annual rate of 7.25% in fiscal 2016, and thereafter decreasing 0.25% per year to an ultimate trend rate of 5.00% in 2024 . A 1% increase in health cost trend rate assumptions would increase the APBO by $0.1 million as of September 30, 2015 and would decrease the APBO by $0.1 million as of September 30, 2015 . A 1% increase or decrease in the health cost trend rate assumptions would not have a material effect on service or interest costs. The following benefit payments under the plan are expected to be paid by the Company and the retirees for the fiscal years indicated: Gross Benefit Payments Retiree Contributions Net Company Payments (In millions) 2016 $ 2.5 $ (0.4 ) $ 2.1 2017 2.5 (0.5 ) 2.0 2018 2.5 (0.5 ) 2.0 2019 2.6 (0.6 ) 2.0 2020 2.6 (0.6 ) 2.0 2021 – 2025 12.3 (3.3 ) 9.0 The Company also provides comprehensive major medical benefits to its associates. The Company is self-insured for certain health benefits up to $0.6 million per occurrence per individual. The cost of such benefits is recognized as expense in the period the claim is incurred. This cost was $32.3 million , $33.8 million and $35.1 million in fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2015 | |
DEBT | DEBT The components of long-term debt are as follows: September 30, 2015 2014 (In millions) Credit Facilities – Revolving loans $ 816.3 $ 481.8 Senior Notes – 6.625% 200.0 200.0 Master Accounts Receivable Purchase Agreement 122.3 84.0 Other 24.7 18.5 1,163.3 784.3 Less current portions 134.8 91.9 Long-term debt $ 1,028.5 $ 692.4 The Company’s debt matures as follows for each of the next five fiscal years and thereafter (in millions): 2016 $ 134.8 2017 10.5 2018 0.7 2019 816.9 2020 0.4 Thereafter 200.0 $ 1,163.3 Credit Facilities On December 20, 2013 , the Company entered into a third amended and restated senior secured credit agreement, providing the Company and certain of its subsidiaries with a five -year senior secured revolving loan facility in the aggregate principal amount of up to $1.7 billion (the “former credit facility”). The former credit facility, which was in effect throughout fiscal 2015 and as of September 30, 2015, also provided the Company with the right to seek to increase the credit facility by an aggregate amount of up to $450.0 million , subject to certain specified conditions, including approval from lenders. Under the former credit facility, the Company had the ability to obtain letters of credit up to $75 million . At September 30, 2015, the Company had letters of credit outstanding in the aggregate face amount of $22.7 million , and $861.0 million of availability under the former credit facility, subject to the Company's continued compliance with covenants discussed below. The weighted average interest rates on average borrowings under the former credit facility were 4.0% and 4.8% for fiscal 2015 and fiscal 2014 , respectively. In August 2015, the Company paid Monsanto $300 million using a combination of cash and borrowings under the former credit facility. Subsequent to the end of fiscal 2015, on October 29, 2015 , the Company entered into a fourth amended and restated credit agreement (the “new credit agreement”), providing the Company and certain of its subsidiaries with five-year senior secured loan facilities in the aggregate principal amount of $1.9 billion , comprised of a revolving credit facility of $1.6 billion and a term loan in the amount of $300 million (the “new credit facilities”). The new credit agreement also provides the Company with the right to seek additional committed credit under the agreement in an aggregate amount of up to $500 million plus an unlimited additional amount, subject to certain specified financial and other conditions. The new credit agreement replaces the former credit facility, and will terminate on October 29, 2020 . Borrowings on the revolving credit facility may be made in various currencies, including U.S. dollars, euro, British pounds, Australian dollars, and Canadian dollars. The terms of the new credit agreement includes representations and warranties, customary affirmative and negative covenants, financial covenants, and events of default. The proceeds of borrowings on the new credit facilities may be used: (i) to finance working capital requirements and other general corporate purposes of the Company and its subsidiaries; and (ii) to refinance the amounts outstanding under the former credit facility. Under the terms of the former credit facility, loans bear interest, at the Company’s election, at a rate per annum equal to either the ABR or LIBOR (both as defined in the former credit facility) plus the applicable margin. The former credit facility is guaranteed by substantially all of the Company's domestic subsidiaries, and is secured by (i) a perfected first priority security interest in all of the accounts receivable, inventory and equipment of the Company and those of the Company's domestic subsidiaries that are guarantors and (ii) the pledge of all of the capital stock of the Company’s domestic subsidiaries that are guarantors. The new credit agreement contains, among other obligations, an affirmative covenant regarding the Company’s leverage ratio on the last day of each quarter on and after September 30, 2015, calculated as average total indebtedness, divided by the Company’s earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted pursuant to the terms of the new credit facilities (“Adjusted EBITDA”). The maximum leverage ratio was 4.50 as of September 30, 2015 . The Company’s leverage ratio was 2.63 at September 30, 2015 . The new credit agreement also includes an affirmative covenant regarding its interest coverage ratio. The interest coverage ratio is calculated as Adjusted EBITDA divided by interest expense, as described in the new credit agreement, and excludes costs related to refinancings. The minimum interest coverage ratio was 3.00 for the twelve months ended September 30, 2015 . The Company’s interest coverage ratio was 9.34 for the twelve months ended September 30, 2015 . The terms of the new credit agreement allow the Company to make unlimited restricted payments (as defined in the new credit agreement), including increased or one-time dividend payments and Common Share repurchases, so long as the leverage ratio resulting from the making of such restricted payments is 4.00 or less. Otherwise the Company may only make restricted payments in an aggregate amount for each fiscal year not to exceed the amount set forth for such fiscal year ( $175.0 million for 2016 and 2017 and $200.0 million for 2018 and in each fiscal year thereafter). Senior Notes - 7.25% On January 15, 2014, the Company redeemed all of its outstanding $200.0 million aggregate principal amount of 7.25% senior notes due 2018 (the “ 7.25% Senior Notes”) paying a redemption price of $214.5 million , which included $7.25 million of accrued and unpaid interest, $7.25 million of call premium, and $200.0 million for outstanding principal amount. The $7.25 million call premium charge was recognized within the “Costs related to refinancing” line on the Condensed Consolidated Statement of Operations in the Company's second quarter of fiscal 2014 . Additionally, the Company had $3.5 million in unamortized bond discount and issuance costs associated with the 7.25% Senior Notes that were written-off and recognized in the “Costs related to refinancing” line on the Condensed Consolidated Statement of Operations in the Company's second quarter of fiscal 2014 . Senior Notes - 6.625% On December 16, 2010 , Scotts Miracle-Gro issued $200 million aggregate principal amount of 6.625% Senior Notes due 2020 (the “ 6.625% Senior Notes”). The net proceeds of the offering were used to repay outstanding borrowings under the Company’s then existing credit facilities and for general corporate purposes. The 6.625% Senior Notes represent general unsecured senior obligations of Scotts Miracle-Gro and rank equal in right of payment with the Company’s existing and future unsecured senior debt, including, without limitation, the 7.25% Senior Notes. The 6.625% Senior Notes have interest payment dates of June 15 and December 15 of each year, which began on June 15, 2011 , and may be redeemed prior to maturity starting December 2015 at applicable redemption premiums. The 6.625% Senior Notes contain usual and customary covenants. Substantially all of Scotts Miracle-Gro’s domestic subsidiaries serve as guarantors of the 6.625% Senior Notes. The 6.625% Senior Notes mature on December 15, 2020 . On November 13, 2015 , Scotts Miracle-Gro provided an irrevocable notice to the trustee of its election to redeem all of its outstanding 6.625% Senior Notes for a redemption price of $213.2 million , comprised of $6.6 million of accrued and unpaid interest, $6.6 million of call premium, and $200 million for outstanding principal amount. The $6.6 million call premium charge will be recognized in the Company's first quarter of fiscal 2016. As of September 30, 2015, the Company has classified the $200 million of the 6.625% Senior Notes as long-term debt on the Consolidated Balance Sheet. Additionally, the Company had $2.1 million in unamortized bond issuance costs as of September 30, 2015, which are expected to be written-off in the Company's first quarter of fiscal 2016. Senior Notes - 6.000% Subsequent to the end of fiscal 2015, on October 13, 2015 , Scotts Miracle-Gro issued $400 million aggregate principal amount of 6.000% Senior Notes due 2023 (the “6.000% Senior Notes”). The net proceeds of the offering were used to repay outstanding borrowings under the former credit facility. The 6.000% Senior Notes represent general unsecured senior obligations and rank equal in right of payment with the Company's existing and future unsecured senior debt. The 6.000% Senior Notes have interest payment dates of April 15 and October 15 of each year, commencing April 15, 2016 , and may be redeemed prior to maturity starting October 2018 at applicable redemption premiums. The 6.000% Senior Notes contain usual and customary covenants. The 6.000% Senior Notes mature on October 15, 2023 . Substantially all of Scotts Miracle-Gro’s domestic subsidiaries serve as guarantors of the 6.000% Senior Notes. Master Accounts Receivable Purchase Agreement The Company maintains a Master Accounts Receivable Purchase Agreement (“MARP Agreement”), which provides for the discretionary sale by the Company, and the discretionary purchase by the participating banks, on a revolving basis, of accounts receivable generated by sales to three specified account debtors in an aggregate amount not to exceed $400 million . The MARP Agreement is subject to renewal by mutual agreement at least annually. On September 25, 2015, the Company entered into an amended and restated MARP Agreement that provides for the discretionary sale and purchase, on a revolving basis, of certain accounts receivable in an aggregate amount not to exceed $400 million as described above, but adds a commitment period during which the banks will be required to purchase such accounts receivable in an aggregate committed amount not to exceed $160.0 million . The commitment period will begin no earlier than February 20, 2016 and end no later than June 17, 2016 , and the commencement and continuation of the commitment period will be subject to, among other things, the absence of any termination event under the MARP Agreement or any default or event of default under our current credit agreement. Under the terms of the amended and restated MARP Agreement, the banks have the opportunity to purchase those accounts receivable offered by the Company at a discount (from the agreed base value thereof) effectively equal to the one-week LIBOR plus 0.75% . The MARP Agreement has a termination date of August 26, 2016. The Company accounts for the sale of receivables under its MARP Agreement as short-term debt and continues to carry the receivables on its Consolidated Balance Sheet, primarily as a result of the Company’s right to repurchase receivables sold. There were $122.3 million and $84.0 million in short-term borrowings under the MARP Agreement as of September 30, 2015 and September 30, 2014 , respectively. As of September 30, 2015 , there was $2.8 million of availability under the MARP Agreement. The carrying value of the receivables pledged as collateral was $152.9 million and $113.7 million as of September 30, 2015 and September 30, 2014 , respectively. Interest Rate Swap Agreements The Company has outstanding interest rate swap agreements with major financial institutions that effectively convert a portion of the Company's variable-rate debt to a fixed rate. The swap agreements had a total U.S. dollar equivalent notional amount of $1,300 million at September 30, 2015 and September 30, 2014 . Interest payments made between the effective date and expiration date are hedged by the swap agreements, except as noted below. The notional amount, effective date, expiration date and rate of each of these swap agreements are shown in the table below. Notional Amount (in millions) Effective Date (a) Expiration Date Fixed Rate $ 50 2/14/2012 2/14/2016 3.78 % 150 (b) 2/7/2012 5/7/2016 2.42 % 150 (c) 11/16/2009 5/16/2016 3.26 % 50 (b) 2/16/2010 5/16/2016 3.05 % 100 (b) 2/21/2012 5/23/2016 2.40 % 150 (c) 12/20/2011 6/20/2016 2.61 % 50 (d) 12/6/2012 9/6/2017 2.96 % 200 2/7/2014 11/7/2017 1.28 % 150 (b) 2/7/2017 5/7/2019 2.12 % 50 (b) 2/7/2017 5/7/2019 2.25 % 200 (c) 12/20/2016 6/20/2019 2.12 % (a) The effective date refers to the date on which interest payments were, or will be, first hedged by the applicable swap agreement. (b) Interest payments made during the three-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. (c) Interest payments made during the six-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. (d) Interest payments made during the nine-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. Estimated Fair Values A description of the methods and assumptions used to estimate the fair values of the Company’s debt instruments is as follows: Credit Facility The interest rate currently available to the Company fluctuates with the applicable LIBOR rate, prime rate or Federal Funds Effective Rate and thus the carrying value is a reasonable estimate of fair value. The fair value measurement for the former credit facility was classified in Level 2 of the fair value hierarchy. 6.625% Senior Notes The fair value of the 6.625% Senior Notes was determined based on the trading value of the 6.625% Senior Notes in the open market. The difference between the carrying value and the fair value of the 6.625% Senior Notes represents the premium or discount on that date. The fair value for the 6.625% Senior Notes was classified in Level 1 of the fair value hierarchy. On November 13, 2015, Scotts Miracle-Gro provided an irrevocable notice to the trustee of its election to redeem all of its outstanding 6.625% Senior Notes for a redemption price of $213.2 million, comprised of $6.6 million of accrued and unpaid interest, $6.6 million of call premium, and $200 million for outstanding principal amount. Accounts Receivable Pledged The interest rate on the short-term debt associated with accounts receivable pledged under the MARP Agreement fluctuates with the applicable LIBOR rate and thus the carrying value is a reasonable estimate of fair value. The fair value measurement for the MARP Agreement was classified in Level 2 of the fair value hierarchy. The estimated fair values of the Company’s debt instruments are as follows: Year Ended September 30, 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Revolving loans $ 816.3 $ 816.3 $ 481.8 $ 481.8 Senior Notes – 6.625% 200.0 206.3 200.0 212.5 Master Accounts Receivable Purchase Agreement 122.3 122.3 84.0 84.0 Other 24.7 24.7 18.5 18.5 Weighted Average Interest Rate The weighted average interest rates on the Company's debt were 4.2% and 5.0% for fiscal 2015 and fiscal 2014 , respectively. The decline in the weighted average interest rate is due to the reduced rates under the former credit facility and the redemption of the 7.25% Senior Notes. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2015 | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Authorized and issued shares consisted of the following: September 30, 2015 2014 (In millions) Preferred shares, no par value: Authorized 0.2 shares 0.2 shares Issued 0.0 shares 0.0 shares Common shares, no par value, $.01 stated value per share: Authorized 100.0 shares 100.0 shares Issued 68.1 shares 68.1 shares In fiscal 1995, The Scotts Company merged with Stern’s Miracle-Gro Products, Inc. (“Miracle-Gro”). At September 30, 2015 , the former shareholders of Miracle-Gro, including the Hagedorn Partnership L.P., owned approximately 26% of Scotts Miracle-Gro’s outstanding Common Shares and, thus, have the ability to significantly influence the election of directors and other actions requiring the approval of Scotts Miracle-Gro’s shareholders. Under the terms of the merger agreement with Miracle-Gro, the former shareholders of Miracle-Gro may not collectively acquire, directly or indirectly, beneficial ownership of Voting Stock (as that term is defined in the Miracle-Gro merger agreement) representing more than 49% of the total voting power of the outstanding Voting Stock, except pursuant to a tender offer for 100% of that total voting power, which tender offer is made at a price per share which is not less than the market price per share on the last trading day before the announcement of the tender offer and is conditioned upon the receipt of at least 50% of the Voting Stock beneficially owned by shareholders of Scotts Miracle-Gro other than the former shareholders of Miracle-Gro and their affiliates and associates. In August 2010, the Scotts Miracle-Gro Board of Directors authorized the repurchase of up to $500 million of Common Shares over a four -year period through September 30, 2014. In May 2011, the Scotts Miracle-Gro Board of Directors authorized the repurchase of up to an additional $200 million of Common Shares, resulting in authority to repurchase a total of up to $700 million of Common Shares through September 30, 2014. From the inception of this share repurchase program in the fourth quarter of fiscal 2010 through its expiration on September 30, 2014, Scotts Miracle-Gro repurchased 9.9 million Common Shares for $521.2 million to be held in treasury. Common Shares held in treasury totaling 0.9 million and 0.8 million were reissued in support of share-based compensation awards and employee purchases under the employee stock purchase plan during fiscal 2015 and fiscal 2014 , respectively. In August 2014, the Scotts Miracle-Gro Board of Directors authorized the repurchase of up to $500 million of Common Shares over a four-year period through September 30, 2019. The authorization provides the Company with flexibility to purchase Common Shares from time to time in open market purchases or through privately negotiated transactions. All or part of the repurchases may be made under Rule 10b5-1 plans, which the Company may enter into from time to time and which enable the repurchases to occur on a more regular basis, or pursuant to accelerated share repurchases. The share repurchase authorization, which expires September 30, 2019 , may be suspended or discontinued at any time, and there can be no guarantee as to the timing or amount of any repurchases. From the inception of this share repurchase program in the fourth quarter of fiscal 2014 through September 30, 2015, Scotts Miracle-Gro repurchased approximately 0.2 million Common Shares for $14.8 million . In August 2014, the Scotts Miracle-Gro Board of Directors also authorized a special one-time cash dividend of $2.00 per Common Share that was paid on September 17, 2014. The payment of the special one-time cash dividend required Scotts Miracle-Gro to adjust the number of Common Shares subject to stock options outstanding under the Scotts Miracle-Gro share-based awards programs, as well as the price at which the awards may be exercised. The adjustments to the outstanding awards resulted in an increase in the number of Common Shares subject to outstanding stock options in an aggregate amount of 0.1 million Common Shares. The methodology used to adjust the awards was consistent with Internal Revenue Code (IRC) Section 409A and the then-proposed regulations promulgated thereunder and IRC Section 424 and the regulations promulgated thereunder, compliance with which was necessary to avoid adverse tax consequences for the holder of an award. Such methodology also resulted in a fair value for the adjusted awards post-dividend equal to that of the unadjusted awards pre-dividend, with the result that there was no additional compensation expense in accordance with the accounting for modifications to awards under ASC 718. Share-Based Awards Scotts Miracle-Gro grants share-based awards annually to officers and certain other employees of the Company and non-employee directors of Scotts Miracle-Gro. The share-based awards have consisted of stock options, restricted stock, restricted stock units, deferred stock units and performance-based awards. Stock appreciation rights (“SARs”) have been granted, though not in recent years. SARs result in less dilution than stock options as the SAR holder receives a net share settlement upon exercise. All of these share-based awards have been made under plans approved by the shareholders. Generally, employee share-based awards provide for three-year cliff vesting. Vesting for non-employee director awards varies based on the length of service and age of each director at the time of the award. Vesting of performance-based awards is dependent on service and achievement of specified performance targets. Share-based awards are forfeited if a holder terminates employment or service with the Company prior to the vesting date. The Company estimates that 20% of its share-based awards will be forfeited based on an analysis of historical trends. This assumption is re-evaluated on an annual basis and adjusted as appropriate. Stock options and SAR awards have exercise prices equal to the market price of the underlying Common Shares on the date of grant with a term of 10 years. If available, Scotts Miracle-Gro will typically use treasury shares, or if not available, newly-issued Common Shares, in satisfaction of its share-based awards. A maximum of 23.1 million Common Shares are available for issuance under share-based award plans. At September 30, 2015 , approximately 2.4 million Common Shares were not subject to outstanding awards and were available to underlie the grant of new share-based awards. The following is a recap of the share-based awards granted during the periods indicated: Year Ended September 30, 2015 2014 2013 Employees Options 440,690 — — Restricted stock units 78,463 112,315 178,030 Performance units 78,352 161,229 178,321 Board of Directors Deferred stock units 29,913 38,418 33,253 Options due to special $2.00 dividend — 98,186 — Total share-based awards 627,418 311,962 389,604 Aggregate fair value at grant dates (in millions) $ 17.0 $ 17.5 $ 17.5 Total share-based compensation was as follows for the periods indicated: Year Ended September 30, 2015 2014 2013 (In millions) Share-based compensation $ 13.2 $ 11.1 $ 10.3 Tax benefit recognized 5.1 3.9 3.9 As of September 30, 2015 , total unrecognized compensation cost related to non-vested share-based awards amounted to $10.9 million . This cost is expected to be recognized over a weighted-average period of 1.7 years. The tax benefit realized from the tax deductions associated with the exercise of share-based awards and the vesting of restricted stock totaled $12.1 million for fiscal 2015 . On March 30, 2015, Scotts Miracle-Gro issued 0.2 million Common Shares (which represented a carrying value of $8.3 million ) out of its treasury shares for payment of the acquisition of Vermicrop. Stock Options/SARs Aggregate stock option and SAR activity consisted of the following for fiscal 2015 (options/SARs in millions): No. of Options/SARs WTD. Avg. Exercise Price Beginning balance 2.0 $ 38.26 Granted 0.4 63.60 Exercised (0.6 ) 38.23 Forfeited — — Ending balance 1.8 44.38 Exercisable 1.3 38.23 At September 30, 2015 , the Company expects 0.4 million of the remaining unexercisable stock options (after forfeitures), with a weighted-average exercise price of $63.63 and average remaining term of 9.3 years , to vest in the future. These options had an intrinsic value of zero as of September 30, 2015 as the weighted-average exercise price was greater than the period end stock price. The following summarizes certain information pertaining to stock option and SAR awards outstanding and exercisable at September 30, 2015 (options/SARs in millions): Awards Outstanding Awards Exercisable Range of Exercise Price No. of Options/ SARs WTD. Avg. Remaining Life WTD. Avg. Exercise Price No. of Options/ SARS WTD. Avg. Remaining Life WTD. Avg. Exercise Price $20.59 – $27.31 0.3 3.01 $ 20.59 0.2 3.01 $ 20.59 $29.30 – $36.86 0.4 1.53 36.43 0.4 1.53 36.43 $38.81 – $49.19 0.7 5.20 45.26 0.7 5.20 45.26 $63.43 – $67.40 0.4 9.34 63.60 — — — 1.8 5.05 $ 44.38 1.3 3.67 $ 38.23 The intrinsic value of the stock option and SAR awards outstanding and exercisable at September 30, 2015 were as follows (in millions): 2015 Outstanding $ 30.4 Exercisable 30.4 The grant date fair value of stock option awards is estimated using a binomial model and the assumptions in the following table. Expected market price volatility is based on implied volatilities from traded options on Common Shares and historical volatility specific to the Common Shares. Historical data, including demographic factors impacting historical exercise behavior, is used to estimate stock option exercises and employee terminations within the valuation model. The risk-free rate for periods within the contractual life (normally ten years) of the stock option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life of stock options is based on historical experience and expectations for grants outstanding. The weighted average assumptions for awards granted in fiscal 2015 are as follows: 2015 Expected market price volatility 26.6 % Risk-free interest rates 1.3 % Expected dividend yield 2.8 % Expected life of stock options in years 6.0 Estimated weighted-average fair value per stock option $ 11.51 The total intrinsic value of stock options exercised was $16.3 million , $21.3 million and $8.1 million during fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. Cash received from the exercise of stock options for fiscal 2015 , fiscal 2014 and fiscal 2013 was $24.3 million , $20.0 million and $13.3 million , respectively. Restricted share-based awards Restricted share-based award activity (including restricted stock, restricted stock units and deferred stock units) was as follows: No. of Shares WTD. Avg. Grant Date Fair Value per Share Awards outstanding at September 30, 2012 497,199 $ 45.75 Granted 211,283 44.80 Vested (251,855 ) 40.87 Forfeited (46,976 ) 53.54 Awards outstanding at September 30, 2013 409,651 47.36 Granted 150,733 59.35 Vested (81,597 ) 41.88 Forfeited (44,895 ) 47.43 Awards outstanding at September 30, 2014 433,892 52.55 Granted 108,376 63.85 Vested (135,562 ) 47.33 Forfeited (25,197 ) 58.44 Awards outstanding at September 30, 2015 381,509 57.22 The total fair value of restricted stock units and deferred stock units vested was $6.2 million , $3.4 million and $10.3 million during fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. Performance-based awards Performance-based award activity was as follows: No. of Units WTD. Avg. Grant Date Fair Value per Unit Awards outstanding at September 30, 2012 153,909 $ 45.48 Granted 178,321 45.06 Vested — — Forfeited (70,313 ) 46.62 Awards outstanding at September 30, 2013 261,917 46.81 Granted 161,229 59.39 Vested — — Forfeited (111,897 ) 53.24 Awards outstanding at September 30, 2014 311,249 51.21 Granted 78,352 63.36 Vested (49,467 ) 47.66 Forfeited (910 ) 47.66 Awards outstanding at September 30, 2015 339,224 54.86 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Sep. 30, 2015 | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic income per Common Share is computed by dividing income attributable to controlling interest from continuing operations, income (loss) from discontinued operations or net income attributable to controlling interest by the weighted average number of Common Shares outstanding. Diluted income per Common Share is computed by dividing income attributable to controlling interest from continuing operations, income (loss) from discontinued operations or net income attributable to controlling interest by the weighted average number of Common Shares outstanding plus all potentially dilutive securities outstanding each period. Stock options with exercise prices greater than the average market price of the underlying Common Shares are excluded from the computation of diluted income per Common Share because they are out-of-the-money and the effect of their inclusion would be anti-dilutive. The number of Common Shares covered by out-of-the-money options was 0.3 million , 0.0 million and 0.8 million for the years ended September 30, 2015 , 2014 and 2013, respectively. The following table presents information necessary to calculate basic and diluted income per Common Share. Year Ended September 30, 2015 2014 2013 (In millions, except per share data) Income attributable to controlling interest from continuing operations $ 159.8 $ 165.7 $ 159.4 Income from discontinued operations — 0.8 1.7 Net income attributable to controlling interest $ 159.8 $ 166.5 $ 161.1 BASIC EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.6 61.7 Income from continuing operations $ 2.62 $ 2.69 $ 2.58 Income from discontinued operations — 0.01 0.03 Net income $ 2.62 $ 2.70 $ 2.61 DILUTED EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.6 61.7 Dilutive potential Common Shares 1.1 1.1 0.9 Weighted-average number of Common Shares outstanding and dilutive potential Common Shares 62.2 62.7 62.6 Income from continuing operations $ 2.57 $ 2.64 $ 2.55 Income from discontinued operations — 0.01 0.02 Net income $ 2.57 $ 2.65 $ 2.57 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2015 | |
