Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 18, 2016 | Apr. 02, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
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 | 60,086,416 | ||
Entity Public Float | $ 3,300,118,585 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 402.3 | $ 994.1 | $ 1,245.2 | $ 194.5 | $ 375.4 | $ 1,111.3 | $ 1,071.8 | $ 169.5 | $ 2,836.1 | $ 2,728 | $ 2,578.3 |
Cost of sales | 1,833 | 1,813.4 | 1,688.2 | ||||||||
Cost of sales—impairment, restructuring and other | 7.7 | 6.6 | 0 | ||||||||
Gross profit | 99.7 | 357.4 | 521.6 | 16.7 | 90.8 | 385.8 | 424.8 | 6.6 | 995.4 | 908 | 890.1 |
Operating expenses: | |||||||||||
Selling, general and administrative | 597.1 | 571.4 | 567.1 | ||||||||
Impairment, restructuring and other | (47.2) | 76.6 | 50 | ||||||||
Restructuring costs | 6.7 | 9.3 | 9.6 | ||||||||
Other income, net | (13.8) | (2.1) | (10.7) | ||||||||
Income from operations | 459.3 | 262.1 | 283.7 | ||||||||
Equity in income of unconsolidated affiliates | (7.8) | 0 | 0 | ||||||||
Costs related to refinancing | 8.8 | 0 | 10.7 | ||||||||
Interest expense | 65.6 | 50.5 | 47.3 | ||||||||
Income from continuing operations before income taxes | 392.7 | 211.6 | 225.7 | ||||||||
Income tax expense from continuing operations | 139.4 | 73.8 | 80.2 | ||||||||
Income from continuing operations | (20.2) | 127 | 225.8 | (79.3) | (41.3) | 115.1 | 138.6 | (74.6) | 253.3 | 137.8 | 145.5 |
Income from discontinued operations, net of tax | (6.7) | 85.7 | (16) | (1.5) | 16.7 | 17.9 | (14.3) | 0.6 | 61.5 | 20.9 | 20.7 |
Net income | (26.9) | 212.7 | 209.8 | (80.8) | (24.6) | 133 | 124.3 | (74) | 314.8 | 158.7 | 166.2 |
Net loss attributable to noncontrolling interest | 0.5 | 1.1 | 0.3 | ||||||||
Net income attributable to controlling interest | $ (26.6) | $ 213.1 | $ 210.1 | $ (81.3) | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | $ 315.3 | $ 159.8 | $ 166.5 |
Basic income per common share: | |||||||||||
Income from continuing operations (USD per share) | $ (0.33) | $ 2.09 | $ 3.68 | $ (1.30) | $ (0.65) | $ 1.89 | $ 2.28 | $ (1.24) | $ 4.15 | $ 2.27 | $ 2.37 |
Income from discontinued operations (USD per share) | (0.11) | 1.40 | (0.26) | (0.02) | 0.27 | 0.29 | (0.23) | 0.01 | 1.01 | 0.35 | 0.33 |
Basic net income per common share (USD per share) | (0.44) | 3.49 | 3.42 | (1.32) | (0.38) | 2.18 | 2.05 | (1.23) | 5.16 | 2.62 | 2.70 |
Diluted income per common share: | |||||||||||
Income from continuing operations (USD per share) | (0.33) | 2.06 | 3.64 | (1.30) | (0.65) | 1.85 | 2.24 | (1.24) | 4.09 | 2.23 | 2.32 |
Income from discontinued operations (USD per share) | (0.11) | 1.38 | (0.26) | (0.02) | 0.27 | 0.29 | (0.23) | 0.01 | 1 | 0.34 | 0.33 |
Diluted net income per common share (USD per share) | $ (0.44) | $ 3.44 | $ 3.38 | $ (1.32) | $ (0.38) | $ 2.14 | $ 2.01 | $ (1.23) | $ 5.09 | $ 2.57 | $ 2.65 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 314.8 | $ 158.7 | $ 166.2 |
Net foreign currency translation adjustment | (6.2) | (14.2) | (8.2) |
Net unrealized losses on derivative instruments, net of tax of $0.9, $5.3 and $3.0 for fiscal 2016, fiscal 2015 and fiscal 2014, respectively | (1.5) | (8.6) | (4.9) |
Reclassification of net unrealized losses on derivatives to net income, net of tax of $3.6, $4.0 and $5.9 for fiscal 2016, fiscal 2015 and fiscal 2014, respectively | 5.8 | 6.5 | 9.5 |
Net unrealized losses in pension and other post retirement benefits, net of tax of $6.2, $4.6 and $4.9 for fiscal 2016, fiscal 2015 and fiscal 2014, respectively | (10) | (7.4) | (7.9) |
Reclassification of net pension and post-retirement benefit income to net income, net of tax of $1.1, $1.9 and $1.9 for fiscal 2016, fiscal 2015 and fiscal 2014, respectively | 1.8 | 3.1 | 3.1 |
Total other comprehensive income (loss) | (10.1) | (20.6) | (8.4) |
Comprehensive income | 304.7 | 138.1 | 157.8 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 |
Comprehensive income attributable to controlling interest | $ 304.7 | $ 138.1 | $ 157.8 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized losses on derivative instruments, tax | $ 0.9 | $ 5.3 | $ 3 |
Reclassification of net unrealized losses on derivatives, tax | 3.6 | 4 | 5.9 |
Net unrealized gains (losses) in pension and other post retirment benefits, tax | 6.2 | 4.6 | 4.9 |
Reclassification net pension and postretirement benefit income (loss), tax | $ 1.1 | $ 1.9 | $ 1.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES | |||
Net income | $ 314.8 | $ 158.7 | $ 166.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Impairment, restructuring and other | 0.2 | 4.3 | 33.7 |
Costs related to refinancing | 2.2 | 0 | 3.5 |
Share-based compensation expense | 15.6 | 13.2 | 11.1 |
Depreciation | 53.8 | 51.4 | 50.6 |
Amortization | 19.7 | 17.6 | 13.8 |
Deferred taxes | 83.6 | 1.3 | 12.1 |
(Gain) loss on sale of long-lived assets | (0.8) | 0 | 1.1 |
Gain on contribution of SLS Business | (131.2) | 0 | 0 |
Gain on sale of business | 0 | 0 | (1.4) |
Equity in income of unconsolidated affiliates, net of distributions | (0.3) | 0 | 0 |
Gain on investment of unconsolidated affiliates | 0 | 0 | (5.7) |
Changes in assets and liabilities, net of acquired businesses: | |||
Accounts receivable | (29.8) | (12.5) | (29.4) |
Inventories | (29.4) | (17.5) | (38.7) |
Prepaid and other assets | (9.3) | 1.8 | (3.2) |
Accounts payable | (45.3) | 6.9 | 52.6 |
Other current liabilities | 22.9 | 12.9 | (22.9) |
Restructuring reserves | (7.3) | 12.1 | 4.9 |
Other non-current items | (18.4) | (3.4) | (14.6) |
Other, net | (3.6) | 0.1 | 7.2 |
Net cash provided by operating activities | 237.4 | 246.9 | 240.9 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 2.4 | 5.5 | 3.7 |
Proceeds from sale of business, net of transaction costs | 0 | 0 | 7.2 |
Investments in property, plant and equipment | (58.3) | (61.7) | (87.6) |
Investments in loans receivable | (90) | 0 | 0 |
Proceeds from sale and leaseback transaction | 0 | 0 | 35.1 |
Cash contributed to TruGreen Joint Venture | (24.2) | 0 | 0 |
Net distributions from unconsolidated affiliates | 194.1 | 0 | 0 |
Investment in marketing and license agreement | 0 | (300) | 0 |
Investments in acquired businesses, net of cash acquired | (158.4) | (180.2) | (114) |
Net cash used in investing activities | (134.4) | (536.4) | (155.6) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 2,069.1 | 1,836 | 1,932.8 |
Repayments under revolving and bank lines of credit and term loans | (2,150.4) | (1,458) | (1,525.3) |
Proceeds from issuance of 6.000% Senior Notes | 400 | 0 | 0 |
Repayment of senior notes | (200) | ||
Financing and issuance fees | (11.2) | (0.5) | (6.1) |
Dividends paid | (116.6) | (111.3) | (230.8) |
Purchase of Common Shares | (130.8) | (14.8) | (120) |
Payments on sellers notes | (2.8) | (1.5) | (0.8) |
Excess tax benefits from share-based payment arrangements | 5.8 | 4.7 | 5.9 |
Cash received from exercise of stock options | 14.7 | 24.3 | 20 |
Net cash (used in) provided by financing activities | (122.2) | 278.9 | (124.3) |
Effect of exchange rate changes on cash | (2.1) | (7.3) | (1.5) |
Net decrease in cash and cash equivalents | (21.3) | (17.9) | (40.5) |
Cash and cash equivalents at beginning of year | 71.4 | 89.3 | 129.8 |
Cash and cash equivalents at end of year | 50.1 | 71.4 | 89.3 |
Senior Notes – 6.625% | |||
FINANCING ACTIVITIES | |||
Repayment of senior notes | (200) | 0 | 0 |
Senior Notes - 7.25% | |||
FINANCING ACTIVITIES | |||
Repayment of senior notes | $ 0 | $ 0 | $ (200) |
Consolidated Statements of Cas6
Consolidated Statements of Cash Flows (Parenthetical) | Sep. 30, 2014 |
Senior Notes | Senior Notes - 7.25% | |
Interest rate | 7.25% |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 50.1 | $ 71.4 |
Accounts receivable, less allowances of $7.2 in 2016 and $6.5 in 2015 | 196.4 | 157.7 |
Accounts receivable pledged | 174.7 | 152.9 |
Inventories | 448.2 | 395.8 |
Assets held for sale | 0 | 220.3 |
Prepaid and other current assets | 122.3 | 121.1 |
Total current assets | 991.7 | 1,119.2 |
Investment in unconsolidated affiliates | 101 | 0 |
Property, plant and equipment, net | 470.8 | 444.1 |
Goodwill | 373.2 | 283.8 |
Intangible assets, net | 750.9 | 655.1 |
Other assets | 121.2 | 25 |
Total assets | 2,808.8 | 2,527.2 |
Current liabilities: | ||
Current portion of debt | 185 | 132.6 |
Accounts payable | 165.9 | 193.1 |
Liabilities held for sale | 0 | 41.7 |
Other current liabilities | 242.2 | 251.2 |
Total current liabilities | 593.1 | 618.6 |
Long-term debt | 1,131.1 | 1,025 |
Other liabilities | 350.3 | 250.5 |
Total liabilities | 2,074.5 | 1,894.1 |
Commitments and contingencies (Notes 17, 18 and 19) | ||
Equity: | ||
Common shares and capital in excess of $.01 stated value per share; shares outstanding of 60.3 in 2016 and 61.4 in 2015 | 401.7 | 400.4 |
Retained earnings | 881.8 | 684.2 |
Treasury shares, at cost; 7.8 shares in 2016 and 6.7 shares in 2015 | (451.4) | (357.1) |
Accumulated other comprehensive loss | (116.9) | (106.8) |
Total equity—controlling interest | 715.2 | 620.7 |
Noncontrolling interest | 19.1 | 12.4 |
Total equity | 734.3 | 633.1 |
Total liabilities and equity | $ 2,808.8 | $ 2,527.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 7.2 | $ 6.5 |
Common shares, stated value per share (USD per share) | $ 0.01 | $ 0.01 |
Common shares outstanding (in shares) | 60.3 | 61.4 |
Treasury shares, at cost (in shares) | 7.8 | 6.7 |
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 | Non-controlling Interest |
Equity beginning balance (in shares) at Sep. 30, 2013 | 68.1 | |||||||
Equity beginning balance at Sep. 30, 2013 | $ 0.3 | $ 397.2 | $ 703.4 | $ (312.6) | $ (77.8) | $ 710.5 | ||
Treasury shares, beginning balance (in shares) at Sep. 30, 2013 | 6.1 | |||||||
Noncontrolling interest, beginning balance at Sep. 30, 2013 | $ 0 | |||||||
Total equity, beginning balance at Sep. 30, 2013 | $ 710.5 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
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 | (233) | (233) | (233) | |||||
Treasury share repurchases (in shares) | 2.1 | |||||||
Treasury share purchases | (120) | $ (120) | (120) | |||||
Treasury share issuances (in shares) | (0.8) | |||||||
Treasury share issuances | 27 | 13.3 | $ 40.3 | 27 | ||||
Investment in noncontrolling interest | 13.8 | 0 | ||||||
Investment in noncontrolling interest | 13.8 | |||||||
Equity ending balance (in shares) at Sep. 30, 2014 | 68.1 | |||||||
Equity ending balance at Sep. 30, 2014 | $ 0.3 | 395 | 636.9 | $ (392.3) | (86.2) | 553.7 | ||
Treasury shares, ending balance (in shares) at Sep. 30, 2014 | 7.4 | |||||||
Noncontrolling interest, ending balance at Sep. 30, 2014 | 13.5 | |||||||
Total equity, ending balance at Sep. 30, 2014 | 567.2 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
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 | (112.5) | (112.5) | (112.5) | |||||
Treasury share repurchases (in shares) | 0.2 | |||||||
Treasury share purchases | (14.8) | $ (14.8) | ||||||
Treasury share issuances (in shares) | (0.9) | |||||||
Treasury share issuances | 37.6 | 12.4 | $ 50 | 37.6 | ||||
Equity ending balance (in shares) at Sep. 30, 2015 | 68.1 | |||||||
Equity ending balance at Sep. 30, 2015 | 620.7 | $ 0.3 | 400.1 | 684.2 | $ (357.1) | (106.8) | 620.7 | |
Treasury shares, ending balance (in shares) at Sep. 30, 2015 | 6.7 | |||||||
Noncontrolling interest, ending balance at Sep. 30, 2015 | 12.4 | 12.4 | ||||||
Total equity, ending balance at Sep. 30, 2015 | 633.1 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 315.3 | 315.3 | 315.3 | |||||
Net loss attributable to noncontrolling interest | 0.5 | (0.5) | ||||||
Net income | 314.8 | |||||||
Other comprehensive income (loss) | (10.1) | (10.1) | (10.1) | |||||
Share-based compensation | 21.6 | 21.6 | 21.6 | |||||
Dividends declared | (117.7) | (117.7) | (117.7) | |||||
Treasury share repurchases (in shares) | 1.8 | |||||||
Treasury share purchases | (130.8) | $ (130.8) | (130.8) | |||||
Treasury share issuances (in shares) | (0.7) | |||||||
Treasury share issuances | 16.2 | 20.3 | $ 36.5 | 16.2 | ||||
Investment in noncontrolling interest | 7.2 | 7.2 | ||||||
Equity ending balance (in shares) at Sep. 30, 2016 | 68.1 | |||||||
Equity ending balance at Sep. 30, 2016 | 715.2 | $ 0.3 | $ 401.4 | $ 881.8 | $ (451.4) | $ (116.9) | $ 715.2 | |
Treasury shares, ending balance (in shares) at Sep. 30, 2016 | 7.8 | |||||||
Noncontrolling interest, ending balance at Sep. 30, 2016 | 19.1 | $ 19.1 | ||||||
Total equity, ending balance at Sep. 30, 2016 | $ 734.3 |
Consolidated Statements of Sh10
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (USD per share) | $ 2 | $ 1.91 | $ 1.82 | $ 3.7625 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
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. Prior to April 13, 2016, the Company operated the Scotts LawnService ® business (the “SLS Business”), which provided residential and commercial lawn care, tree and shrub care and pest control services in the United States. On April 13, 2016, pursuant to the terms of the Contribution and Distribution Agreement (the “Contribution Agreement”) between the Company and TruGreen Holding Corporation (“TruGreen Holdings”), the Company completed the contribution of the SLS Business to a newly formed subsidiary of TruGreen Holdings (the “TruGreen Joint Venture”) in exchange for a minority equity interest of 30% in the TruGreen Joint Venture. As a result, effective in its second quarter of fiscal 2016, the Company classified its results of operations for all periods presented to reflect the SLS Business as a discontinued operation and classified the assets and liabilities of the SLS Business as held for sale. See “NOTE 2. DISCONTINUED OPERATIONS” and “NOTE 8. INVESTMENT IN UNCONSOLIDATED AFFILIATES” for further discussion. Refer to “NOTE 22. SEGMENT INFORMATION” for discussion of the Company’s new reportable segments identified effective in the second quarter of fiscal 2016. 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 the Company’s 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 the Company’s annual net sales. The Company follows a 13-week quarterly accounting cycle pursuant to which the first three fiscal quarters end on a Saturday and the fiscal year always ends on September 30. This fiscal calendar convention requires the Company to cycle forward the first three fiscal quarter ends every six years. Fiscal 2016 is the most recent year impacted by this process and, as a result, the first quarter of fiscal 2016 had six additional days and the fourth quarter of fiscal 2016 had five fewer days compared to the corresponding quarters of fiscal 2015. 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”), and Gavita Holdings B.V., and its subsidiaries (collectively, “Gavita”), in which the Company has controlling interests, are 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, 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”), pursuant to which the Company has served, since its 1998 fiscal year, as the exclusive agent to the Monsanto Company (“Monsanto”) for the marketing and distribution of consumer Roundup ® herbicide products, 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 the “Cost of sales” line and the reimbursement of these costs in the “Net sales” line in the Consolidated Statement of Operations, with no effect on gross profit dollars or net income. Under the terms of the Marketing, R&D and Ancillary Services Agreement (the “Services Agreement”) with Bonnie Plants, Inc. (“Bonnie”) and its sole shareholder, Alabama Farmers Cooperative, Inc. (“AFC”), entered into in the second quarter of fiscal 2016, the Company provides marketing, research and development and certain ancillary services to Bonnie for reimbursement of certain costs and a commission fee earned based on a percentage of the growth in earnings before interest, income taxes and amortization of Bonnie’s business of planting, growing, developing, manufacturing, distributing, marketing, and selling live plants, plant food, fertilizer and potting soil (the “Bonnie Business”). The commission earned under the Services Agreement is included in the “Net sales” line in the Consolidated Statements of Operations. Additionally, the Company records costs incurred under the Services Agreement for which the Company is the primary obligor on a gross basis, recognizing such costs in the “Cost of sales” line and the reimbursement of these costs in the “Net sales” line, 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 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, 2016 and 2015 were $0.2 million and $0.7 million , respectively. Advertising expenses were $132.2 million in fiscal 2016 , $133.2 million in fiscal 2015 and $132.1 million in fiscal 2014 . Research and Development All costs associated with research and development are charged to expense as incurred. Expenses for fiscal 2016 , fiscal 2015 and fiscal 2014 were $45.5 million , $44.4 million and $46.0 million , respectively, including product registration costs of $14.3 million , $13.0 million and $12.5 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 $10.8 million and $17.8 million at September 30, 2016 and 2015 , respectively. Loans Receivable Loans receivable are carried at outstanding principal amount, and are recognized in the “Other assets” line in the Consolidated Balance Sheets. Loans receivable are impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. 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 the present value of expected future cash flows and recorded within “Operating expenses” in the Consolidated Statements of Operations. Interest income is recorded on an accrual basis, and is recognized in the “Other income, net” line in the Consolidated Statements of Operations. Interest income is recorded on an accrual basis, and is recognized in the “Other income, net” line in the Consolidated Statements of Operations. Interest income was $3.9 million for fiscal 2016 and zero for fiscal 2015 and fiscal 2014. Long-Lived Assets Property, plant and equipment are stated at cost. Interest capitalized in property, plant and equipment amounted to $0.3 million , $0.4 million and $0.4 million during fiscal 2016 , fiscal 2015 and fiscal 2014 , 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 non-cash investing activities of $12.4 million , $8.5 million and $7.0 million during fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively, representing unpaid liabilities incurred during each fiscal year to acquire property, plant and equipment. Statements of Cash Flows Supplemental cash flow information was as follows for fiscal 2016 , fiscal 2015 and fiscal 2014 : Year Ended September 30, 2016 2015 2014 (In millions) Interest paid $ (54.1 ) $ (47.6 ) $ (46.9 ) Call premium on 6.625% Senior Notes (6.6 ) — — Call premium on 7.25% Senior Notes — — (7.3 ) Income taxes paid (80.9 ) (108.3 ) (55.3 ) The Company uses the “cumulative earnings” approach for determining cash flow presentation of distributions from unconsolidated affiliates. Distributions received are included in the Consolidated Statements of Cash Flows as operating activities, unless the cumulative distributions exceed the portion of the cumulative equity in the net earnings of the unconsolidated affiliate, in which case the excess distributions are deemed to be returns of the investment and are classified as investing activities in the Consolidated Statements of Cash Flows. 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, 2016 and 2015 , the Company had $11.3 million and $18.3 million , respectively, in unamortized capitalized internal use computer software costs. Amortization of these costs was $6.8 million , $6.0 million and $8.3 million during fiscal 2016 , fiscal 2015 and fiscal 2014 , 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 five 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 amended accounting guidance that replaces most existing revenue recognition guidance under GAAP. 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. Subsequently, additional guidance was issued on several areas including guidance intended to improve the operability and understandability of the implementation of principal versus agent considerations and clarifications on the identification of performance obligations and implementation of guidance related to licensing. 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 retrospectively for the Company’s financial statements for the fiscal year beginning October 1, 2016. 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. The Company had unamortized debt issuance costs of $16.7 million and $11.3 million at September 30, 2016 and 2015 , respectively. 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 the Company’s financial statements no later than the fiscal year beginning October 1, 2016 and are not expected to have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. Income Taxes In November 2015, the FASB issued an accounting standard update to simplify the presentation of deferred income taxes by requiring that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The provisions are effective for the Company’s financial statements no later than the fiscal year beginning October 1, 2017. The standard allows for either a retrospective or prospective transition method and is not expected to have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. At September 30, 2016 , net current deferred tax assets classified with prepaid and other current assets were $62.1 million . Leases In February 2016, the FASB issued an accounting standard update which significantly changes the accounting for leases. This guidance requires lessees to recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The provisions are effective for the Company’s financial statements no later than the fiscal year beginning October 1, 2019 and require a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated results of operations, financial position and cash flows. Share-Based Compensation In March 2016, the FASB issued an accounting standard update that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The provisions are effective for the Company’s financial statements no later than the fiscal year beginning October 1, 2017. The Company is currently evaluating the impact of this standard on its consolidated results of operations, financial position and cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Scotts LawnService ® On April 13, 2016, pursuant to the terms of the Contribution Agreement, the Company completed the contribution of the SLS Business to the TruGreen Joint Venture in exchange for a minority equity interest of 30% in the TruGreen Joint Venture. As a result, effective in its second quarter of fiscal 2016, the Company classified its results of operations for all periods presented to reflect the SLS Business as a discontinued operation and classified the assets and liabilities of the SLS Business as held for sale. The Company’s gain on the contribution of $131.2 million , partially offset by the provision for deferred income taxes of $51.9 million , has been recorded in fiscal 2016 within results from 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 $1.0 million in 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 SLS Business and the wild bird food business within discontinued operations for each of the periods presented: Year Ended September 30, 2016 2015 2014 (In millions) Net sales $ 101.2 $ 288.5 $ 281.1 Operating costs 117.4 258.6 252.7 Impairment, restructuring and other 13.6 1.4 1.0 Other income, net (1.5 ) (4.0 ) (4.0 ) Gain on sale of wild bird food assets — — (1.2 ) Gain on contribution of SLS Business (131.2 ) — — Income (loss) from discontinued operations before income taxes 102.9 32.5 32.6 Income tax expense from discontinued operations 41.4 11.6 11.9 Income (loss) from discontinued operations, net of tax $ 61.5 $ 20.9 $ 20.7 The following table summarizes the major classes of assets and liabilities of the SLS Business for each of the periods presented: Year Ended September 30, 2015 (In millions) Accounts receivable, net $ 33.6 Inventories 11.8 Prepaid and other assets 8.3 Property, plant and equipment, net 9.6 Goodwill and intangible assets, net 157.0 Assets held for sale $ 220.3 Current portion of debt $ 2.2 Accounts payable 4.8 Other current liabilities 29.2 Long-term debt 3.5 Other liabilities 2.0 Liabilities held for sale $ 41.7 The Consolidated Statements of Cash Flows do not present the cash flows from discontinued operations separately from cash flows from continuing operations. Cash provided by operating activities from the SLS Business was $26.8 million , $28.2 million and $19.2 million for fiscal 2016, fiscal 2015 and fiscal 2014, respectively. Cash used in investing activities related to the SLS Business was $1.4 million , $24.3 million and $3.4 million for fiscal 2016, fiscal 2015 and fiscal 2014, respectively. |
IMPAIRMENT, RESTRUCTURING AND O