INCOME TAXES | INCOME TAXES The provision (benefit) for income taxes allocated to continuing operations consisted of the following: Year Ended September 30, 2015 2014 2013 (In millions) Current: Federal $ 72.4 $ 67.0 $ 55.0 State 9.5 8.6 7.4 Foreign 2.2 3.5 4.4 Total Current 84.1 79.1 66.8 Deferred: Federal 0.8 10.8 24.0 State 1.2 1.4 1.2 Foreign (0.7 ) (0.1 ) (0.1 ) Total Deferred 1.3 12.1 25.1 Provision for income taxes $ 85.4 $ 91.2 $ 91.9 The domestic and foreign components of income from continuing operations before income taxes were as follows: Year Ended September 30, 2015 2014 2013 (In millions) Domestic $ 217.7 $ 231.0 $ 236.5 Foreign 26.4 25.6 14.8 Income from continuing operations before income taxes $ 244.1 $ 256.6 $ 251.3 A reconciliation of the federal corporate income tax rate and the effective tax rate on income from continuing operations before income taxes is summarized below: Year Ended September 30, 2015 2014 2013 Statutory income tax rate 35.0 % 35.0 % 35.0 % Effect of foreign operations (0.5 ) 1.5 0.8 State taxes, net of federal benefit 3.1 2.7 2.9 Domestic Production Activities Deduction permanent difference (3.1 ) (2.7 ) (2.1 ) Effect of other permanent differences 0.1 0.2 0.8 Research and Experimentation and other federal tax credits (0.2 ) (0.8 ) (0.3 ) Resolution of prior tax contingencies 0.4 0.2 0.2 Other 0.2 (0.5 ) (0.7 ) Effective income tax rate 35.0 % 35.6 % 36.6 % Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the deferred income tax assets and liabilities were as follows: September 30, 2015 2014 (In millions) DEFERRED TAX ASSETS Inventories $ 14.1 $ 14.7 Accrued liabilities 71.6 59.7 Postretirement benefits 30.3 32.4 Accounts receivable 8.3 7.2 State NOL carryovers 1.0 1.3 Foreign NOL carryovers 45.0 48.2 Foreign tax credit carryovers 8.6 4.6 Interest rate swaps 4.9 4.2 Other 3.3 3.1 Gross deferred tax assets 187.1 175.4 Valuation allowance (45.8 ) (48.3 ) Total deferred tax assets 141.3 127.1 DEFERRED TAX LIABILITIES Property, plant and equipment (59.7 ) (59.2 ) Intangible assets (114.8 ) (106.6 ) Other (14.0 ) (9.5 ) Total deferred tax liabilities (188.5 ) (175.3 ) Net deferred tax liability $ (47.2 ) $ (48.2 ) The net current and non-current components of deferred income taxes recognized in the Consolidated Balance Sheets were: September 30, 2015 2014 (In millions) Net current deferred tax assets (classified with prepaid and other assets) $ 78.2 $ 72.2 Net non-current deferred tax liabilities (classified with other liabilities) (125.4 ) (120.4 ) Net deferred tax liability $ (47.2 ) $ (48.2 ) GAAP requires that a valuation allowance be recorded against a deferred tax asset if it is more likely than not that the tax benefit associated with the asset will not be realized in the future. As shown in the table above, valuation allowances were recorded against $45.8 million and $48.3 million of deferred tax assets as of September 30, 2015 , and September 30, 2014 , respectively. Most of these valuation allowances relate to certain foreign net operating losses, as explained further below. The Company has elected to treat certain foreign entities as disregarded entities for U.S. tax purposes, which results in their net income or loss being recognized currently in the Company’s U.S. tax return. As such, the tax benefit of net operating losses available for foreign statutory tax purposes has already been recognized for U.S. purposes. Accordingly, a full valuation allowance is required on the tax benefit of these net operating losses on global consolidation. The foreign net operating losses of these foreign disregarded entities were $169.9 million at September 30, 2015 , the majority of which have indefinite carryforward periods. The statutory tax benefit of these net operating loss carryovers, and related full valuation allowances thereon, amounted to $41.2 million and $45.5 million for the years ended September 30, 2015 and September 30, 2014 , respectively. Foreign net operating losses of certain controlled foreign corporations were $14.1 million as of September 30, 2015 , the majority of which have indefinite carryforward periods. Due to a history of losses in these entities, a full valuation allowance has also been placed against the statutory tax benefit associated with all but an immaterial amount of these losses amounting to $3.4 million and $2.7 million at September 30, 2015 and September 30, 2014 , respectively. Foreign tax credits were $8.6 million and $4.6 million at September 30, 2015 and September 30, 2014 , respectively. A valuation allowance in the amount of $0.8 million has been established against those foreign tax credits the Company does not expect to utilize prior to their expiration. State net operating losses were $13.5 million as of September 30, 2015 , with carryforward periods ranging from 5 to 20 years. Any losses not utilized within a specific state’s carryforward period will expire. Tax benefits associated with state tax credits will expire if not utilized and amounted to $0.6 million at both September 30, 2015 and September 30, 2014 . No valuation allowance has been placed against these net operating losses as the Company should fully utilize them within their respective carryover periods. A valuation allowance in the amount of $0.2 million has been established related to state credits the Company does not expect to utilize. Deferred taxes have not been provided on unremitted earnings of $146.0 million for certain foreign subsidiaries and foreign corporate joint ventures as such earnings have been indefinitely reinvested. These foreign entities held cash and cash equivalents of $55.1 million and $59.9 million at September 30, 2015 and September 30, 2014 , respectively. Our current plans do not demonstrate a need to, nor do we have plans to, repatriate the retained earnings from these subsidiaries as the earnings are indefinitely reinvested. In the future, if we determine it is necessary to repatriate these funds, or we sell or liquidate any of these subsidiaries, we may be required to pay associated taxes on the repatriation. We may also be required to withhold foreign taxes depending on the foreign jurisdiction from which the funds are repatriated. The effective rate of tax on such repatriations may materially differ from the federal statutory tax rate and could have a material impact on tax expense in the year of repatriation; however, the Company cannot reasonably estimate the amount of such a tax event. GAAP provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. The amount recognized is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. The Company had $9.2 million , $11.2 million and $6.7 million of gross unrecognized tax benefits related to uncertain tax positions at September 30, 2015 , 2014 and 2013 , respectively. Included in the September 30, 2015 , 2014 and 2013 balances were $6.6 million , $8.5 million and $6.7 million , respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. A reconciliation of the unrecognized tax benefits is as follows: Year Ended September 30, 2015 2014 2013 (In millions) Balance at beginning of year $ 11.2 $ 6.7 $ 7.0 Additions for tax positions of the current year 0.2 0.2 0.3 Additions for tax positions of prior years 4.1 7.6 4.3 Reductions for tax positions of prior years (3.2 ) (2.7 ) (3.8 ) Settlements with tax authorities (2.7 ) — (0.4 ) Expiration of statutes of limitation (0.4 ) (0.6 ) (0.7 ) Balance at end of year $ 9.2 $ 11.2 $ 6.7 The Company continues to recognize accrued interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. As of September 30, 2015 , 2014 and 2013 , respectively, the Company had $1.8 million , $1.8 million and $1.8 million accrued for the payment of interest that, if recognized, would impact the effective tax rate. As of September 30, 2015 , 2014 and 2013 , respectively, the Company had $0.7 million , $0.6 million and $0.7 million accrued for the payment of penalties that, if recognized, would impact the effective tax rate. For the fiscal year ended September 30, 2015 , the Company recognized no material tax interest and tax penalties in its Consolidated Statement of Operations. Scotts Miracle-Gro or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. With few exceptions, which are discussed further below, the Company is no longer subject to examination by these tax authorities for fiscal years prior to 2012. The Company is currently under examination by the Internal Revenue Service and certain foreign and U.S. state and local tax authorities. The U.S. federal examination is limited to fiscal year 2011 and is expected to close in fiscal year 2016. Regarding the foreign jurisdictions, a German audit commenced in the third quarter of 2015 covering fiscal years 2009 through 2012 . Additionally, a Chinese (Wuhan) audit commenced in the fourth quarter of 2015 covering fiscal years 2011 through 2014 . In regard to the multiple U.S. state and local audits, the tax periods under examination are limited to fiscal 2008 through fiscal 2013 . In addition to the aforementioned audits, certain other tax deficiency notices and refund claims for previous years remain unresolved. The Company currently anticipates that few of its open and active audits will be resolved within the next 12 months. The Company is unable to make a reasonably reliable estimate as to when or if cash settlements with taxing authorities may occur. Although audit outcomes and the timing of audit payments are subject to significant uncertainty, the Company does not anticipate that the resolution of these tax matters or any events related thereto will result in a material change to its consolidated financial position, results of operations or cash flows. Management judgment is required in determining tax provisions and evaluating tax positions. Management believes its tax positions and related provisions reflected in the consolidated financial statements are fully supportable and appropriate. The Company established reserves for additional income taxes that may become due if the tax positions are challenged and not sustained, and as such, the Company’s tax provision includes the impact of recording reserves and changes thereto. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Sep. 30, 2015 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. To manage a portion of the volatility related to these exposures, the Company enters into various financial transactions. The utilization of these financial transactions is governed by policies covering acceptable counterparty exposure, instrument types and other hedging practices. The Company does not hold or issue derivative financial instruments for speculative trading purposes. Exchange Rate Risk Management The Company uses currency forward contracts to manage the exchange rate risk associated with intercompany loans with foreign subsidiaries that are denominated in local currencies. At September 30, 2015 , the notional amount of outstanding currency forward contracts was $52.3 million , with a negative fair value of $0.7 million . At September 30, 2014 , the notional amount of outstanding currency forward contracts was $149.0 million , with a negative fair value of $0.1 million . The fair value of currency forward contracts is determined using forward rates in commonly quoted intervals for the full term of the contracts. The outstanding contracts will mature over fiscal year 2016. Interest Rate Risk Management The Company enters into interest rate swap agreements as a means to hedge its variable interest rate risk on debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since the interest rate swap agreements have been designated as hedging instruments, unrealized gains or losses resulting from adjusting these swaps to fair value are recorded as elements of accumulated other comprehensive income (loss) (“AOCI”) within the Consolidated Balance Sheets except for any ineffective portion of the change in fair value, which is immediately recorded in interest expense. The fair value of the swap agreements is determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. On December 20, 2013, in conjunction with entering into the former credit facility, the Company recognized hedge ineffectiveness of $2.0 million which was recorded to interest expense. At September 30, 2015 and 2014 , the Company has outstanding interest rate swap agreements with major financial institutions that effectively convert a portion of the Company’s variable-rate debt to a fixed rate. The swap agreements had a total U.S. dollar equivalent notional amount of $1,300.0 million at September 30, 2015 and 2014 . Refer to “NOTE 10. DEBT” for the terms of the swap agreements outstanding at September 30, 2015 . Included in the AOCI balance at September 30, 2015 was a loss of $5.2 million related to interest rate swap agreements that is expected to be reclassified to earnings during the next twelve months, consistent with the timing of the underlying hedged transactions. Commodity Price Risk Management The Company enters into hedging arrangements designed to fix the price of a portion of its projected future urea requirements. The contracts are designated as hedges of the Company’s exposure to future cash flow fluctuations associated with the cost of urea. The objective of the hedges is to mitigate the earnings and cash flow volatility attributable to the risk of changing prices. Since the contracts have been designated as hedging instruments, unrealized gains or losses resulting from adjusting these contracts to fair value are recorded as elements of AOCI within the Consolidated Balance Sheets. Realized gains or losses remain as a component of AOCI until the related inventory is sold. Upon sale of the underlying inventory, the gain or loss is reclassified to cost of sales. Included in the AOCI balance at September 30, 2015 was a loss of $0.2 million related to urea derivatives that is expected to be reclassified to earnings during the next twelve months, consistent with the timing of the underlying hedged transactions. The Company also uses derivatives to partially mitigate the effect of fluctuating diesel and gasoline costs on operating results. Any such derivatives that do not qualify for hedge accounting treatment in accordance with GAAP are recorded at fair value, with unrealized gains and losses on open contracts and realized gains or losses on settled contracts recorded as an element of cost of sales. Unrealized gains or losses in the fair value of contracts that do qualify for hedge accounting are recorded in AOCI except for any ineffective portion of the change in fair value, which is immediately recorded in earnings. For the effective portion of the change in fair value, realized gains or losses remain as a component of AOCI until the related fuel is consumed. Upon consumption of the fuel, the gain or loss is reclassified to cost of sales. At September 30, 2015 , there were no amounts included within AOCI related to fuel derivatives. The Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases: September 30, 2015 2014 Commodity Urea 52,500 tons 58,500 tons Diesel 5,754,000 gallons 5,250,000 gallons Gasoline 504,000 gallons 462,000 gallons Heating Oil 2,772,000 gallons 4,494,000 gallons Fair Values of Derivative Instruments The fair values of the Company’s derivative instruments were as follows: Assets / (Liabilities) 2015 2014 Derivatives Designated As Hedging Instruments Balance Sheet Location Fair Value (In millions) Interest rate swap agreements Other assets $ — $ 4.0 Other current liabilities (8.8 ) (10.3 ) Other liabilities (4.6 ) (5.2 ) Commodity hedging instruments Other current liabilities (1.3 ) (0.6 ) Total derivatives designated as hedging instruments $ (14.7 ) $ (12.1 ) Derivatives Not Designated As Hedging Instruments Balance Sheet Location Currency forward contracts Other current liabilities $ (0.7 ) $ (0.1 ) Commodity hedging instruments Other current liabilities (3.9 ) (1.3 ) Total derivatives not designated as hedging instruments $ (4.6 ) $ (1.4 ) Total derivatives $ (19.3 ) $ (13.5 ) The effect of derivative instruments on AOCI and the Consolidated Statements of Operations for the years ended September 30 was as follows: Amount of Gain/(Loss) Recognized in AOCI Derivatives in Cash Flow Hedging Relationships 2015 2014 (In millions) Interest rate swap agreements $ (7.7 ) $ (6.6 ) Commodity hedging instruments (0.9 ) 1.7 Total $ (8.6 ) $ (4.9 ) Reclassified From AOCI Into Amount of Gain/(Loss) Derivatives in Cash Flow Hedging Relationships Statement of Operations 2015 2014 (In millions) Interest rate swap agreements Interest expense $ (6.5 ) $ (10.0 ) Commodity hedging instruments Cost of sales — 0.5 Total $ (6.5 ) $ (9.5 ) Amount of Gain/(Loss) Derivatives not Designated As Hedging Instruments Recognized in Statement of Operations 2015 2014 (In millions) Currency forward contracts Other income, net $ 8.1 $ (0.7 ) Commodity hedging instruments Cost of sales (11.4 ) (1.0 ) Total $ (3.3 ) $ (1.7 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2015 | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following describes the valuation methodologies used for financial assets and liabilities measured at fair value on a recurring basis, as well as the general classification within the valuation hierarchy. Derivatives Derivatives consist of currency, interest rate and commodity derivative instruments. Currency forward contracts are valued using observable forward rates in commonly quoted intervals for the full term of the contracts. Interest rate swap agreements are valued based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. Commodity contracts are measured using observable commodity exchange prices in active markets. These derivative instruments are classified within Level 2 of the valuation hierarchy and are included within other assets and other liabilities in the Company's Consolidated Balance Sheets, except for derivative instruments expected to be settled within the next 12 months, which are included within prepaid and other current assets and other current liabilities. Cash Equivalents Cash equivalents consist of highly liquid financial instruments with original maturities of three months or less. The carrying value of these cash equivalents approximates fair value due to their short-term maturities. Other Other financial assets consist of investment securities in non-qualified retirement plan assets. These securities are valued using observable market prices in active markets. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2015 : Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) Assets Cash equivalents $ 28.6 $ — $ — $ 28.6 Other 8.9 — — 8.9 Total $ 37.5 $ — $ — $ 37.5 Liabilities Derivatives Interest rate swap agreements $ — $ (13.4 ) $ — $ (13.4 ) Currency forward contracts — (0.7 ) — (0.7 ) Commodity hedging instruments — (5.2 ) — (5.2 ) Total $ — $ (19.3 ) $ — $ (19.3 ) The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2014: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) Assets Cash equivalents $ 32.0 $ — $ — $ 32.0 Derivatives Interest rate swap agreements — 4.0 — 4.0 Other 8.9 — — 8.9 Total $ 40.9 $ 4.0 $ — $ 44.9 Liabilities Derivatives Interest rate swap agreements $ — $ (15.5 ) $ — $ (15.5 ) Currency forward contracts — (0.1 ) — (0.1 ) Commodity hedging instruments — (1.9 ) — (1.9 ) Total $ — $ (17.5 ) $ — $ (17.5 ) As of September 30, 2015, there were no non-financial assets or liabilities measured at fair-value on a non-recurring basis. The following presents the Company’s non-financial assets and liabilities measured at fair value on a non-recurring basis at September 30, 2014 and describes the valuation methodologies used for non-financial assets and liabilities measured at fair value, as well as the general classification within the valuation hierarchy: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Losses (In millions) Ortho ® brands and sub-brands $ — $ — $ 92.3 $ 33.7 As a result of the Company's impairment review performed in the third quarter of fiscal 2014, the Company recognized an impairment charge for a non-recurring fair value adjustment of $33.7 million within the Global Consumer segment related to the Ortho ® brand. The remaining fair value of the indefinite-lived Ortho ® brand and sub-brands was $92.3 million . The fair value was calculated based upon the evaluation of the historical performance and future growth of the Ortho ® business using a royalty savings methodology similar to that employed when the associated business was acquired with updated estimates of sales, cash flow and profitability. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Sep. 30, 2015 | |
OPERATING LEASES | OPERATING LEASES The Company leases certain property and equipment from third parties under various non-cancelable operating lease agreements. Certain lease agreements contain renewal and purchase options. The lease agreements generally require that the Company pay taxes, insurance and maintenance expenses related to the leased assets. Future minimum lease payments for non-cancelable operating leases at September 30, 2015 , were as follows (in millions): 2016 $ 50.4 2017 43.2 2018 36.5 2019 31.1 2020 24.1 Thereafter 43.2 Total future minimum lease payments $ 228.5 The Company also leases certain vehicles (primarily cars and light trucks) under agreements that are cancelable after the first year, but typically continue on a month-to-month basis until canceled by the Company. The vehicle leases and certain other non-cancelable operating leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. If all such vehicle leases had been canceled as of September 30, 2015 , the Company’s residual value guarantee would have approximated $6.4 million . Other residual value guarantee amounts that apply at the conclusion of non-cancelable lease terms are as follows: Amount of Guarantee Lease Termination Date (In millions) Scotts LawnService ® vehicles $ 1.6 2019 - 2022 Corporate aircraft 27.0 2019 Rent expense for fiscal 2015 , fiscal 2014 and fiscal 2013 totaled $76.5 million , $71.2 million and $61.9 million , respectively. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Sep. 30, 2015 | |
COMMITMENTS | COMMITMENTS The Company has the following unconditional purchase obligations due during each of the next five fiscal years that have not been recognized in the Consolidated Balance Sheet at September 30, 2015 (in millions): 2016 $ 134.2 2017 42.3 2018 27.4 2019 7.9 2020 1.6 Thereafter — $ 213.4 Purchase obligations primarily represent commitments for materials used in the Company’s manufacturing processes, as well as commitments for warehouse services, grass seed and out-sourced information services. In addition, the Company leases certain property and equipment from third parties under various non-cancelable operating lease agreements. Future minimum lease payments for non-cancelable operating leases not included above are included in “NOTE 16. OPERATING LEASES.” |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Sep. 30, 2015 | |
CONTINGENCIES | CONTINGENCIES Management regularly evaluates the Company’s contingencies, including various lawsuits and claims which arise in the normal course of business, product and general liabilities, workers’ compensation, property losses and other liabilities for which the Company is self-insured or retains a high exposure limit. Self-insurance reserves are established based on actuarial loss estimates for specific individual claims plus actuarially estimated amounts for incurred but not reported claims and adverse development factors applied to existing claims. Legal costs incurred in connection with the resolution of claims, lawsuits and other contingencies generally are expensed as incurred. In the opinion of management, the assessment of contingencies is reasonable and related reserves, in the aggregate, are adequate; however, there can be no assurance that final resolution of these matters will not have a material effect on the Company’s financial condition, results of operations or cash flows. Regulatory Matters At September 30, 2015 , $5.6 million was accrued in the “Other liabilities” line in the Consolidated Balance Sheet for environmental actions, the majority of which are for site remediation. The amounts accrued are believed to be adequate to cover such known environmental exposures based on current facts and estimates of likely outcomes. Although it is reasonably possible that the costs to resolve such known environmental exposures will exceed the amounts accrued, any variation from accrued amounts is not expected to be material. Other The Company has been named as a defendant in a number of cases alleging injuries that the lawsuits claim resulted from exposure to asbestos-containing products, apparently based on the Company’s historic use of vermiculite in certain of its products. In many of these cases, the complaints are not specific about the plaintiffs’ contacts with the Company or its products. The cases vary, but complaints in these cases generally seek unspecified monetary damages (actual, compensatory, consequential and punitive) from multiple defendants. The Company believes that the claims against it are without merit and is vigorously defending against them. It is not currently possible to reasonably estimate a probable loss, if any, associated with these cases and, accordingly, no reserves have been recorded in the Company's Consolidated Financial Statements. The Company is reviewing agreements and policies that may provide insurance coverage or indemnity as to these claims and is pursuing coverage under some of these agreements and policies, although there can be no assurance of the results of these efforts. There can be no assurance that these cases, whether as a result of adverse outcomes or as a result of significant defense costs, will not have a material effect on the Company’s financial condition, results of operations or cash flows. In connection with the sale of wild bird food products that were the subject of a voluntary recall in 2008, the Company has been named as a defendant in four putative class actions filed on and after June 27, 2012, which have now been consolidated in the United States District Court for the Southern District of California as In re Morning Song Bird Food Litigation , Lead Case No. 3:12-cv-01592-JAH-RBB. The plaintiffs allege various statutory and common law claims associated with the Company's sale of wild bird food products and a plea agreement entered into in previously pending government proceedings associated with such sales. The plaintiffs allege, among other things, a purported class action on behalf of all persons and entities in the United States who purchased certain bird food products. The plaintiffs assert hundreds of millions of dollars in monetary damages (actual, compensatory, consequential, and restitution), punitive and treble damages; injunctive and declaratory relief; pre-judgment and post-judgment interest; and costs and attorneys' fees. The Company disputes the plaintiffs' assertions and intends to vigorously defend the consolidated action. At this point in the proceedings, it is not currently possible to reasonably estimate a probable loss, if any, associated with the action and, accordingly, no reserves have been recorded in the Company's Consolidated Financial Statements with respect to the action. There can be no assurance that this action, whether as a result of an adverse outcome or as a result of significant defense costs, will not have a material adverse effect on the Company's financial condition, results of operations or cash flows. The Company is involved in other lawsuits and claims which arise in the normal course of business. These claims individually and in the aggregate are not expected to result in a material effect on the Company’s financial condition, results of operations or cash flows. |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Sep. 30, 2015 | |
CONCENTRATIONS OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK The Company maintains cash depository accounts with major financial institutions around the world and invests in high quality, short-term liquid investments. Such investments are made only in investments issued by highly rated institutions. These investments mature within three months and have not historically incurred any losses. Trade accounts receivable are exposed to a concentration of credit risk with retailers principally located in the United States. The Company's retail customers include home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, food and drug stores, and indoor gardening and hydroponic stores. Concentrations of net sales and accounts receivable by segment in the United States as a percentage of consolidated net sales and accounts receivable at September 30 were as follows: Percentage of Net Sales Percentage of Net Accounts Receivable at September 30, 2015 2014 2013 2015 2014 Global Consumer segment 73 % 72 % 72 % 63 % 62 % Scotts LawnService ® segment 9 % 9 % 9 % 10 % 9 % Total Concentration in United States 82 % 81 % 81 % 73 % 71 % The remainder of the Company’s net sales and accounts receivable at September 30, 2015 , 2014 and 2013 were generated from customers located outside of the United States, primarily retailers, distributors and nurseries in Europe, Canada and Australia. No concentrations of these customers or individual customers within this group accounted for more than 10% of the Company’s net sales or accounts receivable for any period presented above. The Company’s three largest customers are reported within the Global Consumer segment and are the only customers that individually represent more than 10% of reported consolidated net sales and accounts receivable for each of the last three fiscal years. These three customers accounted for the following percentages of Global Consumer segment net sales for the fiscal years ended September 30: Percentage of Net Sales 2015 2014 2013 Home Depot 34 % 36 % 34 % Lowe's 17 % 19 % 18 % Walmart 12 % 13 % 13 % Accounts receivable for these three largest customers as a percentage of consolidated accounts receivable were 54% and 55% for September 30, 2015 and 2014 , respectively. |
OTHER (INCOME) EXPENSE, NET
OTHER (INCOME) EXPENSE, NET | 12 Months Ended |
Sep. 30, 2015 | |
OTHER (INCOME) EXPENSE | OTHER INCOME, NET Other (income) expense consisted of the following: Year Ended September 30, 2015 2014 2013 (In millions) Royalty income, net $ (5.2 ) $ (5.6 ) $ (4.7 ) Franchise fees (0.3 ) (0.3 ) (0.3 ) Foreign currency losses 1.6 1.0 0.4 (Gain) loss on investment of unconsolidated affiliate — (5.7 ) 0.4 Other (2.2 ) (4.1 ) (5.8 ) Total $ (6.1 ) $ (14.7 ) $ (10.0 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2015 | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company divides its business into two segments: Global Consumer and Scotts LawnService ® . This division of reportable segments is consistent with how the segments report to and are managed by the chief operating decision maker of the Company. The Global Consumer segment manufactures, markets and sells dry, granular slow-release lawn fertilizers, combination lawn fertilizer and control products, grass seed, spreaders, water-soluble, liquid and continuous release garden and indoor plant foods, plant care products, potting, garden and lawn soils, mulches and other growing media products, pesticide and rodenticide products. Products are marketed to home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, food and drug stores, and indoor gardening and hydroponic stores in the United States, Canada, Europe, Latin America and Australia. The Scotts LawnService ® segment provides residential and commercial lawn fertilization, disease and insect control and other related services such as core aeration, tree and shrub fertilization and pest control services through Company-owned branches and independent franchisees in the United States. Segment performance is evaluated on several factors, including income from continuing operations before amortization, and impairment, restructuring and other charges, which is not a GAAP measure. Senior management uses this measure of operating profit to gauge segment performance because the Company believes this measure is the most indicative of performance trends and the overall earnings potential of each segment. Total assets reported for the Company’s operating segments include the intangible assets for the acquired businesses within those segments. The accounting policies of the segments are the same as those described in “NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.” Corporate & Other consists of revenues and expenses associated with the Company’s supply agreements with Israel Chemicals, Ltd. (“ICL”), as well as corporate, general and administrative expenses and certain other income/expense items not allocated to the business segments. Corporate & Other assets primarily include deferred financing and debt issuance costs and corporate intangible assets, as well as deferred tax assets. The following tables present summarized financial information concerning the Company’s reportable segments for the periods indicated: Year Ended September 30, 2015 2014 2013 (In millions) Net sales: Global Consumer $ 2,701.0 $ 2,552.0 $ 2,484.7 Scotts LawnService ® 288.5 263.0 257.8 Segment total 2,989.5 2,815.0 2,742.5 Corporate & Other 27.0 26.3 31.2 Consolidated $ 3,016.5 $ 2,841.3 $ 2,773.7 Income from continuing operations before income taxes: Global Consumer $ 466.2 $ 438.8 $ 403.7 Scotts LawnService ® 33.3 30.2 28.7 Segment total 499.5 469.0 432.4 Corporate & Other (96.6 ) (90.4 ) (91.2 ) Intangible asset amortization (16.8 ) (13.0 ) (10.4 ) Impairment, restructuring and other (91.5 ) (51.0 ) (20.3 ) Costs related to refinancing — (10.7 ) — Interest expense (50.5 ) (47.3 ) (59.2 ) Consolidated $ 244.1 $ 256.6 $ 251.3 Depreciation and amortization: Global Consumer $ 52.0 $ 48.1 $ 48.7 Scotts LawnService ® 5.3 3.9 4.0 Corporate & Other 11.7 12.4 13.4 $ 69.0 $ 64.4 $ 66.1 Capital expenditures: Global Consumer $ 54.6 $ 83.3 $ 53.3 Scotts LawnService ® 3.7 3.2 3.1 Corporate & Other 3.4 1.1 3.7 $ 61.7 $ 87.6 $ 60.1 September 30, 2015 2014 (In millions) Total assets: Global Consumer $ 2,124.7 $ 1,690.7 Scotts LawnService ® 222.5 191.3 Corporate & Other 180.0 176.3 $ 2,527.2 $ 2,058.3 The following table presents net sales by product category for the Global Consumer segment: Year Ended September 30, 2015 2014 2013 Net sales: Lawn care 31 % 34 % 35 % Growing media 38 36 35 Controls 16 15 14 Roundup ® Marketing Agreement 5 5 5 Other, primarily gardening and landscape 10 10 11 Segment total product sales 100 % 100 % 100 % The following table presents net sales and long-lived assets (property, plant and equipment and finite-lived intangibles) by geographic area: Year Ended September 30, 2015 2014 2013 (In millions) Net sales: United States $ 2,508.5 $ 2,328.2 $ 2,295.5 International 508.0 513.1 478.2 $ 3,016.5 $ 2,841.3 $ 2,773.7 Long-lived assets: United States $ 558.7 $ 458.8 $ 419.9 International 73.8 91.1 64.5 $ 632.5 $ 549.9 $ 484.4 |
QUARTERLY CONSOLIDATED FINANCIA
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Sep. 30, 2015 | |