IMPAIRMENT, RESTRUCTURING AND OTHER | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES | IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES Activity described herein is classified within the “Cost of sales—impairment, restructuring and other,” “Impairment, restructuring and other” and “Income from discontinued operations, net of tax” lines in the Consolidated Statements of Operations. The following table details impairment, restructuring and other charges during fiscal 2016 , fiscal 2015 and fiscal 2014 : Year Ended September 30, 2016 2015 2014 (In millions) Cost of sales—impairment, restructuring and other: Restructuring and other charges $ 7.7 $ 6.6 $ — Operating expenses: Restructuring and other (recoveries) charges (47.2 ) 76.6 16.3 Goodwill and intangible asset impairments — — 33.7 Impairment, restructuring and other (recoveries) charges from continuing operations $ (39.5 ) $ 83.2 $ 50.0 Restructuring and other (recoveries) charges from discontinued operations 13.6 1.4 1.0 Total impairment, restructuring and other (recoveries) charges $ (25.9 ) $ 84.6 $ 51.0 The following table summarizes the activity related to liabilities associated with the restructuring and other, excluding insurance reimbursement recoveries, during fiscal 2016 , fiscal 2015 and fiscal 2014 : Year Ended September 30, 2016 2015 2014 (In millions) Amounts reserved for restructuring and other at beginning of year $ 28.1 $ 16.0 $ 11.1 Restructuring and other charges from continuing operations 16.4 83.2 16.3 Restructuring and other charges from discontinued operations 13.6 1.4 1.0 Payments and other (37.3 ) (72.5 ) (12.4 ) Amounts reserved for restructuring and other at end of year $ 20.8 $ 28.1 $ 16.0 Included in the restructuring reserves, as of September 30, 2016 , is $1.5 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 2016 In the first quarter of fiscal 2016, the Company announced a series of initiatives called Project Focus designed to maximize the value of its non-core assets and focus on emerging categories of the lawn and garden industry in its core U.S. business. On April 13, 2016, as part of this project, the Company completed the contribution of the SLS Business to the TruGreen Joint Venture. As a result, effective in its second quarter of fiscal 2016, the Company classified its results of operations for all periods presented to reflect the SLS Business as a discontinued operation and classified the assets and liabilities of the SLS Business as held for sale. Refer to “NOTE 2. DISCONTINUED OPERATIONS” for more information. During fiscal 2016, the Company recognized a charge of $9.0 million for the resolution of a prior SLS Business litigation matter, as well as $4.6 million in transaction related costs associated with the divestiture of the SLS Business within the “Income from discontinued operations, net of tax” line in the Consolidated Statements of Operations. In addition, during fiscal 2016, the Company recognized restructuring costs related to termination benefits of $3.4 million within the U.S. Consumer segment and $2.0 million within the Europe Consumer segment, as well as costs of $4.6 million related to other transaction activity within the “Impairment, restructuring and other” line in the Consolidated Statements of Operations. During the third quarter of fiscal 2015, the Company’s U.S. Consumer segment began experiencing an increase in certain consumer complaints related to the reformulated Bonus ® S fertilizer product sold in the southeastern United States during fiscal 2015 indicating customers were experiencing damage to their lawns after application. During fiscal 2016, the Company recognized $6.4 million in costs related to resolving these consumer complaints and the recognition of costs the Company expects to incur for current and expected consumer claims. Costs incurred through September 30, 2016 since the inception of this matter, excluding insurance reimbursement recoveries, are $73.8 million . The Company has received reimbursement payments of $60.8 million through the end of fiscal 2016, including $40.9 million received during fiscal 2016. The Company recorded offsetting insurance reimbursement recoveries upon resolution of the insurer’s review of claim documentation in the amount of $4.9 million in fiscal 2015 and $55.9 million in fiscal 2016. 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 costs for fiscal 2015 include $4.3 million of costs related to the acceleration of equity compensation expense, and were comprised of $3.7 million related to the U.S. Consumer segment, $10.3 million related to the Europe Consumer segment, $0.2 million related to the Other segment and $6.6 million related to Corporate. In addition, costs of $1.4 million related to the SLS Business were recognized within the “Income from discontinued operations, net of tax” line in the Consolidated Statements of Operations. During fiscal 2015, the Company recognized $62.4 million in costs related to consumer complaints and claims related to the reformulated Bonus ® S fertilizer product sold in the southeastern United States during fiscal 2015. 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 U.S. 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, including $1.0 million related to the SLS Business recognized within the “Income from discontinued operations, net of tax” line in the Consolidated Statements of Operations. 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. 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. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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: U.S. Consumer Europe Consumer Other Total (In millions) Goodwill $ 202.5 $ 58.5 $ 20.8 $ 281.8 Accumulated impairment losses (1.8 ) (58.5 ) (2.5 ) (62.8 ) Balance at September 30, 2014 200.7 — 18.3 219.0 Acquisitions, net of purchase price adjustments and foreign currency translation 10.6 — 54.2 64.8 Goodwill $ 213.1 $ 58.5 $ 75.0 $ 346.6 Accumulated impairment losses (1.8 ) (58.5 ) (2.5 ) (62.8 ) Balance at September 30, 2015 211.3 — 72.5 283.8 Acquisitions, net of purchase price adjustments and foreign currency translation 0.6 — 88.8 89.4 Goodwill $ 213.7 $ 58.5 $ 161.3 $ 433.5 Accumulated impairment losses (1.8 ) (58.5 ) — (60.3 ) Balance at September 30, 2016 $ 211.9 $ — $ 161.3 $ 373.2 The following table presents intangible assets, net: September 30, 2016 September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Finite-lived intangible assets: Technology $ 70.3 $ (59.2 ) $ 11.1 $ 69.7 $ (56.9 ) $ 12.8 Customer accounts 144.7 (41.2 ) 103.5 95.6 (32.1 ) 63.5 Tradenames 150.7 (22.3 ) 128.4 94.6 (16.9 ) 77.7 Other 97.9 (74.8 ) 23.1 88.7 (72.4 ) 16.3 Total finite-lived intangible assets, net 266.1 170.3 Indefinite-lived intangible assets: Indefinite-lived tradenames 184.8 184.8 Marketing Agreement Amendment 188.3 188.3 Brand Extension Agreement 111.7 111.7 Total indefinite-lived intangible assets 484.8 484.8 Total intangible assets, net $ 750.9 $ 655.1 Fiscal 2016 As a result of the annual impairment review in the fourth quarter of fiscal 2016, 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, the Marketing Agreement Amendment, and Brand Extension Agreement had an estimated fair value substantially in excess of its carrying value as of the annual test date. 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 U.S. 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. Total amortization expense for the years ended September 30, 2016 , 2015 , and 2014 was $18.8 million , $15.7 million and $13.0 million , respectively. Amortization expense is estimated to be as follows for the years ending September 30 (in millions): 2017 $ 19.2 2018 18.5 2019 17.2 2020 16.4 2021 15.9 |
DETAIL OF CERTAIN FINANCIAL STA
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS | DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS The following is detail of certain financial statement accounts: September 30, 2016 2015 (In millions) INVENTORIES: Finished goods $ 248.7 $ 218.9 Work-in-progress 56.9 48.3 Raw materials 142.6 128.6 $ 448.2 $ 395.8 PREPAID AND OTHER CURRENT ASSETS: Deferred tax asset $ 62.1 $ 78.2 Accounts receivable, non-trade 17.7 10.9 Other 42.5 32.0 $ 122.3 $ 121.1 September 30, 2016 2015 (In millions) PROPERTY, PLANT AND EQUIPMENT, NET: Land and improvements $ 113.0 $ 96.5 Buildings 249.1 219.7 Machinery and equipment 552.2 538.3 Furniture and fixtures 39.8 36.8 Software 114.8 111.5 Aircraft 6.7 6.7 Construction in progress 28.5 28.5 1,104.1 1,038.0 Less: accumulated depreciation (633.3 ) (593.9 ) $ 470.8 $ 444.1 OTHER ASSETS: Unamortized debt issuance costs $ 16.7 $ 11.3 Loans receivable 90.0 — Other 14.5 13.7 $ 121.2 $ 25.0 September 30, 2016 2015 (In millions) OTHER CURRENT LIABILITIES: Payroll and other compensation accruals $ 72.6 $ 56.5 Advertising and promotional accruals 65.8 67.0 Other 103.8 127.7 $ 242.2 $ 251.2 OTHER NON-CURRENT LIABILITIES: Accrued pension and postretirement liabilities $ 94.8 $ 92.5 Deferred tax liabilities 219.1 125.4 Other 36.4 32.6 $ 350.3 $ 250.5 September 30, 2016 2015 2014 (In millions) ACCUMULATED OTHER COMPREHENSIVE LOSS: Unrecognized loss on derivatives, net of tax of $2.8, $5.6 and $4.3 $ (4.7 ) $ (9.0 ) $ (6.9 ) Pension and other postretirement liabilities, net of tax of $41.2, $39.3 and $38.6 (66.9 ) (63.7 ) (62.4 ) Foreign currency translation adjustment (45.3 ) (34.1 ) (16.9 ) $ (116.9 ) $ (106.8 ) $ (86.2 ) |
MARKETING AGREEMENT
MARKETING AGREEMENT | 12 Months Ended |
Sep. 30, 2016 | |
Marketing Agreement [Abstract] | |
MARKETING AGREEMENT | MARKETING AGREEMENT The Scotts Company LLC (“Scotts LLC”) and Monsanto are parties to 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 $20.0 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 twenty years, with a remaining unamortized amount of $1.6 million and remaining amortization period of two years as of September 30, 2016 . 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) $200.0 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 is 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 twenty years, which will automatically renew for additional successive twenty 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 thirty years (subject to early termination upon a termination event under the Marketing Agreement or the Brand Extension Agreement). The Company recorded the $300.0 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 the “Cost of sales” line and the reimbursement of these costs in the “Net sales” line in the Consolidated Statement of Operations, 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 2016 2015 2014 (In millions) Gross commission $ 109.1 $ 88.7 $ 85.2 Contribution expenses (20.0 ) (20.0 ) (20.0 ) Amortization of marketing fee (0.8 ) (0.8 ) (0.8 ) Net commission income 88.3 67.9 64.4 Reimbursements associated with Marketing Agreement 65.5 63.3 63.0 Total net sales associated with Marketing Agreement $ 153.8 $ 131.2 $ 127.4 |
ACQUISITIONS AND INVESTMENTS
ACQUISITIONS AND INVESTMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND INVESTMENTS | ACQUISITIONS AND INVESTMENTS Fiscal 2016 On May 26, 2016, the Company, through its wholly-owned subsidiary The Hawthorne Gardening Company, acquired majority control and a 75% economic interest in Gavita for $136.2 million . The remaining 25% interest was retained by Gavita’s former ownership group. This transaction provides the Company’s Other segment with a presence in the lighting category of indoor and urban gardening, which is a part of the Company’s long-term growth strategy. Gavita, which is based in the Netherlands, is a leading producer and marketer of indoor lighting used in the greenhouse and hydroponic markets, predominately in the United States and Europe. The purchase price includes contingent consideration with an estimated fair value of $2.5 million , the payment of which will depend on the performance of the business through calendar year 2019. The preliminary valuation of the acquired assets included (i) $6.4 million of cash, prepaid and other current assets, (ii) $38.3 million of inventory and accounts receivable, (iii) $1.5 million in fixed assets, (iv) $18.7 million of accounts payable and other current liabilities, (v) $5.5 million of short term debt, (vi) $102.6 million of finite-lived identifiable intangible assets, (vii) $82.7 million of goodwill, and (viii) $25.7 million of deferred tax liabilities. Identifiable intangible assets included tradenames, customer relationships and non-compete arrangements with useful lives ranging between 5 and 25 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 Gavita included within the Other segment for fiscal 2016 were $35.7 million . Gavita’s former ownership group has retained a 25% noncontrolling interest in Gavita consisting of ownership of 5% of the outstanding shares of Gavita and a loan with interest payable based on distributions by Gavita. The loan represents a non-cash financing activity and has been recorded at fair value in the “Long-term debt” line in the Consolidated Balance Sheets. The preliminary valuation of the loan was $37.7 million . The fair value measurement was classified in Level 3 of the fair value hierarchy. In the third quarter of fiscal 2016, the Company completed an acquisition within the Other segment to expand its Canadian growing media operations for an estimated purchase price of $33.9 million . The purchase price includes contingent consideration with an estimated fair value of $10.8 million , the payment of which will depend on the performance of the business in fiscal years 2016 and 2017. The preliminary valuation of the acquired assets included (i) $4.7 million of inventory and accounts receivable, (ii) $18.6 million in fixed assets, (iii) $11.4 million of finite-lived identifiable intangible assets, (iv) $1.4 million of deferred tax liabilities, (v) an investment in an unconsolidated joint venture of $0.7 million and (vi) $2.1 million of goodwill. Identifiable intangible assets included peat bog lease rights, tradenames, customer relationships and non-compete arrangements with useful lives ranging between 5 and 25 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 related to this acquisition included within the Other segment for fiscal 2016 were $6.4 million . These acquisitions include non-cash investing activities of $13.3 million representing contingent consideration. The payment of these amounts will depend on the future performance of the business, subject to adjustment for certain contractually defined metrics. On October 3, 2016, the Company, through its wholly-owned subsidiary The Hawthorne Gardening Company, completed the acquisition of American Agritech, L.L.C., d/b/a Botanicare, an Arizona-based leading producer of plant nutrients, plant supplements and growing systems used for hydroponic gardening for an estimated purchase price of $90.0 million . In the second quarter of fiscal 2016, the Company entered into definitive agreements with Bonnie and its sole shareholder, AFC, providing for the Company’s participation in the Bonnie Business. The Company’s participation includes a Term Loan Agreement from the Company to AFC, with Bonnie as guarantor, in the amount of $72.0 million with a fixed coupon rate of 6.95% (the “Term Loan”) as well as a Services Agreement pursuant to which the Company will provide marketing, research and development and certain ancillary services to the Bonnie Business for a commission fee based on the profits of the Bonnie Business and the reimbursement of certain costs. These agreements also include options beginning in fiscal 2020 that provide for either (i) the Company to increase its economic interest in the Bonnie Business or (ii) AFC and Bonnie to repurchase the Company’s economic interest in the Bonnie Business. During fiscal 2016, the Company recognized commission fees of $3.6 million and recognized cost reimbursements of $0.6 million , respectively. The Company’s option to increase its economic interest in the Bonnie Business (the “Bonnie Option”) is required to be accounted for as a derivative instrument and is recorded at fair value in the “Other assets” line in the Consolidated Balance Sheets, with changes in fair value recognized in the “Other income (loss), net” line in the Consolidated Statement of Operations. The estimated fair value of the Bonnie Option was determined using a simulation approach, whereby the total value of the loan receivable and optional exchange for additional equity was estimated considering a distribution of possible future cash flows discounted to present value using an appropriate discount rate. The estimated fair value of the Bonnie Option was $10.9 million as of September 30, 2016, and the fair value measurement was classified in Level 3 of the fair value hierarchy. Fiscal 2015 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 provided the Company’s Other segment with an additional entry into the indoor and urban gardening market, which is a part of the Company’s long-term growth strategy. General Hydroponics and Vermicrop are leading producers of liquid plant food products, growing media, and accessories for the hydroponic markets. The General Hydroponics purchase price included non-cash investing activity of $1.0 million representing the deferral of a portion of the purchase price into fiscal 2016, of which $0.5 million was paid in the second quarter of fiscal 2016. The Vermicrop purchase price included $5.0 million of contingent consideration, which was paid during the third quarter of fiscal 2016. The Vermicrop purchase price and contingent consideration 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 the 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) $53.9 million of tax-deductible goodwill. Identifiable intangible assets included tradenames, customer relationships and non-compete arrangements with useful lives ranging between 5 and 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 Other segment for fiscal 2016 and fiscal 2015 were $64.1 million and $30.9 million , respectively. During fiscal 2015, the Company completed four acquisitions of growing media operations, two within the U.S. Consumer segment and two within the Other segment, for an aggregate purchase price of $40.2 million . These acquisitions expand the Company’s growing media operations and distribution capabilities within its U.S. Consumer and Other segments. The valuation of the acquired assets for the transactions included (i) $10.1 million in finite-lived identifiable intangible assets, (ii) $11.4 million in fixed assets, (iii) $10.6 million in tax deductible goodwill, and (iv) $9.9 million of inventory and accounts receivable. Identifiable intangible assets include tradenames and customer relationships with useful lives ranging between 7 and 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. 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 Other segment for fiscal 2016 , fiscal 2015 and fiscal 2014 were $21.4 million , $17.1 million and $1.7 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 Other segment for fiscal 2016 and fiscal 2015 were $37.5 million and $37.8 million , respectively. During the first quarter of fiscal 2014, in an effort to expand the rodenticide product offerings, the Company completed the $60.0 million all-cash acquisition of the assets of the Tomcat ® consumer rodent control business from Bell Laboratories, Inc. located in Madison, Wisconsin. Tomcat ® consumer products are sold at home centers, mass retailers, and grocery, drug and general merchandise stores across the United States, Canada, Europe and Australia. The valuation of the acquired assets included finite-lived identifiable intangible assets of $39.8 million , and tax deductible goodwill of $18.2 million . Also, the Company received a $2.0 million credit toward the purchase of finished goods in the months subsequent to acquisition date. Identifiable intangible assets included tradename, technology, customer relationships, product registrations and non-compete agreements with useful lives ranging between 10 to 30 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 rate of return. The Company completed an acquisition of the assets of the U.K. based Solus Garden and Leisure Limited (“Solus”) in fiscal 2014 within its Europe 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. The consolidated financial statements include the results of operations for these business combinations from the date of each acquisition. |
INVESTMENT IN UNCONSOLIDATED AF
INVESTMENT IN UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED AFFILIATES | INVESTMENT IN UNCONSOLIDATED AFFILIATES As of September 30, 2016 , the Company held a minority equity interest of 30% in the TruGreen Joint Venture. This interest was initially recorded at an estimated fair value of $294.0 million on the transaction date and subsequently is accounted for using the equity method of accounting, with the Company’s proportionate share of the TruGreen Joint Venture earnings reflected in the Consolidated Statements of Operations. In addition, the Company and TruGreen Holdings entered into a limited liability company agreement (the “LLC Agreement”) governing the management of the TruGreen Joint Venture, as well as certain ancillary agreements including a transition services agreement and an employee leasing agreement. The LLC Agreement provides the Company with minority representation on the board of directors of the TruGreen Joint Venture. In connection with the closing of the transactions contemplated by the Contribution Agreement on April 13, 2016, the TruGreen Joint Venture obtained debt financing and made an excess distribution of $196.2 million to the Company which has been recorded as a return of investment and classified as a cash inflow from investing activities in the Consolidated Statement of Cash Flows. The Company also invested $18.0 million in second lien term loan financing to the TruGreen Joint Venture. The Company was reimbursed $52.6 million during fiscal 2016 , has accounts receivable of $14.9 million at September 30, 2016 for expenses incurred pursuant to a short-term transition services agreement and an employee leasing agreement and has an indemnification asset of $9.6 million at September 30, 2016 for future payments on claims associated with insurance programs. The Company received distributions from unconsolidated affiliates intended to cover required tax payments of $7.5 million during fiscal 2016 . The following tables present summarized financial information for the TruGreen Joint Venture as of September 30, 2016 and for the Company’s fiscal 2016 : September 30, 2016 (in millions) Cash and cash equivalents $ 92.3 Other current assets 159.1 Intangible assets, net 916.8 Goodwill 165.3 Other assets 376.0 Total assets $ 1,709.5 Current liabilities $ 210.9 Current portion of debt 6.9 Long-term debt 726.0 Other liabilities 80.6 Equity 685.1 Total liabilities and equity $ 1,709.5 Year Ended September 30, 2016 (in millions) Net sales $ 808.4 Gross margin 308.6 Depreciation and amortization 51.2 Interest expense 30.8 Selling, general, administrative and other 164.8 Restructuring and other charges 34.8 Net income $ 27.0 The summarized financial information for the TruGreen Joint Venture includes activity from the date of formation of the TruGreen Joint Venture on April 13, 2016 through September 30, 2016 . Net income does not include income taxes, which are recognized and paid by the partners of the TruGreen Joint Venture. The income taxes associated with the Company’s share of net income has been recorded in the “Income tax expense from continuing operations” line in the Consolidated Statement of Operations. The Company recognized equity in income of unconsolidated affiliates of $7.8 million in fiscal 2016 . Included within income of unconsolidated affiliates for fiscal 2016 is the Company’s $11.7 million share of restructuring and other charges incurred by the TruGreen Joint Venture. These charges included $6.0 million for transaction and merger costs, $4.4 million for nonrecurring integration and separation costs and $1.3 million for a non-cash fair value write-down adjustment on deferred revenue and advertising as part of the transaction accounting. At September 30, 2016 , consolidated retained earnings contained undistributed earnings of $0.2 million , net of tax, of unconsolidated affiliates. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
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 $13.0 million , $11.5 million and $11.7 million under the plan in fiscal 2016 , fiscal 2015 and fiscal 2014 , 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. 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. 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 2016 2015 2016 2015 (In millions) Change in projected benefit obligation: Benefit obligation at beginning of year $ 117.3 $ 109.2 $ 198.1 $ 208.3 Service cost — — 1.1 1.2 Interest cost 4.3 4.0 6.5 7.3 Actuarial loss 3.8 11.4 45.5 4.5 Benefits paid (7.2 ) (7.3 ) (8.0 ) (6.4 ) Other — — (0.9 ) (1.1 ) Foreign currency translation — — (26.9 ) (15.7 ) Projected benefit obligation at end of year $ 118.2 $ 117.3 $ 215.4 $ 198.1 Accumulated benefit obligation at end of year $ 118.2 $ 117.3 $ 209.7 $ 192.0 Change in plan assets: Fair value of plan assets at beginning of year $ 83.5 $ 89.8 $ 168.6 $ 166.3 Actual return on plan assets 9.9 (1.4 ) 37.1 13.9 Employer contribution 3.2 2.4 6.1 7.4 Benefits paid (7.2 ) (7.3 ) (8.0 ) (6.4 ) Foreign currency translation — — (26.4 ) (11.5 ) Other — — (0.9 ) (1.1 ) Fair value of plan assets at end of year $ 89.4 $ 83.5 $ 176.5 $ 168.6 Underfunded status at end of year $ (28.8 ) $ (33.8 ) $ (38.9 ) $ (29.5 ) Information for pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 118.2 $ 117.3 $ 215.4 $ 198.1 Accumulated benefit obligation 118.2 117.3 209.7 192.0 Fair value of plan assets 89.4 83.5 176.5 168.6 Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ — $ — $ 0.5 $ 2.4 Current liabilities (0.2 ) (0.2 ) (0.9 ) (0.9 ) Noncurrent liabilities (28.6 ) (33.6 ) (38.5 ) (31.0 ) Total amount accrued $ (28.8 ) $ (33.8 ) $ (38.9 ) $ (29.5 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 46.4 $ 49.2 $ 64.2 $ 57.8 Prior service cost — — 0.3 0.3 Total amount recognized $ 46.4 $ 49.2 $ 64.5 $ 58.1 U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2016 2015 2016 2015 (In millions, except percentage figures) Total change in other comprehensive loss attributable to: Pension benefit (loss) gain during the period $ 1.1 $ (18.2 ) $ (15.8 ) $ 0.5 Reclassification of pension benefit losses to net income 1.8 3.3 1.6 1.7 Foreign currency translation — — 7.8 4.8 Total change in other comprehensive loss $ 2.9 $ (14.9 ) $ (6.4 ) $ 7.0 Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2017 are as follows: Actuarial loss $ 1.7 $ 2.1 Prior service cost — — Amount to be amortized into net periodic benefit cost $ 1.7 $ 2.1 Weighted average assumptions used in development of projected benefit obligation: Discount rate 3.07 % 3.82 % 2.07 % 3.52 % Rate of compensation increase n/a n/a 3.46 % 3.49 % U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2016 2015 2014 2016 2015 2014 (In millions, except percentage figures) Components of net periodic benefit cost: Service cost $ — $ — $ — $ 1.1 $ 1.2 $ 1.2 Interest cost 4.3 4.0 4.5 6.5 7.3 8.3 Expected return on plan assets (5.0 ) (5.4 ) (5.2 ) (7.4 ) (8.9 ) (9.4 ) Net amortization 1.8 3.3 3.7 1.6 1.7 1.4 Net periodic benefit cost 1.1 1.9 3.0 1.8 1.3 1.5 Contractual termination benefits — — — — — 0.3 Total benefit cost $ 1.1 $ 1.9 $ 3.0 $ 1.8 $ 1.3 $ 1.8 Weighted average assumptions used in development of net periodic benefit cost: Discount rate 3.81 % 3.81 % 4.32 % 3.52 % 3.73 % 4.32 % Expected return on plan assets 5.50 % 6.25 % 6.25 % 4.70 % 5.63 % 6.17 % Rate of compensation increase n/a n/a n/a 3.5 % 3.7 % 3.7 % 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, 2017: Equity securities 25 % 30 % Debt securities 70 % 68 % Real estate securities 5 % — % Cash and cash equivalents — % — % Insurance contracts — % 2 % September 30, 2016: Equity securities 23 % 29 % Debt securities 70 % 69 % Real estate securities 4 % — % Cash and cash equivalents 3 % — % 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 % Expected Company contributions in fiscal 2017 $ 3.7 $ 4.7 Expected future benefit payments: 2017 $ 7.7 $ 6.0 2018 7.7 6.3 2019 7.7 6.6 2020 7.7 6.6 2021 7.6 7.0 2022 – 2027 36.5 41.8 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, 2016 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 $ 2.2 $ — $ — $ 2.2 Mutual funds—real estate — 3.8 — 3.8 Mutual funds—equities — 20.9 — 20.9 Mutual funds—fixed income — 62.5 — 62.5 Total $ 2.2 $ 87.2 $ — $ 89.4 International Defined Benefit Pension Plan Assets Cash and cash equivalents $ 0.7 $ — $ — $ 0.7 Insurance contracts — 2.6 — 2.6 Mutual funds—equities — 51.8 — 51.8 Mutual funds—fixed income — 121.4 — 121.4 Total $ 0.7 $ 175.8 $ — $ 176.5 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 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. The decrease in expected long-term rate of return assumptions during fiscal 2016 is driven by a decline in fixed income yields. |
ASSOCIATE MEDICAL BENEFITS
ASSOCIATE MEDICAL BENEFITS | 12 Months Ended |
Sep. 30, 2016 | |
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | |
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. 2016 2015 (In millions, except percentage figures) Change in Accumulated Plan Benefit Obligation (APBO): Benefit obligation at beginning of year $ 26.0 $ 32.4 Service cost 0.2 0.4 Interest cost 1.0 1.3 Plan participants’ contributions 0.5 1.2 Actuarial loss 1.3 2.0 Benefits paid (net of federal subsidy of $0.0 and $0.3) (2.8 ) (3.1 ) Plan changes — (8.2 ) Benefit obligation at end of year $ 26.2 $ 26.0 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contribution 2.3 2.2 Plan participants’ contributions 0.5 1.2 Gross benefits paid (2.8 ) (3.4 ) Fair value of plan assets at end of year $ — $ — Unfunded status at end of year $ (26.2 ) $ (26.0 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ (1.8 ) $ (2.1 ) Noncurrent liabilities (24.4 ) (23.9 ) Total amount accrued $ (26.2 ) $ (26.0 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 4.7 $ 3.4 Unamortized prior service credit (6.9 ) (8.1 ) Total amount recognized $ (2.2 ) $ (4.7 ) Total change in other comprehensive loss attributable to: Benefit loss during the period $ 1.5 $ 2.1 Net prior service credit — (8.2 ) Net amortization of prior service credit and actuarial loss during the year 1.0 — Total change in other comprehensive loss (income) $ 2.5 $ (6.1 ) Discount rate used in development of APBO 3.26 % 4.03 % 2016 2015 2014 Components of net periodic benefit cost Service cost $ 0.2 $ 0.4 $ 0.4 Interest cost 1.0 1.3 1.4 Amortization of actuarial loss 0.1 — — Amortization of prior service credit (1.1 ) — — Total postretirement benefit cost $ 0.2 $ 1.7 $ 1.8 Discount rate used in development of net periodic benefit cost 4.03 % 4.08 % 4.54 % The estimated actuarial loss and prior service credit that will be amortized from accumulated loss into net periodic benefit cost over the next fiscal year is $0.4 million and $1.1 million , respectively. For measurement as of September 30, 2016 , management has assumed that health care costs will increase at an annual rate of 7.00% 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, 2016 and a 1% decrease would decrease the APBO by $0.1 million as of September 30, 2016 . A 1% increase or decrease in the health cost trend rate assumptions would not have a material effect on service or interest costs. On January 1, 2016, a plan change became effective whereby Medicare eligible participants are covered under a Health Reimbursement Arrangement (“HRA”) and a catastrophic prescription drug plan provided by the Company that can 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 during fiscal 2015. 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) 2017 $ 2.1 $ (0.3 ) $ 1.8 2018 2.3 (0.4 ) 1.9 2019 2.5 (0.5 ) 2.0 2020 2.6 (0.6 ) 2.0 2021 2.6 (0.6 ) 2.0 2022 – 2026 11.9 (3.2 ) 8.7 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 $31.8 million , $29.6 million and $29.0 million in fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively. |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The components of long-term debt are as follows: September 30, 2016 2015 (In millions) Credit Facilities: Revolving loans $ 417.4 $ 816.3 Term loans 288.8 — Senior Notes – 6.625% — 200.0 Senior Notes – 6.000% 400.0 — Master Accounts Receivable Purchase Agreement 138.6 122.3 Other 71.3 19.0 1,316.1 1,157.6 Less current portions 185.0 132.6 Long-term debt $ 1,131.1 $ 1,025.0 The Company’s debt matures as follows for each of the next five fiscal years and thereafter (in millions): 2017 $ 185.0 2018 15.7 2019 15.6 2020 15.4 2021 646.1 Thereafter 438.3 $ 1,316.1 Credit Facilities On December 20, 2013 , the Company entered into the third amended and restated 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”). On October 29, 2015 , the Company entered into the 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 original principal amount of $300.0 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 $500.0 million plus an unlimited additional amount, subject to certain specified financial and other conditions. Under the new credit agreement, the Company has the ability to obtain letters of credit up to $100.0 million . 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 include customary representations and warranties, 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 new credit agreement, loans bear interest, at the Company’s election, at a rate per annum equal to either the ABR or Adjusted LIBO Rate (both as defined in the new credit agreement) plus the applicable margin. The new credit facilities are guaranteed by substantially all of the Company’s domestic subsidiaries, and are secured by (i) a perfected first priority security interest in all of the accounts receivable, inventory and equipment of the Company and 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. At September 30, 2016 , the Company had letters of credit outstanding in the aggregate principal amount of $26.5 million , and $1.2 billion of availability under the new credit agreement, subject to the Company’s continued compliance with the covenants discussed below. The weighted average interest rates on average borrowings under the new credit agreement and the former credit facility were 3.5% and 4.0% for fiscal 2016 and fiscal 2015, respectively. The new credit agreement contains, among other obligations, an affirmative covenant regarding the Company’s leverage ratio on the last day of each quarter 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 agreement (“Adjusted EBITDA”). The maximum leverage ratio was 4.50 as of September 30, 2016 . The Company’s leverage ratio was 3.10 at September 30, 2016 . 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, 2016 . The Company’s interest coverage ratio was 7.88 for the twelve months ended September 30, 2016 . The new credit agreement allows 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, as 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 in the new credit agreement for such fiscal year ( $175.0 million for fiscal 2017 and $200.0 million for fiscal 2018 and each fiscal year thereafter). Senior Notes - 6.625% On December 15, 2015, Scotts Miracle-Gro redeemed all $200.0 million aggregate principal amount of its outstanding 6.625% senior notes due 2020 (the “ 6.625% Senior Notes”) paying a redemption price of $213.2 million , comprised of $6.6 million of accrued and unpaid interest, $6.6 million of call premium and $200.0 million for outstanding principal amount. The $6.6 million call premium charge was recognized within the “Costs related to refinancing” line on the Consolidated Statement of Operations in the first quarter of fiscal 2016. Additionally, the Company had $2.2 million in unamortized bond discount and issuance costs associated with the 6.625% Senior Notes that were written off and recognized in the “Costs related to refinancing” line on the Consolidated Statement of Operations in the first quarter of fiscal 2016. Senior Notes - 6.000% On October 13, 2015, Scotts Miracle-Gro issued $400.0 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. The 6.000% Senior Notes may be redeemed, in whole or in part, on or after October 15, 2018 at applicable redemption premiums. The 6.000% Senior Notes contain customary covenants and events of default and 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 (outside of the commitment period specified in the MARP Agreement) 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 $400.0 million . The MARP Agreement is subject to renewal by mutual agreement at least annually. On March 23, 2016, Scotts Miracle-Gro and Scotts LLC entered into a Waiver and First Amendment to the MARP Agreement that amends the MARP Agreement in the following significant respects: (1) includes subsidiaries and affiliates of the approved debtors in the definition of approved debtors; (2) requires Scotts LLC to repurchase all receivables (including any defaulted receivables) from the banks on each settlement date; and (3) provides the administrative agent and the banks with full recourse to Scotts LLC in case of non-payment of any purchased receivable on the maturity date thereof, regardless of the reason for such non-payment. Under the terms of the amended 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 LIBO rate plus 0.95%. The Company accounts for the sale of receivables under the MARP Agreement (as amended) as short-term debt and continues to carry the receivables on its Consolidated Balance Sheet, primarily as a result of the Company’s requirement to repurchase receivables sold. There were $138.6 million and $122.3 million in borrowings or receivables pledged as collateral under the MARP Agreement at September 30, 2016 and 2015 , respectively. The carrying value of the receivables pledged as collateral was $174.7 million at September 30, 2016 and $152.9 million at September 30, 2015 . As of September 30, 2016 , there was $7.6 million of availability under the MARP Agreement. On August 25, 2016, Scotts Miracle-Gro and Scotts LLC entered into a Second Amendment to the MARP Agreement that extended the stated termination date of the Agreement through October 14, 2016. The MARP Agreement terminated effective October 14, 2016 in accordance with its terms. Other In connection with the acquisition of a controlling interest in Gavita, the Company recorded a loan to the noncontrolling ownership group of Gavita. The fair value of the loan was $38.3 million at September 30, 2016. 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 $650.0 million and $1,300.0 million at September 30, 2016 and September 30, 2015 . Interest payments made between the effective date and expiration date are hedged by the swap agreements, except as noted below, respectively. On November 1, 2016, the Company executed interest rate swap agreements with notional amounts that adjust in accordance with a specified seasonal schedule and have a maximum total notional amount at any point in time of $500.0 million . These swap agreements effectively convert the LIBOR index on a portion of the Company’s variable-rate debt to a fixed rate of approximately 0.83% beginning in November 2016 through expiration dates in June and August 2018. The notional amount, effective date, expiration date and rate of each of these swap agreements outstanding at September 30, 2016 are shown in the table below. Notional Amount (in millions) Effective Date (a) Expiration Date Fixed Rate $ 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 The methods and assumptions used to estimate the fair values of the Company’s debt instruments are described below: Credit Facilities The interest rate currently available to the Company fluctuates with the applicable LIBO 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 new credit facilities was classified in Level 2 of the fair value hierarchy. 6.000% Senior Notes The fair value of the 6.000% Senior Notes can be determined based on the trading of the 6.000% Senior Notes in the open market. The difference between the carrying value and the fair value of the 6.000% Senior Notes represents the premium or discount on that date. The fair value measurement for the 6.000% Senior Notes was classified in Level 1 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 represented 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. Accounts Receivable Pledged The interest rate on the short-term debt associated with accounts receivable pledged under the MARP Agreement fluctuated with the applicable LIBO rate and thus the carrying value represented 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, 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Revolving loans $ 417.4 $ 417.4 $ 816.3 $ 816.3 Term loans 288.8 288.8 — — Senior Notes – 6.625% — — 200.0 206.3 Senior Notes – 6.000% 400.0 427.0 — — Master Accounts Receivable Purchase Agreement 138.6 138.6 122.3 122.3 Other 71.3 71.3 19.0 19.0 Weighted Average Interest Rate The weighted average interest rate on the Company’s debt was 4.2% for fiscal 2016 and fiscal 2015 . |
EQUITY
EQUITY | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
EQUITY | EQUITY Authorized and issued shares consisted of the following: September 30, 2016 2015 (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, 2016 , 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. Share Repurchases 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 ending on 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. In August 2014, the Scotts Miracle-Gro Board of Directors authorized the repurchase of up to $500.0 million of Common Shares over a five -year period (effective November 1, 2014 through September 30, 2019). On August 3, 2016, Scotts Miracle-Gro announced that its Board of Directors authorized a $500.0 million increase to the share repurchase authorization ending on September 30, 2019. The amended authorization allows for repurchases of Common Shares of $1.0 billion 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, 2016 , Scotts Miracle-Gro repurchased approximately 2.1 million Common Shares for $145.7 million . Special Dividend In August 2014, the Scotts Miracle-Gro Board of Directors declared 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 units, deferred stock units and performance-based awards. 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 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, 2016 , approximately 1.9 million Common Shares were not subject to outstanding awards and were available to underlie the grant of new share-based awards. Common Shares held in treasury totaling 0.6 million and 0.9 million were reissued in support of share-based compensation awards and employee purchases under the employee stock purchase plan during fiscal 2016 and fiscal 2015 , respectively. The following is a recap of the share-based awards granted during the periods indicated: Year Ended September 30, 2016 2015 2014 Employees Options 444,890 440,690 — Restricted stock units 74,467 78,463 112,315 Performance units 56,315 78,352 161,229 Board of Directors Deferred stock units 28,621 29,913 38,418 Options due to special $2.00 dividend — — 98,186 Total share-based awards 604,293 627,418 311,962 Aggregate fair value at grant dates (in millions) $ 16.4 $ 17.0 $ 17.5 Total share-based compensation was as follows for the periods indicated: Year Ended September 30, 2016 2015 2014 (In millions) Share-based compensation $ 15.6 $ 13.2 $ 11.1 Tax benefit recognized 6.0 5.1 3.9 As of September 30, 2016 , total unrecognized compensation cost related to non-vested share-based awards amounted to $10.3 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 $15.1 million for fiscal 2016 . During fiscal 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. During fiscal 2016, Scotts Miracle-Gro issued 0.1 million Common Shares, which represented a carrying value of $4.2 million , out of its treasury shares for payment of contingent consideration related to the acquisition of Vermicrop. Stock Options/SARs Aggregate stock option and SAR activity consisted of the following for fiscal 2016 (options/SARs in millions): No. of Options/SARs WTD. Avg. Exercise Price Beginning balance 1.8 $ 44.38 Granted 0.4 68.68 Exercised (0.4 ) 38.21 Forfeited — — Ending balance 1.8 51.38 Exercisable 1.0 38.42 At September 30, 2016 , the Company expects 0.8 million of the remaining unexercisable stock options (after forfeitures), with a weighted-average exercise price of $66.09 , intrinsic value of $12.9 million and average remaining term of 8.8 years , to vest in the future. The following summarizes certain information pertaining to stock option awards outstanding and exercisable at September 30, 2016 (options 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 – $20.59 0.2 2.01 $ 20.59 0.2 2.01 $ 20.59 $30.07 – $36.86 0.2 1.09 36.47 0.2 1.09 36.47 $38.81 – $49.19 0.6 4.43 45.42 0.6 4.43 45.42 $63.43 – $68.68 0.8 8.86 66.24 — 0 — 1.8 5.89 $ 51.38 1.0 3.31 $ 38.42 The intrinsic value of the stock option and SAR awards outstanding and exercisable at September 30, 2016 were as follows (in millions): 2016 Outstanding $ 57.7 Exercisable 43.3 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 2016 are as follows: 2016 Expected market price volatility 25.5 % Risk-free interest rates 1.5 % Expected dividend yield 2.7 % Expected life of stock options in years 6.0 Estimated weighted-average fair value per stock option $ 12.33 The total intrinsic value of stock options exercised was $13.6 million , $16.3 million and $21.3 million during fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively. Cash received from the exercise of stock options for fiscal 2016 , fiscal 2015 and fiscal 2014 was $14.7 million , $24.3 million and $20.0 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, 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 Granted 103,088 69.00 Vested (161,440 ) 47.21 Forfeited (17,494 ) 60.18 Awards outstanding at September 30, 2016 305,663 66.31 The total fair value of restricted stock units and deferred stock units vested was $7.6 million , $6.2 million and $3.4 million during fiscal 2016 , fiscal 2015 and fiscal 2014 , 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, 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 Granted 56,315 68.68 Vested (128,941 ) 45.06 Forfeited — — Awards outstanding at September 30, 2016 266,598 62.52 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
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 0.2 million and 0.3 million for the years ended September 30, 2016 and 2015, respectively. There were no Common Shares covered by out-of-the-money options for the year ended September 30, 2014 . The following table presents information necessary to calculate basic and diluted income per Common Share. Year Ended September 30, 2016 2015 2014 (In millions, except per share data) Income attributable to controlling interest from continuing operations $ 253.8 $ 138.9 $ 145.8 Income from discontinued operations 61.5 20.9 20.7 Net income attributable to controlling interest $ 315.3 $ 159.8 $ 166.5 BASIC EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.1 61.6 Income from continuing operations $ 4.15 $ 2.27 $ 2.37 Income from discontinued operations 1.01 0.35 0.33 Net income $ 5.16 $ 2.62 $ 2.70 DILUTED EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.1 61.6 Dilutive potential Common Shares 0.9 1.1 1.1 Weighted-average number of Common Shares outstanding and dilutive potential Common Shares 62.0 62.2 62.7 Income from continuing operations $ 4.09 $ 2.23 $ 2.32 Income from discontinued operations 1.00 0.34 0.33 Net income $ 5.09 $ 2.57 $ 2.65 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision (benefit) for income taxes allocated to continuing operations consisted of the following: Year Ended September 30, 2016 2015 2014 (In millions) Current: Federal $ 93.4 $ 63.8 $ 60.2 State 12.4 8.3 7.5 Foreign 4.4 2.2 3.5 Total Current 110.2 74.3 71.2 Deferred: Federal 28.2 (1.0 ) 7.9 State 2.3 1.2 1.2 Foreign (1.3 ) (0.7 ) (0.1 ) Total Deferred 29.2 (0.5 ) 9.0 Provision for income taxes $ 139.4 $ 73.8 $ 80.2 The domestic and foreign components of income from continuing operations before income taxes were as follows: Year Ended September 30, 2016 2015 2014 (In millions) Domestic $ 362.3 $ 185.2 $ 200.1 Foreign 30.4 26.4 25.6 Income from continuing operations before income taxes $ 392.7 $ 211.6 $ 225.7 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, 2016 2015 2014 Statutory income tax rate 35.0 % 35.0 % 35.0 % Effect of foreign operations 0.1 (0.6 ) 1.7 State taxes, net of federal benefit 2.7 3.2 2.7 Domestic Production Activities Deduction permanent difference (2.5 ) (3.2 ) (2.7 ) Effect of other permanent differences 0.3 0.1 0.3 Research and Experimentation and other federal tax credits (0.2 ) (0.2 ) (0.9 ) Resolution of prior tax contingencies (0.2 ) 0.4 0.2 Other 0.3 0.2 (0.7 ) Effective income tax rate 35.5 % 34.9 % 35.6 % 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, 2016 2015 (In millions) DEFERRED TAX ASSETS Inventories $ 10.8 $ 14.1 Accrued liabilities 58.8 71.6 Postretirement benefits 33.3 30.3 Accounts receivable 6.3 8.3 State NOL carryovers 0.6 1.0 Foreign NOL carryovers 45.3 45.0 Foreign tax credit carryovers 7.4 8.6 Interest rate swaps 2.4 4.9 Other 3.4 3.3 Gross deferred tax assets 168.3 187.1 Valuation allowance (45.1 ) (45.8 ) Total deferred tax assets 123.2 141.3 DEFERRED TAX LIABILITIES Property, plant and equipment (65.7 ) (59.7 ) Intangible assets (114.2 ) (114.8 ) Outside basis difference in equity investments (83.3 ) — Other (17.0 ) (14.0 ) Total deferred tax liabilities (280.2 ) (188.5 ) Net deferred tax liability $ (157.0 ) $ (47.2 ) The net current and non-current components of deferred income taxes recognized in the Consolidated Balance Sheets were: September 30, 2016 2015 (In millions) Net current deferred tax assets (classified with prepaid and other current assets) $ 62.1 $ 78.2 Net non-current deferred tax liabilities (classified with other liabilities) (219.1 ) (125.4 ) Net deferred tax liability $ (157.0 ) $ (47.2 ) 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 $45.1 million and $45.8 million of deferred tax assets as of September 30, 2016 and 2015 , 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 $171.5 million at September 30, 2016 , 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 $40.7 million and $41.2 million for the years ended September 30, 2016 and 2015 , respectively. Foreign net operating losses of certain controlled foreign corporations were $17.8 million as of September 30, 2016 , the majority of which have indefinite carryforward periods. Due to a history of losses in many of these entities, a full valuation allowance has also been placed against the statutory tax benefit associated with all but $3.7 million of these losses at September 30, 2016 . Foreign tax credits were $7.4 million and $8.6 million at September 30, 2016 and 2015 , respectively. A valuation allowance in the amount of $0.4 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 $6.1 million as of September 30, 2016 , 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 $0.7 million and $0.6 million at September 30, 2016 and 2015 . A valuation allowance was recorded against $0.4 million of deferred tax assets as of September 30, 2016 for state net operating losses that the company does not expect to realize 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. The Company recognized a deferred tax liability of $83.3 million as of September 30, 2016 related to the outside basis difference in the TruGreen Joint Venture. See “NOTE 2. DISCONTINUED OPERATIONS” and “NOTE 8. INVESTMENT IN UNCONSOLIDATED AFFILIATE” for further discussion. Deferred taxes have not been provided on unremitted earnings of $139.0 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 $39.9 million and $55.1 million at September 30, 2016 and 2015 , respectively. Our current plans do not demonstrate a need to, nor do we project we will, 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 $5.1 million , $9.2 million and $11.2 million of gross unrecognized tax benefits related to uncertain tax positions at September 30, 2016 , 2015 and 2014 , respectively. Included in the September 30, 2016 , 2015 and 2014 balances were $3.5 million , $6.6 million and $8.5 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, 2016 2015 2014 (In millions) Balance at beginning of year $ 9.2 $ 11.2 $ 6.7 Additions for tax positions of the current year 0.3 0.2 0.2 Additions for tax positions of prior years 1.9 4.1 7.6 Reductions for tax positions of prior years (2.6 ) (3.2 ) (2.7 ) Settlements with tax authorities (2.7 ) (2.7 ) — Expiration of statutes of limitation (1.0 ) (0.4 ) (0.6 ) Balance at end of year $ 5.1 $ 9.2 $ 11.2 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, 2016 , 2015 and 2014 , respectively, the Company had $1.1 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, 2016 , 2015 and 2014 , respectively, the Company had $0.5 million , $0.7 million and $0.6 million accrued for the payment of penalties that, if recognized, would impact the effective tax rate. For the fiscal year ended September 30, 2016 , the Company recognized a benefit of $0.9 million for 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. Subject to the following exceptions, the Company is no longer subject to examination by these tax authorities for fiscal years prior to 2013. 