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION | QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) The following is a summary of the unaudited quarterly results of operations: First Quarter Second Quarter Third Quarter Fourth Quarter Full Year (In millions, except per share data) FISCAL 2015 Net sales $ 216.2 $ 1,102.3 $ 1,214.8 $ 483.2 $ 3,016.5 Gross profit 29.3 433.3 449.2 153.1 1,064.9 Income (loss) from continuing operations (74.0 ) 124.3 133.0 (24.6 ) 158.7 Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (74.0 ) 124.3 133.0 (24.6 ) 158.7 Income (loss) attributable to controlling interest (74.6 ) 124.6 133.4 (23.6 ) 159.8 Basic income (loss) per Common Share: Income (loss) from continuing operations $ (1.23 ) $ 2.05 $ 2.18 $ (0.38 ) $ 2.62 Income (loss) from discontinued operations, net of tax — — — — — Basic net income (loss) per Common Share $ (1.23 ) $ 2.05 $ 2.18 $ (0.38 ) $ 2.62 Common Shares used in basic EPS calculation 60.8 60.9 61.3 61.4 61.1 Diluted income (loss) per Common Share: Income (loss) from continuing operations $ (1.23 ) $ 2.01 $ 2.14 $ (0.38 ) $ 2.57 Income (loss) from discontinued operations, net of tax — — — — — Diluted net income (loss) per Common Share $ 1.23 $ 2.01 $ 2.14 $ (0.38 ) $ 2.57 Common Shares and dilutive potential Common Shares used in diluted EPS calculation 60.8 62.1 62.3 61.4 62.2 FISCAL 2014 Net sales $ 189.6 $ 1,081.0 $ 1,116.4 $ 454.3 $ 2,841.3 Gross profit 33.9 433.8 423.3 140.4 1,031.4 Income (loss) from continuing operations (65.8 ) 125.7 120.7 (15.2 ) 165.4 Income (loss) from discontinued operations, net of tax 0.1 — 1.0 (0.3 ) 0.8 Net income (loss) (65.7 ) 125.7 121.7 (15.5 ) 166.2 Income (loss) attributable to controlling interest (65.7 ) 125.7 121.7 (15.2 ) 166.5 Basic income (loss) per Common Share: Income (loss) from continuing operations $ (1.06 ) $ 2.03 $ 1.97 $ (0.24 ) $ 2.69 Income (loss) from discontinued operations — — 0.02 — 0.01 Basic net income (loss) per Common Share $ (1.06 ) $ 2.03 $ 1.99 $ (0.24 ) $ 2.70 Common Shares used in basic EPS calculation 62.1 61.9 61.3 61.0 61.6 Diluted income (loss) per Common Share: Income (loss) from continuing operations $ (1.06 ) $ 2.00 $ 1.93 $ (0.24 ) $ 2.64 Income (loss) from discontinued operations — — 0.02 — 0.01 Diluted net income (loss) per Common Share $ (1.06 ) $ 2.00 $ 1.95 $ (0.24 ) $ 2.65 Common Shares and dilutive potential Common Shares used in diluted EPS calculation 62.1 62.9 62.4 61.0 62.7 Common share equivalents, such as share-based awards, are excluded from the diluted loss per Common Share calculation in periods where there is a loss from continuing operations because the effect of their inclusion would be anti-dilutive. The Company’s business is highly seasonal, with approximately 75% of net sales occurring in the second and third fiscal quarters. Impairment, restructuring and other charges reflected in the quarterly financial information during fiscal 2015 are as follows: first quarter restructuring costs of $9.6 million related to termination benefits for U.S. and international employees; second quarter restructuring costs of $5.1 million related to termination benefits for U.S. and international employees; third quarter restructuring costs of $6.6 million related to termination benefits for U.S. and international employees and the liquidation and exit from the U.K. Solus business, and $37.7 million in costs related to resolving consumer complaints related to the newly reformulated Bonus S ® lawn fertilizer product; fourth quarter restructuring costs of $0.9 million related to termination benefits for U.S. and international employees, and $24.7 million in charges related to resolving consumer complaints related to the newly reformulated Bonus S ® lawn fertilizer product. Impairment, restructuring and other charges reflected in the quarterly financial information during fiscal 2014 are as follows: first quarter restructuring costs of $0.3 million related to termination benefits; second quarter restructuring costs of $ 4.1 million related to termination benefits for U.S. and international employees, $2.0 million in additional ongoing monitoring and remediation costs for the Company's turfgrass biotechnology program and $10.7 million in costs related to refinancing; third quarter restructuring costs of $5.5 million related to termination benefits primarily for U.S. employees and impairment charges of $33.7 million related to the Ortho ® brand; fourth quarter restructuring costs of $5.4 million related to termination benefits for U.S. and international employees. In March 2014, the Company completed the sale of its U.S. and Canadian wild bird food business, including intangible assets, certain on-hand inventory and fixed assets, for $4.1 million in cash and an estimated $1.0 million in future earn-out payments. In addition, in the third quarter of fiscal 2014, the Company received $3.1 million for the sale of the remaining wild bird food manufacturing facilities resulting in a gain of $1.2 million . |
FINANCIAL INFORMATION FOR SUBSI
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS | 12 Months Ended |
Sep. 30, 2015 | |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS | FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS The 6.625% Senior Notes were issued on December 16, 2010 and are guaranteed by certain of the Company's domestic subsidiaries and, therefore, the Company reports condensed, consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. On January 15, 2014, Scotts Miracle-Gro redeemed all of its outstanding $200 million aggregate principal amount of 7.25% Senior Notes which were previously guaranteed by certain of its domestic subsidiaries. The 6.000% Senior Notes were issued subsequent to the end of fiscal 2015 on October 13, 2015 and are guaranteed by certain of the Company's domestic subsidiaries. The guarantees with respect to the 7.25% Senior Notes were, and the guarantees with respect to the 6.625% Senior Notes and the 6.000% Senior Notes are “full and unconditional,” as those terms are used in Regulation S-X Rule 3-10, except that a subsidiary’s guarantee will be automatically released in certain customary circumstances, such as (1) upon any sale or other disposition of all or substantially all of the assets of the subsidiary (including by way of merger or consolidation) to any person other than Scotts Miracle-Gro or any “restricted subsidiary” under the applicable indenture; (2) if the subsidiary merges with and into Scotts Miracle-Gro, with Scotts Miracle-Gro surviving such merger; (3) if the subsidiary is designated an “unrestricted subsidiary” in accordance with the applicable indenture or otherwise ceases to be a “restricted subsidiary” (including by way of liquidation or dissolution) in a transaction permitted by such indenture; (4) upon legal or covenant defeasance; (5) upon satisfaction and discharge of the 6.625% Senior Notes; or (6) if the subsidiary ceases to be a “wholly owned restricted subsidiary” and the subsidiary is not otherwise required to provide a guarantee of the 6.625% Senior Notes pursuant to the applicable indenture. The Hawthorne Gardening Company and Hawthorne Hydroponics LLC were added as guarantors effective in the three month period ending March 28, 2015 and have been classified as Guarantors for all periods presented. The following 100% directly or indirectly owned subsidiaries fully and unconditionally guarantee at September 30, 2015 the 6.625% Senior Notes on a joint and several basis: EG Systems, Inc.; Gutwein & Co., Inc.; Hyponex Corporation; Miracle-Gro Lawn Products, Inc.; OMS Investments, Inc.; Rod McLellan Company; Sanford Scientific, Inc.; Scotts Temecula Operations, LLC; Scotts Manufacturing Company; Scotts Products Co.; Scotts Professional Products Co.; Scotts-Sierra Investments LLC; SMG Growing Media, Inc.; Swiss Farms Products, Inc.; SMGM LLC; SLS Franchise Systems LLC; The Scotts Company LLC; The Hawthorne Gardening Company; and Hawthorne Hydroponics LLC (collectively, the “Guarantors”). The following information presents Condensed Consolidating Statements of Operations, Condensed Consolidating Statements of Comprehensive Income (Loss) and Condensed Consolidating Statements of Cash Flows for each of the three years ended September 30, 2015 , 2014 and 2013, and Condensed Consolidating Balance Sheets as of September 30, 2015 and 2014 . The condensed consolidating financial information presents, in separate columns, financial information for: Scotts Miracle-Gro on a Parent-only basis, carrying its investment in subsidiaries under the equity method; Guarantors on a combined basis, carrying their investments in subsidiaries which do not guarantee the debt (collectively, the “Non-Guarantors”) under the equity method; Non-Guarantors on a combined basis; and eliminating entries. The eliminating entries primarily reflect intercompany transactions, such as interest expense, accounts receivable and payable, short and long-term debt, and the elimination of equity investments, return on investments and income in subsidiaries. Because the Parent is obligated to pay the unpaid principal amount and interest on all amounts borrowed by the Guarantors or Non-Guarantors under the credit facility (and was obligated to pay the unpaid principal amount and interest on all amounts borrowed by the Guarantors and Non-Guarantors under the previous senior secured five-year revolving loan facility), the borrowings and related interest expense for the loans outstanding of the Guarantors and Non-Guarantors are also presented in the accompanying Parent-only financial information, and are then eliminated. Included in the Parent Condensed Consolidating Statement of Cash Flows for fiscal 2015, fiscal 2014, and fiscal 2013 are $281.3 million , $422.8 million , and $87.8 million , respectively, of dividends paid by the Guarantors and Non-Guarantors to the Parent representing return on investments and as such are classified within cash flows from operating activities. THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Operations for the fiscal year ended September 30, 2015 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,480.6 $ 535.9 $ — $ 3,016.5 Cost of sales — 1,558.3 386.7 — 1,945.0 Cost of sales - impairment, restructuring and other — 3.1 3.5 — 6.6 Gross profit — 919.2 145.7 — 1,064.9 Operating expenses: Selling, general and administrative — 556.4 140.3 1.7 698.4 Impairment, restructuring and other — 71.0 7.0 — 78.0 Other income, net — (7.2 ) 1.1 — (6.1 ) Income (loss) from operations — 299.0 (2.7 ) (1.7 ) 294.6 Equity income in subsidiaries (179.2 ) (6.1 ) — 185.3 — Other non-operating income (27.9 ) — (23.5 ) 51.4 — Costs related to refinancing — — — — — Interest expense 55.2 44.1 2.6 (51.4 ) 50.5 Income from continuing operations before income taxes 151.9 261.0 18.2 (187.0 ) 244.1 Income tax (benefit) expense from continuing operations (9.6 ) 88.6 6.4 — 85.4 Income from continuing operations 161.5 172.4 11.8 (187.0 ) 158.7 Income from discontinued operations, net of tax — — — — — Net income $ 161.5 $ 172.4 $ 11.8 $ (187.0 ) $ 158.7 Net loss attributable to noncontrolling interest — — — 1.1 1.1 Net income attributable to controlling interest $ 161.5 $ 172.4 $ 11.8 $ (185.9 ) $ 159.8 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2015 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income $ 161.5 $ 172.4 $ 11.8 $ (187.0 ) $ 158.7 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment (14.2 ) — (14.2 ) 14.2 (14.2 ) Net change in derivatives (2.1 ) (0.8 ) — 0.8 (2.1 ) Net change in pension and other post retirement benefits (4.3 ) (5.4 ) 1.1 4.3 (4.3 ) Total other comprehensive income (loss) (20.6 ) (6.2 ) (13.1 ) 19.3 (20.6 ) Comprehensive income $ 140.9 $ 166.2 $ (1.3 ) $ (167.7 ) $ 138.1 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2015 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES (a) $ 239.4 $ 249.3 $ 39.5 $ (281.3 ) $ 246.9 INVESTING ACTIVITIES Proceeds from sale of long-lived assets — 5.5 — — 5.5 Investments in property, plant and equipment — (56.6 ) (5.1 ) — (61.7 ) Investing cash flows from (to) affiliates (141.9 ) — — 141.9 — Investments in acquired businesses, net of cash acquired — (170.8 ) (9.4 ) — (180.2 ) Investment in marketing and license agreement — (300.0 ) — — (300.0 ) Net cash used in investing activities (141.9 ) (521.9 ) (14.5 ) 141.9 (536.4 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,568.1 267.9 — 1,836.0 Repayments under revolving and bank lines of credit and term loans — (1,284.1 ) (173.9 ) — (1,458.0 ) Financing and issuance fees (0.4 ) (0.1 ) — — (0.5 ) Dividends paid (111.3 ) (255.5 ) (25.8 ) 281.3 (111.3 ) Purchase of Common Shares (14.8 ) — — — (14.8 ) Payments on seller notes — (1.5 ) — — (1.5 ) Excess tax benefits from share-based payment arrangements 4.7 — — — 4.7 Cash received from exercise of stock options 24.3 — — — 24.3 Financing cash flows from (to) affiliates — 230.0 (88.1 ) (141.9 ) — Net cash provided by (used in) financing activities (97.5 ) 256.9 (19.9 ) 139.4 278.9 Effect of exchange rate changes on cash — — (7.3 ) — (7.3 ) Net increase (decrease) in cash and cash equivalents — (15.7 ) (2.2 ) — (17.9 ) Cash and cash equivalents at beginning of year — 23.1 66.2 — 89.3 Cash and cash equivalents at end of year $ — $ 7.4 $ 64.0 $ — $ 71.4 (a) Cash received by the Parent from the Guarantors in the form of dividends in the amount of $255.5 million represent return on investments and are included in cash flows from operating activities. Cash received by the Guarantors from the Non-Guarantors in the form of dividends in the amount of $ 25.8 million represent return on investments and are included in the cash flows from operating activities. THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Balance Sheet As of September 30, 2015 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 7.4 $ 64.0 $ — $ 71.4 Accounts receivable, net — 96.9 94.4 — 191.3 Accounts receivable pledged — 152.9 — — 152.9 Inventories — 318.7 88.9 — 407.6 Prepaid and other current assets — 90.7 34.7 — 125.4 Total current assets — 666.6 282.0 — 948.6 Property, plant and equipment, net — 397.6 56.1 — 453.7 Goodwill — 408.8 12.0 11.6 432.4 Intangible assets, net — 593.0 58.8 11.7 663.5 Other assets 16.3 15.0 15.0 (17.3 ) 29.0 Equity investment in subsidiaries 461.3 — — (461.3 ) — Intercompany assets 1,179.4 — — (1,179.4 ) — Total assets $ 1,657.0 $ 2,081.0 $ 423.9 $ (1,634.7 ) $ 2,527.2 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of debt $ — $ 125.1 $ 9.7 $ — $ 134.8 Accounts payable — 141.5 56.4 — 197.9 Other current liabilities 15.5 191.9 73.0 — 280.4 Total current liabilities 15.5 458.5 139.1 — 613.1 Long-term debt 1,016.3 728.4 100.1 (816.3 ) 1,028.5 Other liabilities 4.5 228.0 32.3 (12.3 ) 252.5 Equity investment in subsidiaries — 156.2 — (156.2 ) — Intercompany liabilities — 296.6 47.5 (344.1 ) — Total liabilities 1,036.3 1,867.7 319.0 (1,328.9 ) 1,894.1 Total shareholders’ equity - controlling interest 620.7 213.3 104.9 (318.2 ) 620.7 Noncontrolling interest — — — 12.4 12.4 Total equity $ 620.7 $ 213.3 $ 104.9 $ (305.8 ) $ 633.1 Total liabilities and equity $ 1,657.0 $ 2,081.0 $ 423.9 $ (1,634.7 ) $ 2,527.2 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Operations for the fiscal year ended September 30, 2014 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,314.0 $ 527.3 $ — $ 2,841.3 Cost of sales — 1,440.5 369.4 — 1,809.9 Cost of sales - impairment, restructuring and other — — — — — Gross profit — 873.5 157.9 — 1,031.4 Operating expenses: Selling, general and administrative — 535.3 145.2 — 680.5 Impairment, restructuring and other — 48.2 2.8 — 51.0 Other income, net — (12.6 ) (2.1 ) — (14.7 ) Income from operations — 302.6 12.0 — 314.6 Equity income in subsidiaries (193.2 ) (8.9 ) — 202.1 — Other non-operating income (21.3 ) — (22.2 ) 43.5 — Costs related to refinancing 10.7 — — — 10.7 Interest expense 52.5 37.4 0.9 (43.5 ) 47.3 Income from continuing operations before income taxes 151.3 274.1 33.3 (202.1 ) 256.6 Income tax (benefit) expense from continuing operations (14.9 ) 94.6 11.5 — 91.2 Income from continuing operations 166.2 179.5 21.8 (202.1 ) 165.4 Income from discontinued operations, net of tax — 0.4 0.4 — 0.8 Net income $ 166.2 $ 179.9 $ 22.2 $ (202.1 ) $ 166.2 Net loss attributable to noncontrolling interest 0.3 0.3 — (0.3 ) 0.3 Net income attributable to controlling interest $ 166.5 $ 180.2 $ 22.2 $ (202.4 ) $ 166.5 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2014 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income (loss) $ 166.2 $ 179.9 $ 22.2 $ (202.1 ) $ 166.2 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment (8.2 ) — (8.2 ) 8.2 (8.2 ) Net change in derivatives 4.6 1.3 — (1.3 ) 4.6 Net change in pension and other post retirement benefits (4.8 ) 0.7 (5.5 ) 4.8 (4.8 ) Total other comprehensive income (loss) (8.4 ) 2.0 (13.7 ) 11.7 (8.4 ) Comprehensive income (loss) $ 157.8 $ 181.9 $ 8.5 $ (190.4 ) $ 157.8 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2014 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES (a) $ 388.8 $ 254.5 $ 21.7 $ (424.1 ) $ 240.9 INVESTING ACTIVITIES Proceeds from sale of long-lived assets — 3.7 — — 3.7 Proceeds from sale of business, net of transaction costs — 6.6 0.6 — 7.2 Investments in property, plant and equipment — (81.0 ) (6.6 ) — (87.6 ) Proceeds from sale and leaseback transaction — 35.1 — — 35.1 Investments in acquired businesses, net of cash acquired — (58.9 ) (55.1 ) — (114.0 ) Net cash used in investing activities — (94.5 ) (61.1 ) — (155.6 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,596.1 336.7 — 1,932.8 Repayments under revolving and bank lines of credit and term loans — (1,184.7 ) (340.6 ) — (1,525.3 ) Repayment of 7.25% senior notes (200.0 ) — — — (200.0 ) Financing and issuance fees (6.1 ) — — — (6.1 ) Dividends paid (230.8 ) (404.9 ) (19.2 ) 424.1 (230.8 ) Purchase of Common Shares (120.0 ) — — — (120.0 ) Payments on seller notes — (0.8 ) — — (0.8 ) Excess tax benefits from share-based payment arrangements — 5.9 — — 5.9 Cash received from exercise of stock options 20.0 — — — 20.0 Intercompany financing 148.1 (151.1 ) 3.0 — — Net cash used in financing activities (388.8 ) (139.5 ) (20.1 ) 424.1 (124.3 ) Effect of exchange rate changes on cash — — (1.5 ) — (1.5 ) Net increase (decrease) in cash and cash equivalents — 20.5 (61.0 ) — (40.5 ) Cash and cash equivalents at beginning of year — 2.6 127.2 — 129.8 Cash and cash equivalents at end of year $ — $ 23.1 $ 66.2 $ — $ 89.3 (a) Cash received by the Parent from its subsidiaries in the form of dividends in the amount of $422.8 million represent return on investments and are included in cash flows from operating activities. Cash received by the Guarantors from the Non-Guarantors in the form of dividends in the amount of $1.3 million represent return on investments and are included in the cash flows from operating activities. THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Balance Sheet As of September 30, 2014 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 23.1 $ 66.2 $ — $ 89.3 Accounts receivable, net — 124.6 99.4 — 224.0 Accounts Receivable, pledged — 113.7 — — 113.7 Inventories — 282.1 103.0 — 385.1 Prepaid and other current assets — 85.2 37.7 — 122.9 Total current assets — 628.7 306.3 — 935.0 Property, plant and equipment, net — 371.3 65.7 — 437.0 Goodwill — 344.3 6.6 — 350.9 Intangible assets, net — 256.8 45.9 — 302.7 Other assets 23.8 14.7 28.5 (34.3 ) 32.7 Equity investment in subsidiaries 368.3 — — (368.3 ) — Intercompany assets 878.8 — — (878.8 ) — Total assets $ 1,270.9 $ 1,615.8 $ 453.0 $ (1,281.4 ) $ 2,058.3 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of debt $ — $ 85.8 $ 6.1 $ — $ 91.9 Accounts payable — 134.4 58.9 — 193.3 Other current liabilities 16.7 161.9 80.9 — 259.5 Total current liabilities 16.7 382.1 145.9 — 544.7 Long-term debt 681.8 480.0 12.4 (481.8 ) 692.4 Other liabilities 5.1 235.7 47.4 (34.2 ) 254.0 Equity investment in subsidiaries — 106.5 — (106.5 ) — Intercompany liabilities — 305.2 91.8 (397.0 ) — Total liabilities 703.6 1,509.5 297.5 (1,019.5 ) 1,491.1 Total shareholders’ equity - controlling interest 553.8 92.8 155.5 (248.4 ) 553.7 Noncontrolling interest $ 13.5 $ 13.5 $ — $ (13.5 ) $ 13.5 Total equity 567.3 106.3 155.5 (261.9 ) 567.2 Total liabilities and equity $ 1,270.9 $ 1,615.8 $ 453.0 $ (1,281.4 ) $ 2,058.3 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Operations for the fiscal year ended September 30, 2013 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,280.4 $ 493.3 $ — $ 2,773.7 Cost of sales — 1,446.7 346.6 — 1,793.3 Cost of sales — impairment, restructuring and other — — 2.2 2.2 Gross profit — 833.7 144.5 — 978.2 Operating expenses: Selling, general and administrative — 515.3 144.3 — 659.6 Impairment, restructuring and other — 11.2 6.9 — 18.1 Other income, net — (6.9 ) (3.1 ) — (10.0 ) Income from operations — 314.1 (3.6 ) — 310.5 Equity income in subsidiaries (180.9 ) 1.3 — 179.6 — Other non-operating income (20.4 ) — — 20.4 — Interest expense 52.4 25.2 2.0 (20.4 ) 59.2 Income (loss) from continuing operations before income taxes 148.9 287.6 (5.6 ) (179.6 ) 251.3 Income tax (benefit) expense from continuing operations (12.2 ) 105.8 (1.7 ) — 91.9 Income (loss) from continuing operations 161.1 181.8 (3.9 ) (179.6 ) 159.4 Income (loss) from discontinued operations, net of tax — 0.8 0.9 — 1.7 Net income (loss) $ 161.1 $ 182.6 $ (3.0 ) $ (179.6 ) $ 161.1 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2013 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income (loss) $ 161.1 $ 182.6 $ (3.0 ) $ (179.6 ) $ 161.1 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment — — (5.2 ) — (5.2 ) Net change in derivatives 7.2 (2.1 ) — — 5.1 Net change in pension and other post retirement benefits — 10.6 (1.0 ) — 9.6 Total other comprehensive income (loss) 7.2 8.5 (6.2 ) — 9.5 Comprehensive income (loss) $ 168.3 $ 191.1 $ (9.2 ) $ (179.6 ) $ 170.6 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2013 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES $ 69.8 $ 245.9 $ 114.1 $ (87.8 ) $ 342.0 INVESTING ACTIVITIES Proceeds from sale of long-lived assets — 0.2 3.4 — 3.6 Investments in property, plant and equipment — (44.6 ) (15.5 ) — (60.1 ) Investment in unconsolidated affiliate — (4.5 ) — — (4.5 ) Investment in acquired businesses, net of cash acquired — (3.2 ) — — (3.2 ) Net cash used in investing activities — (52.1 ) (12.1 ) — (64.2 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,130.4 344.4 — 1,474.8 Repayments under revolving and bank lines of credit and term loans — (1,078.5 ) (603.6 ) — (1,682.1 ) Dividends paid (87.8 ) (87.8 ) — 87.8 (87.8 ) Payments on seller notes — (0.8 ) — — (0.8 ) Excess tax benefits from share-based payment arrangements — 2.0 — — 2.0 Cash received from exercise of stock options 13.3 — — — 13.3 Intercompany financing 4.7 (159.1 ) 154.4 — — Net cash used in financing activities (69.8 ) (193.8 ) (104.8 ) 87.8 (280.6 ) Effect of exchange rate changes on cash — — 0.7 — 0.7 Net increase (decrease) in cash and cash equivalents — — (2.1 ) — (2.1 ) Cash and cash equivalents at beginning of year — 2.6 129.3 — 131.9 Cash and cash equivalents at end of year $ — $ 2.6 $ 127.2 $ — $ 129.8 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2014 | |
Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts for the fiscal year ended September 30, 2015 Column A Column B Column C Column D Column E Column F Classification Balance at Beginning of Period Reserves Acquired Additions Charged to Expense Deductions Credited and Write-Offs Balance at End of Period (In millions) Valuation and qualifying accounts deducted from the assets to which they apply: Allowance for doubtful accounts $ 7.5 $ — $ 6.6 $ (5.4 ) $ 8.7 Income tax valuation allowance 48.3 — 1.5 (4.0 ) 45.8 Schedule II—Valuation and Qualifying Accounts for the fiscal year ended September 30, 2014 Column A Column B Column C Column D Column E Column F Classification Balance at Beginning of Period Reserves Acquired Additions Charged to Expense Deductions Credited and Write-Offs Balance at End of Period (In millions) Valuation and qualifying accounts deducted from the assets to which they apply: Allowance for doubtful accounts $ 9.5 $ — $ 6.6 $ (8.6 ) $ 7.5 Income tax valuation allowance 51.5 — (1.5 ) (1.7 ) 48.3 Schedule II—Valuation and Qualifying Accounts for the fiscal year ended September 30, 2013 Column A Column B Column C Column D Column E Column F Classification Balance at Beginning of Period Reserves Acquired Additions Charged to Expense Deductions Credited and Write-Offs Balance at End of Period (In millions) Valuation and qualifying accounts deducted from the assets to which they apply: Allowance for doubtful accounts $ 10.5 $ — $ 5.5 $ (6.5 ) $ 9.5 Income tax valuation allowance 48.4 — (4.0 ) 7.1 51.5 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Scotts Miracle-Gro Company (“Scotts Miracle-Gro” or “Parent”) and its subsidiaries (collectively, together with Scotts Miracle-Gro, the “Company”) are engaged in the manufacturing, marketing and sale of consumer branded products for lawn and garden care. The Company’s primary customers include home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, food and drug stores, and indoor gardening and hydroponic stores. The Company’s products are sold primarily in North America and the European Union. The Company also operates the Scotts LawnService ® business, which provides residential and commercial lawn care, tree and shrub care and pest control services in the United States. In March 2014, the Company completed the sale of its U.S. and Canadian wild bird food business. As a result, effective in the second quarter of fiscal 2014, the Company classified its results of operations for all periods presented to reflect the wild bird food business as a discontinued operation. Due to the nature of the consumer lawn and garden business, the majority of sales to customers occur in the Company’s second and third fiscal quarters. On a combined basis, net sales for the second and third quarters of the last three fiscal years represented in excess of 75% of annual net sales. |
Organization and Basis of Presentation | Organization and Basis of Presentation The Company’s consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Scotts Miracle-Gro and its subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. The Company’s consolidation criteria are based on majority ownership (as evidenced by a majority voting interest in the entity) and an objective evaluation and determination of effective management control. AeroGrow International, Inc. (“AeroGrow”), in which the Company has a controlling interest, is consolidated, with the equity owned by other shareholders shown as noncontrolling interest in the consolidated balance sheets, and the other shareholders' portion of net earnings and other comprehensive income shown as net income/loss or comprehensive income attributable to noncontrolling interest in the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss), respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes and related disclosures. Although these estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results ultimately may differ from the estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized when title and risk of loss transfer, which generally occurs when products or services are received by the retail customer. Provisions for estimated returns and allowances are recorded at the time revenue is recognized based on historical rates and are periodically adjusted for known changes in return levels. Outbound shipping and handling costs are included in cost of sales. Under the terms of the Amended and Restated Exclusive Agency and Marketing Agreement (the “Marketing Agreement”), |
Promotional Allowances | Promotional Allowances The Company promotes its branded products through, among other things, cooperative advertising programs with retailers. Retailers may also be offered in-store promotional allowances and rebates based on sales volumes. Certain products are promoted with direct consumer rebate programs and special purchasing incentives. Promotion costs (including allowances and rebates) incurred during the year are expensed to interim periods in relation to revenues and are recorded as a reduction of net sales. Accruals for expected payouts under these programs are included in the “Other current liabilities” line in the Consolidated Balance Sheets. |
Advertising | Advertising Advertising costs incurred during the year by our Global Consumer segment are expensed to interim periods in relation to revenues. All advertising costs, except for external production costs, are expensed within the fiscal year in which such costs are incurred. External production costs for advertising programs are deferred until the period in which the advertising is first aired. The costs deferred at September 30, 2015 and 2014 were $0.7 million and $1.9 million , respectively. Scotts LawnService ® promotes its service offerings through direct mail and direct selling campaigns. External costs associated with these campaigns that qualify as direct response advertising costs are deferred and recognized as advertising expense in proportion to revenues over a period not beyond the end of the immediately following calendar year. Costs that do not qualify as direct response advertising costs are expensed within the fiscal year incurred on a monthly basis in proportion to net sales. The costs deferred at September 30, 2015 and 2014 were $1.5 million and $1.3 million , respectively. Advertising expenses were $146.1 million in fiscal 2015 , $143.6 million in fiscal 2014 and $142.2 million in fiscal 2013 . |
Research and Development | Research and Development All costs associated with research and development are charged to expense as incurred. Expenses for fiscal 2015 , fiscal 2014 and fiscal 2013 were $46.8 million , $48.4 million and $46.4 million , respectively, including product registration costs of $13.1 million , $12.6 million and $12.4 million , respectively. |
Environmental Costs | Environmental Costs The Company recognizes environmental liabilities when conditions requiring remediation are probable and the amounts can be reasonably estimated. Expenditures which extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. Environmental liabilities are not discounted or reduced for possible recoveries from insurance carriers. |
Share-Based Compensation Awards | Share-Based Compensation Awards The fair value of awards is expensed over the requisite service period which is typically the vesting period, generally three years, except in cases where employees are eligible for accelerated vesting based on having satisfied retirement requirements relating to age and years of service. Performance-based awards are expensed over the requisite service period based on achievement of performance criteria. The Company uses a binomial model to determine the fair value of its option grants. The Company classifies share-based compensation expense within selling, general and administrative expenses to correspond with the same line item as cash compensation paid to employees. |
Earnings per Common Share | Earnings per Common Share Basic earnings per Common Share is computed based on the weighted-average number of Common Shares outstanding each period. Diluted earnings per Common Share is computed based on the weighted-average number of Common Shares and dilutive potential Common Shares (stock options, stock appreciation rights, performance shares and restricted stock unit awards) outstanding each period. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid financial instruments with original maturities of three months or less to be cash equivalents. The Company maintains cash deposits in banks which from time to time exceed the amount of deposit insurance available. Management periodically assesses the financial condition of the Company’s banks and believes that the risk of any potential credit loss is minimal. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Allowances for doubtful accounts reflect the Company’s estimate of amounts in its existing accounts receivable that may not be collected due to customer claims or customer inability or unwillingness to pay. The allowance is determined based on a combination of factors, including the Company’s risk assessment regarding the credit worthiness of its customers, historical collection experience and length of time the receivables are past due. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. |
Inventories | Inventories Inventories are stated at the lower of cost or market, principally determined by the first in, first out method of accounting. Inventories include the cost of raw materials, labor, manufacturing overhead and freight and in-bound handling costs incurred to pre-position goods in the Company’s warehouse network. The Company makes provisions for obsolete or slow-moving inventories as necessary to properly reflect inventory at the lower of cost or market value. Adjustments to reflect inventories at net realizable values were $17.8 million and $18.4 million at September 30, 2015 and 2014 , respectively. |
Long-lived Assets | Long-lived Assets Property, plant and equipment are stated at cost. Interest capitalized in property, plant and equipment amounted to $0.4 million , $0.4 million and $0.8 million during fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. Expenditures for maintenance and repairs are charged to expense as incurred. When properties are retired or otherwise disposed of, the cost of the asset and the related accumulated depreciation are removed from the accounts with the resulting gain or loss being reflected in income from operations. Depreciation of property, plant and equipment is provided on the straight-line method and is based on the estimated useful economic lives of the assets as follows: Land improvements 10 – 25 years Buildings 10 – 40 years Machinery and equipment 3 – 15 years Furniture and fixtures 6 – 10 years Software 3 – 8 years Intangible assets subject to amortization include technology, such as patents, customer relationships, non-compete agreements and certain tradenames. These intangible assets are being amortized over their estimated useful economic lives, which typically range from 3 to 25 years . The Company’s fixed assets and intangible assets subject to amortization are required to be tested for recoverability whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. If an evaluation of recoverability was required, the estimated undiscounted future cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write-down is required. If the undiscounted cash flows are less than the carrying amount, an impairment loss is recorded to the extent that the carrying amount exceeds fair value and classified as “Impairment, restructuring and other charges” within “Operating expenses” in the Consolidated Statements of Operations. The Company had noncash investing activities of $8.5 million , $7.0 million and $7.3 million during fiscal 2015, fiscal 2014 and fiscal 2013, respectively, representing unpaid liabilities incurred during each fiscal year to acquire property, plant and equipment. |
Internal Use Software | Internal Use Software The costs of internal use software are expensed or capitalized depending on whether they are incurred in the preliminary project stage, application development stage or the post-implementation/operation stage. As of September 30, 2015 and September 30, 2014 , the Company had $18.6 million and $21.8 million , respectively, in unamortized capitalized internal use computer software costs. Amortization of these costs was $6.0 million , $8.3 million and $7.3 million during fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets Goodwill and indefinite-lived intangible assets are not subject to amortization. Goodwill and indefinite-lived intangible assets are reviewed for impairment by applying a fair-value based test on an annual basis, as of the first day of the Company’s fiscal fourth quarter, or more frequently if circumstances indicate impairment may have occurred. With respect to goodwill, the Company performs either a qualitative or quantitative evaluation for each of its reporting units. Factors considered in the qualitative test include reporting unit specific operating results as well as new events and circumstances impacting the operations of the reporting units. For the quantitative test, the Company assesses goodwill for impairment by comparing the carrying value of its reporting units to their respective fair values and reviewing the Company’s market value of invested capital. A reporting unit is defined as an operating segment or one level below an operating segment. The Company has identified six reporting units. The Company determines the fair value of its reporting units under the income-based approach utilizing discounted cash flows and incorporates assumptions it believes marketplace participants would utilize. The Company also uses a comparative market-based approach using market multiples and other factors to corroborate the discounted cash flow results used. With respect to indefinite-lived intangible assets, the Company performs either a qualitative or quantitative evaluation for each of its indefinite-lived intangible assets. Factors considered in the qualitative test include indefinite-lived intangible asset specific operating results as well as new events and circumstances impacting the cash flows of the indefinite-lived intangible assets. For the quantitative test, the value of all indefinite-lived intangible assets is determined under the income-based approach utilizing discounted cash flows and incorporating assumptions the Company believes marketplace participants would utilize. For tradenames, value was determined using a royalty savings methodology similar to that employed when the associated businesses were acquired but using updated estimates of sales, cash flow and profitability. If it is determined that an impairment has occurred, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds its estimated fair value and classified as “Impairment, restructuring and other charges” within “Operating expenses” in the Consolidated Statements of Operations. |
Insurance and Self-Insurance | Insurance and Self-Insurance The Company maintains insurance for certain risks, including workers’ compensation, general liability and vehicle liability, and is self-insured for employee-related health care benefits up to a specified level for individual claims. The Company accrues for the expected costs associated with these risks by considering historical claims experience, demographic factors, severity factors and other relevant information. Costs are recognized in the period the claim is incurred, and accruals include an actuarially determined estimate of claims incurred but not yet reported. |
Income Taxes | Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax bases. Management reviews the Company’s deferred tax assets to determine whether their value can be realized based upon available evidence. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company’s tax provision in the period of change. The Company establishes a liability for tax return positions in which there is uncertainty as to whether or not the position will ultimately be sustained. Amounts for uncertain tax positions are adjusted in quarters when new information becomes available or when positions are effectively settled. The Company recognizes interest expense and penalties related to these unrecognized tax benefits within income tax expense. U.S. income tax expense and foreign withholding taxes are provided on unremitted foreign earnings that are not indefinitely reinvested at the time the earnings are generated. Where foreign earnings are indefinitely reinvested, no provision for U.S. income or foreign withholding taxes is made. When circumstances change and the Company determines that some or all of the undistributed earnings will be remitted in the foreseeable future, the Company accrues an expense in the current period for U.S. income taxes and foreign withholding taxes attributable to the anticipated remittance. |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency for each Scotts Miracle-Gro subsidiary is generally its local currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each fiscal year-end. Income and expense accounts are translated at the average rate of exchange prevailing during the year. Translation gains and losses arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income (loss) within shareholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income and classified as “Other income, net” in the Consolidated Statements of Operations. |
Derivative Instruments | Derivative Instruments The Company is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. A variety of financial instruments, including forward and swap contracts, are used to manage these exposures. These financial instruments are recognized at fair value on the Consolidated Balance Sheets, and all changes in fair value are recognized in net income or shareholders’ equity through accumulated other comprehensive income (loss). The Company’s objective in managing these exposures is to better control these elements of cost and mitigate the earnings and cash flow volatility associated with changes in the applicable rates and prices. The Company has established policies and procedures that encompass risk-management philosophy and objectives, guidelines for derivative-instrument usage, counterparty credit approval, and the monitoring and reporting of derivative activity. The Company does not enter into derivative instruments for the purpose of speculation. The Company formally designates and documents instruments at inception that qualify for hedge accounting of underlying exposures in accordance with GAAP. The Company formally assesses, both at inception and at least quarterly, whether the financial instruments used in hedging transactions are effective at offsetting changes in cash flows of the related underlying exposure. Fluctuations in the value of these instruments generally are offset by changes in the cash flows of the underlying exposures being hedged. This offset is driven by the high degree of effectiveness between the exposure being hedged and the hedging instrument. GAAP requires all derivative instruments to be recognized as either assets or liabilities at fair value in the Consolidated Balance Sheets. The Company designates commodity hedges as cash flow hedges of forecasted purchases of commodities and interest rate swap agreements as cash flow hedges of interest payments on variable rate borrowings. Any ineffective portion of a change in the fair value of a qualifying instrument is immediately recognized in earnings. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Revenue Recognition from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This guidance requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The provisions are effective for the Company's financial statements no later than the fiscal year beginning October 1, 2018. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the impact of this standard on its consolidated results of operations, financial position and cash flows. Discontinued Operations Reporting In April 2014, the FASB issued an accounting standard update that amends the accounting guidance related to discontinued operations. This amendment defines discontinued operations as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. This amendment also introduces new disclosures for disposals that do not meet the criteria of discontinued operations. The provisions are effective for fiscal years beginning after December 15, 2014 and apply to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of the amended guidance impacts presentation and disclosure of future divestitures and did not have a significant impact on the Company's consolidated financial position, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful economic lives of Property, Plant and Equipment | Long-lived Assets Property, plant and equipment are stated at cost. Interest capitalized in property, plant and equipment amounted to $0.4 million , $0.4 million and $0.8 million during fiscal 2015 , fiscal 2014 and fiscal 2013 , respectively. Expenditures for maintenance and repairs are charged to expense as incurred. When properties are retired or otherwise disposed of, the cost of the asset and the related accumulated depreciation are removed from the accounts with the resulting gain or loss being reflected in income from operations. Depreciation of property, plant and equipment is provided on the straight-line method and is based on the estimated useful economic lives of the assets as follows: Land improvements 10 – 25 years Buildings 10 – 40 years Machinery and equipment 3 – 15 years Furniture and fixtures 6 – 10 years Software 3 – 8 years Intangible assets subject to amortization include technology, such as patents, customer relationships, non-compete agreements and certain tradenames. These intangible assets are being amortized over their estimated useful economic lives, which typically range from 3 to 25 years . The Company’s fixed assets and intangible assets subject to amortization are required to be tested for recoverability whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. If an evaluation of recoverability was required, the estimated undiscounted future cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write-down is required. If the undiscounted cash flows are less than the carrying amount, an impairment loss is recorded to the extent that the carrying amount exceeds fair value and classified as “Impairment, restructuring and other charges” within “Operating expenses” in the Consolidated Statements of Operations. The Company had noncash investing activities of $8.5 million , $7.0 million and $7.3 million during fiscal 2015, fiscal 2014 and fiscal 2013, respectively, representing unpaid liabilities incurred during each fiscal year to acquire property, plant and equipment. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Results of discontinued operations and schedule of the major classes of assets and liabilities | The following table summarizes the results of the wild bird food business within discontinued operations: Year Ended September 30, 2015 2014 2013 (In millions) Net sales $ — $ 18.1 $ 42.8 Operating costs — 17.6 40.4 Gain on sale of assets — (1.2 ) — Income from discontinued operations before income taxes — 1.7 2.4 Income tax expense from discontinued operations — 0.9 0.7 Income from discontinued operations, net of tax $ — $ 0.8 $ 1.7 |
IMPAIRMENT, RESTRUCTURING AND37
IMPAIRMENT, RESTRUCTURING AND OTHER (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Details of Impairment, Restructuring and Other Charges | The following table summarizes the activity related to liabilities associated with the restructuring and other charges during fiscal 2015 , fiscal 2014 and fiscal 2013 : Year Ended September 30, 2015 2014 2013 (In millions) Amounts reserved for restructuring and other at beginning of year $ 16.0 $ 11.1 $ 10.2 Restructuring and other charges 84.6 17.3 9.1 Payments and other (72.5 ) (12.4 ) (8.2 ) Amounts reserved for restructuring and other at end of year $ 28.1 $ 16.0 $ 11.1 The following table details impairment, restructuring and other charges during fiscal 2015 , fiscal 2014 and fiscal 2013 : Year Ended September 30, 2015 2014 2013 (In millions) Restructuring and other $ 84.6 $ 17.3 $ 4.4 Goodwill and intangible asset impairments — 33.7 15.9 Total impairment, restructuring and other $ 84.6 $ 51.0 $ 20.3 |
GOODWILL AND INTANGIBLE ASSET38
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Rollforward of Carrying Amount of Goodwill by Reportable Segment | The following table displays a rollforward of the carrying amount of goodwill by reportable segment: Global Consumer Scotts LawnService ® Total (In millions) Goodwill $ 245.9 $ 132.0 $ 377.9 Accumulated impairment losses (62.8 ) — (62.8 ) Balance at September 30, 2013 183.1 132.0 315.1 Acquisitions, net of purchase price adjustments and foreign currency translation 35.8 — 35.8 Goodwill $ 281.7 $ 132.0 $ 413.7 Accumulated impairment losses (62.8 ) — (62.8 ) Balance at September 30, 2014 218.9 132.0 350.9 Acquisitions, net of purchase price adjustments and foreign currency translation 64.8 16.7 81.5 Goodwill $ 346.5 $ 148.7 $ 495.2 Accumulated impairment losses (62.8 ) — (62.8 ) Balance at September 30, 2015 $ 283.7 $ 148.7 $ 432.4 |
Schedule of Intangible Assets | The following table presents intangible assets, net: September 30, 2015 September 30, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Finite-lived intangible assets: Technology $ 69.7 $ (56.9 ) $ 12.8 $ 70.3 $ (56.0 ) $ 14.3 Customer accounts 122.6 (51.5 ) 71.1 74.2 (47.2 ) 27.0 Tradenames 94.9 (17.2 ) 77.7 69.0 (12.7 ) 56.3 Other 97.3 (80.2 ) 17.1 99.2 (81.4 ) 17.8 Total finite-lived intangible assets, net 178.7 115.4 Indefinite-lived intangible assets: Indefinite-lived tradenames 184.8 187.3 Marketing Agreement Amendment 188.3 — Brand Extension Agreement 111.7 — Total indefinite-lived intangible assets 484.8 187.3 Total intangible assets, net $ 663.5 $ 302.7 |
Schedule of Future Estimates of Amortization Expense | Amortization expense is estimated to be as follows for the years ending September 30 (in millions): 2016 $ 18.5 2017 16.2 2018 14.9 2019 13.2 2020 12.2 |
DETAIL OF CERTAIN FINANCIAL S39
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Detail of Certain Financial Statement Accounts | The following is detail of certain financial statement accounts: September 30, 2015 2014 (In millions) INVENTORIES: Finished goods $ 230.2 $ 217.5 Work-in-progress 48.3 46.2 Raw materials 129.1 121.4 $ 407.6 $ 385.1 PREPAID AND OTHER CURRENT ASSETS: Deferred tax asset $ 78.2 $ 72.2 Accounts receivable, non-trade 11.2 12.7 Other 36.0 38.0 $ 125.4 $ 122.9 September 30, 2015 2014 (In millions) PROPERTY, PLANT AND EQUIPMENT, NET: Land and improvements $ 96.5 $ 87.1 Buildings 221.7 218.8 Machinery and equipment 558.1 536.2 Furniture and fixtures 41.9 40.5 Software 113.0 123.8 Aircraft 6.7 6.7 Construction in progress 28.7 21.1 1,066.6 1,034.2 Less: accumulated depreciation (612.9 ) (597.2 ) $ 453.7 $ 437.0 September 30, 2015 2014 (In millions) OTHER CURRENT LIABILITIES: Payroll and other compensation accruals $ 66.1 $ 79.0 Advertising and promotional accruals 66.9 64.1 Other 147.4 116.4 $ 280.4 $ 259.5 OTHER NON-CURRENT LIABILITIES: Accrued pension and postretirement liabilities $ 92.5 $ 93.8 Deferred tax liabilities 125.4 120.4 Other 34.6 39.8 $ 252.5 $ 254.0 |
Certain Financial Statement Accounts - ACCUMULATED OTHER COMPREHENSIVE LOSS | September 30, 2015 2014 2013 (In millions) ACCUMULATED OTHER COMPREHENSIVE LOSS: Unrecognized loss on derivatives, net of tax of $5.6, $4.3 and $7.1 $ (9.0 ) $ (6.9 ) $ (11.5 ) Pension and other postretirement liabilities, net of tax of $39.3, $38.6 and $31.4 (63.7 ) (62.4 ) (58.0 ) Foreign currency translation adjustment (34.1 ) (16.9 ) (8.3 ) $ (106.8 ) $ (86.2 ) $ (77.8 ) |
MARKETING AGREEMENT (Tables)
MARKETING AGREEMENT (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Marketing Agreement Table | Year Ended September 30 2015 2014 2013 (In millions) Gross commission $ 88.7 $ 85.2 $ 81.8 Contribution expenses (20.0 ) (20.0 ) (20.0 ) Amortization of marketing fee (0.8 ) (0.8 ) (0.8 ) Net commission income 67.9 64.4 61.0 Reimbursements associated with Marketing Agreement 63.3 63.0 62.0 Total net sales associated with Marketing Agreement $ 131.2 $ 127.4 $ 123.0 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Weighted Average Assumptions Used In Development of Net Periodic Benefit Cost | U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans (In millions, except percentage figures) Other information: Plan asset allocations: Target for September 30, 2016: Equity securities 25 % 32 % Debt securities 70 % 66 % Real estate securities 5 % — % Cash and cash equivalents — % — % Insurance contracts — % 2 % September 30, 2015: Equity securities 23 % 31 % Debt securities 70 % 67 % Real estate securities 4 % — % Cash and cash equivalents 3 % — % Insurance contracts — % 2 % September 30, 2014: Equity securities 25 % 52 % Debt securities 69 % 45 % Real estate securities 4 % — % Cash and cash equivalents 2 % 1 % Insurance contracts — % 2 % Expected Company contributions in fiscal 2016 $ 3.2 $ 5.5 Expected future benefit payments: 2016 $ 7.6 $ 6.1 2017 7.7 6.4 2018 7.7 6.7 2019 7.7 7.0 2020 7.7 7.3 2021 – 2026 37.8 43.7 |
Fair Value of The Company's Pension Plan Asset | The following tables set forth the fair value of the Company’s pension plan assets, segregated by level within the fair value hierarchy: September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) U.S. Defined Benefit Pension Plan Assets Cash and cash equivalents $ 2.6 $ — $ — $ 2.6 Mutual funds—real estate — 3.5 — 3.5 Mutual funds—equities — 19.0 — 19.0 Mutual funds—fixed income — 58.4 — 58.4 Total $ 2.6 $ 80.9 $ — $ 83.5 International Defined Benefit Pension Plan Assets Cash and cash equivalents $ 0.6 $ — $ — $ 0.6 Insurance contracts — 2.6 — 2.6 Mutual funds—equities — 52.3 — 52.3 Mutual funds—fixed income — 113.1 — 113.1 Total $ 0.6 $ 168.0 $ — $ 168.6 September 30, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) U.S. Defined Benefit Pension Plan Assets Cash and cash equivalents $ 2.0 $ — $ — $ 2.0 Mutual funds—real estate — 3.7 — 3.7 Mutual funds—equities — 22.2 — 22.2 Mutual funds—fixed income — 61.9 — 61.9 Total $ 2.0 $ 87.8 $ — $ 89.8 International Defined Benefit Pension Plan Assets Cash and cash equivalents $ 1.7 $ — $ — $ 1.7 Insurance contracts — 3.0 — 3.0 Mutual funds—equities — 87.4 — 87.4 Mutual funds—fixed income — 74.2 — 74.2 Total $ 1.7 $ 164.6 $ — $ 166.3 |
Pension Plans, Defined Benefit | |
Defined Benefit Plans | The following tables present information about benefit obligations, plan assets, annual expense, assumptions and other information about the Company’s defined benefit pension plans. The defined benefit pension plans are valued using a September 30 measurement date. U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2015 2014 2015 2014 (In millions) Change in projected benefit obligation: Benefit obligation at beginning of year $ 109.2 $ 106.7 $ 208.3 $ 190.7 Service cost — — 1.2 1.2 Interest cost 4.0 4.5 7.3 8.3 Actuarial loss 11.4 5.1 4.5 17.7 Benefits paid (7.3 ) (7.1 ) (6.4 ) (6.5 ) Other — — (1.1 ) (0.6 ) Foreign currency translation — — (15.7 ) (2.5 ) Projected benefit obligation at end of year $ 117.3 $ 109.2 $ 198.1 $ 208.3 Accumulated benefit obligation at end of year $ 117.3 $ 109.2 $ 192.0 $ 200.8 Change in plan assets: Fair value of plan assets at beginning of year $ 89.8 $ 84.3 $ 166.3 $ 148.8 Actual return on plan assets (1.4 ) 9.2 13.9 16.4 Employer contribution 2.4 3.4 7.4 8.9 Benefits paid (7.3 ) (7.1 ) (6.4 ) (6.5 ) Foreign currency translation — — (11.5 ) (0.4 ) Other — — (1.1 ) (0.9 ) Fair value of plan assets at end of year $ 83.5 $ 89.8 $ 168.6 $ 166.3 Underfunded status at end of year $ (33.8 ) $ (19.4 ) $ (29.5 ) $ (42.0 ) Information for pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 117.3 $ 109.2 $ 198.1 $ 208.3 Accumulated benefit obligation 117.3 109.2 192.0 200.8 Fair value of plan assets 83.5 89.8 168.6 166.3 Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ — $ — $ 2.4 $ — Current liabilities (0.2 ) (0.2 ) (0.9 ) (1.1 ) Noncurrent liabilities (33.6 ) (19.2 ) (31.0 ) (40.9 ) Total amount accrued $ (33.8 ) $ (19.4 ) $ (29.5 ) $ (42.0 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 49.2 $ 34.3 $ 57.8 $ 64.7 Prior service cost — — 0.3 0.4 Total amount recognized $ 49.2 $ 34.3 $ 58.1 $ 65.1 U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2015 2014 2015 2014 (In millions, except percentage figures) Total change in other comprehensive loss attributable to: Pension benefit (loss) gain during the period $ (18.2 ) $ (1.1 ) $ 0.5 $ (10.7 ) Reclassification of pension benefit losses to net income 3.3 3.7 1.7 1.4 Foreign currency translation — — 4.8 0.7 Total change in other comprehensive loss $ (14.9 ) $ 2.6 $ 7.0 $ (8.6 ) Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2016 are as follows: Actuarial loss $ 1.8 $ 1.7 Prior service cost — — Amount to be amortized into net periodic benefit cost $ 1.8 $ 1.7 Weighted average assumptions used in development of projected benefit obligation: Discount rate 3.82 % 3.81 % 3.52 % 3.73 % Rate of compensation increase n/a n/a 3.49 % 3.65 % |
Components of Net Periodic Benefit Cost | U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2015 2014 2013 2015 2014 2013 (In millions, except percentage figures) Components of net periodic benefit cost: Service cost $ — $ — $ — $ 1.2 $ 1.2 $ 1.2 Interest cost 4.0 4.5 3.8 7.3 8.3 7.8 Expected return on plan assets (5.4 ) (5.2 ) (5.2 ) (8.9 ) (9.4 ) (8.7 ) Net amortization 3.3 3.7 4.8 1.7 1.4 1.2 Net periodic benefit cost 1.9 3.0 3.4 1.3 1.5 1.5 Curtailment loss (gain) — — — — — (0.5 ) Settlement — — — — — (0.5 ) Contractual termination benefits — — — — 0.3 — Total benefit cost $ 1.9 $ 3.0 $ 3.4 $ 1.3 $ 1.8 $ 0.5 Weighted average assumptions used in development of net periodic benefit cost: Discount rate 3.81 % 4.32 % 3.39 % 3.73 % 4.32 % 4.45 % Expected return on plan assets 6.25 % 6.25 % 6.25 % 5.63 % 6.17 % 6.52 % Rate of compensation increase n/a n/a n/a 3.7 % 3.7 % 3.4 % |
ASSOCIATE MEDICAL BENEFITS (Tab
ASSOCIATE MEDICAL BENEFITS (Tables) - Postretirement Medical Benefits [Member] | 12 Months Ended |
Sep. 30, 2015 | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table sets forth information about the retiree medical plan for domestic associates. The retiree medical plan is valued using a September 30 measurement date. 2015 2014 (In millions, except percentage figures) Change in Accumulated Plan Benefit Obligation (APBO): Benefit obligation at beginning of year $ 32.4 $ 31.6 Service cost 0.4 0.4 Interest cost 1.3 1.4 Plan participants’ contributions 1.2 1.1 Actuarial loss 2.0 0.7 Benefits paid (net of federal subsidy of $0.3 and $0.3) (3.1 ) (2.9 ) Plan changes (8.2 ) 0.1 Benefit obligation at end of year $ 26.0 $ 32.4 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contribution 2.2 2.1 Plan participants’ contributions 1.2 1.1 Gross benefits paid (3.4 ) (3.2 ) Fair value of plan assets at end of year $ — $ — Unfunded status at end of year $ (26.0 ) $ (32.4 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ (2.1 ) $ (2.3 ) Noncurrent liabilities (23.9 ) (30.1 ) Total amount accrued $ (26.0 ) $ (32.4 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 3.4 $ 1.3 Unamortized prior service cost (credit) (8.1 ) 0.1 Total amount recognized $ (4.7 ) $ 1.4 Total change in other comprehensive loss attributable to: Benefit loss during the period $ 2.1 $ 0.9 Net prior service cost (credit) (8.2 ) 0.1 Total change in other comprehensive loss (income) $ (6.1 ) $ 1.0 Discount rate used in development of APBO 4.03 % 4.08 % |
Schedule of Net Benefit Costs [Table Text Block] | 2015 2014 2013 Components of net periodic benefit cost Service cost $ 0.4 $ 0.4 $ 0.5 Interest cost 1.3 1.4 1.3 Amortization of actuarial loss — — 0.1 Total postretirement benefit cost $ 1.7 $ 1.8 $ 1.9 Discount rate used in development of net periodic benefit cost 4.08 % 4.54 % 3.66 % |
Schedule of Expected Benefit Payments [Table Text Block] | The following benefit payments under the plan are expected to be paid by the Company and the retirees for the fiscal years indicated: Gross Benefit Payments Retiree Contributions Net Company Payments (In millions) 2016 $ 2.5 $ (0.4 ) $ 2.1 2017 2.5 (0.5 ) 2.0 2018 2.5 (0.5 ) 2.0 2019 2.6 (0.6 ) 2.0 2020 2.6 (0.6 ) 2.0 2021 – 2025 12.3 (3.3 ) 9.0 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Schedule of Components of Long-Term Debt | The components of long-term debt are as follows: September 30, 2015 2014 (In millions) Credit Facilities – Revolving loans $ 816.3 $ 481.8 Senior Notes – 6.625% 200.0 200.0 Master Accounts Receivable Purchase Agreement 122.3 84.0 Other 24.7 18.5 1,163.3 784.3 Less current portions 134.8 91.9 Long-term debt $ 1,028.5 $ 692.4 |
Schedule of Company's Debt Maturities | The Company’s debt matures as follows for each of the next five fiscal years and thereafter (in millions): 2016 $ 134.8 2017 10.5 2018 0.7 2019 816.9 2020 0.4 Thereafter 200.0 $ 1,163.3 |
Schedule of Derivative Instruments | The notional amount, effective date, expiration date and rate of each of these swap agreements are shown in the table below. Notional Amount (in millions) Effective Date (a) Expiration Date Fixed Rate $ 50 2/14/2012 2/14/2016 3.78 % 150 (b) 2/7/2012 5/7/2016 2.42 % 150 (c) 11/16/2009 5/16/2016 3.26 % 50 (b) 2/16/2010 5/16/2016 3.05 % 100 (b) 2/21/2012 5/23/2016 2.40 % 150 (c) 12/20/2011 6/20/2016 2.61 % 50 (d) 12/6/2012 9/6/2017 2.96 % 200 2/7/2014 11/7/2017 1.28 % 150 (b) 2/7/2017 5/7/2019 2.12 % 50 (b) 2/7/2017 5/7/2019 2.25 % 200 (c) 12/20/2016 6/20/2019 2.12 % (a) The effective date refers to the date on which interest payments were, or will be, first hedged by the applicable swap agreement. (b) Interest payments made during the three-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. (c) Interest payments made during the six-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. (d) Interest payments made during the nine-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. |
Schedule of Estimated Fair Values of the Company's Debt Instruments | The estimated fair values of the Company’s debt instruments are as follows: Year Ended September 30, 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Revolving loans $ 816.3 $ 816.3 $ 481.8 $ 481.8 Senior Notes – 6.625% 200.0 206.3 200.0 212.5 Master Accounts Receivable Purchase Agreement 122.3 122.3 84.0 84.0 Other 24.7 24.7 18.5 18.5 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Authorized and Issued Capital Shares | Authorized and issued shares consisted of the following: September 30, 2015 2014 (In millions) Preferred shares, no par value: Authorized 0.2 shares 0.2 shares Issued 0.0 shares 0.0 shares Common shares, no par value, $.01 stated value per share: Authorized 100.0 shares 100.0 shares Issued 68.1 shares 68.1 shares |
Share-Based Compensation Awards Granted | The following is a recap of the share-based awards granted during the periods indicated: Year Ended September 30, 2015 2014 2013 Employees Options 440,690 — — Restricted stock units 78,463 112,315 178,030 Performance units 78,352 161,229 178,321 Board of Directors Deferred stock units 29,913 38,418 33,253 Options due to special $2.00 dividend — 98,186 — Total share-based awards 627,418 311,962 389,604 Aggregate fair value at grant dates (in millions) $ 17.0 $ 17.5 $ 17.5 |
Total Share-Based Compensation | Total share-based compensation was as follows for the periods indicated: Year Ended September 30, 2015 2014 2013 (In millions) Share-based compensation $ 13.2 $ 11.1 $ 10.3 Tax benefit recognized 5.1 3.9 3.9 |
Aggregate Stock Option and SARs Activity | Aggregate stock option and SAR activity consisted of the following for fiscal 2015 (options/SARs in millions): No. of Options/SARs WTD. Avg. Exercise Price Beginning balance 2.0 $ 38.26 Granted 0.4 63.60 Exercised (0.6 ) 38.23 Forfeited — — Ending balance 1.8 44.38 Exercisable 1.3 38.23 |
Summary of Certain Information Pertaining to Stock Option and SAR Awards Outstanding and Exercisable | The following summarizes certain information pertaining to stock option and SAR awards outstanding and exercisable at September 30, 2015 (options/SARs in millions): Awards Outstanding Awards Exercisable Range of Exercise Price No. of Options/ SARs WTD. Avg. Remaining Life WTD. Avg. Exercise Price No. of Options/ SARS WTD. Avg. Remaining Life WTD. Avg. Exercise Price $20.59 – $27.31 0.3 3.01 $ 20.59 0.2 3.01 $ 20.59 $29.30 – $36.86 0.4 1.53 36.43 0.4 1.53 36.43 $38.81 – $49.19 0.7 5.20 45.26 0.7 5.20 45.26 $63.43 – $67.40 0.4 9.34 63.60 — — — 1.8 5.05 $ 44.38 1.3 3.67 $ 38.23 |
The Intrinsic Value of Stock Option and SAR Awards Outstanding and Exercisable | The intrinsic value of the stock option and SAR awards outstanding and exercisable at September 30, 2015 were as follows (in millions): 2015 Outstanding $ 30.4 Exercisable 30.4 |
Schedule of Weighted Average Assumptions for Awards Granted | The weighted average assumptions for awards granted in fiscal 2015 are as follows: 2015 Expected market price volatility 26.6 % Risk-free interest rates 1.3 % Expected dividend yield 2.8 % Expected life of stock options in years 6.0 Estimated weighted-average fair value per stock option $ 11.51 |
Schedule of Restricted Share-Based Award Activity (Including Restricted Stock, Restricted Stock Units and Deferred Stock Units) | Restricted share-based awards Restricted share-based award activity (including restricted stock, restricted stock units and deferred stock units) was as follows: No. of Shares WTD. Avg. Grant Date Fair Value per Share Awards outstanding at September 30, 2012 497,199 $ 45.75 Granted 211,283 44.80 Vested (251,855 ) 40.87 Forfeited (46,976 ) 53.54 Awards outstanding at September 30, 2013 409,651 47.36 Granted 150,733 59.35 Vested (81,597 ) 41.88 Forfeited (44,895 ) 47.43 Awards outstanding at September 30, 2014 433,892 52.55 Granted 108,376 63.85 Vested (135,562 ) 47.33 Forfeited (25,197 ) 58.44 Awards outstanding at September 30, 2015 381,509 57.22 |
Performance-Based Award Activity | Performance-based awards Performance-based award activity was as follows: No. of Units WTD. Avg. Grant Date Fair Value per Unit Awards outstanding at September 30, 2012 153,909 $ 45.48 Granted 178,321 45.06 Vested — — Forfeited (70,313 ) 46.62 Awards outstanding at September 30, 2013 261,917 46.81 Granted 161,229 59.39 Vested — — Forfeited (111,897 ) 53.24 Awards outstanding at September 30, 2014 311,249 51.21 Granted 78,352 63.36 Vested (49,467 ) 47.66 Forfeited (910 ) 47.66 Awards outstanding at September 30, 2015 339,224 54.86 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Information to Calculate Basic and Diluted Earnings (Loss) Per Common Share | Year Ended September 30, 2015 2014 2013 (In millions, except per share data) Income attributable to controlling interest from continuing operations $ 159.8 $ 165.7 $ 159.4 Income from discontinued operations — 0.8 1.7 Net income attributable to controlling interest $ 159.8 $ 166.5 $ 161.1 BASIC EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.6 61.7 Income from continuing operations $ 2.62 $ 2.69 $ 2.58 Income from discontinued operations — 0.01 0.03 Net income $ 2.62 $ 2.70 $ 2.61 DILUTED EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.6 61.7 Dilutive potential Common Shares 1.1 1.1 0.9 Weighted-average number of Common Shares outstanding and dilutive potential Common Shares 62.2 62.7 62.6 Income from continuing operations $ 2.57 $ 2.64 $ 2.55 Income from discontinued operations — 0.01 0.02 Net income $ 2.57 $ 2.65 $ 2.57 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Provision (Benefit) For Income Taxes Allocated to Continuing Operations | The provision (benefit) for income taxes allocated to continuing operations consisted of the following: Year Ended September 30, 2015 2014 2013 (In millions) Current: Federal $ 72.4 $ 67.0 $ 55.0 State 9.5 8.6 7.4 Foreign 2.2 3.5 4.4 Total Current 84.1 79.1 66.8 Deferred: Federal 0.8 10.8 24.0 State 1.2 1.4 1.2 Foreign (0.7 ) (0.1 ) (0.1 ) Total Deferred 1.3 12.1 25.1 Provision for income taxes $ 85.4 $ 91.2 $ 91.9 |
The Domestic and Foreign Components of Income From Continuing Operations Before Income Taxes | The domestic and foreign components of income from continuing operations before income taxes were as follows: Year Ended September 30, 2015 2014 2013 (In millions) Domestic $ 217.7 $ 231.0 $ 236.5 Foreign 26.4 25.6 14.8 Income from continuing operations before income taxes $ 244.1 $ 256.6 $ 251.3 |
Reconciliation of the Federal Corporate Income Tax Rate and the Effective Tax Rate | A reconciliation of the federal corporate income tax rate and the effective tax rate on income from continuing operations before income taxes is summarized below: Year Ended September 30, 2015 2014 2013 Statutory income tax rate 35.0 % 35.0 % 35.0 % Effect of foreign operations (0.5 ) 1.5 0.8 State taxes, net of federal benefit 3.1 2.7 2.9 Domestic Production Activities Deduction permanent difference (3.1 ) (2.7 ) (2.1 ) Effect of other permanent differences 0.1 0.2 0.8 Research and Experimentation and other federal tax credits (0.2 ) (0.8 ) (0.3 ) Resolution of prior tax contingencies 0.4 0.2 0.2 Other 0.2 (0.5 ) (0.7 ) Effective income tax rate 35.0 % 35.6 % 36.6 % |