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 years 2011 and 2012. With respect to the foreign jurisdictions, a German audit is currently ongoing covering fiscal years 2009 through 2012 . In regard to the multiple U.S. state and local audits, the tax periods under examination are limited to fiscal 2008 through fiscal 2014 . 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 twelve 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, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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, 2016 , the notional amount of outstanding currency forward contracts was $165.8 million , with a fair value of $0.4 million . 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 . 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 the next fiscal year. 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. 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 $650.0 million and $1,300.0 million at September 30, 2016 and 2015 , respectively. Refer to “NOTE 11. DEBT” for the terms of the swap agreements outstanding at September 30, 2016 . Included in the AOCI balance at September 30, 2016 was a loss of $2.0 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, 2016 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 costs on operating results. These financial instruments are carried at fair value within the Consolidated Balance Sheets. Changes in the fair value of derivative contracts that 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. The effective portion of the change in fair value remains as a component of AOCI until the related fuel is consumed, at which time the accumulated gain or loss on the derivative contract is reclassified to cost of sales. Changes in the fair value of derivatives that do not qualify for hedge accounting are recorded as an element of cost of sales. At September 30, 2016 , there were no amounts included within AOCI. The Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases: September 30, 2016 2015 Commodity Urea 40,500 tons 52,500 tons Diesel 6,384,000 gallons 5,250,000 gallons Heating Oil 1,722,000 gallons 2,772,000 gallons Fair Values of Derivative Instruments The fair values of the Company’s derivative instruments were as follows: Assets / (Liabilities) 2016 2015 Derivatives Designated As Hedging Instruments Balance Sheet Location Fair Value (In millions) Interest rate swap agreements Other current liabilities $ (3.3 ) $ (8.8 ) Other liabilities (3.1 ) (4.6 ) Commodity hedging instruments Other current liabilities (0.3 ) (1.3 ) Total derivatives designated as hedging instruments $ (6.7 ) $ (14.7 ) Derivatives Not Designated As Hedging Instruments Balance Sheet Location Currency forward contracts Prepaid and other current assets $ 1.2 $ — Other current liabilities (0.8 ) (0.7 ) Commodity hedging instruments Other current liabilities (0.1 ) (3.2 ) Total derivatives not designated as hedging instruments 0.3 (3.9 ) Total derivatives $ (6.4 ) $ (18.6 ) 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 2016 2015 (In millions) Interest rate swap agreements $ (0.9 ) $ (7.7 ) Commodity hedging instruments (0.6 ) (0.9 ) Total $ (1.5 ) $ (8.6 ) Reclassified From AOCI Into Amount of Gain / (Loss) Derivatives in Cash Flow Hedging Relationships Statement of Operations 2016 2015 (In millions) Interest rate swap agreements Interest expense $ (5.0 ) $ (6.5 ) Commodity hedging instruments Cost of sales (0.8 ) — Total $ (5.8 ) $ (6.5 ) Amount of Gain / (Loss) Derivatives Not Designated As Hedging Instruments Recognized in Statement of Operations 2016 2015 (In millions) Currency forward contracts Other income, net $ (8.0 ) $ 8.1 Commodity hedging instruments Cost of sales (2.8 ) (10.4 ) Total $ (10.8 ) $ (2.3 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
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 consists of investment securities in non-qualified retirement plan assets and the Bonnie Option. Investment securities in non-qualified retirement plan assets are valued using observable market prices in active markets and are classified within Level 1 of the valuation hierarchy. The fair value of the Bonnie Option is determined using a simulation approach, whereby the total value of the loan receivable and optional exchange for additional equity was estimated considering a distribution of possible future cash flows discounted to present value using an appropriate discount rate, and is classified in Level 3 of the fair value hierarchy. Long-Term Debt Long-term debt consists of a loan provided to the noncontrolling ownership group of Gavita. The estimated fair value of the loan was determined using an income-based approach, which includes market participant expectations of cash flows over the remaining useful life discounted to present value using an appropriate discount rate. The estimate requires subjective assumptions to be made, including those related to future business results and discount rates. The fair value measurement is based on significant inputs unobservable in the market and thus represents a Level 3 measurement. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2016 : 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 $ 11.5 $ — $ — $ 11.5 Derivatives Currency forward contracts — 1.2 — 1.2 Other 11.8 — 10.9 22.7 Total $ 23.3 $ 1.2 $ 10.9 $ 35.4 Liabilities Derivatives Interest rate swap agreements $ — $ (6.4 ) $ — $ (6.4 ) Currency forward contracts — (0.8 ) — (0.8 ) Commodity hedging instruments — (0.4 ) — (0.4 ) Long-term debt — — (38.3 ) (38.3 ) Total $ — $ (7.6 ) $ (38.3 ) $ (45.9 ) 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 — (4.5 ) — (4.5 ) Total $ — $ (18.6 ) $ — $ (18.6 ) |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
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, 2016 , were as follows (in millions): 2017 $ 40.9 2018 36.1 2019 30.7 2020 23.5 2021 18.3 Thereafter 21.5 Total future minimum lease payments $ 171.0 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, 2016 , the Company’s residual value guarantee would have approximated $2.6 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) Corporate aircraft $ 27.0 2019 Rent expense for fiscal 2016 , fiscal 2015 and fiscal 2014 totaled $58.8 million , $56.2 million and $50.6 million , respectively. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2016 (in millions): 2017 $ 140.4 2018 66.1 2019 33.8 2020 23.0 2021 15.6 Thereafter 6.2 $ 285.1 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 17. OPERATING LEASES.” |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2016 , $4.0 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, 2016 | |
Risks and Uncertainties [Abstract] | |
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 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, 2016 2015 2014 2016 2015 Concentration in United States 82 % 81 % 80 % 74 % 69 % The remainder of the Company’s net sales and accounts receivable at September 30, 2016 , 2015 and 2014 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 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 net sales for the fiscal years ended September 30: Percentage of Net Sales 2016 2015 2014 Home Depot 34 % 33 % 35 % Lowe’s 16 % 17 % 19 % Walmart 11 % 12 % 13 % Accounts receivable for these three largest customers as a percentage of consolidated accounts receivable were 56% and 60% for September 30, 2016 and 2015 , respectively. |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET Other (income) expense consisted of the following: Year Ended September 30, 2016 2015 2014 (In millions) Royalty income, net $ (6.2 ) $ (1.3 ) $ (1.8 ) Interest on loans receivable (3.9 ) — — Foreign currency losses 0.7 1.6 1.0 Gain on investment of unconsolidated affiliate — — (5.7 ) Other (4.4 ) (2.4 ) (4.2 ) Total $ (13.8 ) $ (2.1 ) $ (10.7 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company divides its business into three reportable segments: U.S. Consumer, Europe Consumer and Other. These segments differ from those used in prior periods due to the change in internal organization structure associated with Project Focus, which is a series of initiatives announced in the first quarter of fiscal 2016 designed to maximize the value of the Company’s non-core assets and focus on emerging categories of the lawn and garden industry in its core U.S. business. On April 13, 2016, as part of this project, the Company completed the contribution of the SLS Business to a newly formed subsidiary of TruGreen Holdings in exchange for a minority equity interest of approximately 30% in the TruGreen Joint Venture. As a result, effective in its second quarter of fiscal 2016, the Company classified its results of operations for all periods presented to reflect the SLS Business as a discontinued operation and classified the assets and liabilities of the SLS Business as held for sale. The prior period amounts have been reclassified to conform with the new segments. 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. U.S. Consumer consists of the Company’s consumer lawn and garden business located in the geographic United States. Europe Consumer consists of the Company’s consumer lawn and garden business located in geographic Europe. Other consists of the Company’s consumer lawn and garden businesses in geographies other than the U.S. and Europe, the Company’s indoor, urban and hydroponic gardening business, and revenues and expenses associated with the Company’s supply agreements with Israel Chemicals, Ltd. Corporate consists of general and administrative expenses and certain other income/expense items not allocated to the business segments. Segment performance is evaluated based on several factors, including income (loss) from continuing operations before amortization, impairment, restructuring and other charges, which is not a GAAP measure. Senior management uses this measure of operating profit (loss) to evaluate segment performance because the Company believes this measure is indicative of performance trends and the overall earnings potential of each segment. The following tables present summarized financial information concerning the Company’s reportable segments for the periods indicated: Year Ended September 30, 2016 2015 2014 (In millions) Net sales: U.S. Consumer $ 2,187.4 $ 2,141.8 $ 2,037.4 Europe Consumer 274.2 304.7 336.7 Other 374.5 281.5 204.2 Consolidated $ 2,836.1 $ 2,728.0 $ 2,578.3 Income from continuing operations before income taxes: U.S. Consumer $ 500.4 $ 439.2 $ 399.7 Europe Consumer 13.5 14.1 20.9 Other 20.8 12.3 17.4 Segment total 534.7 465.6 438.0 Corporate (96.8 ) (98.5 ) (92.0 ) Intangible asset amortization (18.0 ) (15.0 ) (12.3 ) Impairment, restructuring and other 27.7 (90.0 ) (50.0 ) Equity in income of unconsolidated affiliates 19.5 — — Costs related to refinancing (8.8 ) — (10.7 ) Interest expense (65.6 ) (50.5 ) (47.3 ) Consolidated $ 392.7 $ 211.6 $ 225.7 Depreciation and amortization: U.S. Consumer $ 47.7 $ 45.5 $ 43.5 Europe Consumer 7.2 8.6 11.5 Other 15.5 9.6 5.5 $ 70.4 $ 63.7 $ 60.5 Capital expenditures: U.S. Consumer $ 46.3 $ 52.5 $ 78.6 Europe Consumer 3.0 3.1 4.1 Other 7.4 2.4 1.7 $ 56.7 $ 58.0 $ 84.4 September 30, 2016 2015 (In millions) Total assets: U.S. Consumer $ 1,770.7 $ 1,622.5 Europe Consumer 192.1 217.9 Other 568.1 324.1 Corporate 277.9 142.4 Assets held for sale — 220.3 Consolidated $ 2,808.8 $ 2,527.2 The following table presents net sales by product category: Year Ended September 30, 2016 2015 2014 Net sales: Lawn care 29 % 31 % 33 % Growing media 38 38 36 Controls 15 16 16 Roundup ® Marketing Agreement 5 4 5 Other, primarily gardening, hydroponics and landscape 13 11 10 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, 2016 2015 2014 (In millions) Net sales: United States $ 2,315.1 $ 2,220.0 $ 2,065.2 International 521.0 508.0 513.1 $ 2,836.1 $ 2,728.0 $ 2,578.3 Long-lived assets: United States $ 531.0 $ 540.6 $ 448.0 International 205.9 73.8 91.1 $ 736.9 $ 614.4 $ 539.1 |
QUARTERLY CONSOLIDATED FINANCIA
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | 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 2016 Net sales $ 194.5 $ 1,245.2 $ 994.1 $ 402.3 $ 2,836.1 Gross profit 16.7 521.6 357.4 99.7 995.4 Income (loss) from continuing operations (79.3 ) 225.8 127.0 (20.2 ) 253.3 Income (loss) from discontinued operations, net of tax (1.5 ) (16.0 ) 85.7 (6.7 ) 61.5 Net income (loss) (80.8 ) 209.8 212.7 (26.9 ) 314.8 Income (loss) attributable to controlling interest (81.3 ) 210.1 213.1 (26.6 ) 315.3 Basic income (loss) per Common Share: Income (loss) from continuing operations $ (1.30 ) $ 3.68 $ 2.09 $ (0.33 ) $ 4.15 Income (loss) from discontinued operations, net of tax (0.02 ) (0.26 ) 1.40 (0.11 ) 1.01 Basic net income (loss) per Common Share $ (1.32 ) $ 3.42 $ 3.49 $ (0.44 ) $ 5.16 Common Shares used in basic EPS calculation 61.5 61.4 61.1 60.6 61.1 Diluted income (loss) per Common Share: Income (loss) from continuing operations $ (1.30 ) $ 3.64 $ 2.06 $ (0.33 ) $ 4.09 Income (loss) from discontinued operations, net of tax (0.02 ) (0.26 ) 1.38 (0.11 ) 1.00 Diluted net income (loss) per Common Share $ (1.32 ) $ 3.38 $ 3.44 $ (0.44 ) $ 5.09 Common Shares and dilutive potential Common Shares used in diluted EPS calculation 61.5 62.2 61.9 60.6 62.0 FISCAL 2015 Net sales $ 169.5 $ 1,071.8 $ 1,111.3 $ 375.4 $ 2,728.0 Gross profit 6.6 424.8 385.8 90.8 908.0 Income (loss) from continuing operations (74.6 ) 138.6 115.1 (41.3 ) 137.8 Income (loss) from discontinued operations, net of tax 0.6 (14.3 ) 17.9 16.7 20.9 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 $ (1.24 ) $ 2.28 $ 1.89 $ (0.65 ) $ 2.27 Income (loss) from discontinued operations 0.01 (0.23 ) 0.29 0.27 0.35 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 $ (1.24 ) $ 2.24 $ 1.85 $ (0.65 ) $ 2.23 Income (loss) from discontinued operations 0.01 (0.23 ) 0.29 0.27 0.34 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 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. Significant impairment, restructuring and other charges / recoveries reflected in the quarterly financial information during fiscal 2016 are as follows: first quarter restructuring costs of $9.3 million including $5.4 million in costs related to consumer complaints and claims related to the reformulated Bonus ® S fertilizer product sold in the southeastern United States during fiscal 2015, $2.8 million in transaction related costs associated with the divestiture of the SLS Business and costs of $0.9 million related to other transaction activity associated with Project Focus; second quarter net recoveries of $36.5 million including insurance reimbursement recoveries of $50.0 million related to Bonus ® S insurance reimbursements, a charge of $9.0 million for the resolution of a prior SLS Business litigation matter, $1.6 million in transaction related costs associated with the divestiture of the SLS Business and costs of $1.7 million related to other transaction activity associated with Project Focus; third quarter net recoveries of $5.4 million related to Bonus ® S insurance reimbursements; and fourth quarter restructuring costs of $6.7 million associated with Project Focus including costs of $5.4 million related to termination benefits for U.S. and international employees and costs of $2.3 million related to other transaction activity. Significant 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 consumer complaints and claims related to the reformulated Bonus ® S fertilizer product sold in the southeastern United States during fiscal 2015; and 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 Bonus ® S insurance reimbursements. |
FINANCIAL INFORMATION FOR SUBSI
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS | 12 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS | FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS The 6.000% Senior Notes were issued on October 13, 2015 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 and December 15, 2015, Scotts Miracle-Gro redeemed, respectively, all of its outstanding $200.0 million aggregate principal amount of 7.25% Senior Notes and $200.0 million aggregate principal amount of 6.625% Senior Notes, each of which were previously guaranteed by certain of its domestic subsidiaries. The guarantees are “full and unconditional,” as those terms are used in Regulation S-X Rule 3-10, except that a subsidiary’s guarantee will be 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 indenture governing the 6.000% Senior Notes; (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 indenture governing the 6.000% Senior Notes 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) at the election of Scotts Miracle-Gro following the subsidiary’s release as a guarantor under the new credit agreement, except a release by or as a result of the repayment of the new credit agreement; or (6) if the subsidiary ceases to be a “restricted subsidiary” and the subsidiary is not otherwise required to provide a guarantee of the 6.000% Senior Notes pursuant to the indenture governing the 6.000% Senior Notes. SLS Holdings, Inc. was added as a guarantor effective in the three-month period ending July 2, 2016, and HGCI, Inc. and GenSource, Inc. were added as guarantors effective in the three-month period ending January 2, 2016, and have been classified as Guarantors for all periods presented. SLS Holdings, Inc., HGCI, Inc. and GenSource, Inc. did not have any activity for fiscal 2015 . The following 100% directly or indirectly owned subsidiaries fully and unconditionally guarantee at September 30, 2016 the 6.000% Senior Notes on a joint and several basis: 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; The Scotts Company LLC; The Hawthorne Gardening Company; Hawthorne Hydroponics LLC; HGCI, Inc.; GenSource, Inc.; and SLS Holdings, Inc. (collectively, the “Guarantors”). Effective in the three-month period ending July 2, 2016, the SLS Business was contributed to the TruGreen Joint Venture and the Company classified its results of operations for all periods presented to reflect the SLS Business as a discontinued operation and classified the assets and liabilities as held for sale within the financial information of the Guarantors. Subsequent to their contribution to the TruGreen Joint Venture, EG Systems, LLC (formerly known as EG Systems, Inc.) and SLS Franchise Systems LLC are no longer guarantors of the 6.000% Senior Notes. The following information presents Condensed Consolidating Statements of Operations for each of the three years ended September 30, 2016, 2015 and 2014, Condensed Consolidating Statements of Comprehensive Income (Loss) for each of the three years ended September 30, 2016, 2015 and 2014, Condensed Consolidating Statements of Cash Flows for each of the three years ended September 30, 2016 , 2015 and 2014, and Condensed Consolidating Balance Sheets as of September 30, 2016 and 2015 . 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 2016 are $934.4 million of dividends paid by the Guarantors and Non-Guarantors to the Parent representing return of investments and as such are classified within cash flows used in investing activities. Included in the Parent Condensed Consolidating Statement of Cash Flows for fiscal 2015 and fiscal 2014 are $255.5 million and $422.8 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, 2016 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,285.6 $ 550.5 $ — $ 2,836.1 Cost of sales — 1,434.4 398.6 — 1,833.0 Cost of sales—impairment, restructuring and other — 5.9 1.8 — 7.7 Gross profit — 845.3 150.1 — 995.4 Operating expenses: Selling, general and administrative — 455.4 140.2 1.5 597.1 Impairment, restructuring and other — (49.1 ) 1.9 — (47.2 ) Other (income) loss, net (0.5 ) (12.8 ) (0.5 ) — (13.8 ) Income (loss) from operations 0.5 451.8 8.5 (1.5 ) 459.3 Equity (income) loss in subsidiaries (348.2 ) (8.4 ) — 356.6 — Other non-operating (income) loss (22.0 ) — (22.4 ) 44.4 — Equity in (income)/loss of unconsolidated affiliates — (7.9 ) 0.1 — (7.8 ) Costs related to refinancing 8.8 — — — 8.8 Interest expense 62.1 43.6 4.3 (44.4 ) 65.6 Income (loss) from continuing operations before income taxes 299.8 424.5 26.5 (358.1 ) 392.7 Income tax (benefit) expense from continuing operations (17.2 ) 147.3 9.3 — 139.4 Income (loss) from continuing operations 317.0 277.2 17.2 (358.1 ) 253.3 Income from discontinued operations, net of tax — 61.5 — — 61.5 Net income (loss) $ 317.0 $ 338.7 $ 17.2 $ (358.1 ) $ 314.8 Net (income) loss attributable to noncontrolling interest — — — 0.5 0.5 Net income (loss) attributable to controlling interest $ 317.0 $ 338.7 $ 17.2 $ (357.6 ) $ 315.3 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2016 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income (loss) $ 317.0 $ 338.7 $ 17.2 $ (358.1 ) $ 314.8 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment (6.2 ) — (6.2 ) 6.2 (6.2 ) Net change in derivatives 4.3 0.3 — (0.3 ) 4.3 Net change in pension and other post retirement benefits (8.2 ) 0.4 (8.6 ) 8.2 (8.2 ) Total other comprehensive income (loss) (10.1 ) 0.7 (14.8 ) 14.1 (10.1 ) Comprehensive income (loss) $ 306.9 $ 339.4 $ 2.4 $ (344.0 ) $ 304.7 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2016 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (a) $ 18.0 $ 212.8 $ 10.2 $ (3.6 ) $ 237.4 INVESTING ACTIVITIES (a) Proceeds from sale of long-lived assets — 2.4 — — 2.4 Investments in property, plant and equipment — (49.0 ) (9.3 ) — (58.3 ) Investments in loans receivable — (90.0 ) — — (90.0 ) Net distributions from unconsolidated affiliates — 194.1 — — 194.1 Cash contributed to TruGreen Joint Venture — (24.2 ) — — (24.2 ) Investments in acquired businesses, net of cash acquired — — (158.4 ) — (158.4 ) Return of investments from affiliates 934.3 — — (934.3 ) — Investing cash flows from (to) affiliates (914.2 ) (29.1 ) — 943.3 — Net cash provided by (used in) investing activities 20.1 4.2 (167.7 ) 9.0 (134.4 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,819.5 249.6 — 2,069.1 Repayments under revolving and bank lines of credit and term loans — (1,937.7 ) (212.7 ) — (2,150.4 ) Proceeds from issuance of 6.000% Senior Notes 400.0 — — — 400.0 Repayment of 6.625% Senior Notes (200.0 ) — — — (200.0 ) Financing and issuance fees (11.2 ) — — — (11.2 ) Dividends paid (116.6 ) (909.4 ) (26.5 ) 935.9 (116.6 ) Purchase of Common Shares (130.8 ) — — — (130.8 ) Payments on seller notes — (2.3 ) (0.5 ) — (2.8 ) Excess tax benefits from share-based payment arrangements 5.8 — — — 5.8 Cash received from exercise of stock options 14.7 — — — 14.7 Financing cash flows from (to) affiliates — 808.2 133.1 (941.3 ) — Net cash provided by (used in) financing activities (38.1 ) (221.7 ) 143.0 (5.4 ) (122.2 ) Effect of exchange rate changes on cash — — (2.1 ) — (2.1 ) Net increase (decrease) in cash and cash equivalents — (4.7 ) (16.6 ) — (21.3 ) Cash and cash equivalents at beginning of year — 7.4 64.0 — 71.4 Cash and cash equivalents at end of year $ — $ 2.7 $ 47.4 $ — $ 50.1 (a) Cash received by the Parent from the Guarantors and non Guarantors in the form of dividends in the amount of $934.4 million represent return of investments and are included in cash flows from investing activities. Cash received by the Guarantors from the Non-Guarantors in the form of dividends in the amount of $ 1.5 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, 2016 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 2.7 $ 47.4 $ — $ 50.1 Accounts receivable, net — 92.4 104.0 — 196.4 Accounts receivable pledged — 174.7 — — 174.7 Inventories — 327.8 120.4 — 448.2 Prepaid and other current assets 0.1 82.8 39.4 — 122.3 Total current assets 0.1 680.4 311.2 — 991.7 Investment in unconsolidated affiliates — 100.3 0.7 — 101.0 Property, plant and equipment, net — 392.1 78.7 — 470.8 Goodwill — 260.4 101.2 11.6 373.2 Intangible assets, net — 596.4 144.3 10.2 750.9 Other assets 19.2 103.8 0.7 (2.5 ) 121.2 Equity investment in subsidiaries 808.8 — — (808.8 ) — Intercompany assets 1,013.0 — — (1,013.0 ) — Total assets $ 1,841.1 $ 2,133.4 $ 636.8 $ (1,802.5 ) $ 2,808.8 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ 15.0 $ 154.2 $ 30.8 $ (15.0 ) $ 185.0 Accounts payable — 108.8 57.1 — 165.9 Other current liabilities 16.6 143.6 82.0 — 242.2 Total current liabilities 31.6 406.6 169.9 (15.0 ) 593.1 Long-term debt 1,091.1 575.7 117.2 (652.9 ) 1,131.1 Other liabilities 3.2 268.7 76.0 2.4 350.3 Equity investment in subsidiaries — 161.0 — (161.0 ) — Intercompany liabilities — 147.2 187.1 (334.3 ) — Total liabilities 1,125.9 1,559.2 550.2 (1,160.8 ) 2,074.5 Total equity—controlling interest 715.2 574.2 86.6 (660.8 ) 715.2 Noncontrolling interest — — — 19.1 19.1 Total equity 715.2 574.2 86.6 (641.7 ) 734.3 Total liabilities and equity $ 1,841.1 $ 2,133.4 $ 636.8 $ (1,802.5 ) $ 2,808.8 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 $ — $ 2,192.1 $ 535.9 $ — $ 2,728.0 Cost of sales — 1,426.7 386.7 — 1,813.4 Cost of sales—impairment, restructuring and other — 3.1 3.5 — 6.6 Gross profit — 762.3 145.7 — 908.0 Operating expenses: Selling, general and administrative — 429.4 140.3 1.7 571.4 Impairment, restructuring and other — 69.6 7.0 — 76.6 Other (income) loss, net — (3.2 ) 1.1 — (2.1 ) Income (loss) from operations — 266.5 (2.7 ) (1.7 ) 262.1 Equity (income) loss in subsidiaries (179.2 ) (6.1 ) — 185.3 — Other non-operating (income) loss (27.9 ) — (23.5 ) 51.4 — Costs related to refinancing — — — — — Interest expense 55.2 44.1 2.6 (51.4 ) 50.5 Income (loss) from continuing operations before income taxes 151.9 228.5 18.2 (187.0 ) 211.6 Income tax (benefit) expense from continuing operations (9.6 ) 77.0 6.4 — 73.8 Income (loss) from continuing operations 161.5 151.5 11.8 (187.0 ) 137.8 Income from discontinued operations, net of tax — 20.9 — — 20.9 Net income (loss) $ 161.5 $ 172.4 $ 11.8 $ (187.0 ) $ 158.7 Net (income) loss attributable to noncontrolling interest — — — 1.1 1.1 Net income (loss) 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 (loss) $ 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 (loss) $ 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 (USED IN)OPERATING ACTIVITIES (a) $ 239.4 $ 249.3 $ 39.5 $ (281.3 ) $ 246.9 INVESTING ACTIVITIES (a) 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 — 63.3 94.4 — 157.7 Accounts receivable, pledged — 152.9 — — 152.9 Inventories — 306.9 88.9 — 395.8 Assets held for sale — 220.3 — — 220.3 Prepaid and other current assets — 86.4 34.7 — 121.1 Total current assets — 837.2 282.0 — 1,119.2 Property, plant and equipment, net — 388.0 56.1 — 444.1 Goodwill — 260.2 12.0 11.6 283.8 Intangible assets, net — 584.6 58.8 11.7 655.1 Other assets 16.3 11.0 15.0 (17.3 ) 25.0 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 EQUITY Current liabilities: Current portion of debt $ — $ 122.9 $ 9.7 $ — $ 132.6 Accounts payable — 136.7 56.4 — 193.1 Liabilities held for sale — 41.7 — — 41.7 Other current liabilities 15.5 162.7 73.0 — 251.2 Total current liabilities 15.5 464.0 139.1 — 618.6 Long-term debt 1,016.3 724.9 100.1 (816.3 ) 1,025.0 Other liabilities 4.5 226.0 32.3 (12.3 ) 250.5 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 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 $ — $ 2,051.0 $ 527.3 $ — $ 2,578.3 Cost of sales — 1,318.8 369.4 — 1,688.2 Gross profit — 732.2 157.9 — 890.1 Operating expenses: Selling, general and administrative — 421.9 145.2 — 567.1 Impairment, restructuring and other — 47.2 2.8 — 50.0 Other (income) loss, net — (8.6 ) (2.1 ) — (10.7 ) Income (loss) from operations — 271.7 12.0 — 283.7 Equity (income) loss in subsidiaries (193.2 ) (8.9 ) — 202.1 — Other non-operating (income) loss (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 (loss) from continuing operations before income taxes 151.3 243.2 33.3 (202.1 ) 225.7 Income tax (benefit) expense from continuing operations (14.9 ) 83.6 11.5 — 80.2 Income (loss) from continuing operations 166.2 159.6 21.8 (202.1 ) 145.5 Income (loss) from discontinued operations, net of tax — 20.3 0.4 — 20.7 Net income (loss) $ 166.2 $ 179.9 $ 22.2 $ (202.1 ) $ 166.2 Net (income) loss attributable to noncontrolling interest 0.3 0.3 — (0.3 ) 0.3 Net income (loss) 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 (USED IN)OPERATING ACTIVITIES (a) $ 388.8 $ 254.5 $ 21.7 $ (424.1 ) $ 240.9 INVESTING ACTIVITIES (a) 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 the Guarantors 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. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts for the fiscal year ended September 30, 2016 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 $ 6.5 $ — $ 4.1 $ (3.4 ) $ 7.2 Income tax valuation allowance 45.8 — (0.9 ) 0.2 45.1 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 $ 5.5 $ — $ 1.4 $ (0.4 ) $ 6.5 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 $ 7.5 $ — $ 1.6 $ (3.6 ) $ 5.5 Income tax valuation allowance 51.5 — (1.5 ) (1.7 ) 48.3 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