Components of Deferred Income Tax Assets and Liabilities | The components of the deferred income tax assets and liabilities were as follows: September 30, 2015 2014 (In millions) DEFERRED TAX ASSETS Inventories $ 14.1 $ 14.7 Accrued liabilities 71.6 59.7 Postretirement benefits 30.3 32.4 Accounts receivable 8.3 7.2 State NOL carryovers 1.0 1.3 Foreign NOL carryovers 45.0 48.2 Foreign tax credit carryovers 8.6 4.6 Interest rate swaps 4.9 4.2 Other 3.3 3.1 Gross deferred tax assets 187.1 175.4 Valuation allowance (45.8 ) (48.3 ) Total deferred tax assets 141.3 127.1 DEFERRED TAX LIABILITIES Property, plant and equipment (59.7 ) (59.2 ) Intangible assets (114.8 ) (106.6 ) Other (14.0 ) (9.5 ) Total deferred tax liabilities (188.5 ) (175.3 ) Net deferred tax liability $ (47.2 ) $ (48.2 ) |
Net Current and Non-Current Components of Deferred Income Taxes Recognized in the Consolidated Balance Sheets | The net current and non-current components of deferred income taxes recognized in the Consolidated Balance Sheets were: September 30, 2015 2014 (In millions) Net current deferred tax assets (classified with prepaid and other assets) $ 78.2 $ 72.2 Net non-current deferred tax liabilities (classified with other liabilities) (125.4 ) (120.4 ) Net deferred tax liability $ (47.2 ) $ (48.2 ) |
Reconciliation of the Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Year Ended September 30, 2015 2014 2013 (In millions) Balance at beginning of year $ 11.2 $ 6.7 $ 7.0 Additions for tax positions of the current year 0.2 0.2 0.3 Additions for tax positions of prior years 4.1 7.6 4.3 Reductions for tax positions of prior years (3.2 ) (2.7 ) (3.8 ) Settlements with tax authorities (2.7 ) — (0.4 ) Expiration of statutes of limitation (0.4 ) (0.6 ) (0.7 ) Balance at end of year $ 9.2 $ 11.2 $ 6.7 |
DERIVATIVE INSTRUMENTS AND HE47
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Outstanding Commodity Contracts that Hedge Forecasted Purchases | The Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases: September 30, 2015 2014 Commodity Urea 52,500 tons 58,500 tons Diesel 5,754,000 gallons 5,250,000 gallons Gasoline 504,000 gallons 462,000 gallons Heating Oil 2,772,000 gallons 4,494,000 gallons |
Fair Values of the Company's Derivative Instruments | The fair values of the Company’s derivative instruments were as follows: Assets / (Liabilities) 2015 2014 Derivatives Designated As Hedging Instruments Balance Sheet Location Fair Value (In millions) Interest rate swap agreements Other assets $ — $ 4.0 Other current liabilities (8.8 ) (10.3 ) Other liabilities (4.6 ) (5.2 ) Commodity hedging instruments Other current liabilities (1.3 ) (0.6 ) Total derivatives designated as hedging instruments $ (14.7 ) $ (12.1 ) Derivatives Not Designated As Hedging Instruments Balance Sheet Location Currency forward contracts Other current liabilities $ (0.7 ) $ (0.1 ) Commodity hedging instruments Other current liabilities (3.9 ) (1.3 ) Total derivatives not designated as hedging instruments $ (4.6 ) $ (1.4 ) Total derivatives $ (19.3 ) $ (13.5 ) |
Effect of Derivative Instruments on OCI and the Condensed, Consolidated Statements of Operations | The effect of derivative instruments on AOCI and the Consolidated Statements of Operations for the years ended September 30 was as follows: Amount of Gain/(Loss) Recognized in AOCI Derivatives in Cash Flow Hedging Relationships 2015 2014 (In millions) Interest rate swap agreements $ (7.7 ) $ (6.6 ) Commodity hedging instruments (0.9 ) 1.7 Total $ (8.6 ) $ (4.9 ) Reclassified From AOCI Into Amount of Gain/(Loss) Derivatives in Cash Flow Hedging Relationships Statement of Operations 2015 2014 (In millions) Interest rate swap agreements Interest expense $ (6.5 ) $ (10.0 ) Commodity hedging instruments Cost of sales — 0.5 Total $ (6.5 ) $ (9.5 ) Amount of Gain/(Loss) Derivatives not Designated As Hedging Instruments Recognized in Statement of Operations 2015 2014 (In millions) Currency forward contracts Other income, net $ 8.1 $ (0.7 ) Commodity hedging instruments Cost of sales (11.4 ) (1.0 ) Total $ (3.3 ) $ (1.7 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2015 : Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) Assets Cash equivalents $ 28.6 $ — $ — $ 28.6 Other 8.9 — — 8.9 Total $ 37.5 $ — $ — $ 37.5 Liabilities Derivatives Interest rate swap agreements $ — $ (13.4 ) $ — $ (13.4 ) Currency forward contracts — (0.7 ) — (0.7 ) Commodity hedging instruments — (5.2 ) — (5.2 ) Total $ — $ (19.3 ) $ — $ (19.3 ) The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2014: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In millions) Assets Cash equivalents $ 32.0 $ — $ — $ 32.0 Derivatives Interest rate swap agreements — 4.0 — 4.0 Other 8.9 — — 8.9 Total $ 40.9 $ 4.0 $ — $ 44.9 Liabilities Derivatives Interest rate swap agreements $ — $ (15.5 ) $ — $ (15.5 ) Currency forward contracts — (0.1 ) — (0.1 ) Commodity hedging instruments — (1.9 ) — (1.9 ) Total $ — $ (17.5 ) $ — $ (17.5 ) As of September 30, 2015, there were no non-financial assets or liabilities measured at fair-value on a non-recurring basis. The following presents the Company’s non-financial assets and liabilities measured at fair value on a non-recurring basis at September 30, 2014 and describes the valuation methodologies used for non-financial assets and liabilities measured at fair value, as well as the general classification within the valuation hierarchy: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Losses (In millions) Ortho ® brands and sub-brands $ — $ — $ 92.3 $ 33.7 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for non-cancelable operating leases at September 30, 2015 , were as follows (in millions): 2016 $ 50.4 2017 43.2 2018 36.5 2019 31.1 2020 24.1 Thereafter 43.2 Total future minimum lease payments $ 228.5 |
Other Residual Value Guarantee Amounts | Other residual value guarantee amounts that apply at the conclusion of non-cancelable lease terms are as follows: Amount of Guarantee Lease Termination Date (In millions) Scotts LawnService ® vehicles $ 1.6 2019 - 2022 Corporate aircraft 27.0 2019 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Unconditional Purchase Obligations That Have Not Been Recognized | The Company has the following unconditional purchase obligations due during each of the next five fiscal years that have not been recognized in the Consolidated Balance Sheet at September 30, 2015 (in millions): 2016 $ 134.2 2017 42.3 2018 27.4 2019 7.9 2020 1.6 Thereafter — $ 213.4 |
CONCENTRATIONS OF CREDIT RISK (
CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Concentrations of Accounts Receivable Credit Risk | Concentrations of net sales and accounts receivable by segment in the United States as a percentage of consolidated net sales and accounts receivable at September 30 were as follows: Percentage of Net Sales Percentage of Net Accounts Receivable at September 30, 2015 2014 2013 2015 2014 Global Consumer segment 73 % 72 % 72 % 63 % 62 % Scotts LawnService ® segment 9 % 9 % 9 % 10 % 9 % Total Concentration in United States 82 % 81 % 81 % 73 % 71 % |
Percentages of Three Largest Customers Consolidated Net Sales | These three customers accounted for the following percentages of Global Consumer segment net sales for the fiscal years ended September 30: Percentage of Net Sales 2015 2014 2013 Home Depot 34 % 36 % 34 % Lowe's 17 % 19 % 18 % Walmart 12 % 13 % 13 % |
OTHER (INCOME) EXPENSE, NET (Ta
OTHER (INCOME) EXPENSE, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Other (Income) Expense | Other (income) expense consisted of the following: Year Ended September 30, 2015 2014 2013 (In millions) Royalty income, net $ (5.2 ) $ (5.6 ) $ (4.7 ) Franchise fees (0.3 ) (0.3 ) (0.3 ) Foreign currency losses 1.6 1.0 0.4 (Gain) loss on investment of unconsolidated affiliate — (5.7 ) 0.4 Other (2.2 ) (4.1 ) (5.8 ) Total $ (6.1 ) $ (14.7 ) $ (10.0 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Segment Financial Information | The following tables present summarized financial information concerning the Company’s reportable segments for the periods indicated: Year Ended September 30, 2015 2014 2013 (In millions) Net sales: Global Consumer $ 2,701.0 $ 2,552.0 $ 2,484.7 Scotts LawnService ® 288.5 263.0 257.8 Segment total 2,989.5 2,815.0 2,742.5 Corporate & Other 27.0 26.3 31.2 Consolidated $ 3,016.5 $ 2,841.3 $ 2,773.7 Income from continuing operations before income taxes: Global Consumer $ 466.2 $ 438.8 $ 403.7 Scotts LawnService ® 33.3 30.2 28.7 Segment total 499.5 469.0 432.4 Corporate & Other (96.6 ) (90.4 ) (91.2 ) Intangible asset amortization (16.8 ) (13.0 ) (10.4 ) Impairment, restructuring and other (91.5 ) (51.0 ) (20.3 ) Costs related to refinancing — (10.7 ) — Interest expense (50.5 ) (47.3 ) (59.2 ) Consolidated $ 244.1 $ 256.6 $ 251.3 Depreciation and amortization: Global Consumer $ 52.0 $ 48.1 $ 48.7 Scotts LawnService ® 5.3 3.9 4.0 Corporate & Other 11.7 12.4 13.4 $ 69.0 $ 64.4 $ 66.1 Capital expenditures: Global Consumer $ 54.6 $ 83.3 $ 53.3 Scotts LawnService ® 3.7 3.2 3.1 Corporate & Other 3.4 1.1 3.7 $ 61.7 $ 87.6 $ 60.1 September 30, 2015 2014 (In millions) Total assets: Global Consumer $ 2,124.7 $ 1,690.7 Scotts LawnService ® 222.5 191.3 Corporate & Other 180.0 176.3 $ 2,527.2 $ 2,058.3 |
Net sales by product category | The following table presents net sales by product category for the Global Consumer segment: Year Ended September 30, 2015 2014 2013 Net sales: Lawn care 31 % 34 % 35 % Growing media 38 36 35 Controls 16 15 14 Roundup ® Marketing Agreement 5 5 5 Other, primarily gardening and landscape 10 10 11 Segment total product sales 100 % 100 % 100 % |
Net Sales and Long-lived Assets by Geographic Area | The following table presents net sales and long-lived assets (property, plant and equipment and finite-lived intangibles) by geographic area: Year Ended September 30, 2015 2014 2013 (In millions) Net sales: United States $ 2,508.5 $ 2,328.2 $ 2,295.5 International 508.0 513.1 478.2 $ 3,016.5 $ 2,841.3 $ 2,773.7 Long-lived assets: United States $ 558.7 $ 458.8 $ 419.9 International 73.8 91.1 64.5 $ 632.5 $ 549.9 $ 484.4 |
QUARTERLY CONSOLIDATED FINANC54
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Summary of the Unaudited Quarterly Results of Operations | The following is a summary of the unaudited quarterly results of operations: First Quarter Second Quarter Third Quarter Fourth Quarter Full Year (In millions, except per share data) FISCAL 2015 Net sales $ 216.2 $ 1,102.3 $ 1,214.8 $ 483.2 $ 3,016.5 Gross profit 29.3 433.3 449.2 153.1 1,064.9 Income (loss) from continuing operations (74.0 ) 124.3 133.0 (24.6 ) 158.7 Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (74.0 ) 124.3 133.0 (24.6 ) 158.7 Income (loss) attributable to controlling interest (74.6 ) 124.6 133.4 (23.6 ) 159.8 Basic income (loss) per Common Share: Income (loss) from continuing operations $ (1.23 ) $ 2.05 $ 2.18 $ (0.38 ) $ 2.62 Income (loss) from discontinued operations, net of tax — — — — — Basic net income (loss) per Common Share $ (1.23 ) $ 2.05 $ 2.18 $ (0.38 ) $ 2.62 Common Shares used in basic EPS calculation 60.8 60.9 61.3 61.4 61.1 Diluted income (loss) per Common Share: Income (loss) from continuing operations $ (1.23 ) $ 2.01 $ 2.14 $ (0.38 ) $ 2.57 Income (loss) from discontinued operations, net of tax — — — — — Diluted net income (loss) per Common Share $ 1.23 $ 2.01 $ 2.14 $ (0.38 ) $ 2.57 Common Shares and dilutive potential Common Shares used in diluted EPS calculation 60.8 62.1 62.3 61.4 62.2 FISCAL 2014 Net sales $ 189.6 $ 1,081.0 $ 1,116.4 $ 454.3 $ 2,841.3 Gross profit 33.9 433.8 423.3 140.4 1,031.4 Income (loss) from continuing operations (65.8 ) 125.7 120.7 (15.2 ) 165.4 Income (loss) from discontinued operations, net of tax 0.1 — 1.0 (0.3 ) 0.8 Net income (loss) (65.7 ) 125.7 121.7 (15.5 ) 166.2 Income (loss) attributable to controlling interest (65.7 ) 125.7 121.7 (15.2 ) 166.5 Basic income (loss) per Common Share: Income (loss) from continuing operations $ (1.06 ) $ 2.03 $ 1.97 $ (0.24 ) $ 2.69 Income (loss) from discontinued operations — — 0.02 — 0.01 Basic net income (loss) per Common Share $ (1.06 ) $ 2.03 $ 1.99 $ (0.24 ) $ 2.70 Common Shares used in basic EPS calculation 62.1 61.9 61.3 61.0 61.6 Diluted income (loss) per Common Share: Income (loss) from continuing operations $ (1.06 ) $ 2.00 $ 1.93 $ (0.24 ) $ 2.64 Income (loss) from discontinued operations — — 0.02 — 0.01 Diluted net income (loss) per Common Share $ (1.06 ) $ 2.00 $ 1.95 $ (0.24 ) $ 2.65 Common Shares and dilutive potential Common Shares used in diluted EPS calculation 62.1 62.9 62.4 61.0 62.7 |
FINANCIAL INFORMATION FOR SUB55
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Condensed Consolidating Statement of Operations | THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Operations for the fiscal year ended September 30, 2014 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,314.0 $ 527.3 $ — $ 2,841.3 Cost of sales — 1,440.5 369.4 — 1,809.9 Cost of sales - impairment, restructuring and other — — — — — Gross profit — 873.5 157.9 — 1,031.4 Operating expenses: Selling, general and administrative — 535.3 145.2 — 680.5 Impairment, restructuring and other — 48.2 2.8 — 51.0 Other income, net — (12.6 ) (2.1 ) — (14.7 ) Income from operations — 302.6 12.0 — 314.6 Equity income in subsidiaries (193.2 ) (8.9 ) — 202.1 — Other non-operating income (21.3 ) — (22.2 ) 43.5 — Costs related to refinancing 10.7 — — — 10.7 Interest expense 52.5 37.4 0.9 (43.5 ) 47.3 Income from continuing operations before income taxes 151.3 274.1 33.3 (202.1 ) 256.6 Income tax (benefit) expense from continuing operations (14.9 ) 94.6 11.5 — 91.2 Income from continuing operations 166.2 179.5 21.8 (202.1 ) 165.4 Income from discontinued operations, net of tax — 0.4 0.4 — 0.8 Net income $ 166.2 $ 179.9 $ 22.2 $ (202.1 ) $ 166.2 Net loss attributable to noncontrolling interest 0.3 0.3 — (0.3 ) 0.3 Net income attributable to controlling interest $ 166.5 $ 180.2 $ 22.2 $ (202.4 ) $ 166.5 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Operations for the fiscal year ended September 30, 2013 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,280.4 $ 493.3 $ — $ 2,773.7 Cost of sales — 1,446.7 346.6 — 1,793.3 Cost of sales — impairment, restructuring and other — — 2.2 2.2 Gross profit — 833.7 144.5 — 978.2 Operating expenses: Selling, general and administrative — 515.3 144.3 — 659.6 Impairment, restructuring and other — 11.2 6.9 — 18.1 Other income, net — (6.9 ) (3.1 ) — (10.0 ) Income from operations — 314.1 (3.6 ) — 310.5 Equity income in subsidiaries (180.9 ) 1.3 — 179.6 — Other non-operating income (20.4 ) — — 20.4 — Interest expense 52.4 25.2 2.0 (20.4 ) 59.2 Income (loss) from continuing operations before income taxes 148.9 287.6 (5.6 ) (179.6 ) 251.3 Income tax (benefit) expense from continuing operations (12.2 ) 105.8 (1.7 ) — 91.9 Income (loss) from continuing operations 161.1 181.8 (3.9 ) (179.6 ) 159.4 Income (loss) from discontinued operations, net of tax — 0.8 0.9 — 1.7 Net income (loss) $ 161.1 $ 182.6 $ (3.0 ) $ (179.6 ) $ 161.1 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Operations for the fiscal year ended September 30, 2015 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,480.6 $ 535.9 $ — $ 3,016.5 Cost of sales — 1,558.3 386.7 — 1,945.0 Cost of sales - impairment, restructuring and other — 3.1 3.5 — 6.6 Gross profit — 919.2 145.7 — 1,064.9 Operating expenses: Selling, general and administrative — 556.4 140.3 1.7 698.4 Impairment, restructuring and other — 71.0 7.0 — 78.0 Other income, net — (7.2 ) 1.1 — (6.1 ) Income (loss) from operations — 299.0 (2.7 ) (1.7 ) 294.6 Equity income in subsidiaries (179.2 ) (6.1 ) — 185.3 — Other non-operating income (27.9 ) — (23.5 ) 51.4 — Costs related to refinancing — — — — — Interest expense 55.2 44.1 2.6 (51.4 ) 50.5 Income from continuing operations before income taxes 151.9 261.0 18.2 (187.0 ) 244.1 Income tax (benefit) expense from continuing operations (9.6 ) 88.6 6.4 — 85.4 Income from continuing operations 161.5 172.4 11.8 (187.0 ) 158.7 Income from discontinued operations, net of tax — — — — — Net income $ 161.5 $ 172.4 $ 11.8 $ (187.0 ) $ 158.7 Net loss attributable to noncontrolling interest — — — 1.1 1.1 Net income attributable to controlling interest $ 161.5 $ 172.4 $ 11.8 $ (185.9 ) $ 159.8 |
Condensed Consolidating Statement of Comprehensive Income | THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2013 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income (loss) $ 161.1 $ 182.6 $ (3.0 ) $ (179.6 ) $ 161.1 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment — — (5.2 ) — (5.2 ) Net change in derivatives 7.2 (2.1 ) — — 5.1 Net change in pension and other post retirement benefits — 10.6 (1.0 ) — 9.6 Total other comprehensive income (loss) 7.2 8.5 (6.2 ) — 9.5 Comprehensive income (loss) $ 168.3 $ 191.1 $ (9.2 ) $ (179.6 ) $ 170.6 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2014 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income (loss) $ 166.2 $ 179.9 $ 22.2 $ (202.1 ) $ 166.2 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment (8.2 ) — (8.2 ) 8.2 (8.2 ) Net change in derivatives 4.6 1.3 — (1.3 ) 4.6 Net change in pension and other post retirement benefits (4.8 ) 0.7 (5.5 ) 4.8 (4.8 ) Total other comprehensive income (loss) (8.4 ) 2.0 (13.7 ) 11.7 (8.4 ) Comprehensive income (loss) $ 157.8 $ 181.9 $ 8.5 $ (190.4 ) $ 157.8 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2015 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income $ 161.5 $ 172.4 $ 11.8 $ (187.0 ) $ 158.7 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment (14.2 ) — (14.2 ) 14.2 (14.2 ) Net change in derivatives (2.1 ) (0.8 ) — 0.8 (2.1 ) Net change in pension and other post retirement benefits (4.3 ) (5.4 ) 1.1 4.3 (4.3 ) Total other comprehensive income (loss) (20.6 ) (6.2 ) (13.1 ) 19.3 (20.6 ) Comprehensive income $ 140.9 $ 166.2 $ (1.3 ) $ (167.7 ) $ 138.1 |
Condensed Consolidating Statement of Cash Flows | THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2015 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES (a) $ 239.4 $ 249.3 $ 39.5 $ (281.3 ) $ 246.9 INVESTING ACTIVITIES Proceeds from sale of long-lived assets — 5.5 — — 5.5 Investments in property, plant and equipment — (56.6 ) (5.1 ) — (61.7 ) Investing cash flows from (to) affiliates (141.9 ) — — 141.9 — Investments in acquired businesses, net of cash acquired — (170.8 ) (9.4 ) — (180.2 ) Investment in marketing and license agreement — (300.0 ) — — (300.0 ) Net cash used in investing activities (141.9 ) (521.9 ) (14.5 ) 141.9 (536.4 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,568.1 267.9 — 1,836.0 Repayments under revolving and bank lines of credit and term loans — (1,284.1 ) (173.9 ) — (1,458.0 ) Financing and issuance fees (0.4 ) (0.1 ) — — (0.5 ) Dividends paid (111.3 ) (255.5 ) (25.8 ) 281.3 (111.3 ) Purchase of Common Shares (14.8 ) — — — (14.8 ) Payments on seller notes — (1.5 ) — — (1.5 ) Excess tax benefits from share-based payment arrangements 4.7 — — — 4.7 Cash received from exercise of stock options 24.3 — — — 24.3 Financing cash flows from (to) affiliates — 230.0 (88.1 ) (141.9 ) — Net cash provided by (used in) financing activities (97.5 ) 256.9 (19.9 ) 139.4 278.9 Effect of exchange rate changes on cash — — (7.3 ) — (7.3 ) Net increase (decrease) in cash and cash equivalents — (15.7 ) (2.2 ) — (17.9 ) Cash and cash equivalents at beginning of year — 23.1 66.2 — 89.3 Cash and cash equivalents at end of year $ — $ 7.4 $ 64.0 $ — $ 71.4 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2013 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES $ 69.8 $ 245.9 $ 114.1 $ (87.8 ) $ 342.0 INVESTING ACTIVITIES Proceeds from sale of long-lived assets — 0.2 3.4 — 3.6 Investments in property, plant and equipment — (44.6 ) (15.5 ) — (60.1 ) Investment in unconsolidated affiliate — (4.5 ) — — (4.5 ) Investment in acquired businesses, net of cash acquired — (3.2 ) — — (3.2 ) Net cash used in investing activities — (52.1 ) (12.1 ) — (64.2 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,130.4 344.4 — 1,474.8 Repayments under revolving and bank lines of credit and term loans — (1,078.5 ) (603.6 ) — (1,682.1 ) Dividends paid (87.8 ) (87.8 ) — 87.8 (87.8 ) Payments on seller notes — (0.8 ) — — (0.8 ) Excess tax benefits from share-based payment arrangements — 2.0 — — 2.0 Cash received from exercise of stock options 13.3 — — — 13.3 Intercompany financing 4.7 (159.1 ) 154.4 — — Net cash used in financing activities (69.8 ) (193.8 ) (104.8 ) 87.8 (280.6 ) Effect of exchange rate changes on cash — — 0.7 — 0.7 Net increase (decrease) in cash and cash equivalents — — (2.1 ) — (2.1 ) Cash and cash equivalents at beginning of year — 2.6 129.3 — 131.9 Cash and cash equivalents at end of year $ — $ 2.6 $ 127.2 $ — $ 129.8 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2014 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES (a) $ 388.8 $ 254.5 $ 21.7 $ (424.1 ) $ 240.9 INVESTING ACTIVITIES Proceeds from sale of long-lived assets — 3.7 — — 3.7 Proceeds from sale of business, net of transaction costs — 6.6 0.6 — 7.2 Investments in property, plant and equipment — (81.0 ) (6.6 ) — (87.6 ) Proceeds from sale and leaseback transaction — 35.1 — — 35.1 Investments in acquired businesses, net of cash acquired — (58.9 ) (55.1 ) — (114.0 ) Net cash used in investing activities — (94.5 ) (61.1 ) — (155.6 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,596.1 336.7 — 1,932.8 Repayments under revolving and bank lines of credit and term loans — (1,184.7 ) (340.6 ) — (1,525.3 ) Repayment of 7.25% senior notes (200.0 ) — — — (200.0 ) Financing and issuance fees (6.1 ) — — — (6.1 ) Dividends paid (230.8 ) (404.9 ) (19.2 ) 424.1 (230.8 ) Purchase of Common Shares (120.0 ) — — — (120.0 ) Payments on seller notes — (0.8 ) — — (0.8 ) Excess tax benefits from share-based payment arrangements — 5.9 — — 5.9 Cash received from exercise of stock options 20.0 — — — 20.0 Intercompany financing 148.1 (151.1 ) 3.0 — — Net cash used in financing activities (388.8 ) (139.5 ) (20.1 ) 424.1 (124.3 ) Effect of exchange rate changes on cash — — (1.5 ) — (1.5 ) Net increase (decrease) in cash and cash equivalents — 20.5 (61.0 ) — (40.5 ) Cash and cash equivalents at beginning of year — 2.6 127.2 — 129.8 Cash and cash equivalents at end of year $ — $ 23.1 $ 66.2 $ — $ 89.3 |
Condensed Consolidating Balance Sheet | THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Balance Sheet As of September 30, 2014 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 23.1 $ 66.2 $ — $ 89.3 Accounts receivable, net — 124.6 99.4 — 224.0 Accounts Receivable, pledged — 113.7 — — 113.7 Inventories — 282.1 103.0 — 385.1 Prepaid and other current assets — 85.2 37.7 — 122.9 Total current assets — 628.7 306.3 — 935.0 Property, plant and equipment, net — 371.3 65.7 — 437.0 Goodwill — 344.3 6.6 — 350.9 Intangible assets, net — 256.8 45.9 — 302.7 Other assets 23.8 14.7 28.5 (34.3 ) 32.7 Equity investment in subsidiaries 368.3 — — (368.3 ) — Intercompany assets 878.8 — — (878.8 ) — Total assets $ 1,270.9 $ 1,615.8 $ 453.0 $ (1,281.4 ) $ 2,058.3 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of debt $ — $ 85.8 $ 6.1 $ — $ 91.9 Accounts payable — 134.4 58.9 — 193.3 Other current liabilities 16.7 161.9 80.9 — 259.5 Total current liabilities 16.7 382.1 145.9 — 544.7 Long-term debt 681.8 480.0 12.4 (481.8 ) 692.4 Other liabilities 5.1 235.7 47.4 (34.2 ) 254.0 Equity investment in subsidiaries — 106.5 — (106.5 ) — Intercompany liabilities — 305.2 91.8 (397.0 ) — Total liabilities 703.6 1,509.5 297.5 (1,019.5 ) 1,491.1 Total shareholders’ equity - controlling interest 553.8 92.8 155.5 (248.4 ) 553.7 Noncontrolling interest $ 13.5 $ 13.5 $ — $ (13.5 ) $ 13.5 Total equity 567.3 106.3 155.5 (261.9 ) 567.2 Total liabilities and equity $ 1,270.9 $ 1,615.8 $ 453.0 $ (1,281.4 ) $ 2,058.3 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Balance Sheet As of September 30, 2015 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 7.4 $ 64.0 $ — $ 71.4 Accounts receivable, net — 96.9 94.4 — 191.3 Accounts receivable pledged — 152.9 — — 152.9 Inventories — 318.7 88.9 — 407.6 Prepaid and other current assets — 90.7 34.7 — 125.4 Total current assets — 666.6 282.0 — 948.6 Property, plant and equipment, net — 397.6 56.1 — 453.7 Goodwill — 408.8 12.0 11.6 432.4 Intangible assets, net — 593.0 58.8 11.7 663.5 Other assets 16.3 15.0 15.0 (17.3 ) 29.0 Equity investment in subsidiaries 461.3 — — (461.3 ) — Intercompany assets 1,179.4 — — (1,179.4 ) — Total assets $ 1,657.0 $ 2,081.0 $ 423.9 $ (1,634.7 ) $ 2,527.2 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of debt $ — $ 125.1 $ 9.7 $ — $ 134.8 Accounts payable — 141.5 56.4 — 197.9 Other current liabilities 15.5 191.9 73.0 — 280.4 Total current liabilities 15.5 458.5 139.1 — 613.1 Long-term debt 1,016.3 728.4 100.1 (816.3 ) 1,028.5 Other liabilities 4.5 228.0 32.3 (12.3 ) 252.5 Equity investment in subsidiaries — 156.2 — (156.2 ) — Intercompany liabilities — 296.6 47.5 (344.1 ) — Total liabilities 1,036.3 1,867.7 319.0 (1,328.9 ) 1,894.1 Total shareholders’ equity - controlling interest 620.7 213.3 104.9 (318.2 ) 620.7 Noncontrolling interest — — — 12.4 12.4 Total equity $ 620.7 $ 213.3 $ 104.9 $ (305.8 ) $ 633.1 Total liabilities and equity $ 1,657.0 $ 2,081.0 $ 423.9 $ (1,634.7 ) $ 2,527.2 |
Valuation and Qualifying Acco56
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 30, 2014 | |
Valuation and Qualifying Account | Schedule II—Valuation and Qualifying Accounts for the fiscal year ended September 30, 2015 Column A Column B Column C Column D Column E Column F Classification Balance at Beginning of Period Reserves Acquired Additions Charged to Expense Deductions Credited and Write-Offs Balance at End of Period (In millions) Valuation and qualifying accounts deducted from the assets to which they apply: Allowance for doubtful accounts $ 7.5 $ — $ 6.6 $ (5.4 ) $ 8.7 Income tax valuation allowance 48.3 — 1.5 (4.0 ) 45.8 Schedule II—Valuation and Qualifying Accounts for the fiscal year ended September 30, 2014 Column A Column B Column C Column D Column E Column F Classification Balance at Beginning of Period Reserves Acquired Additions Charged to Expense Deductions Credited and Write-Offs Balance at End of Period (In millions) Valuation and qualifying accounts deducted from the assets to which they apply: Allowance for doubtful accounts $ 9.5 $ — $ 6.6 $ (8.6 ) $ 7.5 Income tax valuation allowance 51.5 — (1.5 ) (1.7 ) 48.3 Schedule II—Valuation and Qualifying Accounts for the fiscal year ended September 30, 2013 Column A Column B Column C Column D Column E Column F Classification Balance at Beginning of Period Reserves Acquired Additions Charged to Expense Deductions Credited and Write-Offs Balance at End of Period (In millions) Valuation and qualifying accounts deducted from the assets to which they apply: Allowance for doubtful accounts $ 10.5 $ — $ 5.5 $ (6.5 ) $ 9.5 Income tax valuation allowance 48.4 — (4.0 ) 7.1 51.5 |
SUMMARY OF SIGNIFICANT ACCOUN57
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Significant Accounting Policies [Line Items] | |||
Unamortized Debt Issuance Expense | $ 11.3 | ||
Capitalized Computer Software, Net | $ 18.6 | $ 21.8 | |
Percentage of annual net sales from combined second and third quarter sales | 75.00% | 75.00% | 75.00% |
Advertising expenses | $ 146.1 | $ 143.6 | $ 142.2 |
Research and development charge | 46.8 | 48.4 | 46.4 |
Adjustment to reflect inventories at net realizable values | 17.8 | 18.4 | |
Interest capitalized on capital projects | 0.4 | 0.4 | 0.8 |
Noncash investing activities for unpaid liabilities incurred | 8.5 | 7 | 7.3 |
Amortization of capitalized internal use computer software | 6 | 8.3 | 7.3 |
Research and Development Expense | |||
Significant Accounting Policies [Line Items] | |||
Product registration costs | $ 13.1 | 12.6 | $ 12.4 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets amortization period | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets amortization period | 25 years | ||
Global Consumer | |||
Significant Accounting Policies [Line Items] | |||
Deferred Advertising Costs | $ 0.7 | 1.9 | |
Scotts Lawnservice | |||
Significant Accounting Policies [Line Items] | |||
Deferred Advertising Costs | $ 1.5 | $ 1.3 |
Estimated Useful Economic Lives
Estimated Useful Economic Lives of The Assets (Detail) | 12 Months Ended |
Sep. 30, 2015 | |
Minimum | Land improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 10 years |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 10 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 3 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 6 years |
Minimum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 3 years |
Maximum | Land improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 25 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 40 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 15 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 10 years |
Maximum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 8 years |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 28, 2014 | Mar. 29, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash received from sale of business | $ 0 | $ 7.2 | $ 0 | ||
Gain on sale of assets | $ 0 | ||||
Wild Bird Food | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash received from sale of business | $ 4.1 | ||||
Future earn-out payments | $ 1 | ||||
Proceeds from sale of manufacturing facilities | $ 3.1 | ||||
Gain on sale of assets | $ 1.2 | $ 1.2 |
Results of Discontinued Operati
Results of Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net sales | $ 0 | ||||||||||
Operating costs | 0 | ||||||||||
Gain on sale of assets | 0 | ||||||||||
Income (loss) from discontinued operations before income taxes | 0 | ||||||||||
Income tax expense from discontinued operations | 0 | ||||||||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.3) | $ 1 | $ 0 | $ 0.1 | $ 0 | $ 0.8 | $ 1.7 |
Wild Bird Food & Pro Seed [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net sales | 42.8 | ||||||||||
Operating costs | 40.4 | ||||||||||
Gain on sale of assets | 0 | ||||||||||
Income (loss) from discontinued operations before income taxes | 2.4 | ||||||||||
Income tax expense from discontinued operations | 0.7 | ||||||||||
Income (loss) from discontinued operations, net of tax | $ 1.7 | ||||||||||
Wild Bird Food | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net sales | 18.1 | ||||||||||
Operating costs | 17.6 | ||||||||||
Gain on sale of assets | $ (1.2) | (1.2) | |||||||||
Income (loss) from discontinued operations before income taxes | 1.7 | ||||||||||
Income tax expense from discontinued operations | 0.9 | ||||||||||
Income (loss) from discontinued operations, net of tax | $ 0.8 |
DETAILS OF IMPAIRMENT, RESTRUCT
DETAILS OF IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES AND ROLL FORWARD (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | |||
Jun. 28, 2014 | Mar. 29, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | $ 2 | $ 84.6 | $ 17.3 | $ 4.4 | ||
Goodwill and intangible asset impairments | $ 33.7 | 0 | 33.7 | 15.9 | ||
Total impairment, restructuring and other | 84.6 | 51 | 20.3 | |||
Restructuring Reserve [Roll Forward] | ||||||
Amounts reserved for restructuring and other at beginning of year | 16 | 11.1 | 10.2 | |||
Restructuring and other charges | $ 2 | 84.6 | 17.3 | 4.4 | ||
Payments and other | (72.5) | (12.4) | (8.2) | |||
Amounts reserved for restructuring and other at end of year | 28.1 | $ 16 | 11.1 | $ 28.1 | ||
Global Consumer | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | 14.3 | 9.1 | 35.7 | |||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring and other charges | $ 14.3 | $ 9.1 | $ 35.7 |
IMPAIRMENT, RESTRUCTURING AND62
IMPAIRMENT, RESTRUCTURING AND OTHER - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | |||||
Jun. 28, 2014 | Mar. 29, 2014 | Dec. 29, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2012 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserves classified as long-term | $ 4 | $ 4 | ||||||
Restructuring reserve | 28.1 | $ 16 | $ 11.1 | 28.1 | $ 10.2 | |||
Restructuring and other charges | $ 2 | 84.6 | 17.3 | 4.4 | ||||
Other Restructuring Costs | 2 | |||||||
Payments For Restructuring And Other | 72.5 | 12.4 | 8.2 | |||||
Goodwill and intangible asset impairments | $ 33.7 | 0 | 33.7 | 15.9 | ||||
Restructuring and Related Cost, Accelerated Equity Compensation | 4.3 | |||||||
2014 Plan | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 22.2 | |||||||
UNITED STATES | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 12.5 | |||||||
International | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 2.8 | |||||||
Bonus S | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 62.4 | |||||||
Insurance Recoveries | 4.9 | |||||||
Payments For Restructuring And Other | 42.7 | |||||||
Corporate and Other | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 6.6 | 9.2 | ||||||
Global Consumer | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Impairment and other charges | 11.6 | |||||||
Restructuring and other charges | 14.3 | 9.1 | 35.7 | |||||
Global Consumer | Active Ingredient MAT28 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Reimbursement of costs incurred | $ 4.7 | |||||||
Global Consumer | Technology | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Impairment and other charges | $ 4.3 | |||||||
Scotts Lawnservice | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 1.3 | $ 1.7 |
Rollforward of Carrying Amount
Rollforward of Carrying Amount of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Goodwill | $ 495.2 | $ 413.7 | $ 377.9 |
Accumulated impairment losses | (62.8) | (62.8) | (62.8) |
Balance at September 30 | 432.4 | 350.9 | 315.1 |
Acquisitions, net of purchase price adjustments | 81.5 | 35.8 | |
Global Consumer | |||
Goodwill | 346.5 | 281.7 | 245.9 |
Accumulated impairment losses | (62.8) | (62.8) | (62.8) |
Balance at September 30 | 283.7 | 218.9 | 183.1 |
Acquisitions, net of purchase price adjustments | 64.8 | 35.8 | |
Scotts Lawnservice | |||
Goodwill | 148.7 | 132 | 132 |
Balance at September 30 | 148.7 | 132 | $ 132 |
Acquisitions, net of purchase price adjustments | $ 16.7 | $ 0 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 663.5 | $ 302.7 |
Finite-lived intangible assets | ||
Intangible Assets [Line Items] | ||
Net Carrying Amount | 178.7 | 115.4 |
Indefinite-lived intangible assets | ||
Intangible Assets [Line Items] | ||
Net Carrying Amount | 484.8 | 187.3 |
Technology | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 69.7 | 70.3 |
Accumulated Amortization | (56.9) | (56) |
Net Carrying Amount | 12.8 | 14.3 |
Customer accounts | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 122.6 | 74.2 |
Accumulated Amortization | (51.5) | (47.2) |
Net Carrying Amount | 71.1 | 27 |
Tradenames | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 94.9 | 69 |
Accumulated Amortization | (17.2) | (12.7) |
Net Carrying Amount | 77.7 | 56.3 |
Other | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 97.3 | 99.2 |
Accumulated Amortization | (80.2) | (81.4) |
Net Carrying Amount | 17.1 | 17.8 |
Tradenames | Indefinite-lived intangible assets | ||
Intangible Assets [Line Items] | ||
Net Carrying Amount | 184.8 | 187.3 |
Agency Agreement [Member] | Indefinite-lived intangible assets | ||
Intangible Assets [Line Items] | ||
Net Carrying Amount | 188.3 | 0 |
Brand Extension Agreement [Member] | Indefinite-lived intangible assets | ||
Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 111.7 | $ 0 |
GOODWILL AND INTANGIBLE ASSET65
GOODWILL AND INTANGIBLE ASSETS, NET - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 28, 2014 | Dec. 29, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Intangible Assets [Line Items] | ||||||
Intangible assets, net | $ 663.5 | $ 302.7 | ||||
Intangible asset impairments | $ 33.7 | |||||
Goodwill and intangible asset impairments | $ 33.7 | 0 | 33.7 | $ 15.9 | ||
Amortization expense | 17.6 | 13.8 | 11.2 | |||
Global Consumer | ||||||
Intangible Assets [Line Items] | ||||||
Asset Impairment Charges | 11.6 | |||||
Global Consumer | Tradenames | ||||||
Intangible Assets [Line Items] | ||||||
Asset Impairment Charges | 11.1 | |||||
Global Consumer | Tradenames | Ortho Tradename [Member] | ||||||
Intangible Assets [Line Items] | ||||||
Asset Impairment Charges | 33.7 | |||||
Indefinite-lived Intangible Assets, Fair Value | 92.3 | 126 | $ 137.1 | |||
Technology | ||||||
Intangible Assets [Line Items] | ||||||
Intangible assets, net | 12.8 | 14.3 | ||||
Technology | Global Consumer | ||||||
Intangible Assets [Line Items] | ||||||
Asset Impairment Charges | $ 4.3 | |||||
Tradenames | ||||||
Intangible Assets [Line Items] | ||||||
Intangible assets, net | $ 77.7 | $ 56.3 | ||||
Tradenames | Global Consumer | ||||||
Intangible Assets [Line Items] | ||||||
Asset Impairment Charges | $ 0.5 |
Amortization Expense (Detail)
Amortization Expense (Detail) $ in Millions | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 18.5 |
2,017 | 16.2 |
2,018 | 14.9 |
2,019 | 13.2 |
2,020 | $ 12.2 |
Detail of Certain Financial S67
Detail of Certain Financial Statement Accounts (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
INVENTORIES: | ||
Finished goods | $ 230.2 | $ 217.5 |
Work-in-progress | 48.3 | 46.2 |
Raw materials | 129.1 | 121.4 |
Inventories | 407.6 | 385.1 |
PREPAID AND OTHER ASSETS: | ||
Deferred tax asset | 78.2 | 72.2 |
Accounts receivable, non-trade | 11.2 | 12.7 |
Other | 36 | 38 |
Prepaid and other assets | 125.4 | 122.9 |
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Land and improvements | 96.5 | 87.1 |
Buildings | 221.7 | 218.8 |
Machinery and equipment | 558.1 | 536.2 |
Furniture and fixtures | 41.9 | 40.5 |
Software | 113 | 123.8 |
Aircraft | 6.7 | 6.7 |
Construction in progress | 28.7 | 21.1 |
Property, plant and equipment, gross | 1,066.6 | 1,034.2 |
Less: accumulated depreciation | (612.9) | (597.2) |
Property, plant and equipment, net | 453.7 | 437 |
OTHER CURRENT LIABILITIES: | ||
Payroll and other compensation accruals | 66.1 | 79 |
Advertising and promotional accruals | 66.9 | 64.1 |
Other | 147.4 | 116.4 |
Other current liabilities | 280.4 | 259.5 |
OTHER NON-CURRENT LIABILITIES: | ||
Accrued pension and postretirement liabilities | 92.5 | 93.8 |
Deferred tax liability | 125.4 | 120.4 |
Other | 34.6 | 39.8 |
Other non-current liabilities | $ 252.5 | $ 254 |
Certain Financial Statement Acc
Certain Financial Statement Accounts - ACCUMULATED OTHER COMPREHENSIVE LOSS: (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Unrecognized loss on derivatives, net of tax of $5.6, $4.3 and $7.1 | $ (9) | $ (6.9) | $ (11.5) |
Pension and other postretirement liabilities, net of tax of $39.3, $38.6 and $31.4 | (63.7) | (62.4) | (58) |
Foreign currency translation adjustment | (34.1) | (16.9) | (8.3) |
Accumulated other comprehensive loss | $ (106.8) | $ (86.2) | $ (77.8) |
Certain Financial Statement A69
Certain Financial Statement Accounts - ACCUMULATED OTHER COMPREHENSIVE LOSS: Tax Impact (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Unrecognized loss on derivatives, tax | $ 5.6 | $ 4.3 | $ 7.1 |
Pension and other postretirement liabilities, tax | $ 39.3 | $ 38.6 | $ 31.4 |
MARKETING AGREEMENT - Additiona
MARKETING AGREEMENT - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2013 | |
Schedule of Costs Related to Purchase Obligations [Line Items] | ||
Business Combination, Consideration Transferred | $ 7.2 | |
Monsanto Marketing Agreement | ||
Schedule of Costs Related to Purchase Obligations [Line Items] | ||
Annual contribution payment | $ 20 | |
Initial consideration for marketing rights | $ 32 | |
Useful life of consideration for marketing rights | 20 years | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |
Business Combination, Consideration Transferred | $ 300 | |
Brand Extension Agreement [Member] | ||
Schedule of Costs Related to Purchase Obligations [Line Items] | ||
Marketing Agreement Initial Term | 20 years | |
Marketing Agreement Renewal Term | 20 years | |
Indefinite-lived Intangible Assets Acquired | $ 111.7 | |
Agency Agreement [Member] | ||
Schedule of Costs Related to Purchase Obligations [Line Items] | ||
Indefinite-lived Intangible Assets Acquired | $ 188.3 | |
Commercialization and Technology Agreement [Member] | ||
Schedule of Costs Related to Purchase Obligations [Line Items] | ||
Marketing Agreement Initial Term | 30 years |
Net Commission Earned Under the
Net Commission Earned Under the Marketing Agreement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Marketing Agreement [Line Items] | |||
Gross commission | $ 88.7 | $ 85.2 | $ 81.8 |
Contribution expenses | (20) | (20) | (20) |
Amortization of marketing fee | (0.8) | (0.8) | (0.8) |
Net commission income | 67.9 | 64.4 | 61 |
Reimbursements associated with Marketing Agreement | 63.3 | 63 | 62 |
Total net sales associated with Marketing Agreement | $ 131.2 | $ 127.4 | $ 123 |
Monsanto Marketing Agreement | |||
Marketing Agreement [Line Items] | |||
Useful life of consideration for marketing rights | 20 years |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Detail) - USD ($) $ in Millions | Mar. 30, 2015 | Oct. 16, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Business Acquisition [Line Items] | ||||||||||||||
Goodwill, Acquired During Period | $ 81.5 | $ 35.8 | ||||||||||||
Net sales | $ 483.2 | $ 1,214.8 | $ 1,102.3 | $ 216.2 | $ 454.3 | $ 1,116.4 | $ 1,081 | $ 189.6 | $ 3,016.5 | 2,841.3 | $ 2,773.7 | |||
Business Combination, Consideration Transferred | $ 7.2 | |||||||||||||
Minimum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 3 years | |||||||||||||
Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 25 years | |||||||||||||
Action Pest Control, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite-lived Intangible Assets Acquired | $ 6.1 | |||||||||||||
Goodwill, Acquired During Period | 14.1 | |||||||||||||
Net sales | $ 12 | |||||||||||||
Business Combination, Consideration Transferred | 21.7 | |||||||||||||
Deferred Purchase Price Obligation | $ 4 | |||||||||||||
Action Pest Control, Inc. [Member] | Minimum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 1 year | |||||||||||||
Action Pest Control, Inc. [Member] | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 12 years | |||||||||||||
Scotts LawnService Other [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill, Acquired During Period | $ 2.6 | |||||||||||||
Business Combination, Consideration Transferred | 3.5 | |||||||||||||
Growing Media Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite-lived Intangible Assets Acquired | 10.1 | |||||||||||||
Goodwill, Acquired During Period | 9.8 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 9.7 | 9.7 | ||||||||||||
Net sales | 21.2 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 11.4 | 11.4 | ||||||||||||
Business Combination, Consideration Transferred | $ 40.2 | |||||||||||||
Growing Media Acquisition [Member] | Minimum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 7 years | |||||||||||||
Growing Media Acquisition [Member] | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 20 years | |||||||||||||
General Hydroponics, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Combination, Consideration Transferred | $ 120 | |||||||||||||
Deferred Purchase Price Obligation | 1 | |||||||||||||
Bio-Organic Solutions, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Combination, Contingent Consideration, Liability | 5 | |||||||||||||
Business Combination, Consideration Transferred | 15 | |||||||||||||
General Hydroponics, Inc. and Bio-Organic Solutions, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite-lived Intangible Assets Acquired | 65 | |||||||||||||
Goodwill, Acquired During Period | 53.7 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 14.2 | |||||||||||||
Net sales | $ 30.9 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 5.7 | |||||||||||||
General Hydroponics, Inc. and Bio-Organic Solutions, Inc. [Member] | Minimum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 5 years | |||||||||||||
General Hydroponics, Inc. and Bio-Organic Solutions, Inc. [Member] | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 26 years | |||||||||||||
AeroGrow International, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite-lived Intangible Assets Acquired | 13.7 | |||||||||||||
Goodwill, Acquired During Period | 11.6 | |||||||||||||
Net sales | $ 17.1 | 1.7 | ||||||||||||
Due from Affiliate, Noncurrent | $ 4.5 | 4.5 | 4.5 | |||||||||||
AeroGrow International, Inc. [Member] | Minimum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 9 years | |||||||||||||
AeroGrow International, Inc. [Member] | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 20 years | |||||||||||||
Solus Garden and Leisure Limited [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to Acquire Businesses, Gross | 1.1 | |||||||||||||
Debt Forgiven During Acquisition | 6.3 | |||||||||||||
Net sales | $ 21.2 | 3.3 | ||||||||||||
Business Combination, Consideration Transferred | 7.4 | |||||||||||||
Fafard & Brothers Ltd. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite-lived Intangible Assets Acquired | 12.6 | |||||||||||||
Goodwill, Acquired During Period | 7.9 | |||||||||||||
Business Combination, Acquired Receivables, Fair Value | 4.7 | 4.7 | 4.7 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 17.7 | 17.7 | 17.7 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 4.8 | 4.8 | 4.8 | |||||||||||
Business Combination, Contingent Consideration, Liability | 7.1 | 7.1 | 7.1 | |||||||||||
Net sales | $ 37.8 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 17.6 | 17.6 | 17.6 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 23.4 | $ 23.4 | $ 23.4 | |||||||||||
Business Combination, Consideration Transferred | $ 59.8 | |||||||||||||
Fafard & Brothers Ltd. [Member] | Minimum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 1 year | |||||||||||||
Fafard & Brothers Ltd. [Member] | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets amortization period | 20 years |
RETIREMENT PLANS - Additional I
RETIREMENT PLANS - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Jul. 01, 2010 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer match for the initial 4% contribution | 150.00% | |||
Employer match on remaining compensation contribution up to 6% | 50.00% | |||
Maximum Employer contributions | 6.00% | |||
Compensation charges | $ 14.1 | $ 13.8 | $ 13.1 | |
Defined Benefit Plan, Curtailments | $ 0.5 | |||
U.S. Defined Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of defined benefit plans for certain U.S. associates | 2 | |||
International Defined Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of defined benefit pension plans that were frozen in the U.K. | 2 |
Benefit Obligations, Plan Asset
Benefit Obligations, Plan Assets, Annual Expense, Assumptions and Other Information of the Company's Defined Benefit Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent liabilities | $ (92.5) | $ (93.8) | |
U.S. Defined Benefit Plans | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 109.2 | 106.7 | |
Interest cost | 4 | 4.5 | |
Actuarial (gain) loss | 11.4 | 5.1 | |
Benefits paid | (7.3) | (7.1) | |
Benefit obligation at end of year | 117.3 | 109.2 | $ 106.7 |
Accumulated benefit obligation at end of year | 117.3 | 109.2 | |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 89.8 | 84.3 | |
Actual return on plan assets | (1.4) | 9.2 | |
Employer contribution | 2.4 | 3.4 | |
Benefits paid | (7.3) | (7.1) | |
Fair value of plan asset at end of period | 83.5 | 89.8 | 84.3 |
Underfunded status at end of year | (33.8) | (19.4) | |
Information for pension plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 117.3 | 109.2 | |
Accumulated benefit obligation | 117.3 | 109.2 | |
Fair value of plan assets | 83.5 | 89.8 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | 0.2 | 0.2 | |
Noncurrent liabilities | 33.6 | 19.2 | |
Total amount accrued | (33.8) | (19.4) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Actuarial loss | 49.2 | 34.3 | |
Total amount recognized | 49.2 | 34.3 | |
Total change in other comprehensive loss attributable to: | |||
Pension benefit gain (loss) during the period | (18.2) | (1.1) | |
Reclassification of pension benefit losses to net income | 3.3 | 3.7 | |
Foreign currency translation | 0 | 0 | |
Total change in other comprehensive loss | (14.9) | $ 2.6 | |
Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2016 are as follows: | |||
Actuarial loss | 1.8 | ||
Prior service cost | 0 | ||
Amount to be amortized into net periodic benefit cost | $ 1.8 | ||
Weighted average assumptions used in development of projected benefit obligation | |||
Discount rate | 3.82% | 3.81% | |
International Defined Benefit Plans | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 208.3 | $ 190.7 | |
Service cost | 1.2 | 1.2 | 1.2 |
Interest cost | 7.3 | 8.3 | |
Actuarial (gain) loss | 4.5 | 17.7 | |
Benefits paid | (6.4) | (6.5) | |
Defined Benefit Plan, Other Changes | (1.1) | (0.6) | |
Foreign currency translation | (15.7) | (2.5) | |
Benefit obligation at end of year | 198.1 | 208.3 | 190.7 |
Accumulated benefit obligation at end of year | 192 | 200.8 | |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 166.3 | 148.8 | |
Actual return on plan assets | 13.9 | 16.4 | |
Employer contribution | 7.4 | 8.9 | |
Benefits paid | (6.4) | (6.5) | |
Foreign currency translation | (11.5) | (0.4) | |
Other | (1.1) | (0.9) | |
Fair value of plan asset at end of period | 168.6 | 166.3 | $ 148.8 |
Underfunded status at end of year | (29.5) | (42) | |
Information for pension plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 198.1 | 208.3 | |
Accumulated benefit obligation | 192 | 200.8 | |
Fair value of plan assets | 168.6 | 166.3 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 2.4 | 0 | |
Current liabilities | 0.9 | 1.1 | |
Noncurrent liabilities | 31 | 40.9 | |
Total amount accrued | (29.5) | (42) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Actuarial loss | 57.8 | 64.7 | |
Prior service cost | 0.3 | 0.4 | |
Total amount recognized | 58.1 | 65.1 | |
Total change in other comprehensive loss attributable to: | |||
Pension benefit gain (loss) during the period | 0.5 | (10.7) | |
Reclassification of pension benefit losses to net income | 1.7 | 1.4 | |
Foreign currency translation | 4.8 | 0.7 | |
Total change in other comprehensive loss | 7 | $ (8.6) | |
Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2016 are as follows: | |||
Actuarial loss | 1.7 | ||
Prior service cost | 0 | ||
Amount to be amortized into net periodic benefit cost | $ 1.7 | ||
Weighted average assumptions used in development of projected benefit obligation | |||
Discount rate | 3.52% | 3.73% | |
Rate of compensation increase | 3.49% | 3.65% |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost and Weighted Average Assumptions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
U.S. Defined Benefit Plans | |||
Components of net periodic benefit cost | |||
Interest cost | $ 4 | $ 4.5 | $ 3.8 |
Expected return on plan assets | (5.4) | (5.2) | (5.2) |
Net amortization | 3.3 | 3.7 | 4.8 |
Net periodic benefit cost | 1.9 | 3 | 3.4 |
Contractual termination benefits | 0 | 0 | 0 |
Total benefit cost | $ 1.9 | $ 3 | $ 3.4 |
Weighted average assumptions used in development of net periodic benefit cost | |||
Discount rate | 3.81% | 4.32% | 3.39% |
Expected return on plan assets | 6.25% | 6.25% | 6.25% |
International Defined Benefit Plans | |||
Components of net periodic benefit cost | |||
Service cost | $ 1.2 | $ 1.2 | $ 1.2 |
Interest cost | 7.3 | 8.3 | 7.8 |
Expected return on plan assets | (8.9) | (9.4) | (8.7) |
Net amortization | 1.7 | 1.4 | 1.2 |
Net periodic benefit cost | 1.3 | 1.5 | 1.5 |
Curtailment loss (gain) | 0 | (0.5) | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (0.5) | ||
Contractual termination benefits | 0 | 0.3 | 0 |
Total benefit cost | $ 1.3 | $ 1.8 | $ 0.5 |
Weighted average assumptions used in development of net periodic benefit cost | |||
Discount rate | 3.73% | 4.32% | 4.45% |
Expected return on plan assets | 5.63% | 6.17% | 6.52% |
Rate of compensation increase | 3.70% | 3.70% | 3.40% |
Plan Asset Allocations and Expe
Plan Asset Allocations and Expected Future Benefit Payments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
U.S. Defined Benefit Plans | |||
Expected future benefit payments: | |||
2,016 | $ 7.6 | ||
2,017 | 7.7 | ||
2,018 | 7.7 | ||
2,019 | 7.7 | ||
2,020 | 7.7 | ||
2021 - 2025 | 37.8 | ||
U.S. Defined Benefit Plans | Fiscal Year 2016 | |||
Plan asset allocations: | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 3.2 | ||
U.S. Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 25.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 70.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 5.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2015 | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 23.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2015 | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 70.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2015 | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 4.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2015 | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 3.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2015 | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2014 | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 25.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2014 | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 69.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2014 | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 4.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2014 | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 2.00% | ||
U.S. Defined Benefit Plans | Fiscal Year 2014 | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Plans | |||
Expected future benefit payments: | |||
2,016 | $ 6.1 | ||
2,017 | 6.4 | ||
2,018 | 6.7 | ||
2,019 | 7 | ||
2,020 | 7.3 | ||
2021 - 2025 | 43.7 | ||
International Defined Benefit Plans | Fiscal Year 2016 | |||
Plan asset allocations: | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 5.5 | ||
International Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 32.00% | ||
International Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 66.00% | ||
International Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Plans | Fiscal Year 2016 | Scenario, Forecast [Member] | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 2.00% | ||
International Defined Benefit Plans | Fiscal Year 2015 | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 31.00% | ||
International Defined Benefit Plans | Fiscal Year 2015 | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 67.00% | ||
International Defined Benefit Plans | Fiscal Year 2015 | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Plans | Fiscal Year 2015 | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Plans | Fiscal Year 2015 | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 2.00% | ||
International Defined Benefit Plans | Fiscal Year 2014 | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 52.00% | ||
International Defined Benefit Plans | Fiscal Year 2014 | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 45.00% | ||
International Defined Benefit Plans | Fiscal Year 2014 | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Plans | Fiscal Year 2014 | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 1.00% | ||
International Defined Benefit Plans | Fiscal Year 2014 | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 2.00% |
Fair Value of The Company's Pen
Fair Value of The Company's Pension Plan Asset (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
U.S. Defined Benefit Plans Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 83.5 | $ 89.8 | $ 84.3 |
U.S. Defined Benefit Plans Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.6 | 2 | |
U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.5 | 3.7 | |
U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 22.2 | |
U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58.4 | 61.9 | |
International Defined Benefit Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 168.6 | 166.3 | $ 148.8 |
International Defined Benefit Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.6 | 1.7 | |
International Defined Benefit Plan Assets | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.6 | 3 | |
International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52.3 | 87.4 | |
International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 113.1 | 74.2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Plans Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.6 | 2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Plans Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.6 | 2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Defined Benefit Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.6 | 1.7 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Defined Benefit Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.6 | 1.7 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Defined Benefit Plan Assets | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Plans Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80.9 | 87.8 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Plans Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.5 | 3.7 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 22.2 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58.4 | 61.9 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 168 | 164.6 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Plan Assets | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.6 | 3 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52.3 | 87.4 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 113.1 | 74.2 | |
Unobservable Inputs (Level 3) | U.S. Defined Benefit Plans Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | U.S. Defined Benefit Plans Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | U.S. Defined Benefit Plans Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | International Defined Benefit Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | International Defined Benefit Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | International Defined Benefit Plan Assets | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | International Defined Benefit Plan Assets | Mutual Funds | Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
ASSOCIATE MEDICAL BENEFITS Reti
ASSOCIATE MEDICAL BENEFITS Retiree Medical Plan for Domestic Associates (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent liabilities | $ (92.5) | $ (93.8) | |
Total change in other comprehensive loss attributable to: | |||
Deferred Actuarial Gain For Past Service | 0.3 | ||
Amortization Of The Actuarial Gain And Reduction Of Service And Interest Costs Served | $ 0.1 | 0.1 | $ 0.3 |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.25% | ||
Percentage Of Decrease Per Year To Ultimate Trend | 0.25% | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | ||
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,024 | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | $ 0.1 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | 0.1 | ||
Company Self Insurance Per Occurrence Per Individual | 0.6 | ||
Other Postretirement Benefit Expense | $ 32.3 | 33.8 | 35.1 |
Postretirement Medical Benefits [Member] | United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Latest Date Hired To Be Eligible | January 1, 1998 | ||
Minimum Retirement Age To Eligible | 55 | ||
Number Of Minimum Service For Eligibility | 10 years | ||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 32.4 | 31.6 | |
Defined Benefit Plan, Service Cost Impact On Benefit Obligation | 0.4 | 0.4 | |
Defined Benefit Plan, Interest Cost Impact On Benefit Obligation | 1.3 | 1.4 | |
Defined Benefit Plan, Contributions by Plan Participants | 1.2 | 1.1 | |
Defined Benefit Plan, Actuarial Gain (Loss) | 2 | 0.7 | |
Benefits paid | (3.1) | (2.9) | |
Defined Benefit Plan, Other Changes | (8.2) | 0.1 | |
Benefit obligation at end of year | 26 | 32.4 | 31.6 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Employer contribution | 2.2 | 2.1 | |
Defined Benefit Plan, Fair Value of Plan Assets, Contributions by Plan Participants | 1.2 | 1.1 | |
Defined Benefit Plan, Fair Value Of Benefits Paid | (3.4) | (3.2) | |
Fair value of plan asset at end of period | 0 | 0 | $ 0 |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Current liabilities | (2.1) | (2.3) | |
Noncurrent liabilities | (23.9) | (30.1) | |
Total amount accrued | (26) | (32.4) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Actuarial loss | (3.4) | (1.3) | |
Unamortized prior service cost | (8.1) | 0.1 | |
Total amount recognized | (4.7) | 1.4 | |
Total change in other comprehensive loss attributable to: | |||
Benefit loss (gain) during the period | 2.1 | 0.9 | |
Net prior service cost | (8.2) | 0.1 | |
Total change in other comprehensive loss | $ (6.1) | $ 1 | |
Discount rate used in development of APBO | 4.03% | 4.08% | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 0.1 | ||
Defined Benefit Plan, Funded Status of Plan | $ (26) | $ (32.4) |
Retiree Medical Plan for Domest
Retiree Medical Plan for Domestic Associated - Benefits Paid (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Postretirement Medical Benefits [Member] | United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefits paid, federal subsidy | $ 0.3 | $ 0.3 |
ASSOCIATE MEDICAL BENEFITS Comp
ASSOCIATE MEDICAL BENEFITS Components of Net Periodic Benefit Cost and Discount Rate Used in Development of Net Periodic Benefit Cost (Details) - Postretirement Medical Benefits [Member] - United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Components of net periodic benefit cost | |||
Service cost | $ 0.4 | $ 0.4 | $ 0.5 |
Interest cost | 1.3 | 1.4 | 1.3 |
Net amortization | 0 | 0 | (0.1) |
Total benefit cost | $ 1.7 | $ 1.8 | $ 1.9 |
Discount rate used in development of net periodic benefit cost | 4.08% | 4.54% | 3.66% |
ASSOCIATE MEDICAL BENEFITS Expe
ASSOCIATE MEDICAL BENEFITS Expected Benefit Payments Under the Plan By The Company and Retirees (Details) $ in Millions | Sep. 30, 2015USD ($) |
Gross Benefit Payments | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 2.5 |
2,017 | 2.5 |
2,018 | 2.5 |
2,019 | 2.6 |
2,020 | 2.6 |
2021 - 2025 | 12.3 |
Retiree Contribution | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | (0.4) |
2,017 | (0.5) |
2,018 | (0.5) |
2,019 | (0.6) |
2,020 | (0.6) |
2021 - 2025 | (3.3) |
Net Company Payments | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 2.1 |
2,017 | 2 |
2,018 | 2 |
2,019 | 2 |
2,020 | 2 |
2021 - 2025 | $ 9 |
Components of Long-Term Debt (D
Components of Long-Term Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,163.3 | $ 784.3 |
Less current portions | 134.8 | 91.9 |
Long term debt, non current | 1,028.5 | 692.4 |
Credit Facilities | Revolving loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 816.3 | 481.8 |
Senior Notes - 6.625% | ||
Debt Instrument [Line Items] | ||
Long-term debt | 200 | 200 |
Master Accounts Receivable Purchase Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 122.3 | 84 |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 24.7 | $ 18.5 |
Components of Long-Term Debt -
Components of Long-Term Debt - Interest Rate (Detail) | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 16, 2010 |
Senior Notes - 6.625% | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.625% | 6.625% | 6.625% |
Company's Debt Matures in Next
Company's Debt Matures in Next Fiscal Years (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2,016 | $ 134.8 | |
2,017 | 10.5 | |
2,018 | 0.7 | |
2,019 | 816.9 | |
20,120 | 0.4 | |
Thereafter | 200 | |
Long-term debt | $ 1,163.3 | $ 784.3 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) $ in Thousands | Nov. 13, 2015USD ($) | Oct. 29, 2015USD ($) | Oct. 13, 2015USD ($) | Jan. 15, 2014USD ($) | Dec. 16, 2010USD ($) | Jan. 02, 2016 | Sep. 30, 2015USD ($) | Sep. 30, 2013USD ($) | Sep. 30, 2014USD ($) | Jan. 14, 2010 |
Debt Disclosure [Line Items] | ||||||||||
Leverage ratio | 2.63 | |||||||||
Interest coverage ratio | 9.34 | |||||||||
Debt, covenant restriction | The terms of the new credit agreement allow the Company to make unlimited restricted payments (as defined in the new credit agreement), including increased or one-time dividend payments and Common Share repurchases, so long as the leverage ratio resulting from the making of such restricted payments is 4.00 or less. | |||||||||
Assets | $ 2,527,200 | $ 2,058,300 | ||||||||
Long-term Debt | 1,163,300 | 784,300 | ||||||||
Accounts receivable pledged | 152,900 | $ 113,700 | ||||||||
Aggregate face amount of letters of credit outstanding | 22,700 | |||||||||
Senior secured credit facilities, available borrowing capacity | 861,000 | |||||||||
Unamortized Debt Issuance Expense | $ 11,300 | |||||||||
Debt, weighted average interest rate | 4.20% | 5.00% | ||||||||
Business Combination, Consideration Transferred | $ 7,200 | |||||||||
Beginning Fiscal Year 2016 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Restricted payment limitation | $ 175,000 | |||||||||
Beginning Fiscal Year 2018 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Restricted payment limitation | $ 200,000 | |||||||||
Senior Notes 7.25 Percent Due 2018 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt Instrument, Repurchased Face Amount | $ 200,000 | |||||||||
Debt instrument stated interest rate (percent) | 7.25% | 7.25% | 7.25% | |||||||
Debt Instrument, Repurchase Amount | 214,500 | |||||||||
Interest Expense, Debt, Excluding Amortization | 7,250 | |||||||||
Gains (Losses) on Extinguishment of Debt | 7,250 | |||||||||
Unamortized Debt Issuance Expense | $ 3,500 | |||||||||
Senior Notes 6.625 Percent Due 2020 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt, covenant restriction | The 6.625% Senior Notes contain usual and customary incurrence-based covenants, as well as other usual and customary covenants, substantially similar to those contained in the 7.25% Senior Notes. | |||||||||
Carrying Amount | $ 200,000 | $ 200,000 | ||||||||
Long-term Debt | $ 200,000 | $ 200,000 | ||||||||
Debt instrument stated interest rate (percent) | 6.625% | 6.625% | 6.625% | |||||||
Unamortized Debt Issuance Expense | $ 2,100 | |||||||||
Debt, first required interest payment date | Jun. 15, 2011 | |||||||||
Proceed from issuance of unsecured debt | $ 200,000 | |||||||||
Debt, interest payment dates | The 6.625% Senior Notes have interest payment dates of June 15 and December 15 of each year, which began on June 15, 2011 | |||||||||
Long-term Debt, Fair Value | $ 206,300 | $ 212,500 | ||||||||
Master Accounts Receivable Purchase Agreement | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Basis points in addition to LIBOR applicable to borrowed currencies | 0.75% | |||||||||
Master Accounts Receivable Purchase Agreement, remaining borrowing capacity | $ 2,800 | |||||||||