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. Prior to April 13, 2016, the Company operated the Scotts LawnService ® business (the “SLS Business”), which provided residential and commercial lawn care, tree and shrub care and pest control services in the United States. On April 13, 2016, pursuant to the terms of the Contribution and Distribution Agreement (the “Contribution Agreement”) between the Company and TruGreen Holding Corporation (“TruGreen Holdings”), the Company completed the contribution of the SLS Business to a newly formed subsidiary of TruGreen Holdings (the “TruGreen Joint Venture”) in exchange for a minority equity interest of 30% in the TruGreen Joint Venture. As a result, effective in its second quarter of fiscal 2016, the Company classified its results of operations for all periods presented to reflect the SLS Business as a discontinued operation and classified the assets and liabilities of the SLS Business as held for sale. See “NOTE 2. DISCONTINUED OPERATIONS” and “NOTE 8. INVESTMENT IN UNCONSOLIDATED AFFILIATES” for further discussion. Refer to “NOTE 22. SEGMENT INFORMATION” for discussion of the Company’s new reportable segments identified effective in the second quarter of fiscal 2016. 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 the Company’s 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 the Company’s 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”), and Gavita Holdings B.V., and its subsidiaries (collectively, “Gavita”), in which the Company has controlling interests, are 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, 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”), pursuant to which the Company has served, since its 1998 fiscal year, as the exclusive agent to the Monsanto Company (“Monsanto”) for the marketing and distribution of consumer Roundup ® herbicide products, 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 the “Cost of sales” line and the reimbursement of these costs in the “Net sales” line in the Consolidated Statement of Operations, with no effect on gross profit dollars or net income. Under the terms of the Marketing, R&D and Ancillary Services Agreement (the “Services Agreement”) with Bonnie Plants, Inc. (“Bonnie”) and its sole shareholder, Alabama Farmers Cooperative, Inc. (“AFC”), entered into in the second quarter of fiscal 2016, the Company provides marketing, research and development and certain ancillary services to Bonnie for reimbursement of certain costs and a commission fee earned based on a percentage of the growth in earnings before interest, income taxes and amortization of Bonnie’s business of planting, growing, developing, manufacturing, distributing, marketing, and selling live plants, plant food, fertilizer and potting soil (the “Bonnie Business”). The commission earned under the Services Agreement is included in the “Net sales” line in the Consolidated Statements of Operations. Additionally, the Company records costs incurred under the Services Agreement for which the Company is the primary obligor on a gross basis, recognizing such costs in the “Cost of sales” line and the reimbursement of these costs in the “Net sales” line, with no effect on gross profit dollars or net income. |
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 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. |
Research and Development | Research and Development All costs associated with research and development are charged to expense as incurred. |
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. |
Long-lived Assets | 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. Long-Lived Assets Property, plant and equipment are stated at cost. Interest capitalized in property, plant and equipment amounted to $0.3 million , $0.4 million and $0.4 million during fiscal 2016 , fiscal 2015 and fiscal 2014 , 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. |
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. |
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 five 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 amended accounting guidance that replaces most existing revenue recognition guidance under GAAP. 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. Subsequently, additional guidance was issued on several areas including guidance intended to improve the operability and understandability of the implementation of principal versus agent considerations and clarifications on the identification of performance obligations and implementation of guidance related to licensing. 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 retrospectively for the Company’s financial statements for the fiscal year beginning October 1, 2016. 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. The Company had unamortized debt issuance costs of $16.7 million and $11.3 million at September 30, 2016 and 2015 , respectively. 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 the Company’s financial statements no later than the fiscal year beginning October 1, 2016 and are not expected to have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. Income Taxes In November 2015, the FASB issued an accounting standard update to simplify the presentation of deferred income taxes by requiring that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The provisions are effective for the Company’s financial statements no later than the fiscal year beginning October 1, 2017. The standard allows for either a retrospective or prospective transition method and is not expected to have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. At September 30, 2016 , net current deferred tax assets classified with prepaid and other current assets were $62.1 million . Leases In February 2016, the FASB issued an accounting standard update which significantly changes the accounting for leases. This guidance requires lessees to recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The provisions are effective for the Company’s financial statements no later than the fiscal year beginning October 1, 2019 and require a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated results of operations, financial position and cash flows. Share-Based Compensation In March 2016, the FASB issued an accounting standard update that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The provisions are effective for the Company’s financial statements no later than the fiscal year beginning October 1, 2017. The Company is currently evaluating the impact of this standard on its consolidated results of operations, financial po |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful economic lives of Property, Plant and Equipment | 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 |
Schedule of supplemental cash flow information | Supplemental cash flow information was as follows for fiscal 2016 , fiscal 2015 and fiscal 2014 : Year Ended September 30, 2016 2015 2014 (In millions) Interest paid $ (54.1 ) $ (47.6 ) $ (46.9 ) Call premium on 6.625% Senior Notes (6.6 ) — — Call premium on 7.25% Senior Notes — — (7.3 ) Income taxes paid (80.9 ) (108.3 ) (55.3 ) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of discontinued operations and schedule of the major classes of assets and liabilities | The following table summarizes the results of the SLS Business and the wild bird food business within discontinued operations for each of the periods presented: Year Ended September 30, 2016 2015 2014 (In millions) Net sales $ 101.2 $ 288.5 $ 281.1 Operating costs 117.4 258.6 252.7 Impairment, restructuring and other 13.6 1.4 1.0 Other income, net (1.5 ) (4.0 ) (4.0 ) Gain on sale of wild bird food assets — — (1.2 ) Gain on contribution of SLS Business (131.2 ) — — Income (loss) from discontinued operations before income taxes 102.9 32.5 32.6 Income tax expense from discontinued operations 41.4 11.6 11.9 Income (loss) from discontinued operations, net of tax $ 61.5 $ 20.9 $ 20.7 The following table summarizes the major classes of assets and liabilities of the SLS Business for each of the periods presented: Year Ended September 30, 2015 (In millions) Accounts receivable, net $ 33.6 Inventories 11.8 Prepaid and other assets 8.3 Property, plant and equipment, net 9.6 Goodwill and intangible assets, net 157.0 Assets held for sale $ 220.3 Current portion of debt $ 2.2 Accounts payable 4.8 Other current liabilities 29.2 Long-term debt 3.5 Other liabilities 2.0 Liabilities held for sale $ 41.7 |
IMPAIRMENT, RESTRUCTURING AND39
IMPAIRMENT, RESTRUCTURING AND OTHER (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Impairment, Restructuring, and Other Charges | The following table details impairment, restructuring and other charges during fiscal 2016 , fiscal 2015 and fiscal 2014 : Year Ended September 30, 2016 2015 2014 (In millions) Cost of sales—impairment, restructuring and other: Restructuring and other charges $ 7.7 $ 6.6 $ — Operating expenses: Restructuring and other (recoveries) charges (47.2 ) 76.6 16.3 Goodwill and intangible asset impairments — — 33.7 Impairment, restructuring and other (recoveries) charges from continuing operations $ (39.5 ) $ 83.2 $ 50.0 Restructuring and other (recoveries) charges from discontinued operations 13.6 1.4 1.0 Total impairment, restructuring and other (recoveries) charges $ (25.9 ) $ 84.6 $ 51.0 |
Schedule of Reserve | The following table summarizes the activity related to liabilities associated with the restructuring and other, excluding insurance reimbursement recoveries, during fiscal 2016 , fiscal 2015 and fiscal 2014 : Year Ended September 30, 2016 2015 2014 (In millions) Amounts reserved for restructuring and other at beginning of year $ 28.1 $ 16.0 $ 11.1 Restructuring and other charges from continuing operations 16.4 83.2 16.3 Restructuring and other charges from discontinued operations 13.6 1.4 1.0 Payments and other (37.3 ) (72.5 ) (12.4 ) Amounts reserved for restructuring and other at end of year $ 20.8 $ 28.1 $ 16.0 |
GOODWILL AND INTANGIBLE ASSET40
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Rollforward of Carrying Amount of Goodwill by Reportable Segment | The following table displays a rollforward of the carrying amount of goodwill by reportable segment: U.S. Consumer Europe Consumer Other Total (In millions) Goodwill $ 202.5 $ 58.5 $ 20.8 $ 281.8 Accumulated impairment losses (1.8 ) (58.5 ) (2.5 ) (62.8 ) Balance at September 30, 2014 200.7 — 18.3 219.0 Acquisitions, net of purchase price adjustments and foreign currency translation 10.6 — 54.2 64.8 Goodwill $ 213.1 $ 58.5 $ 75.0 $ 346.6 Accumulated impairment losses (1.8 ) (58.5 ) (2.5 ) (62.8 ) Balance at September 30, 2015 211.3 — 72.5 283.8 Acquisitions, net of purchase price adjustments and foreign currency translation 0.6 — 88.8 89.4 Goodwill $ 213.7 $ 58.5 $ 161.3 $ 433.5 Accumulated impairment losses (1.8 ) (58.5 ) — (60.3 ) Balance at September 30, 2016 $ 211.9 $ — $ 161.3 $ 373.2 |
Schedule of Finite-lived Intangible Assets | The following table presents intangible assets, net: September 30, 2016 September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Finite-lived intangible assets: Technology $ 70.3 $ (59.2 ) $ 11.1 $ 69.7 $ (56.9 ) $ 12.8 Customer accounts 144.7 (41.2 ) 103.5 95.6 (32.1 ) 63.5 Tradenames 150.7 (22.3 ) 128.4 94.6 (16.9 ) 77.7 Other 97.9 (74.8 ) 23.1 88.7 (72.4 ) 16.3 Total finite-lived intangible assets, net 266.1 170.3 Indefinite-lived intangible assets: Indefinite-lived tradenames 184.8 184.8 Marketing Agreement Amendment 188.3 188.3 Brand Extension Agreement 111.7 111.7 Total indefinite-lived intangible assets 484.8 484.8 Total intangible assets, net $ 750.9 $ 655.1 |
Schedule of Indefinite-lived Intangible Assets | The following table presents intangible assets, net: September 30, 2016 September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Finite-lived intangible assets: Technology $ 70.3 $ (59.2 ) $ 11.1 $ 69.7 $ (56.9 ) $ 12.8 Customer accounts 144.7 (41.2 ) 103.5 95.6 (32.1 ) 63.5 Tradenames 150.7 (22.3 ) 128.4 94.6 (16.9 ) 77.7 Other 97.9 (74.8 ) 23.1 88.7 (72.4 ) 16.3 Total finite-lived intangible assets, net 266.1 170.3 Indefinite-lived intangible assets: Indefinite-lived tradenames 184.8 184.8 Marketing Agreement Amendment 188.3 188.3 Brand Extension Agreement 111.7 111.7 Total indefinite-lived intangible assets 484.8 484.8 Total intangible assets, net $ 750.9 $ 655.1 |
Schedule of Future Estimates of Amortization Expense | Amortization expense is estimated to be as follows for the years ending September 30 (in millions): 2017 $ 19.2 2018 18.5 2019 17.2 2020 16.4 2021 15.9 |
DETAIL OF CERTAIN FINANCIAL S41
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Balance Sheet Accounts | The following is detail of certain financial statement accounts: September 30, 2016 2015 (In millions) INVENTORIES: Finished goods $ 248.7 $ 218.9 Work-in-progress 56.9 48.3 Raw materials 142.6 128.6 $ 448.2 $ 395.8 PREPAID AND OTHER CURRENT ASSETS: Deferred tax asset $ 62.1 $ 78.2 Accounts receivable, non-trade 17.7 10.9 Other 42.5 32.0 $ 122.3 $ 121.1 September 30, 2016 2015 (In millions) PROPERTY, PLANT AND EQUIPMENT, NET: Land and improvements $ 113.0 $ 96.5 Buildings 249.1 219.7 Machinery and equipment 552.2 538.3 Furniture and fixtures 39.8 36.8 Software 114.8 111.5 Aircraft 6.7 6.7 Construction in progress 28.5 28.5 1,104.1 1,038.0 Less: accumulated depreciation (633.3 ) (593.9 ) $ 470.8 $ 444.1 OTHER ASSETS: Unamortized debt issuance costs $ 16.7 $ 11.3 Loans receivable 90.0 — Other 14.5 13.7 $ 121.2 $ 25.0 September 30, 2016 2015 (In millions) OTHER CURRENT LIABILITIES: Payroll and other compensation accruals $ 72.6 $ 56.5 Advertising and promotional accruals 65.8 67.0 Other 103.8 127.7 $ 242.2 $ 251.2 OTHER NON-CURRENT LIABILITIES: Accrued pension and postretirement liabilities $ 94.8 $ 92.5 Deferred tax liabilities 219.1 125.4 Other 36.4 32.6 $ 350.3 $ 250.5 |
Schedule of Accumulated Other Comprehensive Loss | September 30, 2016 2015 2014 (In millions) ACCUMULATED OTHER COMPREHENSIVE LOSS: Unrecognized loss on derivatives, net of tax of $2.8, $5.6 and $4.3 $ (4.7 ) $ (9.0 ) $ (6.9 ) Pension and other postretirement liabilities, net of tax of $41.2, $39.3 and $38.6 (66.9 ) (63.7 ) (62.4 ) Foreign currency translation adjustment (45.3 ) (34.1 ) (16.9 ) $ (116.9 ) $ (106.8 ) $ (86.2 ) |
MARKETING AGREEMENT (Tables)
MARKETING AGREEMENT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Marketing Agreement [Abstract] | |
Marketing Agreement Table | 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 2016 2015 2014 (In millions) Gross commission $ 109.1 $ 88.7 $ 85.2 Contribution expenses (20.0 ) (20.0 ) (20.0 ) Amortization of marketing fee (0.8 ) (0.8 ) (0.8 ) Net commission income 88.3 67.9 64.4 Reimbursements associated with Marketing Agreement 65.5 63.3 63.0 Total net sales associated with Marketing Agreement $ 153.8 $ 131.2 $ 127.4 |
INVESTMENT IN UNCONSOLIDATED 43
INVESTMENT IN UNCONSOLIDATED AFFILIATES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Financial Information for the TruGreen Joint Venture | The following tables present summarized financial information for the TruGreen Joint Venture as of September 30, 2016 and for the Company’s fiscal 2016 : September 30, 2016 (in millions) Cash and cash equivalents $ 92.3 Other current assets 159.1 Intangible assets, net 916.8 Goodwill 165.3 Other assets 376.0 Total assets $ 1,709.5 Current liabilities $ 210.9 Current portion of debt 6.9 Long-term debt 726.0 Other liabilities 80.6 Equity 685.1 Total liabilities and equity $ 1,709.5 Year Ended September 30, 2016 (in millions) Net sales $ 808.4 Gross margin 308.6 Depreciation and amortization 51.2 Interest expense 30.8 Selling, general, administrative and other 164.8 Restructuring and other charges 34.8 Net income $ 27.0 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of 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 2016 2015 2016 2015 (In millions) Change in projected benefit obligation: Benefit obligation at beginning of year $ 117.3 $ 109.2 $ 198.1 $ 208.3 Service cost — — 1.1 1.2 Interest cost 4.3 4.0 6.5 7.3 Actuarial loss 3.8 11.4 45.5 4.5 Benefits paid (7.2 ) (7.3 ) (8.0 ) (6.4 ) Other — — (0.9 ) (1.1 ) Foreign currency translation — — (26.9 ) (15.7 ) Projected benefit obligation at end of year $ 118.2 $ 117.3 $ 215.4 $ 198.1 Accumulated benefit obligation at end of year $ 118.2 $ 117.3 $ 209.7 $ 192.0 Change in plan assets: Fair value of plan assets at beginning of year $ 83.5 $ 89.8 $ 168.6 $ 166.3 Actual return on plan assets 9.9 (1.4 ) 37.1 13.9 Employer contribution 3.2 2.4 6.1 7.4 Benefits paid (7.2 ) (7.3 ) (8.0 ) (6.4 ) Foreign currency translation — — (26.4 ) (11.5 ) Other — — (0.9 ) (1.1 ) Fair value of plan assets at end of year $ 89.4 $ 83.5 $ 176.5 $ 168.6 Underfunded status at end of year $ (28.8 ) $ (33.8 ) $ (38.9 ) $ (29.5 ) Information for pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 118.2 $ 117.3 $ 215.4 $ 198.1 Accumulated benefit obligation 118.2 117.3 209.7 192.0 Fair value of plan assets 89.4 83.5 176.5 168.6 Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ — $ — $ 0.5 $ 2.4 Current liabilities (0.2 ) (0.2 ) (0.9 ) (0.9 ) Noncurrent liabilities (28.6 ) (33.6 ) (38.5 ) (31.0 ) Total amount accrued $ (28.8 ) $ (33.8 ) $ (38.9 ) $ (29.5 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 46.4 $ 49.2 $ 64.2 $ 57.8 Prior service cost — — 0.3 0.3 Total amount recognized $ 46.4 $ 49.2 $ 64.5 $ 58.1 U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2016 2015 2016 2015 (In millions, except percentage figures) Total change in other comprehensive loss attributable to: Pension benefit (loss) gain during the period $ 1.1 $ (18.2 ) $ (15.8 ) $ 0.5 Reclassification of pension benefit losses to net income 1.8 3.3 1.6 1.7 Foreign currency translation — — 7.8 4.8 Total change in other comprehensive loss $ 2.9 $ (14.9 ) $ (6.4 ) $ 7.0 Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2017 are as follows: Actuarial loss $ 1.7 $ 2.1 Prior service cost — — Amount to be amortized into net periodic benefit cost $ 1.7 $ 2.1 Weighted average assumptions used in development of projected benefit obligation: Discount rate 3.07 % 3.82 % 2.07 % 3.52 % Rate of compensation increase n/a n/a 3.46 % 3.49 % 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. 2016 2015 (In millions, except percentage figures) Change in Accumulated Plan Benefit Obligation (APBO): Benefit obligation at beginning of year $ 26.0 $ 32.4 Service cost 0.2 0.4 Interest cost 1.0 1.3 Plan participants’ contributions 0.5 1.2 Actuarial loss 1.3 2.0 Benefits paid (net of federal subsidy of $0.0 and $0.3) (2.8 ) (3.1 ) Plan changes — (8.2 ) Benefit obligation at end of year $ 26.2 $ 26.0 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contribution 2.3 2.2 Plan participants’ contributions 0.5 1.2 Gross benefits paid (2.8 ) (3.4 ) Fair value of plan assets at end of year $ — $ — Unfunded status at end of year $ (26.2 ) $ (26.0 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ (1.8 ) $ (2.1 ) Noncurrent liabilities (24.4 ) (23.9 ) Total amount accrued $ (26.2 ) $ (26.0 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 4.7 $ 3.4 Unamortized prior service credit (6.9 ) (8.1 ) Total amount recognized $ (2.2 ) $ (4.7 ) Total change in other comprehensive loss attributable to: Benefit loss during the period $ 1.5 $ 2.1 Net prior service credit — (8.2 ) Net amortization of prior service credit and actuarial loss during the year 1.0 — Total change in other comprehensive loss (income) $ 2.5 $ (6.1 ) Discount rate used in development of APBO 3.26 % 4.03 % |
Components of Net Periodic Benefit Cost | U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2016 2015 2014 2016 2015 2014 (In millions, except percentage figures) Components of net periodic benefit cost: Service cost $ — $ — $ — $ 1.1 $ 1.2 $ 1.2 Interest cost 4.3 4.0 4.5 6.5 7.3 8.3 Expected return on plan assets (5.0 ) (5.4 ) (5.2 ) (7.4 ) (8.9 ) (9.4 ) Net amortization 1.8 3.3 3.7 1.6 1.7 1.4 Net periodic benefit cost 1.1 1.9 3.0 1.8 1.3 1.5 Contractual termination benefits — — — — — 0.3 Total benefit cost $ 1.1 $ 1.9 $ 3.0 $ 1.8 $ 1.3 $ 1.8 Weighted average assumptions used in development of net periodic benefit cost: Discount rate 3.81 % 3.81 % 4.32 % 3.52 % 3.73 % 4.32 % Expected return on plan assets 5.50 % 6.25 % 6.25 % 4.70 % 5.63 % 6.17 % Rate of compensation increase n/a n/a n/a 3.5 % 3.7 % 3.7 % 2016 2015 2014 Components of net periodic benefit cost Service cost $ 0.2 $ 0.4 $ 0.4 Interest cost 1.0 1.3 1.4 Amortization of actuarial loss 0.1 — — Amortization of prior service credit (1.1 ) — — Total postretirement benefit cost $ 0.2 $ 1.7 $ 1.8 Discount rate used in development of net periodic benefit cost 4.03 % 4.08 % 4.54 % |
Schedule of Other Information | 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, 2017: Equity securities 25 % 30 % Debt securities 70 % 68 % Real estate securities 5 % — % Cash and cash equivalents — % — % Insurance contracts — % 2 % September 30, 2016: Equity securities 23 % 29 % Debt securities 70 % 69 % Real estate securities 4 % — % Cash and cash equivalents 3 % — % 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 % Expected Company contributions in fiscal 2017 $ 3.7 $ 4.7 Expected future benefit payments: 2017 $ 7.7 $ 6.0 2018 7.7 6.3 2019 7.7 6.6 2020 7.7 6.6 2021 7.6 7.0 2022 – 2027 36.5 41.8 |
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, 2016 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 $ 2.2 $ — $ — $ 2.2 Mutual funds—real estate — 3.8 — 3.8 Mutual funds—equities — 20.9 — 20.9 Mutual funds—fixed income — 62.5 — 62.5 Total $ 2.2 $ 87.2 $ — $ 89.4 International Defined Benefit Pension Plan Assets Cash and cash equivalents $ 0.7 $ — $ — $ 0.7 Insurance contracts — 2.6 — 2.6 Mutual funds—equities — 51.8 — 51.8 Mutual funds—fixed income — 121.4 — 121.4 Total $ 0.7 $ 175.8 $ — $ 176.5 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 |
ASSOCIATE MEDICAL BENEFITS (Tab