Carrying Amount | 122,300 | 84,000 | ||||||||
Long-term Debt | 122,300 | 84,000 | ||||||||
Long-term Debt, Fair Value | $ 122,300 | $ 84,000 | ||||||||
Senior Notes 6.00 Percent Due 2023 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt, covenant restriction | The 6.000% Senior Notes contain usual and customary covenants. | |||||||||
Debt, first required interest payment date | Apr. 15, 2016 | |||||||||
Debt, interest payment dates | The 6.000% Senior Notes have interest payment dates of April 15 and October 15 of each year, commencing April 15,2016 | |||||||||
Minimum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Interest coverage ratio | 3 | |||||||||
Minimum | Master Accounts Receivable Purchase Agreement | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Accounts Receivable Commitment Period | Feb. 20, 2016 | |||||||||
Maximum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Leverage ratio | 4.50 | |||||||||
Aggregate face amount of letters of credit outstanding | $ 75,000 | |||||||||
Maximum | Master Accounts Receivable Purchase Agreement | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Accounts Receivable Commitment Period | Jun. 17, 2016 | |||||||||
Revolving loans | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt, maturity period | 5 years | |||||||||
Senior secured credit facilities, maximum borrowing capacity | $ 1,700,000 | |||||||||
Debt, additional maximum borrowing capacity with restrictions | $ 450,000 | |||||||||
Debt, weighted average interest rate | 4.00% | 4.80% | ||||||||
Master Accounts Receivable Purchase Agreement | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Aggregate Accounts Receivable, Maximum Amount Allowable Under MARP Agreement | $ 400,000 | |||||||||
Master Accounts Receivable Purchase Agreement | Maximum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Aggregate Amount of Receivables Committed | 160,000 | |||||||||
Subsequent Event | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Senior secured credit facilities, maximum borrowing capacity | $ 1,900,000 | |||||||||
Line of Credit Facility, Expiration Date | Oct. 29, 2020 | |||||||||
Line of Credit Facility, Initiation Date | Oct. 29, 2015 | |||||||||
Subsequent Event | Senior Notes 6.625 Percent Due 2020 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt Instrument, Repurchased Face Amount | $ 200,000 | |||||||||
Debt Instrument, Repurchase Amount | 213,200 | |||||||||
Interest Expense, Debt, Excluding Amortization | 6,600 | |||||||||
Gains (Losses) on Extinguishment of Debt | $ 6,600 | |||||||||
Debt, maturity date | Dec. 15, 2020 | |||||||||
Subsequent Event | Senior Notes 6.00 Percent Due 2023 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt instrument stated interest rate (percent) | 6.00% | |||||||||
Debt Instrument, Issuance Date | Oct. 13, 2015 | |||||||||
Proceed from issuance of unsecured debt | $ 400,000 | |||||||||
Debt, maturity date | Oct. 15, 2023 | |||||||||
Subsequent Event | Revolving loans | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Senior secured credit facilities, maximum borrowing capacity | $ 1,600,000 | |||||||||
Line Of Credit Facility, Additional Committed Credit | 500,000 | |||||||||
Subsequent Event | Term loans | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Senior secured credit facilities, maximum borrowing capacity | $ 300,000 | |||||||||
Monsanto Marketing Agreement | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Business Combination, Consideration Transferred | 300,000 | |||||||||
Designated as Hedging Instrument | Interest rate swap agreements | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Derivative, Notional Amount | $ 1,300,000 | $ 1,300,000 |
Notional Amount, Effective Date
Notional Amount, Effective Date, Expiration Date and Rate of Interest Rate Swap Agreements (Detail) - Interest rate swap agreements $ in Millions | 12 Months Ended | |
Sep. 30, 2015USD ($) | ||
Group 1 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 50 | |
Effective Date | Feb. 14, 2012 | |
Expiration Date | Feb. 14, 2016 | |
Fixed Rate | 3.78% | |
Group 2 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 150 | [1] |
Effective Date | Feb. 7, 2012 | |
Expiration Date | May 7, 2016 | |
Fixed Rate | 2.42% | |
Group 3 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 150 | [2] |
Effective Date | Nov. 16, 2009 | |
Expiration Date | May 16, 2016 | |
Fixed Rate | 3.26% | |
Group 4 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 50 | [1] |
Effective Date | Feb. 16, 2010 | |
Expiration Date | May 16, 2016 | |
Fixed Rate | 3.05% | |
Group 5 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 100 | [1] |
Effective Date | Feb. 21, 2012 | |
Expiration Date | May 23, 2016 | |
Fixed Rate | 2.40% | |
Group 6 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 150 | [2] |
Effective Date | Dec. 20, 2011 | |
Expiration Date | Jun. 20, 2016 | |
Fixed Rate | 2.61% | |
Group 7 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 50 | [3] |
Effective Date | Dec. 6, 2012 | |
Expiration Date | Sep. 6, 2017 | |
Fixed Rate | 2.96% | |
Group 8 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 200 | |
Effective Date | Feb. 7, 2014 | |
Expiration Date | Nov. 7, 2017 | |
Fixed Rate | 1.28% | |
Group 9 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 150 | [1] |
Effective Date | Feb. 7, 2017 | |
Expiration Date | May 7, 2019 | |
Fixed Rate | 2.12% | |
Group 10 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 50 | [1] |
Effective Date | Feb. 7, 2017 | |
Expiration Date | May 7, 2019 | |
Fixed Rate | 2.25% | |
Group 11 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 200 | [2] |
Effective Date | Dec. 20, 2016 | |
Expiration Date | Jun. 20, 2019 | |
Fixed Rate | 2.12% | |
[1] | (b)Interest payments made during the three-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. | |
[2] | (c)Interest payments made during the six-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. | |
[3] | (d)Interest payments made during the nine-month period of each year that begins with the month and day of the effective date are hedged by the swap agreement. |
Estimated Fair Values The Compa
Estimated Fair Values The Company's Debt Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Credit Facilities | Revolving loans | ||
Debt Instrument [Line Items] | ||
Carrying Amount | $ 816.3 | $ 481.8 |
Long-term Debt, Fair Value | 816.3 | 481.8 |
Senior Notes 6.625 Percent Due 2020 | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 200 | 200 |
Long-term Debt, Fair Value | 206.3 | 212.5 |
Master Accounts Receivable Purchase Agreement | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 122.3 | 84 |
Long-term Debt, Fair Value | 122.3 | 84 |
Other | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 24.7 | 18.5 |
Long-term Debt, Fair Value | $ 24.7 | $ 18.5 |
Authorized and Issued Capital S
Authorized and Issued Capital Shares (Detail) - shares shares in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Preferred shares, no par value: | ||
Authorized | 0.2 | 0.2 |
Issued | 0 | 0 |
Common shares, no par value, $.01 stated value per share | ||
Authorized | 100 | 100 |
Issued | 68.1 | 68.1 |
Authorized and Issued Capital89
Authorized and Issued Capital Shares - Benefits Paid (Detail) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Stockholders Equity Note [Line Items] | ||
Common stock, stated value per share | $ 0.01 | $ 0.01 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Mar. 30, 2015 | Aug. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 30, 2014 | May. 04, 2011 | Aug. 30, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock repurchase authorized amount | $ 500 | $ 500 | ||||||||
Share repurchase authorization expire | 4 years | |||||||||
Additional shares authorized repurchase | $ 200 | |||||||||
Share repurchases authorization expiration | September 30, 2019 | |||||||||
Number of common shares repurchased | 200,000 | 9,900,000 | ||||||||
Value of common shares repurchased to be held in treasury | $ 14.8 | $ 521.2 | ||||||||
Total repurchase amount | $ 700 | |||||||||
Dividends, per share | $ 2 | $ 1.8200 | $ 3.7630 | $ 1.4130 | ||||||
Adjustment to outstanding stock options special dividend | 98,186 | 0 | ||||||||
Term of stock option of grants | 10 years | |||||||||
Common share available for issue under share-based plan | 23,000,000 | |||||||||
Common shares were available to underlie the grant of new share-based award | 2,400,000 | |||||||||
Total unrecognized compensation cost related to non-vested share-based awards | $ 10.9 | |||||||||
Expected weighted average period for unrecognized compensation cost | 1 year 271 days | |||||||||
Tax benefit realized from tax deduction associated with exercise of stock option | $ 12.1 | |||||||||
Intrinsic value of stock options exercised | 16.3 | $ 21.3 | $ 8.1 | |||||||
Cash received from exercise of stock options | 24.3 | 20 | 13.3 | |||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 37.6 | $ 27 | $ 15.6 | |||||||
Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Estimated share based award forfeited | 20.00% | |||||||||
Principal Owner | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Ownership of outstanding common shares | 26.00% | |||||||||
Condition for ownership of voting stock | 50.00% | |||||||||
Miracle-Gro | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Ownership of outstanding common shares | 49.00% | |||||||||
Treasury Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share issued under employee purchase plan (shares) | 900,000 | 800,000 | 700,000 | |||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 50 | $ 40.3 | $ 37 | |||||||
Treasury Shares | Bio-Organic Solutions, Inc. [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share issued under employee purchase plan (shares) | 200,000 | |||||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 8.3 | |||||||||
Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Remaining unexercisable stock options expected to vest | 400,000 | |||||||||
Weighted average exercise price of remaining unexercisable stock options expected to vest | $ 63.63 | |||||||||
Intrinsic value of remaining unexercisable stock options expected to vest | $ 0 | |||||||||
Average remaining term of remaining unexercisable stock options expected to vest in the future | 9 years 110 days | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total fair value of share-based payment awards vested | $ 6.2 | $ 3.4 | $ 10.3 |
Share-Based Compensation Awards
Share-Based Compensation Awards Granted (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options | 98,186 | 0 | |
Total share-based awards | 627,418 | 311,962 | 389,604 |
Aggregate fair value at grant dates | $ 17 | $ 17.5 | $ 17.5 |
Dividend Declared [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options | 0 | ||
Employees | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options | 440,690 | 0 | 0 |
Employees | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted | 78,463 | 112,315 | 178,030 |
Employees | Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted | 78,352 | 161,229 | 178,321 |
Board of Directors Chairman | Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted | 29,913 | 38,418 | 33,253 |
Total Share-Based Compensation
Total Share-Based Compensation Recognized (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 13.2 | $ 11.1 | $ 10.3 |
Tax benefit recognized | $ 5.1 | $ 3.9 | $ 3.9 |
Aggregate Stock Option and SARs
Aggregate Stock Option and SARs Activity (Detail) - Stock Option Program and Stock Appreciation Rights Program (SARs) shares in Millions | 12 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Options/SARs | |
Beginning balance (shares) | shares | 2 |
Granted (shares) | shares | 0.4 |
Exercised (shares) | shares | (0.6) |
Forfeited (shares) | shares | 0 |
Ending balance (shares) | shares | 1.8 |
Exercisable (shares) | shares | 1.3 |
Weighted Average Exercise Price | |
Beginning balance (US$ per share) | $ 38.26 |
Granted (US$ per share) | 63.60 |
Exercised (US$ per share) | 38.23 |
Forfeited (US$ per share) | 0 |
Ending balance (US$ per share) | 44.38 |
Exercisable (US$ per share) | $ 38.23 |
Summary of Certain Information
Summary of Certain Information Pertaining to Stock Option and SAR Awards Outstanding and Exercisable (Detail) - Stock Option Program and Stock Appreciation Rights Program (SARs) - $ / shares shares in Millions | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Awards Outstanding | 1.8 | 2 |
Awards Outstanding - WTD Avg. Remaining Life | 5 years 18 days | |
Awards Outstanding - WTD. Avg. Exercise Price | $ 44.38 | $ 38.26 |
Awards Exercisable | 1.3 | |
Awards Exercisable - WTD. Avg. Remaining Life | 3 years 244 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 38.23 | |
$20.59 - $27.31 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, minimum | 20.59 | |
Range of Exercise Price, maximum | $ 27.31 | |
Awards Outstanding - No. of options/ SARs | 0.3 | |
Awards Outstanding - WTD Avg. Remaining Life | 3 years 3 days | |
Awards Outstanding - WTD. Avg. Exercise Price | $ 20.59 | |
Awards Exercisable - No. of Options/ SARS | 0.2 | |
Awards Exercisable - WTD. Avg. Remaining Life | 3 years 3 days | |
Awards Exercisable - WTD. Avg. Exercise Price | $ 20.59 | |
$29.30 - $36.86 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, minimum | 29.3 | |
Range of Exercise Price, maximum | $ 36.86 | |
Awards Outstanding - No. of options/ SARs | 0.4 | |
Awards Outstanding - WTD Avg. Remaining Life | 1 year 193 days | |
Awards Outstanding - WTD. Avg. Exercise Price | $ 36.43 | |
Awards Exercisable - No. of Options/ SARS | 0.4 | |
Awards Exercisable - WTD. Avg. Remaining Life | 1 year 193 days | |
Awards Exercisable - WTD. Avg. Exercise Price | $ 36.43 | |
$38.81 - $49.19 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, minimum | 38.81 | |
Range of Exercise Price, maximum | $ 49.19 | |
Awards Outstanding - No. of options/ SARs | 0.7 | |
Awards Outstanding - WTD Avg. Remaining Life | 5 years 73 days | |
Awards Outstanding - WTD. Avg. Exercise Price | $ 45.26 | |
Awards Exercisable - No. of Options/ SARS | 0.7 | |
Awards Exercisable - WTD. Avg. Remaining Life | 5 years 73 days | |
Awards Exercisable - WTD. Avg. Exercise Price | $ 45.26 | |
$63.43 - $67.40 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, minimum | 63.43 | |
Range of Exercise Price, maximum | $ 67.40 | |
Awards Outstanding - No. of options/ SARs | 0.4 | |
Awards Outstanding - WTD Avg. Remaining Life | 9 years 124 days | |
Awards Outstanding - WTD. Avg. Exercise Price | $ 63.60 | |
Awards Exercisable - No. of Options/ SARS | 0 | |
Awards Exercisable - WTD. Avg. Exercise Price | $ 0 |
The Intrinsic Value of Stock Op
The Intrinsic Value of Stock Option and SAR Awards Outstanding and Exercisable (Detail) - Stock Option Program and Stock Appreciation Rights Program (SARs) $ in Millions | Sep. 30, 2015USD ($) |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding | $ 30.4 |
Exercisable | $ 30.4 |
The Weighted Average Assumption
The Weighted Average Assumptions for Awards Granted (Detail) | 12 Months Ended |
Sep. 30, 2015$ / shares | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |
Expected market price volatility | 26.60% |
Risk-free interest rates | 1.30% |
Expected dividend yield | 2.80% |
Expected life of stock options in years | 6 years |
Estimated weighted-average fair value per stock option | $ 11.51 |
Restricted Share-Based Award Ac
Restricted Share-Based Award Activity (Including Restricted Stock, Restricted Stock Units and Deferred Stock Units) (Detail) - Restricted Stock, Restricted Stock Units and Deferred Stock Units - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Number of Shares [Roll Forward] | |||
Beginning Balance | 433,892 | 409,651 | 497,199 |
Granted | 108,376 | 150,733 | 211,283 |
Vested | (135,562) | (81,597) | (251,855) |
Forfeited | (25,197) | (44,895) | (46,976) |
Ending Balance | 381,509 | 433,892 | 409,651 |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 52.55 | $ 47.36 | $ 45.75 |
Granted | 63.85 | 59.35 | 44.80 |
Vested | 47.33 | 41.88 | 40.87 |
Forfeited | 58.44 | 47.43 | 53.54 |
Ending Balance | $ 57.22 | $ 52.55 | $ 47.36 |
Performance-Based Award Activit
Performance-Based Award Activity (Detail) - Performance Based Units - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Number of units [Roll Forward] | |||
Beginning Balance | 311,249 | 261,917 | 153,909 |
Granted | 78,352 | 161,229 | 178,321 |
Vested | (49,467) | 0 | 0 |
Forfeited | (910) | (111,897) | (70,313) |
Ending Balance | 339,224 | 311,249 | 261,917 |
Weighted Average Grant Date Fair Value per Unit | |||
Beginning Balance | $ 51.21 | $ 46.81 | $ 45.48 |
Granted | 63.36 | 59.39 | 45.06 |
Vested | 47.66 | 0 | 0 |
Forfeited | 47.66 | 53.24 | 46.62 |
Ending Balance | $ 54.86 | $ 51.21 | $ 46.81 |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of common shares covered by out-of-the-money stock options | 0.3 | 0 | 0.8 |
Information to Calculate Basic
Information to Calculate Basic and Diluted Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share Disclosure [Line Items] | |||||||||||
Income from continuing operations | $ 159.8 | $ 165.7 | |||||||||
Income (loss) from continuing operations | 158.7 | 165.4 | $ 159.4 | ||||||||
Income (loss) from discontinued operations | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.3) | $ 1 | $ 0 | $ 0.1 | 0 | 0.8 | 1.7 |
Net income attributable to controlling interest | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | $ (15.2) | $ 121.7 | $ 125.7 | $ (65.7) | $ 159.8 | $ 166.5 | $ 161.1 |
BASIC EARNINGS PER COMMON SHARE: | |||||||||||
Weighted-average common shares outstanding during the period | 61.4 | 61.3 | 60.9 | 60.8 | 61 | 61.3 | 61.9 | 62.1 | 61.1 | 61.6 | 61.7 |
Income from continuing operations | $ (0.38) | $ 2.18 | $ 2.05 | $ (1.23) | $ (0.24) | $ 1.97 | $ 2.03 | $ (1.06) | $ 2.62 | $ 2.69 | $ 2.58 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0 | 0.01 | 0.03 |
Basic net income per common share | $ (0.38) | $ 2.18 | $ 2.05 | $ (1.23) | $ (0.24) | $ 1.99 | $ 2.03 | $ (1.06) | $ 2.62 | $ 2.70 | $ 2.61 |
DILUTED EARNINGS PER COMMON SHARE: | |||||||||||
Weighted-average common shares outstanding during the period | 61.4 | 61.3 | 60.9 | 60.8 | 61 | 61.3 | 61.9 | 62.1 | 61.1 | 61.6 | 61.7 |
Dilutive potential common shares | 1.1 | 1.1 | 0.9 | ||||||||
Weighted-average number of common shares outstanding and dilutive potential common shares | 61.4 | 62.3 | 62.1 | 60.8 | 61 | 62.4 | 62.9 | 62.1 | 62.2 | 62.7 | 62.6 |
Income from continuing operations | $ (0.38) | $ 2.14 | $ 2.01 | $ (1.23) | $ (0.24) | $ 1.93 | $ 2 | $ (1.06) | $ 2.57 | $ 2.64 | $ 2.55 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0 | 0.01 | 0.02 |
Diluted net income per common share | $ (0.38) | $ 2.14 | $ 2.01 | $ 1.23 | $ (0.24) | $ 1.95 | $ 2 | $ (1.06) | $ 2.57 | $ 2.65 | $ 2.57 |
Net income | $ (24.6) | $ 133 | $ 124.3 | $ (74) | $ (15.5) | $ 121.7 | $ 125.7 | $ (65.7) | $ 158.7 | $ 166.2 | $ 161.1 |
Provision (Benefit) For Income
Provision (Benefit) For Income Taxes Allocated to Continuing Operation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Current: | |||
Federal | $ 72.4 | $ 67 | $ 55 |
State | 9.5 | 8.6 | 7.4 |
Foreign | 2.2 | 3.5 | 4.4 |
Total Current | 84.1 | 79.1 | 66.8 |
Deferred: | |||
Federal | 0.8 | 10.8 | 24 |
State | 1.2 | 1.4 | 1.2 |
Foreign | (0.7) | (0.1) | (0.1) |
Total Deferred | 1.3 | 12.1 | 25.1 |
Provision for income taxes | $ 85.4 | $ 91.2 | $ 91.9 |
The Domestic and Foreign Compon
The Domestic and Foreign Components of Income From Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Line Items] | |||
Domestic | $ 217.7 | $ 231 | $ 236.5 |
Foreign | 26.4 | 25.6 | 14.8 |
Income from continuing operations before income taxes | $ 244.1 | $ 256.6 | $ 251.3 |
Net Current and Non-Current Com
Net Current and Non-Current Components of Deferred Income Taxes Recognized in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Net current deferred tax assets (classified with prepaid and other assets) | $ 78.2 | $ 72.2 |
Net non-current deferred tax liabilities (classified with other liabilities) | 125.4 | 120.4 |
Net deferred tax asset (liability) | (47.2) | (48.2) |
Prepaid and other assets | ||
Net current deferred tax assets (classified with prepaid and other assets) | 72.2 | |
Other liabilities | ||
Net non-current deferred tax liabilities (classified with other liabilities) | $ 125.4 | $ 120.4 |
Reconciliation of The Federal C
Reconciliation of The Federal Corporate Income Tax Rate and The Effective Tax Rate (Detail) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Statutory income tax rate | 35.00% | 35.00% | 35.00% |
Effect of foreign operations | (0.50%) | 1.50% | 0.80% |
State taxes, net of federal benefit | 3.10% | 2.70% | 2.90% |
Domestic Production Activities Deduction permanent difference | (3.10%) | (2.70%) | (2.10%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense | 0.10% | 0.20% | 0.80% |
Research and Experimentation and other federal tax credits | (0.20%) | (0.80%) | (0.30%) |
Resolution of prior tax contingencies | 0.40% | 0.20% | 0.20% |
Other | 0.20% | (0.50%) | (0.70%) |
Effective income tax rate | 35.00% | 35.60% | 36.60% |
Components of Deferred Income T
Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Net current deferred tax assets (classified with prepaid and other assets) | $ 78.2 | $ 72.2 |
DEFERRED TAX ASSETS | ||
Inventories | 14.1 | 14.7 |
Accrued liabilities | 71.6 | 59.7 |
Postretirement benefits | 30.3 | 32.4 |
Accounts receivable | 8.3 | 7.2 |
State NOL carryovers | 1 | 1.3 |
Foreign NOL carryovers | 45 | 48.2 |
Foreign tax credit carryovers | 8.6 | 4.6 |
Interest rate swaps | 4.9 | 4.2 |
Other | 3.3 | 3.1 |
Gross deferred tax assets | 187.1 | 175.4 |
Valuation allowance | (45.8) | (48.3) |
Total deferred tax assets | 141.3 | 127.1 |
DEFERRED TAX LIABILITIES | ||
Property, plant and equipment | (59.7) | (59.2) |
Intangible assets | (114.8) | (106.6) |
Other | (14) | (9.5) |
Deferred Tax Liabilities, Gross | 188.5 | 175.3 |
Net deferred tax asset (liability) | $ (47.2) | $ (48.2) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Valuation allowance | $ 45.8 | $ 48.3 | ||
Foreign net operating losses on foreign disregarded entities | 169.9 | |||
Statutory tax benefit of net operating loss carryovers and related valuation allowances | 41.2 | 45.5 | ||
Tax benefit associated with losses | 3.4 | 2.7 | ||
Deferred tax on unremitted earnings | 146 | |||
Gross unrecognized tax benefits | 9.2 | 11.2 | $ 6.7 | $ 7 |
Unrecognized tax benefits that would have an impact on the effective tax rate | 6.6 | 8.5 | 6.7 | |
Unrecognized tax benefits accrued payment of interest | 1.8 | 1.8 | 1.8 | |
Unrecognized tax benefits accrued payment of penalties | 0.7 | 0.6 | 0.7 | |
Recognized benefit related to tax interest and penalties | 0 | |||
Foreign net operating losses | 45 | 48.2 | ||
State net operating losses carryforward | 13.5 | |||
Cash and cash equivalents | $ 71.4 | 89.3 | $ 129.8 | $ 131.9 |
Amount recognized as tax benefit that likelihood of being realized upon settlement | 50.00% | |||
Foreign tax credit carryovers | $ 8.6 | 4.6 | ||
Other Controlled Companies [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Foreign net operating losses | 14.1 | |||
Tax Credit Carryforward, Valuation Allowance | 0.8 | |||
U.S. state and local tax authorities | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax benefits associated with state tax credits | $ 0.6 | 0.6 | ||
State net operating losses carryforward period, minimum | 5 years | |||
State net operating losses carryforward period, maximum | 20 years | |||
Tax Credit Carryforward, Valuation Allowance | $ 0.2 | |||
U.S. state and local tax authorities | Earliest Tax Year [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax periods under investigation | 2,008 | |||
U.S. state and local tax authorities | Latest Tax Year [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax periods under investigation | 2,013 | |||
Foreign Country | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Cash and cash equivalents | $ 55.1 | $ 59.9 | ||
U.S. state and local audits | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax periods under investigation | 2,011 | |||
Scotts Celaflor GmbH | Foreign Country | Earliest Tax Year [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax periods under investigation | 2,009 | |||
Scotts Celaflor GmbH | Foreign Country | Latest Tax Year [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax periods under investigation | 2,012 | |||
Scotts Gardening Fertilizer (Wuhan) Co., Ltd. | Foreign Country | Earliest Tax Year [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax periods under investigation | 2,011 | |||
Scotts Gardening Fertilizer (Wuhan) Co., Ltd. | Foreign Country | Latest Tax Year [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax periods under investigation | 2,014 |
Reconciliation of the Unrecogni
Reconciliation of the Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Reconciliation of Unrecognized Tax Benefits [Line Items] | |||
Balance at beginning of year | $ 11.2 | $ 6.7 | $ 7 |
Additions for tax positions of the current year | 0.2 | 0.2 | 0.3 |
Additions for tax positions of prior years | 4.1 | 7.6 | 4.3 |
Reductions for tax positions of prior years | (3.2) | (2.7) | (3.8) |
Settlements with tax authorities | (2.7) | 0 | (0.4) |
Expiration of statutes of limitation | (0.4) | (0.6) | (0.7) |
Balance at end of year | $ 9.2 | $ 11.2 | $ 6.7 |
DERIVATIVE INSTRUMENTS AND H108
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Recognized hedge ineffectiveness | $ (2) | ||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | Foreign currency swap contracts | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Derivative, Notional Amount | $ 52.3 | $ 149 | |
Negative fair value of foreign currency contracts | 0.7 | 0.1 | |
Designated as Hedging Instrument | Interest rate swap agreements | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Derivative, Notional Amount | 1,300 | $ 1,300 | |
Interest rate loss amount expected to be reclassified to earnings during the next 12 months | 5.2 | ||
Designated as Hedging Instrument | Commodity hedging instruments | Urea | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Commodity loss amount expected to be reclassified to earnings during the next 12 months | $ (0.2) |
Outstanding Commodity Contracts
Outstanding Commodity Contracts that Hedge Forecasted Purchases (Detail) | Sep. 30, 2015tonsgal | Sep. 30, 2014tonsgal |
Urea | ||
Derivative [Line Items] | ||
Outstanding commodity contracts | tons | 52,500 | 58,500 |
Diesel | ||
Derivative [Line Items] | ||
Outstanding commodity contracts | 5,754,000 | 5,250,000 |
Gasoline | ||
Derivative [Line Items] | ||
Outstanding commodity contracts | 504,000 | 462,000 |
Heating Oil | ||
Derivative [Line Items] | ||
Outstanding commodity contracts | 2,772,000 | 4,494,000 |
Fair Values of the Company's De
Fair Values of the Company's Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives instruments | $ (19.3) | $ (13.5) |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives instruments | (14.7) | (12.1) |
Designated as Hedging Instrument | Interest rate swap agreements | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 4 |
Designated as Hedging Instrument | Interest rate swap agreements | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (8.8) | (10.3) |
Designated as Hedging Instrument | Interest rate swap agreements | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (4.6) | (5.2) |
Designated as Hedging Instrument | Commodity hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1.3) | (0.6) |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives instruments | (4.6) | (1.4) |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | Foreign currency swap contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (0.7) | (0.1) |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | Commodity hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (3.9) | $ (1.3) |
Effect of Derivative Instrument
Effect of Derivative Instruments on OCI and the Condensed, Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI | $ (8.6) | $ (4.9) |
Amount of Gain/(Loss) Reclassified From AOCI Into Statement of Operations | (6.5) | (9.5) |
Cash Flow Hedging | Interest rate swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI | (7.7) | (6.6) |
Cash Flow Hedging | Interest rate swap agreements | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified From AOCI Into Statement of Operations | (6.5) | (10) |
Cash Flow Hedging | Commodity hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI | (0.9) | 1.7 |
Cash Flow Hedging | Commodity hedging instruments | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified From AOCI Into Statement of Operations | 0 | 0.5 |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Statement of Operations | (3.3) | (1.7) |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | Commodity hedging instruments | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Statement of Operations | (11.4) | (1) |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | Foreign currency swap contracts | Other income (expense), net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Statement of Operations | $ 8.1 | $ (0.7) |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 28.6 | $ 32 |
Other | 8.9 | 8.9 |
Total assets | 37.5 | 44.9 |
Liabilities, Fair Value Disclosure, Recurring | (19.3) | (17.5) |
Interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | |
Derivative liabilities | (13.4) | (15.5) |
Foreign currency swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (0.7) | (0.1) |
Commodity hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (5.2) | (1.9) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 28.6 | 32 |
Other | 8.9 | 8.9 |
Total assets | 37.5 | 40.9 |
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Other | 0 | 0 |
Total assets | 4 | |
Liabilities, Fair Value Disclosure, Recurring | (19.3) | (17.5) |
Significant Other Observable Inputs (Level 2) | Interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | |
Derivative liabilities | (13.4) | (15.5) |
Significant Other Observable Inputs (Level 2) | Foreign currency swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (0.7) | (0.1) |
Significant Other Observable Inputs (Level 2) | Commodity hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (5.2) | (1.9) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Other | 0 | 0 |
Total assets | 0 | |
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign currency swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commodity hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
Non-Financial Assets and Liabil
Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Global Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Asset Impairment Charges | $ 11.6 | ||
Global Consumer | Tradenames | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Asset Impairment Charges | 11.1 | ||
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | 0 | ||
Ortho Tradename [Member] | Global Consumer | Tradenames | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | 92.3 | $ 126 | $ 137.1 |
Asset Impairment Charges | 33.7 | ||
Ortho Tradename [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 92.3 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | $ 4.3 | $ 33.7 | $ 16.2 | |
Global Consumer | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Asset Impairment Charges | 11.6 | |||
Global Consumer | Tradenames | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Asset Impairment Charges | 11.1 | |||
Ortho Tradename [Member] | Global Consumer | Tradenames | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Indefinite-lived Intangible Assets, Fair Value | 92.3 | $ 126 | $ 137.1 | |
Asset Impairment Charges | $ 33.7 |
Future Minimum Lease Payments f
Future Minimum Lease Payments for Operating Leases (Detail) $ in Millions | Sep. 30, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 50.4 |
2,017 | 43.2 |
2,018 | 36.5 |
2,019 | 31.1 |
2,020 | 24.1 |
Thereafter | 43.2 |
Total future minimum lease payments | $ 228.5 |
OPERATING LEASES - Additional I
OPERATING LEASES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 76.5 | $ 71.2 | $ 61.9 |
Scotts Lawn Service Vehicles | |||
Operating Leased Assets [Line Items] | |||
Residual value guarantee | $ 1.6 | ||
Corporate Aircraft | |||
Operating Leased Assets [Line Items] | |||
Lease Termination Date | Sep. 30, 2019 | ||
Residual value guarantee | $ 27 | ||
Car and Light Truck Leases | |||
Operating Leased Assets [Line Items] | |||
Residual value guarantee | $ 6.4 | ||
Minimum | Scotts Lawn Service Vehicles | |||
Operating Leased Assets [Line Items] | |||
Lease Termination Date | Sep. 30, 2019 | ||
Maximum | Scotts Lawn Service Vehicles | |||
Operating Leased Assets [Line Items] | |||
Lease Termination Date | Sep. 30, 2022 |
Other residual Value Guarantee
Other residual Value Guarantee Amounts (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Scotts Lawn Service Vehicles | |
Property Subject to or Available for Operating Lease [Line Items] | |
Amount of Guarantee | $ 1.6 |
Corporate Aircraft | |
Property Subject to or Available for Operating Lease [Line Items] | |
Amount of Guarantee | $ 27 |
Lease Termination Date | Sep. 30, 2019 |
Minimum | Scotts Lawn Service Vehicles | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lease Termination Date | Sep. 30, 2019 |
Maximum | Scotts Lawn Service Vehicles | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lease Termination Date | Sep. 30, 2022 |
Unconditional Purchase Obligati
Unconditional Purchase Obligations That Have Not Been Recognized (Detail) $ in Millions | Sep. 30, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2,016 | $ 134.2 |
2,017 | 42.3 |
2,018 | 27.4 |
2,019 | 7.9 |
2,020 | 1.6 |
Thereafter | 0 |
Unrecorded Unconditional Purchase Obligation | $ 213.4 |
CONTINGENCIES - Additional Info
CONTINGENCIES - Additional Information (Detail) $ in Millions | Sep. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |
Accrued liabilities related to other regulatory matters which are accounted for in the Other liabilities | $ 5.6 |
Concentrations of Accounts Rece
Concentrations of Accounts Receivable Credit Risk (Detail) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated net sales | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 82.00% | 81.00% | 81.00% |
Accounts receivable, net | |||
Concentration Risk [Line Items] | |||
Concentration Of Customers Accounts Receivable in U.S. | 10.00% | ||
Accounts receivable, net | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Of Customers Accounts Receivable in U.S. | 73.00% | 71.00% | |
Global Consumer | Consolidated net sales | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 73.00% | 72.00% | 72.00% |
Global Consumer | Accounts receivable, net | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Of Customers Accounts Receivable in U.S. | 63.00% | 62.00% | |
Scotts Lawnservice | Consolidated net sales | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 9.00% | 9.00% | 9.00% |
Scotts Lawnservice | Accounts receivable, net | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Of Customers Accounts Receivable in U.S. | 10.00% | 9.00% |
CONCENTRATIONS OF CREDIT RISK -
CONCENTRATIONS OF CREDIT RISK - Additional Information (Detail) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Of Customers Accounts Receivable with three largest customers | 54.00% | 55.00% |
Accounts receivable, net | ||
Concentration Risk [Line Items] | ||
Concentration Of Customers Accounts Receivable with three largest customers | 10.00% | |
Consolidated net sales | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Percentages of Three Largest Cu
Percentages of Three Largest Customers Consolidated Net Sales (Detail) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Of Customers Accounts Receivable with three largest customers | 54.00% | 55.00% | |
Global Consumer | Home Depot | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net sales | 34.00% | 36.00% | 34.00% |
Global Consumer | Lowe's | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net sales | 17.00% | 19.00% | 18.00% |
Global Consumer | Wal-mart | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net sales | 12.00% | 13.00% | 13.00% |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Income (Loss) [Abstract] | |||
Royalty income, net | $ (5.2) | $ (5.6) | $ (4.7) |
Franchise fees | (0.3) | (0.3) | (0.3) |
Foreign currency losses | 1.6 | 1 | 0.4 |
Gain Loss On Investment Of Unconsolidated Affiliate | 0 | (5.7) | 0.4 |
Other | (2.2) | (4.1) | (5.8) |
Total | $ (6.1) | $ (14.7) | $ (10) |
Segment Financial Information (
Segment Financial Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 483.2 | $ 1,214.8 | $ 1,102.3 | $ 216.2 | $ 454.3 | $ 1,116.4 | $ 1,081 | $ 189.6 | $ 3,016.5 | $ 2,841.3 | $ 2,773.7 |
Income from continuing operations before income taxes | 244.1 | 256.6 | 251.3 | ||||||||
Depreciation and amortization | 69 | 64.4 | 66.1 | ||||||||
Capital expenditures | 61.7 | 87.6 | 60.1 | ||||||||
Assets | 2,527.2 | 2,058.3 | 2,527.2 | 2,058.3 | |||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,989.5 | 2,815 | 2,742.5 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 27 | 26.3 | 31.2 | ||||||||
Depreciation and amortization | 11.7 | 12.4 | 13.4 | ||||||||
Capital expenditures | 3.4 | 1.1 | 3.7 | ||||||||
Assets | 180 | 176.3 | 180 | 176.3 | |||||||
Global Consumer | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,701 | 2,552 | 2,484.7 | ||||||||
Depreciation and amortization | 52 | 48.1 | 48.7 | ||||||||
Capital expenditures | 54.6 | 83.3 | 53.3 | ||||||||
Assets | 2,124.7 | 1,690.7 | 2,124.7 | 1,690.7 | |||||||
Scotts Lawnservice | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 288.5 | 263 | 257.8 | ||||||||
Depreciation and amortization | 5.3 | 3.9 | 4 | ||||||||
Capital expenditures | 3.7 | 3.2 | 3.1 | ||||||||
Assets | $ 222.5 | $ 191.3 | 222.5 | 191.3 | |||||||
Continuing Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 244.1 | 256.6 | 251.3 | ||||||||
Continuing Operations | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 499.5 | 469 | 432.4 | ||||||||
Continuing Operations | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | (96.6) | (90.4) | (91.2) | ||||||||
Continuing Operations | Intangible Asset Amortization | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | (16.8) | (13) | (10.4) | ||||||||
Continuing Operations | Impairment, restructuring and other charges | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | (91.5) | (51) | (20.3) | ||||||||
Continuing Operations | Deferred Debt Issuance Costs | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 0 | (10.7) | 0 | ||||||||
Continuing Operations | Interest expense | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | (50.5) | (47.3) | (59.2) | ||||||||
Continuing Operations | Global Consumer | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 466.2 | 438.8 | 403.7 | ||||||||
Continuing Operations | Scotts Lawnservice | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | $ 33.3 | $ 30.2 | $ 28.7 |
SEGMENT INFORMATION Net Sales b
SEGMENT INFORMATION Net Sales by Product Category (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue from External Customer [Line Items] | |||
Percentage of Global Consumer net sales | 100.00% | 100.00% | 100.00% |
Lawn Care [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Global Consumer net sales | 31.00% | 34.00% | 35.00% |
Growing Media [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Global Consumer net sales | 38.00% | 36.00% | 35.00% |
Home Protection [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of Global Consumer net sales | 16.00% | 15.00% | 14.00% |
Roundup Marketing Agreement | |||
Revenue from External Customer [Line Items] | |||
Percentage of Global Consumer net sales | 5.00% | 5.00% | 5.00% |
Other, primarily gardening and landscape | |||
Revenue from External Customer [Line Items] | |||
Percentage of Global Consumer net sales | 10.00% | 10.00% | 11.00% |
Net sales and long-lived assets
Net sales and long-lived assets by geographic area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 3,016.5 | $ 2,841.3 | $ 2,773.7 |
Long-Lived Assets | 632.5 | 549.9 | 484.4 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,508.5 | 2,328.2 | 2,295.5 |
Long-Lived Assets | 558.7 | 458.8 | 419.9 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 508 | 513.1 | 478.2 |
Long-Lived Assets | $ 73.8 | $ 91.1 | $ 64.5 |
Unaudited Quarterly Results of
Unaudited Quarterly Results of Operation (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Quarterly Financial Information [Line Items] | |||||||||||
Net sales | $ 483.2 | $ 1,214.8 | $ 1,102.3 | $ 216.2 | $ 454.3 | $ 1,116.4 | $ 1,081 | $ 189.6 | $ 3,016.5 | $ 2,841.3 | $ 2,773.7 |
Gross profit | 153.1 | 449.2 | 433.3 | 29.3 | 140.4 | 423.3 | 433.8 | 33.9 | 1,064.9 | 1,031.4 | 978.2 |
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest | (24.6) | 133 | 124.3 | (74) | (15.2) | 120.7 | 125.7 | (65.8) | 158.7 | 165.4 | |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | (0.3) | 1 | 0 | 0.1 | 0 | 0.8 | 1.7 |
Net income (loss) | (24.6) | 133 | 124.3 | (74) | (15.5) | 121.7 | 125.7 | (65.7) | 158.7 | 166.2 | 161.1 |
Income (loss) attributable to controlling interest | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | $ (15.2) | $ 121.7 | $ 125.7 | $ (65.7) | $ 159.8 | $ 166.5 | $ 161.1 |
Basic earnings (loss) per common share: | |||||||||||
Income (loss) from continuing operations | $ (0.38) | $ 2.18 | $ 2.05 | $ (1.23) | $ (0.24) | $ 1.97 | $ 2.03 | $ (1.06) | $ 2.62 | $ 2.69 | $ 2.58 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0 | 0.01 | 0.03 |
Basic net income per common share | $ (0.38) | $ 2.18 | $ 2.05 | $ (1.23) | $ (0.24) | $ 1.99 | $ 2.03 | $ (1.06) | $ 2.62 | $ 2.70 | $ 2.61 |
Common shares used in basic EPS calculation | 61.4 | 61.3 | 60.9 | 60.8 | 61 | 61.3 | 61.9 | 62.1 | 61.1 | 61.6 | 61.7 |
Diluted earnings (loss) per common share: | |||||||||||
Income (loss) from continuing operations | $ (0.38) | $ 2.14 | $ 2.01 | $ (1.23) | $ (0.24) | $ 1.93 | $ 2 | $ (1.06) | $ 2.57 | $ 2.64 | $ 2.55 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 | 0 | 0.01 | 0.02 |
Diluted net income per common share | $ (0.38) | $ 2.14 | $ 2.01 | $ 1.23 | $ (0.24) | $ 1.95 | $ 2 | $ (1.06) | $ 2.57 | $ 2.65 | $ 2.57 |
Common shares and dilutive potential common shares used in diluted EPS calculation | 61.4 | 62.3 | 62.1 | 60.8 | 61 | 62.4 | 62.9 | 62.1 | 62.2 | 62.7 | 62.6 |
Quarterly Consolidated Finan128
Quarterly Consolidated Financial Information- Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2015 | |
Quarterly Financial Information [Line Items] | ||||||||||||
Gain on sale of assets | $ 0 | |||||||||||
Percentage of annual net sales from combined second and third quarter sales | 75.00% | 75.00% | 75.00% | |||||||||
Impairment, restructuring and other | $ 0.9 | $ 6.6 | $ 5.1 | $ 9.6 | $ 5.4 | $ 5.5 | $ 4.1 | $ 0.3 | $ 78 | $ 51 | $ 18.1 | |
Restructuring And Other Related Charges | 2 | 84.6 | 17.3 | 4.4 | ||||||||
Intangible asset impairments | 33.7 | |||||||||||
Other Restructuring Costs | 2 | |||||||||||
Costs related to refinancing | 10.7 | 0 | 10.7 | 0 | ||||||||
Cash received from sale of business | 0 | 7.2 | 0 | |||||||||
Goodwill and intangible asset impairments | 33.7 | 0 | 33.7 | 15.9 | ||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | |||||||||||
Global Consumer | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Restructuring And Other Related Charges | 14.3 | $ 9.1 | $ 35.7 | |||||||||
Wild Bird Food | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Gain on sale of assets | 1.2 | 1.2 | ||||||||||
Cash received from sale of business | 4.1 | |||||||||||
Future earn-out payments | $ 1 | |||||||||||
Proceeds from sale of manufacturing facilities | $ 3.1 | |||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | $ 0.9 | |||||||||||
Bonus S | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Impairment, restructuring and other | $ 24.7 | $ 37.7 | ||||||||||
Restructuring And Other Related Charges | $ 62.4 |
FINANCIAL INFORMATION FOR SU129
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Parent | |||
Dividends paid to Parent or Subsidiary Guarantors included in operating activities | $ (281.3) | $ (422.8) | $ (87.8) |
Condensed, Consolidating Statem
Condensed, Consolidating Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Net sales | $ 483.2 | $ 1,214.8 | $ 1,102.3 | $ 216.2 | $ 454.3 | $ 1,116.4 | $ 1,081 | $ 189.6 | $ 3,016.5 | $ 2,841.3 | $ 2,773.7 |
Cost of sales | 1,945 | 1,809.9 | 1,793.3 | ||||||||
Cost of sales-impairment, restructuring and other | 6.6 | 0 | 2.2 | ||||||||
Gross profit | 153.1 | 449.2 | 433.3 | 29.3 | 140.4 | 423.3 | 433.8 | 33.9 | 1,064.9 | 1,031.4 | 978.2 |
Operating expenses: | |||||||||||
Selling, general and administrative | 698.4 | 680.5 | 659.6 | ||||||||
Impairment, restructuring and other | 0.9 | 6.6 | 5.1 | 9.6 | 5.4 | 5.5 | 4.1 | 0.3 | 78 | 51 | 18.1 |
Other income, net | (6.1) | (14.7) | (10) | ||||||||
Income (loss) from operations | 294.6 | 314.6 | 310.5 | ||||||||
Equity income in subsidiaries | 0 | ||||||||||
Other non-operating income | 0 | ||||||||||
Costs related to refinancing | 10.7 | 0 | 10.7 | 0 | |||||||
Interest expense | 50.5 | 47.3 | 59.2 | ||||||||
Income from continuing operations before income taxes | 244.1 | 256.6 | 251.3 | ||||||||
Income tax (benefit) expense from continuing operations | 85.4 | 91.2 | 91.9 | ||||||||
Income (loss) from continuing operations | 158.7 | 165.4 | 159.4 | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | (0.3) | 1 | 0 | 0.1 | 0 | 0.8 | 1.7 |
Net income (loss) | (24.6) | 133 | 124.3 | (74) | (15.5) | 121.7 | 125.7 | (65.7) | 158.7 | 166.2 | 161.1 |
Net loss attributable to noncontrolling interest | 1.1 | 0.3 | 0 | ||||||||
Net income attributable to controlling interest | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | $ (15.2) | $ 121.7 | $ 125.7 | $ (65.7) | 159.8 | 166.5 | 161.1 |
Parent | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Net sales | 0 | ||||||||||
Cost of sales | 0 | ||||||||||
Cost of sales-impairment, restructuring and other | 0 | 0 | |||||||||
Gross profit | 0 | ||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 0 | 0 | |||||||||
Impairment, restructuring and other | 0 | ||||||||||
Other income, net | 0 | 0 | |||||||||
Income (loss) from operations | 0 | 0 | |||||||||
Equity income in subsidiaries | (179.2) | (193.2) | (180.9) | ||||||||
Other non-operating income | (27.9) | (21.3) | (20.4) | ||||||||
Costs related to refinancing | 0 | 10.7 | |||||||||
Interest expense | 55.2 | 52.5 | 52.4 | ||||||||
Income from continuing operations before income taxes | 151.9 | 151.3 | 148.9 | ||||||||
Income tax (benefit) expense from continuing operations | (9.6) | (14.9) | (12.2) | ||||||||
Income (loss) from continuing operations | 161.5 | 166.2 | 161.1 | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Net income (loss) | 161.5 | 166.2 | 161.1 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0.3 | |||||||||
Net income attributable to controlling interest | 161.5 | 166.5 | |||||||||
Subsidiary Guarantors | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Net sales | 2,480.6 | 2,314 | 2,280.4 | ||||||||
Cost of sales | 1,558.3 | 1,440.5 | 1,446.7 | ||||||||
Cost of sales-impairment, restructuring and other | 3.1 | 0 | |||||||||
Gross profit | 919.2 | 873.5 | 833.7 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 556.4 | 535.3 | 515.3 | ||||||||
Impairment, restructuring and other | 71 | 48.2 | 11.2 | ||||||||
Other income, net | (7.2) | (12.6) | (6.9) | ||||||||
Income (loss) from operations | 299 | 302.6 | 314.1 | ||||||||
Equity income in subsidiaries | (6.1) | (8.9) | 1.3 | ||||||||
Other non-operating income | 0 | 0 | |||||||||
Costs related to refinancing | 0 | 0 | |||||||||
Interest expense | 44.1 | 37.4 | 25.2 | ||||||||
Income from continuing operations before income taxes | 261 | 274.1 | 287.6 | ||||||||
Income tax (benefit) expense from continuing operations | 88.6 | 94.6 | 105.8 | ||||||||
Income (loss) from continuing operations | 172.4 | 179.5 | 181.8 | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0.4 | 0.8 | ||||||||
Net income (loss) | 172.4 | 179.9 | 182.6 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0.3 | |||||||||
Net income attributable to controlling interest | 172.4 | 180.2 | |||||||||
Non-Guarantors | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Net sales | 535.9 | 527.3 | 493.3 | ||||||||
Cost of sales | 386.7 | 369.4 | 346.6 | ||||||||
Cost of sales-impairment, restructuring and other | 3.5 | 2.2 | |||||||||
Gross profit | 145.7 | 157.9 | 144.5 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 140.3 | 145.2 | 144.3 | ||||||||
Impairment, restructuring and other | 7 | 2.8 | 6.9 | ||||||||
Other income, net | 1.1 | (2.1) | (3.1) | ||||||||
Income (loss) from operations | (2.7) | 12 | (3.6) | ||||||||
Equity income in subsidiaries | 0 | 0 | |||||||||
Other non-operating income | (23.5) | (22.2) | |||||||||
Costs related to refinancing | 0 | 0 | |||||||||
Interest expense | 2.6 | 0.9 | 2 | ||||||||
Income from continuing operations before income taxes | 18.2 | 33.3 | (5.6) | ||||||||
Income tax (benefit) expense from continuing operations | 6.4 | 11.5 | (1.7) | ||||||||
Income (loss) from continuing operations | 11.8 | 21.8 | (3.9) | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0.4 | 0.9 | ||||||||
Net income (loss) | 11.8 | 22.2 | (3) | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | |||||||||
Net income attributable to controlling interest | 11.8 | 22.2 | |||||||||
Consolidation, Eliminations | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Net sales | 0 | $ 0 | |||||||||
Cost of sales | 0 | ||||||||||
Cost of sales-impairment, restructuring and other | 0 | ||||||||||
Gross profit | 0 | 0 | |||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 1.7 | ||||||||||
Impairment, restructuring and other | 0 | ||||||||||
Other income, net | 0 | $ 0 | |||||||||
Income (loss) from operations | (1.7) | ||||||||||
Equity income in subsidiaries | 185.3 | 202.1 | 179.6 | ||||||||
Other non-operating income | 51.4 | 43.5 | 20.4 | ||||||||
Costs related to refinancing | 0 | 0 | |||||||||
Interest expense | (51.4) | (43.5) | (20.4) | ||||||||
Income from continuing operations before income taxes | (187) | (202.1) | (179.6) | ||||||||
Income tax (benefit) expense from continuing operations | 0 | ||||||||||
Income (loss) from continuing operations | (187) | (202.1) | (179.6) | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | |||||||||
Net income (loss) | (187) | (202.1) | $ (179.6) | ||||||||
Net loss attributable to noncontrolling interest | 1.1 | (0.3) | |||||||||
Net income attributable to controlling interest | $ (185.9) | $ (202.4) |
Condensed, Consolidating Sta131
Condensed, Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net income (loss) | $ (24.6) | $ 133 | $ 124.3 | $ (74) | $ (15.5) | $ 121.7 | $ 125.7 | $ (65.7) | $ 158.7 | $ 166.2 | $ 161.1 |
Net foreign currency translation adjustment | (14.2) | (8.2) | (5.2) | ||||||||
Net change in derivatives | (2.1) | 4.6 | 5.1 | ||||||||
Net change in pension and other post retirement benefits | (4.3) | (4.8) | 9.6 | ||||||||
Other comprehensive income (loss) | (20.6) | (8.4) | 9.5 | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (20.6) | ||||||||||
Comprehensive income (loss) | 138.1 | 157.8 | 170.6 | ||||||||
Parent | |||||||||||
Net income (loss) | 161.5 | 166.2 | 161.1 | ||||||||
Net foreign currency translation adjustment | (14.2) | (8.2) | 0 | ||||||||
Net change in derivatives | (2.1) | 4.6 | 7.2 | ||||||||
Net change in pension and other post retirement benefits | (4.3) | (4.8) | 0 | ||||||||
Other comprehensive income (loss) | (8.4) | 7.2 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (20.6) | ||||||||||
Comprehensive income (loss) | 140.9 | 157.8 | 168.3 | ||||||||
Subsidiary Guarantors | |||||||||||
Net income (loss) | 172.4 | 179.9 | 182.6 | ||||||||
Net foreign currency translation adjustment | 0 | 0 | 0 | ||||||||
Net change in derivatives | (0.8) | 1.3 | (2.1) | ||||||||
Net change in pension and other post retirement benefits | (5.4) | 0.7 | 10.6 | ||||||||
Other comprehensive income (loss) | 2 | 8.5 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (6.2) | ||||||||||
Comprehensive income (loss) | 166.2 | 181.9 | 191.1 | ||||||||
Non-Guarantors | |||||||||||
Net income (loss) | 11.8 | 22.2 | (3) | ||||||||
Net foreign currency translation adjustment | (14.2) | (8.2) | (5.2) | ||||||||
Net change in derivatives | 0 | 0 | 0 | ||||||||
Net change in pension and other post retirement benefits | 1.1 | (5.5) | (1) | ||||||||
Other comprehensive income (loss) | (13.7) | (6.2) | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (13.1) | ||||||||||
Comprehensive income (loss) | (1.3) | 8.5 | (9.2) | ||||||||
Consolidation, Eliminations | |||||||||||
Net income (loss) | (187) | (202.1) | (179.6) | ||||||||
Net foreign currency translation adjustment | 14.2 | 8.2 | 0 | ||||||||
Net change in derivatives | 0.8 | (1.3) | 0 | ||||||||
Net change in pension and other post retirement benefits | 4.3 | 4.8 | 0 | ||||||||
Other comprehensive income (loss) | 11.7 | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 19.3 | ||||||||||
Comprehensive income (loss) | $ (167.7) | $ (190.4) | $ (179.6) |
Condensed, Consolidating Sta132
Condensed, Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ 246.9 | $ 240.9 | $ 342 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 5.5 | 3.7 | 3.6 |
Proceeds from sale of business, net of transaction costs | 0 | 7.2 | 0 |
Investments in property, plant and equipment | (61.7) | (87.6) | (60.1) |
Payment Of Contingent Consideration And Related | 4.5 | ||
Investing cash flows from (to) affiliates | 0 | ||
Proceeds from sale and leaseback transaction | 0 | 35.1 | 0 |
Investments in acquired businesses, net of cash acquired | (180.2) | (114) | (3.2) |
Investment in marketing and license agreement | (300) | 0 | 0 |
Net cash used in investing activities | (536.4) | (155.6) | (64.2) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 1,836 | 1,932.8 | 1,474.8 |
Repayments under revolving and bank lines of credit and term loans | (1,458) | (1,525.3) | (1,682.1) |
Repayment of 7.25% senior notes | 0 | 200 | 0 |
Financing and issuance fees | (0.5) | (6.1) | 0 |
Dividends paid | (111.3) | (230.8) | (87.8) |
Purchase of Common Shares | (14.8) | (120) | 0 |
Payments on sellers notes | (1.5) | (0.8) | (0.8) |
Excess tax benefits from share-based payment arrangements | 4.7 | 5.9 | 2 |
Cash received from exercise of stock options | 24.3 | 20 | 13.3 |
Intercompany financing | 0 | 0 | |
Net cash provided by (used in) financing activities | 278.9 | (124.3) | (280.6) |
Effect of exchange rate changes on cash | (7.3) | (1.5) | 0.7 |
Net increase (decrease) in cash and cash equivalents | (17.9) | (40.5) | (2.1) |
Cash and cash equivalents at beginning of year | 89.3 | 129.8 | 131.9 |
Cash and cash equivalents at end of year | 71.4 | 89.3 | 129.8 |
Parent | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
Dividends paid to Parent or Subsidiary Guarantors included in operating activities | 255.5 | 422.8 | |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 239.4 | 388.8 | 69.8 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 0 | 0 | |
Investments in property, plant and equipment | 0 | 0 | 0 |
Payment Of Contingent Consideration And Related | 0 | ||
Investing cash flows from (to) affiliates | 141.9 | ||
Proceeds from sale and leaseback transaction | 0 | ||
Investments in acquired businesses, net of cash acquired | 0 | 0 | 0 |
Investment in marketing and license agreement | 0 | ||
Net cash used in investing activities | (141.9) | 0 | 0 |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 0 | 0 | |
Repayments under revolving and bank lines of credit and term loans | 0 | 0 | |
Repayment of 7.25% senior notes | 200 | ||
Financing and issuance fees | (0.4) | (6.1) | |
Dividends paid | (111.3) | (230.8) | (87.8) |
Purchase of Common Shares | (14.8) | (120) | |
Payments on sellers notes | 0 | 0 | 0 |
Excess tax benefits from share-based payment arrangements | 4.7 | 0 | |
Cash received from exercise of stock options | 24.3 | 20 | 13.3 |
Intercompany financing | 0 | 148.1 | 4.7 |
Net cash provided by (used in) financing activities | (97.5) | (388.8) | (69.8) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents at beginning of year | 0 | 0 | |
Cash and cash equivalents at end of year | 0 | 0 | 0 |
Subsidiary Guarantors | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
Dividends paid to Parent or Subsidiary Guarantors included in operating activities | 25.8 | 1.3 | |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 249.3 | 254.5 | 245.9 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 5.5 | 3.7 | 0.2 |
Proceeds from sale of business, net of transaction costs | 6.6 | ||
Investments in property, plant and equipment | (56.6) | (81) | (44.6) |
Payment Of Contingent Consideration And Related | 4.5 | ||
Investing cash flows from (to) affiliates | 0 | ||
Proceeds from sale and leaseback transaction | 35.1 | ||
Investments in acquired businesses, net of cash acquired | (170.8) | (58.9) | (3.2) |
Investment in marketing and license agreement | (300) | ||
Net cash used in investing activities | (521.9) | (94.5) | (52.1) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 1,568.1 | 1,596.1 | 1,130.4 |
Repayments under revolving and bank lines of credit and term loans | (1,284.1) | (1,184.7) | (1,078.5) |
Repayment of 7.25% senior notes | 0 | ||
Financing and issuance fees | (0.1) | 0 | |
Dividends paid | (255.5) | (404.9) | (87.8) |
Purchase of Common Shares | 0 | 0 | |
Payments on sellers notes | (1.5) | (0.8) | (0.8) |
Excess tax benefits from share-based payment arrangements | 0 | 5.9 | 2 |
Cash received from exercise of stock options | 0 | 0 | |
Intercompany financing | 230 | (151.1) | (159.1) |
Net cash provided by (used in) financing activities | 256.9 | (139.5) | (193.8) |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | (15.7) | 20.5 | |
Cash and cash equivalents at beginning of year | 23.1 | 2.6 | 2.6 |
Cash and cash equivalents at end of year | 7.4 | 23.1 | 2.6 |
Non-Guarantors | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 39.5 | 21.7 | 114.1 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 0 | 3.4 | |
Proceeds from sale of business, net of transaction costs | 0.6 | ||
Investments in property, plant and equipment | (5.1) | (6.6) | (15.5) |
Payment Of Contingent Consideration And Related | 0 | ||
Investing cash flows from (to) affiliates | 0 | ||
Proceeds from sale and leaseback transaction | 0 | ||
Investments in acquired businesses, net of cash acquired | (9.4) | (55.1) | 0 |
Investment in marketing and license agreement | 0 | ||
Net cash used in investing activities | (14.5) | (61.1) | (12.1) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 267.9 | 336.7 | 344.4 |
Repayments under revolving and bank lines of credit and term loans | (173.9) | (340.6) | (603.6) |
Repayment of 7.25% senior notes | 0 | ||
Financing and issuance fees | 0 | ||
Dividends paid | (25.8) | (19.2) | 0 |
Purchase of Common Shares | 0 | 0 | |
Payments on sellers notes | 0 | 0 | |
Excess tax benefits from share-based payment arrangements | 0 | 0 | 0 |
Cash received from exercise of stock options | 0 | 0 | 0 |
Intercompany financing | (88.1) | 3 | 154.4 |
Net cash provided by (used in) financing activities | (19.9) | (20.1) | (104.8) |
Effect of exchange rate changes on cash | (7.3) | (1.5) | 0.7 |
Net increase (decrease) in cash and cash equivalents | (2.2) | (61) | (2.1) |
Cash and cash equivalents at beginning of year | 66.2 | 127.2 | 129.3 |
Cash and cash equivalents at end of year | 64 | 66.2 | 127.2 |
Consolidation, Eliminations | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (281.3) | (424.1) | (87.8) |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 0 | 0 | 0 |
Proceeds from sale of business, net of transaction costs | 0 | ||
Investments in property, plant and equipment | 0 | 0 | 0 |
Payment Of Contingent Consideration And Related | 0 | ||
Investing cash flows from (to) affiliates | (141.9) | ||
Proceeds from sale and leaseback transaction | 0 | ||
Investments in acquired businesses, net of cash acquired | 0 | 0 | 0 |
Investment in marketing and license agreement | 0 | ||
Net cash used in investing activities | 141.9 | 0 | 0 |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 0 | 0 | |
Repayments under revolving and bank lines of credit and term loans | 0 | 0 | 0 |
Repayment of 7.25% senior notes | 0 | ||
Financing and issuance fees | 0 | ||
Dividends paid | 281.3 | 424.1 | 87.8 |
Purchase of Common Shares | 0 | 0 | |
Payments on sellers notes | 0 | 0 | |
Excess tax benefits from share-based payment arrangements | 0 | 0 | 0 |
Cash received from exercise of stock options | 0 | 0 | 0 |
Intercompany financing | (141.9) | 0 | |
Net cash provided by (used in) financing activities | 139.4 | 424.1 | 87.8 |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 |
Condensed, Consolidating Balanc
Condensed, Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 71.4 | $ 89.3 | $ 129.8 | $ 131.9 |
Accounts receivable, net | 191.3 | 224 | ||
Accounts receivable pledged | 152.9 | 113.7 | ||
Inventories | 407.6 | 385.1 | ||
Prepaid and other assets | 125.4 | 122.9 | ||
Total current assets | 948.6 | 935 | ||
Property, plant and equipment, net | 453.7 | 437 | ||
Goodwill | 432.4 | 350.9 | 315.1 | |
Intangible assets, net | 663.5 | 302.7 | ||
Other assets | 29 | 32.7 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany assets | 0 | 0 | ||
Total assets | 2,527.2 | 2,058.3 | ||
Current liabilities: | ||||
Current portion of debt | 134.8 | 91.9 | ||
Accounts payable | 197.9 | 193.3 | ||
Other current liabilities | 280.4 | 259.5 | ||
Total current liabilities | 613.1 | 544.7 | ||
Long-term debt | 1,028.5 | 692.4 | ||
Other liabilities | 252.5 | 254 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany liabilities | 0 | |||
Total liabilities | 1,894.1 | 1,491.1 | ||
Total shareholders' equity - controlling interest | 620.7 | 553.7 | ||
Noncontrolling interest | 12.4 | 13.5 | ||
Total equity | 633.1 | 567.2 | 710.5 | 601.9 |
Total liabilities and equity | 2,527.2 | 2,058.3 | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable pledged | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid and other assets | 0 | 0 | ||
Total current assets | 0 | |||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 16.3 | 23.8 | ||
Equity investment in subsidiaries | 461.3 | 368.3 | ||
Intercompany assets | 1,179.4 | 878.8 | ||
Total assets | 1,657 | 1,270.9 | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Other current liabilities | 15.5 | 16.7 | ||
Total current liabilities | 15.5 | 16.7 | ||
Long-term debt | 1,016.3 | 681.8 | ||
Other liabilities | 4.5 | 5.1 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany liabilities | 0 | 0 | ||
Total liabilities | 1,036.3 | 703.6 | ||
Total shareholders' equity - controlling interest | 620.7 | 553.8 | ||
Noncontrolling interest | 0 | 13.5 | ||
Total equity | 620.7 | 567.3 | ||
Total liabilities and equity | 1,657 | 1,270.9 | ||
Subsidiary Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 7.4 | 23.1 | 2.6 | 2.6 |
Accounts receivable, net | 96.9 | 124.6 | ||
Accounts receivable pledged | 152.9 | 113.7 | ||
Inventories | 318.7 | 282.1 | ||
Prepaid and other assets | 90.7 | 85.2 | ||
Total current assets | 666.6 | 628.7 | ||
Property, plant and equipment, net | 397.6 | 371.3 | ||
Goodwill | 408.8 | 344.3 | ||
Intangible assets, net | 593 | 256.8 | ||
Other assets | 15 | 14.7 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany assets | 0 | 0 | ||
Total assets | 2,081 | 1,615.8 | ||
Current liabilities: | ||||
Current portion of debt | 125.1 | 85.8 | ||
Accounts payable | 141.5 | 134.4 | ||
Other current liabilities | 191.9 | 161.9 | ||
Total current liabilities | 458.5 | 382.1 | ||
Long-term debt | 728.4 | 480 | ||
Other liabilities | 228 | 235.7 | ||
Equity investment in subsidiaries | 156.2 | 106.5 | ||
Intercompany liabilities | 296.6 | 305.2 | ||
Total liabilities | 1,867.7 | 1,509.5 | ||
Total shareholders' equity - controlling interest | 213.3 | 92.8 | ||
Noncontrolling interest | 0 | 13.5 | ||
Total equity | 213.3 | 106.3 | ||
Total liabilities and equity | 2,081 | 1,615.8 | ||
Non-Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 64 | 66.2 | 127.2 | 129.3 |
Accounts receivable, net | 94.4 | 99.4 | ||
Accounts receivable pledged | 0 | 0 | ||
Inventories | 88.9 | 103 | ||
Prepaid and other assets | 34.7 | 37.7 | ||
Total current assets | 282 | 306.3 | ||
Property, plant and equipment, net | 56.1 | 65.7 | ||
Goodwill | 12 | 6.6 | ||
Intangible assets, net | 58.8 | 45.9 | ||
Other assets | 15 | 28.5 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany assets | 0 | 0 | ||
Total assets | 423.9 | 453 | ||
Current liabilities: | ||||
Current portion of debt | 9.7 | 6.1 | ||
Accounts payable | 56.4 | 58.9 | ||
Other current liabilities | 73 | 80.9 | ||
Total current liabilities | 139.1 | 145.9 | ||
Long-term debt | 100.1 | 12.4 | ||
Other liabilities | 32.3 | 47.4 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany liabilities | 47.5 | 91.8 | ||
Total liabilities | 319 | 297.5 | ||
Total shareholders' equity - controlling interest | 104.9 | 155.5 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 104.9 | 155.5 | ||
Total liabilities and equity | 423.9 | 453 | ||
Consolidation, Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable pledged | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid and other assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 11.6 | 0 | ||
Intangible assets, net | 11.7 | 0 | ||
Other assets | (17.3) | (34.3) | ||
Equity investment in subsidiaries | (461.3) | (368.3) | ||
Intercompany assets | (1,179.4) | (878.8) | ||
Total assets | (1,634.7) | (1,281.4) | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | (816.3) | (481.8) | ||
Other liabilities | (12.3) | (34.2) | ||
Equity investment in subsidiaries | (156.2) | (106.5) | ||
Intercompany liabilities | (344.1) | (397) | ||
Total liabilities | (1,328.9) | (1,019.5) | ||
Total shareholders' equity - controlling interest | (318.2) | (248.4) | ||
Noncontrolling interest | 12.4 | (13.5) | ||
Total equity | (305.8) | (261.9) | ||
Total liabilities and equity | $ (1,634.7) | $ (1,281.4) |
Valuation and Qualifying Acc134
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Allowance for Doubtful Accounts | |||
Valuation Allowance [Line Items] | |||
Balance at Beginning of Period | $ 7.5 | $ 9.5 | $ 10.5 |
Additions Charged to Expense | 6.6 | 6.6 | 5.5 |
Deductions Credited and Write-Offs | (5.4) | (8.6) | (6.5) |
Balance at End of Period | 8.7 | 7.5 | 9.5 |
Valuation Allowance of Deferred Tax Assets | |||
Valuation Allowance [Line Items] | |||
Balance at Beginning of Period | 48.3 | 51.5 | 48.4 |
Valuation Allowances and Reserves, Adjustments | 1.5 | (1.5) | (4) |
Deductions Credited and Write-Offs | (4) | (1.7) | 7.1 |
Balance at End of Period | $ 45.8 | $ 48.3 | $ 51.5 |