ASSOCIATE MEDICAL BENEFITS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The defined benefit pension plans are valued using a September 30 measurement date. U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2016 2015 2016 2015 (In millions) Change in projected benefit obligation: Benefit obligation at beginning of year $ 117.3 $ 109.2 $ 198.1 $ 208.3 Service cost — — 1.1 1.2 Interest cost 4.3 4.0 6.5 7.3 Actuarial loss 3.8 11.4 45.5 4.5 Benefits paid (7.2 ) (7.3 ) (8.0 ) (6.4 ) Other — — (0.9 ) (1.1 ) Foreign currency translation — — (26.9 ) (15.7 ) Projected benefit obligation at end of year $ 118.2 $ 117.3 $ 215.4 $ 198.1 Accumulated benefit obligation at end of year $ 118.2 $ 117.3 $ 209.7 $ 192.0 Change in plan assets: Fair value of plan assets at beginning of year $ 83.5 $ 89.8 $ 168.6 $ 166.3 Actual return on plan assets 9.9 (1.4 ) 37.1 13.9 Employer contribution 3.2 2.4 6.1 7.4 Benefits paid (7.2 ) (7.3 ) (8.0 ) (6.4 ) Foreign currency translation — — (26.4 ) (11.5 ) Other — — (0.9 ) (1.1 ) Fair value of plan assets at end of year $ 89.4 $ 83.5 $ 176.5 $ 168.6 Underfunded status at end of year $ (28.8 ) $ (33.8 ) $ (38.9 ) $ (29.5 ) Information for pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 118.2 $ 117.3 $ 215.4 $ 198.1 Accumulated benefit obligation 118.2 117.3 209.7 192.0 Fair value of plan assets 89.4 83.5 176.5 168.6 Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ — $ — $ 0.5 $ 2.4 Current liabilities (0.2 ) (0.2 ) (0.9 ) (0.9 ) Noncurrent liabilities (28.6 ) (33.6 ) (38.5 ) (31.0 ) Total amount accrued $ (28.8 ) $ (33.8 ) $ (38.9 ) $ (29.5 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 46.4 $ 49.2 $ 64.2 $ 57.8 Prior service cost — — 0.3 0.3 Total amount recognized $ 46.4 $ 49.2 $ 64.5 $ 58.1 U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2016 2015 2016 2015 (In millions, except percentage figures) Total change in other comprehensive loss attributable to: Pension benefit (loss) gain during the period $ 1.1 $ (18.2 ) $ (15.8 ) $ 0.5 Reclassification of pension benefit losses to net income 1.8 3.3 1.6 1.7 Foreign currency translation — — 7.8 4.8 Total change in other comprehensive loss $ 2.9 $ (14.9 ) $ (6.4 ) $ 7.0 Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2017 are as follows: Actuarial loss $ 1.7 $ 2.1 Prior service cost — — Amount to be amortized into net periodic benefit cost $ 1.7 $ 2.1 Weighted average assumptions used in development of projected benefit obligation: Discount rate 3.07 % 3.82 % 2.07 % 3.52 % Rate of compensation increase n/a n/a 3.46 % 3.49 % 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. 2016 2015 (In millions, except percentage figures) Change in Accumulated Plan Benefit Obligation (APBO): Benefit obligation at beginning of year $ 26.0 $ 32.4 Service cost 0.2 0.4 Interest cost 1.0 1.3 Plan participants’ contributions 0.5 1.2 Actuarial loss 1.3 2.0 Benefits paid (net of federal subsidy of $0.0 and $0.3) (2.8 ) (3.1 ) Plan changes — (8.2 ) Benefit obligation at end of year $ 26.2 $ 26.0 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contribution 2.3 2.2 Plan participants’ contributions 0.5 1.2 Gross benefits paid (2.8 ) (3.4 ) Fair value of plan assets at end of year $ — $ — Unfunded status at end of year $ (26.2 ) $ (26.0 ) Amounts recognized in the Consolidated Balance Sheets consist of: Current liabilities $ (1.8 ) $ (2.1 ) Noncurrent liabilities (24.4 ) (23.9 ) Total amount accrued $ (26.2 ) $ (26.0 ) Amounts recognized in accumulated other comprehensive loss consist of: Actuarial loss $ 4.7 $ 3.4 Unamortized prior service credit (6.9 ) (8.1 ) Total amount recognized $ (2.2 ) $ (4.7 ) Total change in other comprehensive loss attributable to: Benefit loss during the period $ 1.5 $ 2.1 Net prior service credit — (8.2 ) Net amortization of prior service credit and actuarial loss during the year 1.0 — Total change in other comprehensive loss (income) $ 2.5 $ (6.1 ) Discount rate used in development of APBO 3.26 % 4.03 % |
Schedule of Net Benefit Costs | U.S. Defined Benefit Pension Plans International Defined Benefit Pension Plans 2016 2015 2014 2016 2015 2014 (In millions, except percentage figures) Components of net periodic benefit cost: Service cost $ — $ — $ — $ 1.1 $ 1.2 $ 1.2 Interest cost 4.3 4.0 4.5 6.5 7.3 8.3 Expected return on plan assets (5.0 ) (5.4 ) (5.2 ) (7.4 ) (8.9 ) (9.4 ) Net amortization 1.8 3.3 3.7 1.6 1.7 1.4 Net periodic benefit cost 1.1 1.9 3.0 1.8 1.3 1.5 Contractual termination benefits — — — — — 0.3 Total benefit cost $ 1.1 $ 1.9 $ 3.0 $ 1.8 $ 1.3 $ 1.8 Weighted average assumptions used in development of net periodic benefit cost: Discount rate 3.81 % 3.81 % 4.32 % 3.52 % 3.73 % 4.32 % Expected return on plan assets 5.50 % 6.25 % 6.25 % 4.70 % 5.63 % 6.17 % Rate of compensation increase n/a n/a n/a 3.5 % 3.7 % 3.7 % 2016 2015 2014 Components of net periodic benefit cost Service cost $ 0.2 $ 0.4 $ 0.4 Interest cost 1.0 1.3 1.4 Amortization of actuarial loss 0.1 — — Amortization of prior service credit (1.1 ) — — Total postretirement benefit cost $ 0.2 $ 1.7 $ 1.8 Discount rate used in development of net periodic benefit cost 4.03 % 4.08 % 4.54 % |
Schedule of Expected Benefit Payments | 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) 2017 $ 2.1 $ (0.3 ) $ 1.8 2018 2.3 (0.4 ) 1.9 2019 2.5 (0.5 ) 2.0 2020 2.6 (0.6 ) 2.0 2021 2.6 (0.6 ) 2.0 2022 – 2026 11.9 (3.2 ) 8.7 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-Term Debt | The components of long-term debt are as follows: September 30, 2016 2015 (In millions) Credit Facilities: Revolving loans $ 417.4 $ 816.3 Term loans 288.8 — Senior Notes – 6.625% — 200.0 Senior Notes – 6.000% 400.0 — Master Accounts Receivable Purchase Agreement 138.6 122.3 Other 71.3 19.0 1,316.1 1,157.6 Less current portions 185.0 132.6 Long-term debt $ 1,131.1 $ 1,025.0 |
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): 2017 $ 185.0 2018 15.7 2019 15.6 2020 15.4 2021 646.1 Thereafter 438.3 $ 1,316.1 |
Schedule of Derivative Instruments | The notional amount, effective date, expiration date and rate of each of these swap agreements outstanding at September 30, 2016 are shown in the table below. Notional Amount (in millions) Effective Date (a) Expiration Date Fixed Rate $ 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, 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Revolving loans $ 417.4 $ 417.4 $ 816.3 $ 816.3 Term loans 288.8 288.8 — — Senior Notes – 6.625% — — 200.0 206.3 Senior Notes – 6.000% 400.0 427.0 — — Master Accounts Receivable Purchase Agreement 138.6 138.6 122.3 122.3 Other 71.3 71.3 19.0 19.0 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Authorized and Issued Shares | Authorized and issued shares consisted of the following: September 30, 2016 2015 (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 |
Schedule of Share-Based Awards Granted | The following is a recap of the share-based awards granted during the periods indicated: Year Ended September 30, 2016 2015 2014 Employees Options 444,890 440,690 — Restricted stock units 74,467 78,463 112,315 Performance units 56,315 78,352 161,229 Board of Directors Deferred stock units 28,621 29,913 38,418 Options due to special $2.00 dividend — — 98,186 Total share-based awards 604,293 627,418 311,962 Aggregate fair value at grant dates (in millions) $ 16.4 $ 17.0 $ 17.5 |
Schedule of Share-Based Compensation | Total share-based compensation was as follows for the periods indicated: Year Ended September 30, 2016 2015 2014 (In millions) Share-based compensation $ 15.6 $ 13.2 $ 11.1 Tax benefit recognized 6.0 5.1 3.9 |
Schedule of Aggregate Stock Option and SAR Activity | Aggregate stock option and SAR activity consisted of the following for fiscal 2016 (options/SARs in millions): No. of Options/SARs WTD. Avg. Exercise Price Beginning balance 1.8 $ 44.38 Granted 0.4 68.68 Exercised (0.4 ) 38.21 Forfeited — — Ending balance 1.8 51.38 Exercisable 1.0 38.42 |
Summary of Certain Information Pertaining to Stock Option Awards Outstanding and Exercisable | The following summarizes certain information pertaining to stock option awards outstanding and exercisable at September 30, 2016 (options 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 – $20.59 0.2 2.01 $ 20.59 0.2 2.01 $ 20.59 $30.07 – $36.86 0.2 1.09 36.47 0.2 1.09 36.47 $38.81 – $49.19 0.6 4.43 45.42 0.6 4.43 45.42 $63.43 – $68.68 0.8 8.86 66.24 — 0 — 1.8 5.89 $ 51.38 1.0 3.31 $ 38.42 |
Schedule of 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, 2016 were as follows (in millions): 2016 Outstanding $ 57.7 Exercisable 43.3 |
Schedule of Weighted Average Assumptions for Awards Granted | The weighted average assumptions for awards granted in fiscal 2016 are as follows: 2016 Expected market price volatility 25.5 % Risk-free interest rates 1.5 % Expected dividend yield 2.7 % Expected life of stock options in years 6.0 Estimated weighted-average fair value per stock option $ 12.33 |
Schedule of Restricted Share-Based Award Activity | 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, 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 Granted 103,088 69.00 Vested (161,440 ) 47.21 Forfeited (17,494 ) 60.18 Awards outstanding at September 30, 2016 305,663 66.31 |
Schedule of Performance-Based Award Activity | Performance-based award activity was as follows: No. of Units WTD. Avg. Grant Date Fair Value per Unit 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 Granted 56,315 68.68 Vested (128,941 ) 45.06 Forfeited — — Awards outstanding at September 30, 2016 266,598 62.52 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Information to Calculate Basic and Diluted Earnings (Loss) Per Common Share | The following table presents information necessary to calculate basic and diluted income per Common Share. Year Ended September 30, 2016 2015 2014 (In millions, except per share data) Income attributable to controlling interest from continuing operations $ 253.8 $ 138.9 $ 145.8 Income from discontinued operations 61.5 20.9 20.7 Net income attributable to controlling interest $ 315.3 $ 159.8 $ 166.5 BASIC EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.1 61.6 Income from continuing operations $ 4.15 $ 2.27 $ 2.37 Income from discontinued operations 1.01 0.35 0.33 Net income $ 5.16 $ 2.62 $ 2.70 DILUTED EARNINGS PER COMMON SHARE: Weighted-average Common Shares outstanding during the period 61.1 61.1 61.6 Dilutive potential Common Shares 0.9 1.1 1.1 Weighted-average number of Common Shares outstanding and dilutive potential Common Shares 62.0 62.2 62.7 Income from continuing operations $ 4.09 $ 2.23 $ 2.32 Income from discontinued operations 1.00 0.34 0.33 Net income $ 5.09 $ 2.57 $ 2.65 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
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, 2016 2015 2014 (In millions) Current: Federal $ 93.4 $ 63.8 $ 60.2 State 12.4 8.3 7.5 Foreign 4.4 2.2 3.5 Total Current 110.2 74.3 71.2 Deferred: Federal 28.2 (1.0 ) 7.9 State 2.3 1.2 1.2 Foreign (1.3 ) (0.7 ) (0.1 ) Total Deferred 29.2 (0.5 ) 9.0 Provision for income taxes $ 139.4 $ 73.8 $ 80.2 |
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, 2016 2015 2014 (In millions) Domestic $ 362.3 $ 185.2 $ 200.1 Foreign 30.4 26.4 25.6 Income from continuing operations before income taxes $ 392.7 $ 211.6 $ 225.7 |
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, 2016 2015 2014 Statutory income tax rate 35.0 % 35.0 % 35.0 % Effect of foreign operations 0.1 (0.6 ) 1.7 State taxes, net of federal benefit 2.7 3.2 2.7 Domestic Production Activities Deduction permanent difference (2.5 ) (3.2 ) (2.7 ) Effect of other permanent differences 0.3 0.1 0.3 Research and Experimentation and other federal tax credits (0.2 ) (0.2 ) (0.9 ) Resolution of prior tax contingencies (0.2 ) 0.4 0.2 Other 0.3 0.2 (0.7 ) Effective income tax rate 35.5 % 34.9 % 35.6 % |
Components of Deferred Income Tax Assets and Liabilities | The components of the deferred income tax assets and liabilities were as follows: September 30, 2016 2015 (In millions) DEFERRED TAX ASSETS Inventories $ 10.8 $ 14.1 Accrued liabilities 58.8 71.6 Postretirement benefits 33.3 30.3 Accounts receivable 6.3 8.3 State NOL carryovers 0.6 1.0 Foreign NOL carryovers 45.3 45.0 Foreign tax credit carryovers 7.4 8.6 Interest rate swaps 2.4 4.9 Other 3.4 3.3 Gross deferred tax assets 168.3 187.1 Valuation allowance (45.1 ) (45.8 ) Total deferred tax assets 123.2 141.3 DEFERRED TAX LIABILITIES Property, plant and equipment (65.7 ) (59.7 ) Intangible assets (114.2 ) (114.8 ) Outside basis difference in equity investments (83.3 ) — Other (17.0 ) (14.0 ) Total deferred tax liabilities (280.2 ) (188.5 ) Net deferred tax liability $ (157.0 ) $ (47.2 ) |
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, 2016 2015 (In millions) Net current deferred tax assets (classified with prepaid and other current assets) $ 62.1 $ 78.2 Net non-current deferred tax liabilities (classified with other liabilities) (219.1 ) (125.4 ) Net deferred tax liability $ (157.0 ) $ (47.2 ) |
Reconciliation of the Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Year Ended September 30, 2016 2015 2014 (In millions) Balance at beginning of year $ 9.2 $ 11.2 $ 6.7 Additions for tax positions of the current year 0.3 0.2 0.2 Additions for tax positions of prior years 1.9 4.1 7.6 Reductions for tax positions of prior years (2.6 ) (3.2 ) (2.7 ) Settlements with tax authorities (2.7 ) (2.7 ) — Expiration of statutes of limitation (1.0 ) (0.4 ) (0.6 ) Balance at end of year $ 5.1 $ 9.2 $ 11.2 |
DERIVATIVE INSTRUMENTS AND HE50
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of 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, 2016 2015 Commodity Urea 40,500 tons 52,500 tons Diesel 6,384,000 gallons 5,250,000 gallons Heating Oil 1,722,000 gallons 2,772,000 gallons |
Summary of Fair Values of the Company's Derivative Instruments | The fair values of the Company’s derivative instruments were as follows: Assets / (Liabilities) 2016 2015 Derivatives Designated As Hedging Instruments Balance Sheet Location Fair Value (In millions) Interest rate swap agreements Other current liabilities $ (3.3 ) $ (8.8 ) Other liabilities (3.1 ) (4.6 ) Commodity hedging instruments Other current liabilities (0.3 ) (1.3 ) Total derivatives designated as hedging instruments $ (6.7 ) $ (14.7 ) Derivatives Not Designated As Hedging Instruments Balance Sheet Location Currency forward contracts Prepaid and other current assets $ 1.2 $ — Other current liabilities (0.8 ) (0.7 ) Commodity hedging instruments Other current liabilities (0.1 ) (3.2 ) Total derivatives not designated as hedging instruments 0.3 (3.9 ) Total derivatives $ (6.4 ) $ (18.6 ) |
Schedule of the Effect of Derivative Instruments on AOCI and 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 2016 2015 (In millions) Interest rate swap agreements $ (0.9 ) $ (7.7 ) Commodity hedging instruments (0.6 ) (0.9 ) Total $ (1.5 ) $ (8.6 ) Reclassified From AOCI Into Amount of Gain / (Loss) Derivatives in Cash Flow Hedging Relationships Statement of Operations 2016 2015 (In millions) Interest rate swap agreements Interest expense $ (5.0 ) $ (6.5 ) Commodity hedging instruments Cost of sales (0.8 ) — Total $ (5.8 ) $ (6.5 ) Amount of Gain / (Loss) Derivatives Not Designated As Hedging Instruments Recognized in Statement of Operations 2016 2015 (In millions) Currency forward contracts Other income, net $ (8.0 ) $ 8.1 Commodity hedging instruments Cost of sales (2.8 ) (10.4 ) Total $ (10.8 ) $ (2.3 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring Basis | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2016 : 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 $ 11.5 $ — $ — $ 11.5 Derivatives Currency forward contracts — 1.2 — 1.2 Other 11.8 — 10.9 22.7 Total $ 23.3 $ 1.2 $ 10.9 $ 35.4 Liabilities Derivatives Interest rate swap agreements $ — $ (6.4 ) $ — $ (6.4 ) Currency forward contracts — (0.8 ) — (0.8 ) Commodity hedging instruments — (0.4 ) — (0.4 ) Long-term debt — — (38.3 ) (38.3 ) Total $ — $ (7.6 ) $ (38.3 ) $ (45.9 ) 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 — (4.5 ) — (4.5 ) Total $ — $ (18.6 ) $ — $ (18.6 ) |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments for non-cancelable operating leases at September 30, 2016 , were as follows (in millions): 2017 $ 40.9 2018 36.1 2019 30.7 2020 23.5 2021 18.3 Thereafter 21.5 Total future minimum lease payments $ 171.0 |
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) Corporate aircraft $ 27.0 2019 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2016 (in millions): 2017 $ 140.4 2018 66.1 2019 33.8 2020 23.0 2021 15.6 Thereafter 6.2 $ 285.1 |
CONCENTRATIONS OF CREDIT RISK (
CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Accounts Receivable Credit Risk | Concentrations of net sales and accounts receivable 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, 2016 2015 2014 2016 2015 Concentration in United States 82 % 81 % 80 % 74 % 69 % |
Percentages of Three Largest Customers Consolidated Net Sales | These three customers accounted for the following percentages of net sales for the fiscal years ended September 30: Percentage of Net Sales 2016 2015 2014 Home Depot 34 % 33 % 35 % Lowe’s 16 % 17 % 19 % Walmart 11 % 12 % 13 % |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | Other (income) expense consisted of the following: Year Ended September 30, 2016 2015 2014 (In millions) Royalty income, net $ (6.2 ) $ (1.3 ) $ (1.8 ) Interest on loans receivable (3.9 ) — — Foreign currency losses 0.7 1.6 1.0 Gain on investment of unconsolidated affiliate — — (5.7 ) Other (4.4 ) (2.4 ) (4.2 ) Total $ (13.8 ) $ (2.1 ) $ (10.7 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Financial Information | The following tables present summarized financial information concerning the Company’s reportable segments for the periods indicated: Year Ended September 30, 2016 2015 2014 (In millions) Net sales: U.S. Consumer $ 2,187.4 $ 2,141.8 $ 2,037.4 Europe Consumer 274.2 304.7 336.7 Other 374.5 281.5 204.2 Consolidated $ 2,836.1 $ 2,728.0 $ 2,578.3 Income from continuing operations before income taxes: U.S. Consumer $ 500.4 $ 439.2 $ 399.7 Europe Consumer 13.5 14.1 20.9 Other 20.8 12.3 17.4 Segment total 534.7 465.6 438.0 Corporate (96.8 ) (98.5 ) (92.0 ) Intangible asset amortization (18.0 ) (15.0 ) (12.3 ) Impairment, restructuring and other 27.7 (90.0 ) (50.0 ) Equity in income of unconsolidated affiliates 19.5 — — Costs related to refinancing (8.8 ) — (10.7 ) Interest expense (65.6 ) (50.5 ) (47.3 ) Consolidated $ 392.7 $ 211.6 $ 225.7 Depreciation and amortization: U.S. Consumer $ 47.7 $ 45.5 $ 43.5 Europe Consumer 7.2 8.6 11.5 Other 15.5 9.6 5.5 $ 70.4 $ 63.7 $ 60.5 Capital expenditures: U.S. Consumer $ 46.3 $ 52.5 $ 78.6 Europe Consumer 3.0 3.1 4.1 Other 7.4 2.4 1.7 $ 56.7 $ 58.0 $ 84.4 September 30, 2016 2015 (In millions) Total assets: U.S. Consumer $ 1,770.7 $ 1,622.5 Europe Consumer 192.1 217.9 Other 568.1 324.1 Corporate 277.9 142.4 Assets held for sale — 220.3 Consolidated $ 2,808.8 $ 2,527.2 |
Net sales by product category | The following table presents net sales by product category: Year Ended September 30, 2016 2015 2014 Net sales: Lawn care 29 % 31 % 33 % Growing media 38 38 36 Controls 15 16 16 Roundup ® Marketing Agreement 5 4 5 Other, primarily gardening, hydroponics and landscape 13 11 10 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, 2016 2015 2014 (In millions) Net sales: United States $ 2,315.1 $ 2,220.0 $ 2,065.2 International 521.0 508.0 513.1 $ 2,836.1 $ 2,728.0 $ 2,578.3 Long-lived assets: United States $ 531.0 $ 540.6 $ 448.0 International 205.9 73.8 91.1 $ 736.9 $ 614.4 $ 539.1 |
QUARTERLY CONSOLIDATED FINANC57
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
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 2016 Net sales $ 194.5 $ 1,245.2 $ 994.1 $ 402.3 $ 2,836.1 Gross profit 16.7 521.6 357.4 99.7 995.4 Income (loss) from continuing operations (79.3 ) 225.8 127.0 (20.2 ) 253.3 Income (loss) from discontinued operations, net of tax (1.5 ) (16.0 ) 85.7 (6.7 ) 61.5 Net income (loss) (80.8 ) 209.8 212.7 (26.9 ) 314.8 Income (loss) attributable to controlling interest (81.3 ) 210.1 213.1 (26.6 ) 315.3 Basic income (loss) per Common Share: Income (loss) from continuing operations $ (1.30 ) $ 3.68 $ 2.09 $ (0.33 ) $ 4.15 Income (loss) from discontinued operations, net of tax (0.02 ) (0.26 ) 1.40 (0.11 ) 1.01 Basic net income (loss) per Common Share $ (1.32 ) $ 3.42 $ 3.49 $ (0.44 ) $ 5.16 Common Shares used in basic EPS calculation 61.5 61.4 61.1 60.6 61.1 Diluted income (loss) per Common Share: Income (loss) from continuing operations $ (1.30 ) $ 3.64 $ 2.06 $ (0.33 ) $ 4.09 Income (loss) from discontinued operations, net of tax (0.02 ) (0.26 ) 1.38 (0.11 ) 1.00 Diluted net income (loss) per Common Share $ (1.32 ) $ 3.38 $ 3.44 $ (0.44 ) $ 5.09 Common Shares and dilutive potential Common Shares used in diluted EPS calculation 61.5 62.2 61.9 60.6 62.0 FISCAL 2015 Net sales $ 169.5 $ 1,071.8 $ 1,111.3 $ 375.4 $ 2,728.0 Gross profit 6.6 424.8 385.8 90.8 908.0 Income (loss) from continuing operations (74.6 ) 138.6 115.1 (41.3 ) 137.8 Income (loss) from discontinued operations, net of tax 0.6 (14.3 ) 17.9 16.7 20.9 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 $ (1.24 ) $ 2.28 $ 1.89 $ (0.65 ) $ 2.27 Income (loss) from discontinued operations 0.01 (0.23 ) 0.29 0.27 0.35 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 $ (1.24 ) $ 2.24 $ 1.85 $ (0.65 ) $ 2.23 Income (loss) from discontinued operations 0.01 (0.23 ) 0.29 0.27 0.34 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 |
FINANCIAL INFORMATION FOR SUB58
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
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 $ — $ 2,051.0 $ 527.3 $ — $ 2,578.3 Cost of sales — 1,318.8 369.4 — 1,688.2 Gross profit — 732.2 157.9 — 890.1 Operating expenses: Selling, general and administrative — 421.9 145.2 — 567.1 Impairment, restructuring and other — 47.2 2.8 — 50.0 Other (income) loss, net — (8.6 ) (2.1 ) — (10.7 ) Income (loss) from operations — 271.7 12.0 — 283.7 Equity (income) loss in subsidiaries (193.2 ) (8.9 ) — 202.1 — Other non-operating (income) loss (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 (loss) from continuing operations before income taxes 151.3 243.2 33.3 (202.1 ) 225.7 Income tax (benefit) expense from continuing operations (14.9 ) 83.6 11.5 — 80.2 Income (loss) from continuing operations 166.2 159.6 21.8 (202.1 ) 145.5 Income (loss) from discontinued operations, net of tax — 20.3 0.4 — 20.7 Net income (loss) $ 166.2 $ 179.9 $ 22.2 $ (202.1 ) $ 166.2 Net (income) loss attributable to noncontrolling interest 0.3 0.3 — (0.3 ) 0.3 Net income (loss) 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, 2015 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,192.1 $ 535.9 $ — $ 2,728.0 Cost of sales — 1,426.7 386.7 — 1,813.4 Cost of sales—impairment, restructuring and other — 3.1 3.5 — 6.6 Gross profit — 762.3 145.7 — 908.0 Operating expenses: Selling, general and administrative — 429.4 140.3 1.7 571.4 Impairment, restructuring and other — 69.6 7.0 — 76.6 Other (income) loss, net — (3.2 ) 1.1 — (2.1 ) Income (loss) from operations — 266.5 (2.7 ) (1.7 ) 262.1 Equity (income) loss in subsidiaries (179.2 ) (6.1 ) — 185.3 — Other non-operating (income) loss (27.9 ) — (23.5 ) 51.4 — Costs related to refinancing — — — — — Interest expense 55.2 44.1 2.6 (51.4 ) 50.5 Income (loss) from continuing operations before income taxes 151.9 228.5 18.2 (187.0 ) 211.6 Income tax (benefit) expense from continuing operations (9.6 ) 77.0 6.4 — 73.8 Income (loss) from continuing operations 161.5 151.5 11.8 (187.0 ) 137.8 Income from discontinued operations, net of tax — 20.9 — — 20.9 Net income (loss) $ 161.5 $ 172.4 $ 11.8 $ (187.0 ) $ 158.7 Net (income) loss attributable to noncontrolling interest — — — 1.1 1.1 Net income (loss) attributable to controlling interest $ 161.5 $ 172.4 $ 11.8 $ (185.9 ) $ 159.8 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Operations for the fiscal year ended September 30, 2016 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 2,285.6 $ 550.5 $ — $ 2,836.1 Cost of sales — 1,434.4 398.6 — 1,833.0 Cost of sales—impairment, restructuring and other — 5.9 1.8 — 7.7 Gross profit — 845.3 150.1 — 995.4 Operating expenses: Selling, general and administrative — 455.4 140.2 1.5 597.1 Impairment, restructuring and other — (49.1 ) 1.9 — (47.2 ) Other (income) loss, net (0.5 ) (12.8 ) (0.5 ) — (13.8 ) Income (loss) from operations 0.5 451.8 8.5 (1.5 ) 459.3 Equity (income) loss in subsidiaries (348.2 ) (8.4 ) — 356.6 — Other non-operating (income) loss (22.0 ) — (22.4 ) 44.4 — Equity in (income)/loss of unconsolidated affiliates — (7.9 ) 0.1 — (7.8 ) Costs related to refinancing 8.8 — — — 8.8 Interest expense 62.1 43.6 4.3 (44.4 ) 65.6 Income (loss) from continuing operations before income taxes 299.8 424.5 26.5 (358.1 ) 392.7 Income tax (benefit) expense from continuing operations (17.2 ) 147.3 9.3 — 139.4 Income (loss) from continuing operations 317.0 277.2 17.2 (358.1 ) 253.3 Income from discontinued operations, net of tax — 61.5 — — 61.5 Net income (loss) $ 317.0 $ 338.7 $ 17.2 $ (358.1 ) $ 314.8 Net (income) loss attributable to noncontrolling interest — — — 0.5 0.5 Net income (loss) attributable to controlling interest $ 317.0 $ 338.7 $ 17.2 $ (357.6 ) $ 315.3 |
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, 2015 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income (loss) $ 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 (loss) $ 140.9 $ 166.2 $ (1.3 ) $ (167.7 ) $ 138.1 THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Comprehensive Income (Loss) for the twelve months ended September 30, 2016 (In millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated Net income (loss) $ 317.0 $ 338.7 $ 17.2 $ (358.1 ) $ 314.8 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment (6.2 ) — (6.2 ) 6.2 (6.2 ) Net change in derivatives 4.3 0.3 — (0.3 ) 4.3 Net change in pension and other post retirement benefits (8.2 ) 0.4 (8.6 ) 8.2 (8.2 ) Total other comprehensive income (loss) (10.1 ) 0.7 (14.8 ) 14.1 (10.1 ) Comprehensive income (loss) $ 306.9 $ 339.4 $ 2.4 $ (344.0 ) $ 304.7 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 |
Condensed Consolidating Statement of Cash Flows | THE SCOTTS MIRACLE-GRO COMPANY Condensed, Consolidating Statement of Cash Flows for the fiscal year ended September 30, 2016 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (a) $ 18.0 $ 212.8 $ 10.2 $ (3.6 ) $ 237.4 INVESTING ACTIVITIES (a) Proceeds from sale of long-lived assets — 2.4 — — 2.4 Investments in property, plant and equipment — (49.0 ) (9.3 ) — (58.3 ) Investments in loans receivable — (90.0 ) — — (90.0 ) Net distributions from unconsolidated affiliates — 194.1 — — 194.1 Cash contributed to TruGreen Joint Venture — (24.2 ) — — (24.2 ) Investments in acquired businesses, net of cash acquired — — (158.4 ) — (158.4 ) Return of investments from affiliates 934.3 — — (934.3 ) — Investing cash flows from (to) affiliates (914.2 ) (29.1 ) — 943.3 — Net cash provided by (used in) investing activities 20.1 4.2 (167.7 ) 9.0 (134.4 ) FINANCING ACTIVITIES Borrowings under revolving and bank lines of credit and term loans — 1,819.5 249.6 — 2,069.1 Repayments under revolving and bank lines of credit and term loans — (1,937.7 ) (212.7 ) — (2,150.4 ) Proceeds from issuance of 6.000% Senior Notes 400.0 — — — 400.0 Repayment of 6.625% Senior Notes (200.0 ) — — — (200.0 ) Financing and issuance fees (11.2 ) — — — (11.2 ) Dividends paid (116.6 ) (909.4 ) (26.5 ) 935.9 (116.6 ) Purchase of Common Shares (130.8 ) — — — (130.8 ) Payments on seller notes — (2.3 ) (0.5 ) — (2.8 ) Excess tax benefits from share-based payment arrangements 5.8 — — — 5.8 Cash received from exercise of stock options 14.7 — — — 14.7 Financing cash flows from (to) affiliates — 808.2 133.1 (941.3 ) — Net cash provided by (used in) financing activities (38.1 ) (221.7 ) 143.0 (5.4 ) (122.2 ) Effect of exchange rate changes on cash — — (2.1 ) — (2.1 ) Net increase (decrease) in cash and cash equivalents — (4.7 ) (16.6 ) — (21.3 ) Cash and cash equivalents at beginning of year — 7.4 64.0 — 71.4 Cash and cash equivalents at end of year $ — $ 2.7 $ 47.4 $ — $ 50.1 (a) Cash received by the Parent from the Guarantors and non Guarantors in the form of dividends in the amount of $934.4 million represent return of investments and are included in cash flows from investing activities. Cash received by the Guarantors from the Non-Guarantors in the form of dividends in the amount of $ 1.5 million represent return on investments and are included in the cash flows from operating activities. 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 (USED IN)OPERATING ACTIVITIES (a) $ 388.8 $ 254.5 $ 21.7 $ (424.1 ) $ 240.9 INVESTING ACTIVITIES (a) 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 the Guarantors 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 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 (USED IN)OPERATING ACTIVITIES (a) $ 239.4 $ 249.3 $ 39.5 $ (281.3 ) $ 246.9 INVESTING ACTIVITIES (a) 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. |
Condensed Consolidating Balance Sheet | 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 — 63.3 94.4 — 157.7 Accounts receivable, pledged — 152.9 — — 152.9 Inventories — 306.9 88.9 — 395.8 Assets held for sale — 220.3 — — 220.3 Prepaid and other current assets — 86.4 34.7 — 121.1 Total current assets — 837.2 282.0 — 1,119.2 Property, plant and equipment, net — 388.0 56.1 — 444.1 Goodwill — 260.2 12.0 11.6 283.8 Intangible assets, net — 584.6 58.8 11.7 655.1 Other assets 16.3 11.0 15.0 (17.3 ) 25.0 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 EQUITY Current liabilities: Current portion of debt $ — $ 122.9 $ 9.7 $ — $ 132.6 Accounts payable — 136.7 56.4 — 193.1 Liabilities held for sale — 41.7 — — 41.7 Other current liabilities 15.5 162.7 73.0 — 251.2 Total current liabilities 15.5 464.0 139.1 — 618.6 Long-term debt 1,016.3 724.9 100.1 (816.3 ) 1,025.0 Other liabilities 4.5 226.0 32.3 (12.3 ) 250.5 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 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 Balance Sheet As of September 30, 2016 (in millions) Parent Subsidiary Guarantors Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 2.7 $ 47.4 $ — $ 50.1 Accounts receivable, net — 92.4 104.0 — 196.4 Accounts receivable pledged — 174.7 — — 174.7 Inventories — 327.8 120.4 — 448.2 Prepaid and other current assets 0.1 82.8 39.4 — 122.3 Total current assets 0.1 680.4 311.2 — 991.7 Investment in unconsolidated affiliates — 100.3 0.7 — 101.0 Property, plant and equipment, net — 392.1 78.7 — 470.8 Goodwill — 260.4 101.2 11.6 373.2 Intangible assets, net — 596.4 144.3 10.2 750.9 Other assets 19.2 103.8 0.7 (2.5 ) 121.2 Equity investment in subsidiaries 808.8 — — (808.8 ) — Intercompany assets 1,013.0 — — (1,013.0 ) — Total assets $ 1,841.1 $ 2,133.4 $ 636.8 $ (1,802.5 ) $ 2,808.8 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ 15.0 $ 154.2 $ 30.8 $ (15.0 ) $ 185.0 Accounts payable — 108.8 57.1 — 165.9 Other current liabilities 16.6 143.6 82.0 — 242.2 Total current liabilities 31.6 406.6 169.9 (15.0 ) 593.1 Long-term debt 1,091.1 575.7 117.2 (652.9 ) 1,131.1 Other liabilities 3.2 268.7 76.0 2.4 350.3 Equity investment in subsidiaries — 161.0 — (161.0 ) — Intercompany liabilities — 147.2 187.1 (334.3 ) — Total liabilities 1,125.9 1,559.2 550.2 (1,160.8 ) 2,074.5 Total equity—controlling interest 715.2 574.2 86.6 (660.8 ) 715.2 Noncontrolling interest — — — 19.1 19.1 Total equity 715.2 574.2 86.6 (641.7 ) 734.3 Total liabilities and equity $ 1,841.1 $ 2,133.4 $ 636.8 $ (1,802.5 ) $ 2,808.8 |
SUMMARY OF SIGNIFICANT ACCOUN59
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Significant Accounting Policies [Line Items] | |||
Percentage of annual net sales from combined second and third quarter sales | 75.00% | 75.00% | 75.00% |
Deferred Advertising Costs | $ 0.2 | $ 0.7 | |
Advertising expenses | 132.2 | 133.2 | $ 132.1 |
Research and development charge | 45.5 | 44.4 | 46 |
Product registration costs | 14.3 | 13 | 12.5 |
Adjustment to reflect inventories at net realizable values | 10.8 | 17.8 | |
Interest on loans receivable | 3.9 | 0 | 0 |
Interest capitalized on capital projects | 0.3 | 0.4 | 0.4 |
Noncash investing activities for unpaid liabilities incurred | 12.4 | 8.5 | 7 |
Capitalized Computer Software, Net | 11.3 | 18.3 | |
Amortization of capitalized internal use computer software | 6.8 | 6 | $ 8.3 |
Unamortized debt issuance cost | 16.7 | 11.3 | |
Net current deferred tax assets (classified with prepaid and other current assets) | $ 62.1 | $ 78.2 | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets amortization period | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Intangible assets amortization period | 25 years | ||
TruGreen Joint Venture | |||
Significant Accounting Policies [Line Items] | |||
Percent ownership | 30.00% |
SUMMARY OF SIGNIFICANT ACCOUN60
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Economic Lives of Assets (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 10 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 25 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 15 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 6 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 10 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful economic lives | 8 years |
SUMMARY OF SIGNIFICANT ACCOUN61
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||
Interest paid | $ (54.1) | $ (47.6) | $ (46.9) |
Income taxes paid | (80.9) | (108.3) | (55.3) |
Senior Notes – 6.625% | |||
Debt Instrument [Line Items] | |||
Call premium on senior notes | (6.6) | 0 | 0 |
Senior Notes - 7.25% | |||
Debt Instrument [Line Items] | |||
Call premium on senior notes | $ 0 | $ 0 | $ (7.3) |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposal | $ 0 | $ 0 | $ 1.4 | ||
Deferred taxes expense (benefit) | 83.6 | 1.3 | 12.1 | ||
Cash received from sale of business | 0 | 0 | 7.2 | ||
Scotts LawnService | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposal | 131.2 | 0 | 0 | ||
Deferred taxes expense (benefit) | 51.9 | ||||
Cash provided by operating activities from discontinued operations | 26.8 | 28.2 | 19.2 | ||
Cash used in investing activities from discontinued operations | (1.4) | (24.3) | (3.4) | ||
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 | $ 0 | $ 0 | $ 1.2 |
DISCONTINUED OPERATIONS - Resul
DISCONTINUED OPERATIONS - Results of Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Jun. 28, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Net sales | $ 101.2 | $ 288.5 | $ 281.1 | |||||||||
Operating costs | 117.4 | 258.6 | 252.7 | |||||||||
Impairment, restructuring and other | 13.6 | 1.4 | 1 | |||||||||
Other income, net | (1.5) | (4) | (4) | |||||||||
Gain on sale of business | 0 | 0 | (1.4) | |||||||||
Income (loss) from discontinued operations before income taxes | 102.9 | 32.5 | 32.6 | |||||||||
Income tax expense from discontinued operations | 41.4 | 11.6 | 11.9 | |||||||||
Income (loss) from discontinued operations, net of tax | $ (6.7) | $ 85.7 | $ (16) | $ (1.5) | $ 16.7 | $ 17.9 | $ (14.3) | $ 0.6 | 61.5 | 20.9 | 20.7 | |
Wild Bird Food | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain on sale of wild bird food assets | $ (1.2) | 0 | 0 | (1.2) | ||||||||
Scotts LawnService | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain on sale of business | $ (131.2) | $ 0 | $ 0 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Major Classes of Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 0 | $ 220.3 |
Liabilities held for sale | $ 0 | 41.7 |
Scotts LawnService | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 33.6 | |
Inventories | 11.8 | |
Prepaid and other assets | 8.3 | |
Property, plant and equipment, net | 9.6 | |
Goodwill and intangible assets, net | 157 | |
Assets held for sale | 220.3 | |
Current portion of debt | 2.2 | |
Accounts payable | 4.8 | |
Other current liabilities | 29.2 | |
Long-term debt | 3.5 | |
Other liabilities | 2 | |
Liabilities held for sale | $ 41.7 |
IMPAIRMENT, RESTRUCTURING AND65
IMPAIRMENT, RESTRUCTURING AND OTHER - Schedule of Impairment, Restructuring, and Other Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other (recoveries) charges | $ (47.2) | $ 76.6 | $ 50 |
Goodwill and intangible asset impairments | 0 | 0 | 33.7 |
Impairment, restructuring and other (recoveries) charges from continuing operations | (39.5) | 83.2 | 50 |
Restructuring and other (recoveries) charges from discontinued operations | 13.6 | 1.4 | 1 |
Total impairment, restructuring and other (recoveries) charges | (25.9) | 84.6 | 51 |
Restructuring Reserve | |||
Amounts reserved for restructuring and other at beginning of year | 28.1 | 16 | 11.1 |
Restructuring and other charges from continuing operations | 16.4 | 83.2 | 16.3 |
Restructuring and other charges from discontinued operations | 13.6 | 1.4 | 1 |
Payments and other | (37.3) | (72.5) | (12.4) |
Amounts reserved for restructuring and other at end of year | 20.8 | 28.1 | 16 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other (recoveries) charges | 7.7 | 6.6 | 0 |
Operating expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other (recoveries) charges | $ (47.2) | $ 76.6 | $ 16.3 |
IMPAIRMENT, RESTRUCTURING AND66
IMPAIRMENT, RESTRUCTURING AND OTHER - Additional Information (Narrative) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Restructuring and Related Activities [Abstract] | |
Restructuring reserves classified as long-term | $ 1.5 |
IMPAIRMENT, RESTRUCTURING AND67
IMPAIRMENT, RESTRUCTURING AND OTHER - Fiscal 2016 (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 16.4 | $ 83.2 | $ 16.3 |
Impairment, restructuring and other (recoveries) charges | (25.9) | 84.6 | 51 |
U.S. Consumer | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 3.7 | ||
Europe Consumer | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 10.3 | ||
Termination Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 12.5 | ||
Impairment, restructuring and other (recoveries) charges | 22.2 | ||
Bonus S | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs related to consumer complaints and claims | 62.4 | ||
Scotts LawnService | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 1 | ||
Project Focus | Termination Benefits | U.S. Consumer | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment, restructuring and other (recoveries) charges | 3.4 | ||
Project Focus | Termination Benefits | Europe Consumer | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment, restructuring and other (recoveries) charges | 2 | ||
Project Focus | Other Restructuring Transaction Activity | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment, restructuring and other (recoveries) charges | 4.6 | ||
Project Focus | Bonus S | U.S. Consumer | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 73.8 | ||
Costs related to consumer complaints and claims | 6.4 | ||
Total reimbursement payments | 60.8 | ||
Reimbursement payments received this year | 40.9 | ||
Insurance reimbursement recoveries | 55.9 | $ 4.9 | |
Project Focus | Scotts LawnService | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 9 | ||
Restructuring transaction related charges | $ 4.6 |
IMPAIRMENT, RESTRUCTURING AND68
IMPAIRMENT, RESTRUCTURING AND OTHER - Fiscal 2015 (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Impairment, restructuring and other (recoveries) charges | $ (25.9) | $ 84.6 | $ 51 | ||||
Restructuring costs related to acceleration of equity compensation expense | 4.3 | ||||||
Restructuring costs | $ 16.4 | 83.2 | 16.3 | ||||
Restructuring costs | $ 6.7 | $ 9.3 | $ 9.6 | ||||
Bonus S | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs related to consumer complaints and claims | 62.4 | ||||||
U.S. Consumer | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 3.7 | ||||||
Europe Consumer | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 10.3 | ||||||
Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 0.2 | ||||||
Termination Benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Impairment, restructuring and other (recoveries) charges | 22.2 | ||||||
Restructuring costs | 12.5 | ||||||
Corporate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 6.6 | ||||||
Scotts LawnService | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ 1 | ||||||
Restructuring costs | $ 9 | $ 1.4 |
IMPAIRMENT, RESTRUCTURING AND69
IMPAIRMENT, RESTRUCTURING AND OTHER - Fiscal 2014 (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 28, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill and intangible asset impairments | $ 0 | $ 0 | $ 33.7 | |
Restructuring costs | $ 16.4 | 83.2 | 16.3 | |
International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 2.8 | |||
Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 12.5 | |||
U.S. Consumer | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 3.7 | |||
Ortho Brand | U.S. Consumer | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill and intangible asset impairments | $ 33.7 | |||
Turfgrass Biotechnology Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 2 | |||
Scotts LawnService | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1 |
GOODWILL AND INTANGIBLE ASSET70
GOODWILL AND INTANGIBLE ASSETS, NET - Rollforward of Carrying Amount of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, gross (beginning of period) | $ 346.6 | $ 281.8 |
Accumulated impairment losses | (62.8) | (62.8) |
Goodwill, net (beginning of period) | 283.8 | 219 |
Acquisitions, net of purchase price adjustments and foreign currency translation | 89.4 | 64.8 |
Goodwill, gross (end of period) | 433.5 | 346.6 |
Accumulated impairment losses | (60.3) | (62.8) |
Goodwill, net (end of period) | 373.2 | 283.8 |
U.S. Consumer | ||
Goodwill [Roll Forward] | ||
Goodwill, gross (beginning of period) | 213.1 | 202.5 |
Accumulated impairment losses | (1.8) | (1.8) |
Goodwill, net (beginning of period) | 211.3 | 200.7 |
Acquisitions, net of purchase price adjustments and foreign currency translation | 0.6 | 10.6 |
Goodwill, gross (end of period) | 213.7 | 213.1 |
Accumulated impairment losses | (1.8) | (1.8) |
Goodwill, net (end of period) | 211.9 | 211.3 |
Europe Consumer | ||
Goodwill [Roll Forward] | ||
Goodwill, gross (beginning of period) | 58.5 | 58.5 |
Accumulated impairment losses | (58.5) | (58.5) |
Goodwill, net (beginning of period) | 0 | 0 |
Acquisitions, net of purchase price adjustments and foreign currency translation | 0 | |
Goodwill, gross (end of period) | 58.5 | 58.5 |
Accumulated impairment losses | (58.5) | (58.5) |
Goodwill, net (end of period) | 0 | 0 |
Other | ||
Goodwill [Roll Forward] | ||
Goodwill, gross (beginning of period) | 75 | 20.8 |
Accumulated impairment losses | (2.5) | (2.5) |
Goodwill, net (beginning of period) | 72.5 | 18.3 |
Acquisitions, net of purchase price adjustments and foreign currency translation | 88.8 | 54.2 |
Goodwill, gross (end of period) | 161.3 | 75 |
Accumulated impairment losses | 0 | (2.5) |
Goodwill, net (end of period) | $ 161.3 | $ 72.5 |
GOODWILL AND INTANGIBLE ASSET71
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangible assets | $ 484.8 | $ 484.8 |
Total intangible assets, net | 750.9 | 655.1 |
Intangible Assets [Line Items] | ||
Total finite-lived intangible assets, net | 266.1 | 170.3 |
Tradenames | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangible assets | 184.8 | 184.8 |
Marketing Agreement Amendment | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangible assets | 188.3 | 188.3 |
Brand Extension Agreement | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangible assets | 111.7 | 111.7 |
Technology | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 70.3 | 69.7 |
Accumulated Amortization | (59.2) | (56.9) |
Total finite-lived intangible assets, net | 11.1 | 12.8 |
Customer accounts | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 144.7 | 95.6 |
Accumulated Amortization | (41.2) | (32.1) |
Total finite-lived intangible assets, net | 103.5 | 63.5 |
Tradenames | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 150.7 | 94.6 |
Accumulated Amortization | (22.3) | (16.9) |
Total finite-lived intangible assets, net | 128.4 | 77.7 |
Other | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 97.9 | 88.7 |
Accumulated Amortization | (74.8) | (72.4) |
Total finite-lived intangible assets, net | $ 23.1 | $ 16.3 |
GOODWILL AND INTANGIBLE ASSET72
GOODWILL AND INTANGIBLE ASSETS, NET - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 28, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Jul. 02, 2016 | |
Intangible Assets [Line Items] | |||||
Goodwill and intangible asset impairments | $ 0 | $ 0 | $ 33.7 | ||
Amortization expense | $ 18.8 | $ 15.7 | 13 | ||
Ortho Brand | U.S. Consumer | |||||
Intangible Assets [Line Items] | |||||
Goodwill and intangible asset impairments | $ 33.7 | ||||
Fair value of intangible assets | $ 92.3 | $ 126 |
GOODWILL AND INTANGIBLE ASSET73
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Amortization Expense (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 19.2 |
2,018 | 18.5 |
2,019 | 17.2 |
2,020 | 16.4 |
2,021 | $ 15.9 |
DETAIL OF CERTAIN FINANCIAL S74
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS - Summary of Balance Sheet Accounts (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
INVENTORIES: | ||
Finished goods | $ 248.7 | $ 218.9 |
Work-in-progress | 56.9 | 48.3 |
Raw materials | 142.6 | 128.6 |
Inventories | 448.2 | 395.8 |
PREPAID AND OTHER ASSETS: | ||
Deferred tax asset | 62.1 | 78.2 |
Accounts receivable, non-trade | 17.7 | 10.9 |
Other | 42.5 | 32 |
Prepaid and other current assets | 122.3 | 121.1 |
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | 1,104.1 | 1,038 |
Less: accumulated depreciation | (633.3) | (593.9) |
Property, plant and equipment, net | 470.8 | 444.1 |
OTHER ASSETS: | ||
Unamortized debt issuance costs | 16.7 | 11.3 |
Loans receivable | 90 | 0 |
Other | 14.5 | 13.7 |
Other assets | 121.2 | 25 |
OTHER CURRENT LIABILITIES: | ||
Payroll and other compensation accruals | 72.6 | 56.5 |
Advertising and promotional accruals | 65.8 | 67 |
Other | 103.8 | 127.7 |
Other current liabilities | 242.2 | 251.2 |
OTHER NON-CURRENT LIABILITIES: | ||
Accrued pension and postretirement liabilities | 94.8 | 92.5 |
Deferred tax liabilities | 219.1 | 125.4 |
Other | 36.4 | 32.6 |
Other non-current liabilities | 350.3 | 250.5 |
Land and improvements | ||
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | 113 | 96.5 |
Buildings | ||
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | 249.1 | 219.7 |
Machinery and equipment | ||
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | 552.2 | 538.3 |
Furniture and fixtures | ||
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | 39.8 | 36.8 |
Software | ||
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | 114.8 | 111.5 |
Aircraft | ||
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | 6.7 | 6.7 |
Construction in progress | ||
PROPERTY, PLANT AND EQUIPMENT, NET: | ||
Property, plant and equipment, gross | $ 28.5 | $ 28.5 |
DETAIL OF CERTAIN FINANCIAL S75
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Unrecognized loss on derivatives, net of tax of $2.8, $5.6 and $4.3 | $ (4.7) | $ (9) | $ (6.9) |
Pension and other postretirement liabilities, net of tax of $41.2, $39.3 and $38.6 | (66.9) | (63.7) | (62.4) |
Foreign currency translation adjustment | (45.3) | (34.1) | (16.9) |
Accumulated other comprehensive loss | (116.9) | (106.8) | (86.2) |
Unrecognized loss on derivatives, tax | 2.8 | 5.6 | 4.3 |
Pension and other postretirement liabilities, tax | $ 41.2 | $ 39.3 | $ 38.6 |
MARKETING AGREEMENT - Additiona
MARKETING AGREEMENT - Additional Information (Detail) $ in Millions | Aug. 14, 2015USD ($) | Sep. 30, 2016USD ($) | Jul. 02, 2016USD ($) |
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 | ||
Unamortized amount of deferred costs related to Long-term contracts | $ 1.6 | ||
Finite-lived intangible assets, remaining amortization period | 2 years | ||
Total consideration transferred | $ 300 | ||
Minimum termination fee payable | $ 200 | ||
Minimum termination fee payable, multiple of average program earnings, prior 3 years | 4 | ||
Commission threshold | $ 40 | ||
Commission threshold, percentage of program earnings | 50.00% | ||
Agency Agreement | |||
Schedule of Costs Related to Purchase Obligations [Line Items] | |||
Indefinite-lived Intangible Assets Acquired | $ 188.3 | ||
Brand Extension Agreement | |||
Schedule of Costs Related to Purchase Obligations [Line Items] | |||
Indefinite-lived Intangible Assets Acquired | $ 111.7 |
MARKETING AGREEMENT - Net Commi
MARKETING AGREEMENT - Net Commission Earned Under the Marketing Agreement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Marketing Agreement [Abstract] | |||
Gross commission | $ 109.1 | $ 88.7 | $ 85.2 |
Contribution expenses | (20) | (20) | (20) |
Amortization of marketing fee | (0.8) | (0.8) | (0.8) |
Net commission income | 88.3 | 67.9 | 64.4 |
Reimbursements associated with Marketing Agreement | 65.5 | 63.3 | 63 |
Total net sales associated with Marketing Agreement | $ 153.8 | $ 131.2 | $ 127.4 |
ACQUISITIONS AND INVESTMENTS (D
ACQUISITIONS AND INVESTMENTS (Detail) - USD ($) $ in Millions | Oct. 03, 2016 | May 26, 2016 | Mar. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2014 | Dec. 28, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||||||||||||||||
Reimbursement revenue | $ 65.5 | $ 63.3 | $ 63 | ||||||||||||||
Loans receivable | $ 90 | $ 0 | 90 | 0 | |||||||||||||
Net commission income | 88.3 | 67.9 | 64.4 | ||||||||||||||
Investment in unconsolidated affiliates | 101 | 0 | 101 | 0 | |||||||||||||
Goodwill acquired | 89.4 | 64.8 | |||||||||||||||
Net sales | $ 402.3 | $ 994.1 | $ 1,245.2 | $ 194.5 | 375.4 | $ 1,111.3 | $ 1,071.8 | $ 169.5 | $ 2,836.1 | 2,728 | 2,578.3 | ||||||
Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 3 years | ||||||||||||||||
Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 25 years | ||||||||||||||||
Gavita Holdings B.V. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | $ 136.2 | ||||||||||||||||
Loans payable, noncurrent | (37.7) | ||||||||||||||||
Deferred tax liabilities acquired | 25.7 | ||||||||||||||||
Long term debt acquired | 5.5 | ||||||||||||||||
Ownership percentage by noncontrolling owners | 5.00% | 5.00% | |||||||||||||||
Economic interest retained by previous owner | 25.00% | 25.00% | |||||||||||||||
Economic interest acquired | 75.00% | 75.00% | |||||||||||||||
Finite-lived intangible assets acquired | 102.6 | ||||||||||||||||
Goodwill acquired | 82.7 | ||||||||||||||||
Accounts payable acquired | 18.7 | ||||||||||||||||
Contingent liability acquired | 2.5 | ||||||||||||||||
Cash, prepaids, and other current assets acquired | 6.4 | ||||||||||||||||
Inventory and accounts receivable acquired | 38.3 | ||||||||||||||||
Net sales | $ 35.7 | ||||||||||||||||
Fixed assets acquired | $ 1.5 | ||||||||||||||||
Gavita Holdings B.V. | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 5 years | ||||||||||||||||
Gavita Holdings B.V. | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 25 years | ||||||||||||||||
Bonnie Plants, Inc. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Reimbursement revenue | $ 0.6 | ||||||||||||||||
Loans receivable | $ 72 | ||||||||||||||||
Net commission income | 3.6 | ||||||||||||||||
Interest rate | 6.95% | ||||||||||||||||
Bonnie Plants, Inc. | Unobservable Inputs (Level 3) | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Fair value of option to increase interest | $ 10.9 | 10.9 | |||||||||||||||
Growing Media Acquisition, Canada | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | 33.9 | ||||||||||||||||
Investment in unconsolidated affiliates | 0.7 | ||||||||||||||||
Deferred tax liabilities acquired | 1.4 | ||||||||||||||||
Finite-lived intangible assets acquired | 11.4 | ||||||||||||||||
Goodwill acquired | 2.1 | ||||||||||||||||
Prepaid expense and other assets acquired | 4.7 | ||||||||||||||||
Contingent liability acquired | 10.8 | ||||||||||||||||
Net sales | $ 6.4 | ||||||||||||||||
Fixed assets acquired | 18.6 | ||||||||||||||||
Growing Media Acquisition, Canada | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 5 years | ||||||||||||||||
Growing Media Acquisition, Canada | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 25 years | ||||||||||||||||
Total Non-Cash Contingent Consideration | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Contingent liability acquired | $ 13.3 | ||||||||||||||||
American Agritech, L.L.C. | Subsequent Event [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | $ 90 | ||||||||||||||||
Growing Media Acquisition | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | 40.2 | ||||||||||||||||
Finite-lived intangible assets acquired | 10.1 | ||||||||||||||||
Goodwill acquired | 10.6 | ||||||||||||||||
Prepaid expense and other assets acquired | 9.9 | 9.9 | |||||||||||||||
Fixed assets acquired | $ 11.4 | 11.4 | |||||||||||||||
Growing Media Acquisition | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 7 years | ||||||||||||||||
Growing Media Acquisition | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 20 years | ||||||||||||||||
General Hydroponics, Inc. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | $ 120 | ||||||||||||||||
Deferred purchase price obligation | 1 | $ 0.5 | |||||||||||||||
Bio-Organic Solutions, Inc. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | 15 | ||||||||||||||||
Contingent liability acquired | 5 | ||||||||||||||||
General Hydroponics, Inc. and Bio-Organic Solutions, Inc. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite-lived intangible assets acquired | 65 | ||||||||||||||||
Goodwill acquired | 53.9 | ||||||||||||||||
Prepaid expense and other assets acquired | 14.2 | ||||||||||||||||
Net sales | $ 64.1 | 30.9 | |||||||||||||||
Fixed assets acquired | $ 5.7 | ||||||||||||||||
General Hydroponics, Inc. and Bio-Organic Solutions, Inc. | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 5 years | ||||||||||||||||
General Hydroponics, Inc. and Bio-Organic Solutions, Inc. | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 26 years | ||||||||||||||||
AeroGrow International, Inc. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite-lived intangible assets acquired | $ 13.7 | ||||||||||||||||
Goodwill acquired | 11.6 | ||||||||||||||||
Net sales | $ 21.4 | 17.1 | 1.7 | ||||||||||||||
Amount due from affiliate, non-current | $ 4.5 | 4.5 | 4.5 | ||||||||||||||
AeroGrow International, Inc. | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 9 years | ||||||||||||||||
AeroGrow International, Inc. | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 20 years | ||||||||||||||||
Fafard & Brothers Ltd. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | 59.8 | ||||||||||||||||
Finite-lived intangible assets acquired | 12.6 | ||||||||||||||||
Goodwill acquired | 7.9 | ||||||||||||||||
Fair value of acquired receivables | 4.7 | 4.7 | 4.7 | ||||||||||||||
Inventory acquired | 17.7 | 17.7 | 17.7 | ||||||||||||||
Accounts payable acquired | 4.8 | 4.8 | 4.8 | ||||||||||||||
Contingent liability acquired | 7.1 | 7.1 | 7.1 | ||||||||||||||
Net sales | $ 37.5 | $ 37.8 | |||||||||||||||
Current assets acquired | 17.6 | 17.6 | 17.6 | ||||||||||||||
Fixed assets acquired | $ 23.4 | $ 23.4 | 23.4 | ||||||||||||||
Fafard & Brothers Ltd. | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 1 year | ||||||||||||||||
Fafard & Brothers Ltd. | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 20 years | ||||||||||||||||
Tomcat | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Credit received for purchase of finished assets | $ 2 | ||||||||||||||||
Cash payment in acquisition | 60 | ||||||||||||||||
Finite-lived intangible assets acquired | 39.8 | ||||||||||||||||
Goodwill acquired | $ 18.2 | ||||||||||||||||
Tomcat | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 10 years | ||||||||||||||||
Tomcat | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Intangible assets amortization period | 30 years | ||||||||||||||||
Solus Garden and Leisure Limited | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Total consideration transferred | 7.4 | ||||||||||||||||
Loan forgiveness paid on acquisition | 6.3 | ||||||||||||||||
Cash payment in acquisition | $ 1.1 |
INVESTMENT IN UNCONSOLIDATED 79
INVESTMENT IN UNCONSOLIDATED AFFILIATES - Additional Information (Details) - USD ($) $ in Millions | Apr. 13, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Investments in and Advances to Affiliates [Line Items] | ||||
Excess distribution recorded as return of investment | $ 0 | |||
Accounts receivable, net | 196.4 | $ 157.7 | ||
Equity in income of unconsolidated affiliates | $ 7.8 | $ 0 | $ 0 | |
TruGreen Joint Venture | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Minority equity interest (as a percent) | 30.00% | |||
Estimated fair value on transaction date | $ 294 | |||
Excess distribution recorded as return of investment | 196.2 | |||
Investment in term loan financing | $ 18 | |||
Reimbursement of term loan financing | $ 52.6 | |||
Accounts receivable, net | 14.9 | |||
Indemnification asset | 9.6 | |||
Distributions intended to cover required tax payments | 7.5 | |||
Equity in income of unconsolidated affiliates | 7.8 | |||
Share of restructuring and other charges incurred | 34.8 | |||
Transaction and merger costs | 6 | |||
Nonrecurring integration and separation costs | 4.4 | |||
Fair value write-down adjustment on deferred revenue and advertising | 1.3 | |||
Undistributed earnings, net of tax, of unconsolidated affiliates | (0.2) | |||
Other Restructuring Transaction Activity | TruGreen Joint Venture | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Share of restructuring and other charges incurred | $ 11.7 |
INVESTMENT IN UNCONSOLIDATED 80
INVESTMENT IN UNCONSOLIDATED AFFILIATES - Summary of Financial Information for the TruGreen Joint Venture (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Assets | ||||||||||||
Cash and cash equivalents | $ 50.1 | $ 71.4 | $ 50.1 | $ 71.4 | $ 89.3 | $ 129.8 | ||||||
Other current assets | 122.3 | 121.1 | 122.3 | 121.1 | ||||||||
Intangible assets, net | 750.9 | 655.1 | 750.9 | 655.1 | ||||||||
Goodwill | 373.2 | 283.8 | 373.2 | 283.8 | 219 | |||||||
Other assets | 121.2 | 25 | 121.2 | 25 | ||||||||
Total assets | 2,808.8 | 2,527.2 | 2,808.8 | 2,527.2 | ||||||||
Liabilities and Equity | ||||||||||||
Current liabilities | 593.1 | 618.6 | 593.1 | 618.6 | ||||||||
Current portion of debt | 185 | 132.6 | 185 | 132.6 | ||||||||
Long-term debt | 1,131.1 | 1,025 | 1,131.1 | 1,025 | ||||||||
Other liabilities | 350.3 | 250.5 | 350.3 | 250.5 | ||||||||
Equity | 715.2 | 620.7 | 715.2 | 620.7 | ||||||||
Total liabilities and equity | 2,808.8 | 2,527.2 | 2,808.8 | 2,527.2 | ||||||||
Condensed Income Statement | ||||||||||||
Net sales | 402.3 | $ 994.1 | $ 1,245.2 | $ 194.5 | 375.4 | $ 1,111.3 | $ 1,071.8 | $ 169.5 | 2,836.1 | 2,728 | 2,578.3 | |
Gross margin | 99.7 | 357.4 | 521.6 | 16.7 | 90.8 | 385.8 | 424.8 | 6.6 | 995.4 | 908 | 890.1 | |
Interest expense | 65.6 | 50.5 | 47.3 | |||||||||
Net income attributable to controlling interest | (26.6) | $ 213.1 | $ 210.1 | $ (81.3) | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | 315.3 | $ 159.8 | $ 166.5 | |
TruGreen Joint Venture | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | 92.3 | 92.3 | ||||||||||
Other current assets | 159.1 | 159.1 | ||||||||||
Intangible assets, net | 916.8 | 916.8 | ||||||||||
Goodwill | 165.3 | 165.3 | ||||||||||
Other assets | 376 | 376 | ||||||||||
Total assets | 1,709.5 | 1,709.5 | ||||||||||
Liabilities and Equity | ||||||||||||
Current liabilities | 210.9 | 210.9 | ||||||||||
Current portion of debt | 6.9 | 6.9 | ||||||||||
Long-term debt | 726 | 726 | ||||||||||
Other liabilities | 80.6 | 80.6 | ||||||||||
Equity | 685.1 | 685.1 | ||||||||||
Total liabilities and equity | $ 1,709.5 | 1,709.5 | ||||||||||
Condensed Income Statement | ||||||||||||
Net sales | 808.4 | |||||||||||
Gross margin | 308.6 | |||||||||||
Depreciation and amortization | 51.2 | |||||||||||
Interest expense | 30.8 | |||||||||||
Selling, general, administrative and other | 164.8 | |||||||||||
Restructuring and other charges | 34.8 | |||||||||||
Net income attributable to controlling interest | $ 27 |
RETIREMENT PLANS - Additional I
RETIREMENT PLANS - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Sep. 30, 2016USD ($)plan | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jul. 01, 2010plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Compensation charges | $ | $ 13 | $ 11.5 | $ 11.7 | |
U.S. Defined Benefit Pension 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 Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of defined benefit plans frozen in the UK | 2 | |||
401(K) | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discretionary profit sharing matching contributions | 4.00% | |||
401(K) | Company matches 150% of associates’ initial 4% contribution | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer match of employee contribution | 150.00% | |||
Employee contribution of gross pay | 4.00% | |||
401(K) | Company matches 50% of associates' contribution up to 6% | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer match of employee contribution | 50.00% | |||
Employee contribution of gross pay | 6.00% |
RETIREMENT PLANS - Benefit Obli
RETIREMENT PLANS - 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, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent liabilities | $ (94.8) | $ (92.5) | |
U.S. Defined Benefit Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 117.3 | 109.2 | |
Interest cost | 4.3 | 4 | |
Actuarial loss | 3.8 | 11.4 | |
Benefits paid | (7.2) | (7.3) | |
Projected benefit obligation at end of year | 118.2 | 117.3 | $ 109.2 |
Accumulated benefit obligation at end of year | 118.2 | 117.3 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 83.5 | 89.8 | |
Actual return on plan assets | 9.9 | (1.4) | |
Employer contribution | 3.2 | 2.4 | |
Benefits paid | (7.2) | (7.3) | |
Fair value of plan assets at end of year | 89.4 | 83.5 | 89.8 |
Underfunded status at end of year | (28.8) | (33.8) | |
Information for pension plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 118.2 | 117.3 | |
Accumulated benefit obligation | 118.2 | 117.3 | |
Fair value of plan assets | 89.4 | 83.5 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (0.2) | (0.2) | |
Noncurrent liabilities | (28.6) | (33.6) | |
Total amount accrued | (28.8) | (33.8) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Actuarial loss | 46.4 | 49.2 | |
Total amount recognized | 46.4 | 49.2 | |
Total change in other comprehensive loss attributable to: | |||
Pension benefit (loss) gain during the period | 1.1 | (18.2) | |
Reclassification of pension benefit losses to net income | 1.8 | 3.3 | |
Foreign currency translation | 0 | 0 | |
Total change in other comprehensive loss | 2.9 | $ (14.9) | |
Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2017 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 | 3.07% | 3.82% | |
International Defined Benefit Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | $ 198.1 | $ 208.3 | |
Service cost | 1.1 | 1.2 | 1.2 |
Interest cost | 6.5 | 7.3 | |
Actuarial loss | 45.5 | 4.5 | |
Benefits paid | (8) | (6.4) | |
Other | (0.9) | (1.1) | |
Foreign currency translation | (26.9) | (15.7) | |
Projected benefit obligation at end of year | 215.4 | 198.1 | 208.3 |
Accumulated benefit obligation at end of year | 209.7 | 192 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 168.6 | 166.3 | |
Actual return on plan assets | 37.1 | 13.9 | |
Employer contribution | 6.1 | 7.4 | |
Benefits paid | (8) | (6.4) | |
Foreign currency translation | (26.4) | (11.5) | |
Other | (0.9) | (1.1) | |
Fair value of plan assets at end of year | 176.5 | 168.6 | $ 166.3 |
Underfunded status at end of year | (38.9) | (29.5) | |
Information for pension plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 215.4 | 198.1 | |
Accumulated benefit obligation | 209.7 | 192 | |
Fair value of plan assets | 176.5 | 168.6 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent assets | 0.5 | 2.4 | |
Current liabilities | (0.9) | (0.9) | |
Noncurrent liabilities | (38.5) | (31) | |
Total amount accrued | (38.9) | (29.5) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Actuarial loss | 64.2 | 57.8 | |
Prior service cost | 0.3 | 0.3 | |
Total amount recognized | 64.5 | 58.1 | |
Total change in other comprehensive loss attributable to: | |||
Pension benefit (loss) gain during the period | (15.8) | 0.5 | |
Reclassification of pension benefit losses to net income | 1.6 | 1.7 | |
Foreign currency translation | 7.8 | 4.8 | |
Total change in other comprehensive loss | (6.4) | $ 7 | |
Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in fiscal 2017 are as follows: | |||
Actuarial loss | 2.1 | ||
Prior service cost | 0 | ||
Amount to be amortized into net periodic benefit cost | $ 2.1 | ||
Weighted average assumptions used in development of projected benefit obligation: | |||
Discount rate | 2.07% | 3.52% | |
Rate of compensation increase | 3.46% | 3.49% |
RETIREMENT PLANS - Components o
RETIREMENT PLANS - Components of Net Periodic Benefit Cost and Weighted Average Assumptions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
U.S. Defined Benefit Pension Plans | |||
Components of net periodic benefit cost: | |||
Interest cost | $ 4.3 | $ 4 | $ 4.5 |
Expected return on plan assets | (5) | (5.4) | (5.2) |
Net amortization | 1.8 | 3.3 | 3.7 |
Net periodic benefit cost | 1.1 | 1.9 | 3 |
Contractual termination benefits | 0 | 0 | 0 |
Total benefit cost | $ 1.1 | $ 1.9 | $ 3 |
Weighted average assumptions used in development of net periodic benefit cost: | |||
Discount rate | 3.81% | 3.81% | 4.32% |
Expected return on plan assets | 5.50% | 6.25% | 6.25% |
International Defined Benefit Pension Plans | |||
Components of net periodic benefit cost: | |||
Service cost | $ 1.1 | $ 1.2 | $ 1.2 |
Interest cost | 6.5 | 7.3 | 8.3 |
Expected return on plan assets | (7.4) | (8.9) | (9.4) |
Net amortization | 1.6 | 1.7 | 1.4 |
Net periodic benefit cost | 1.8 | 1.3 | 1.5 |
Contractual termination benefits | 0 | 0 | 0.3 |
Total benefit cost | $ 1.8 | $ 1.3 | $ 1.8 |
Weighted average assumptions used in development of net periodic benefit cost: | |||
Discount rate | 3.52% | 3.73% | 4.32% |
Expected return on plan assets | 4.70% | 5.63% | 6.17% |
Rate of compensation increase | 3.50% | 3.70% | 3.70% |
RETIREMENT PLANS - Plan Asset A
RETIREMENT PLANS - Plan Asset Allocations and Expected Future Benefit Payments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. Defined Benefit Pension Plans | |||
Plan asset allocations: | |||
Expected Company contributions in fiscal 2017 | $ 3.7 | ||
Expected future benefit payments: | |||
2,017 | 7.7 | ||
2,018 | 7.7 | ||
2,019 | 7.7 | ||
2,020 | 7.7 | ||
2,021 | 7.6 | ||
2022 - 2027 | $ 36.5 | ||
U.S. Defined Benefit Pension Plans | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 23.00% | 23.00% | |
U.S. Defined Benefit Pension Plans | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 70.00% | 70.00% | |
U.S. Defined Benefit Pension Plans | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 4.00% | 4.00% | |
U.S. Defined Benefit Pension Plans | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 3.00% | 3.00% | |
U.S. Defined Benefit Pension Plans | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | 0.00% | |
U.S. Defined Benefit Pension Plans | Scenario, Forecast | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 25.00% | ||
U.S. Defined Benefit Pension Plans | Scenario, Forecast | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 70.00% | ||
U.S. Defined Benefit Pension Plans | Scenario, Forecast | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 5.00% | ||
U.S. Defined Benefit Pension Plans | Scenario, Forecast | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
U.S. Defined Benefit Pension Plans | Scenario, Forecast | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Pension Plans | |||
Plan asset allocations: | |||
Expected Company contributions in fiscal 2017 | $ 4.7 | ||
Expected future benefit payments: | |||
2,017 | 6 | ||
2,018 | 6.3 | ||
2,019 | 6.6 | ||
2,020 | 6.6 | ||
2,021 | 7 | ||
2022 - 2027 | $ 41.8 | ||
International Defined Benefit Pension Plans | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 29.00% | 31.00% | |
International Defined Benefit Pension Plans | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 69.00% | 67.00% | |
International Defined Benefit Pension Plans | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | 0.00% | |
International Defined Benefit Pension Plans | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | 0.00% | |
International Defined Benefit Pension Plans | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 2.00% | 2.00% | |
International Defined Benefit Pension Plans | Scenario, Forecast | Equity securities | |||
Plan asset allocations: | |||
Plan asset allocations | 30.00% | ||
International Defined Benefit Pension Plans | Scenario, Forecast | Debt securities | |||
Plan asset allocations: | |||
Plan asset allocations | 68.00% | ||
International Defined Benefit Pension Plans | Scenario, Forecast | Real estate securities | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Pension Plans | Scenario, Forecast | Cash and cash equivalents | |||
Plan asset allocations: | |||
Plan asset allocations | 0.00% | ||
International Defined Benefit Pension Plans | Scenario, Forecast | Insurance contracts | |||
Plan asset allocations: | |||
Plan asset allocations | 2.00% |
RETIREMENT PLANS - Fair Value o
RETIREMENT PLANS - Fair Value of The Company's Pension Plan Asset (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
U.S. Defined Benefit Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 89.4 | $ 83.5 | $ 89.8 |
U.S. Defined Benefit Pension Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.2 | 2.6 | |
U.S. Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.8 | 3.5 | |
U.S. Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20.9 | 19 | |
U.S. Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62.5 | 58.4 | |
International Defined Benefit Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 176.5 | 168.6 | $ 166.3 |
International Defined Benefit Pension Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0.6 | |
International Defined Benefit Pension Plan Assets | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.6 | 2.6 | |
International Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 51.8 | 52.3 | |
International Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 121.4 | 113.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.2 | 2.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Pension Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.2 | 2.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Defined Benefit Pension Plan 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 Pension 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) | U.S. Defined Benefit Pension Plan 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 Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Defined Benefit Pension Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Defined Benefit Pension 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 Pension 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 Pension 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 Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 87.2 | 80.9 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Pension 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) | U.S. Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.8 | 3.5 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20.9 | 19 | |
Significant Other Observable Inputs (Level 2) | U.S. Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62.5 | 58.4 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 175.8 | 168 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Pension 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 Pension Plan Assets | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.6 | 2.6 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 51.8 | 52.3 | |
Significant Other Observable Inputs (Level 2) | International Defined Benefit Pension Plan Assets | Mutual funds | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 121.4 | 113.1 | |
Unobservable Inputs (Level 3) | U.S. Defined Benefit Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | U.S. Defined Benefit Pension Plan 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 Pension Plan 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 Pension Plan 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 Pension Plan 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 Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | International Defined Benefit Pension 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 Pension Plan Assets | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | International Defined Benefit Pension 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 Pension Plan Assets | Mutual funds | Mutual funds—fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
ASSOCIATE MEDICAL BENEFITS - Ad
ASSOCIATE MEDICAL BENEFITS - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($)Year | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.00% | ||
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 | 31.8 | $ 29.6 | $ 29 |
Postretirement Medical Benefits | United States Postretirement Benefit Plan of US Entity, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Other Changes | $ 0 | $ (8.2) | |
Minimum Retirement Age To Eligible | Year | 55 | ||
Number Of Minimum Service For Eligibility | 10 years | ||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 0.4 | ||
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | $ 1.1 |
ASSOCIATE MEDICAL BENEFITS - Re
ASSOCIATE MEDICAL BENEFITS - Retiree Medical Plan for Domestic Associates (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | ||
Noncurrent liabilities | $ (94.8) | $ (92.5) |
Postretirement Medical Benefits | United States Postretirement Benefit Plan of US Entity, Defined Benefit | ||
Change in projected benefit obligation: | ||
Benefit obligation at beginning of year | 26 | 32.4 |
Service cost | 0.2 | 0.4 |
Interest cost | 1 | 1.3 |
Plan participants’ contributions | 0.5 | 1.2 |
Actuarial loss | 1.3 | 2 |
Benefits paid (net of federal subsidy of $0.0 and $0.3) | (2.8) | (3.1) |
Benefits paid, federal subsidy | 0 | 0.3 |
Plan changes | 0 | (8.2) |
Projected benefit obligation at end of year | 26.2 | 26 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Employer contribution | 2.3 | 2.2 |
Plan participants’ contributions | 0.5 | 1.2 |
Gross benefits paid | (2.8) | (3.4) |
Fair value of plan assets at end of year | 0 | 0 |
Unfunded status at end of year | (26.2) | (26) |
Amounts recognized in the Consolidated Balance Sheets consist of: | ||
Current liabilities | (1.8) | (2.1) |
Noncurrent liabilities | (24.4) | (23.9) |
Total amount accrued | (26.2) | (26) |
Amounts recognized in accumulated other comprehensive loss consist of: | ||
Actuarial loss | 4.7 | 3.4 |
Unamortized prior service credit | (6.9) | (8.1) |
Total amount recognized | (2.2) | (4.7) |
Total change in other comprehensive loss attributable to: | ||
Benefit loss during the period | 1.5 | 2.1 |
Net prior service credit | 0 | (8.2) |
Net amortization of prior service credit and actuarial loss during the year | 1 | 0 |
Total change in other comprehensive loss | $ 2.5 | $ (6.1) |
Discount rate used in development of APBO | 3.26% | 4.03% |
ASSOCIATE MEDICAL BENEFITS - Co
ASSOCIATE MEDICAL BENEFITS - Components of Net Periodic Benefit Cost and Discount Rate Used in Development of Net Periodic Benefit Cost (Details) - Postretirement Medical Benefits - United States Postretirement Benefit Plan of US Entity, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.2 | $ 0.4 | $ 0.4 |
Interest cost | 1 | 1.3 | 1.4 |
Net amortization | 0.1 | 0 | 0 |
Amortization of prior service credit | (1.1) | 0 | 0 |
Total benefit cost | $ 0.2 | $ 1.7 | $ 1.8 |
Discount rate used in development of net periodic benefit cost | 4.03% | 4.08% | 4.54% |
ASSOCIATE MEDICAL BENEFITS - Ex
ASSOCIATE MEDICAL BENEFITS - Expected Benefit Payments Under the Plan By The Company and Retirees (Details) $ in Millions | Sep. 30, 2016USD ($) |
Gross Benefit Payments | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 2.1 |
2,018 | 2.3 |
2,019 | 2.5 |
2,020 | 2.6 |
2,021 | 2.6 |
2022 - 2027 | 11.9 |
Retiree Contribution | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 0.3 |
2,018 | 0.4 |
2,019 | 0.5 |
2,020 | 0.6 |
2,021 | 0.6 |
2022 - 2027 | 3.2 |
Net Company Payments | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1.8 |
2,018 | 1.9 |
2,019 | 2 |
2,020 | 2 |
2,021 | 2 |
2022 - 2027 | $ 8.7 |
DEBT - Components of Long-Term
DEBT - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 13, 2015 | Sep. 30, 2015 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,316.1 | $ 1,157.6 | |
Less current portions | 185 | 132.6 | |
Long term debt, non current | 1,131.1 | 1,025 | |
Senior Notes – 6.000% | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | ||
Credit Facilities | Revolving loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | 417.4 | 816.3 | |
Credit Facilities | Term loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | 288.8 | 0 | |
Senior Notes | Senior Notes – 6.625% | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 200 | |
Interest rate | 6.625% | 6.625% | |
Senior Notes | Senior Notes – 6.000% | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400 | $ 0 | |
Interest rate | 6.00% | 6.00% | |
Master Accounts Receivable Purchase Agreement | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 138.6 | $ 122.3 | |
Other debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 71.3 | $ 19 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) | Oct. 13, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Nov. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Dec. 15, 2015USD ($) | Oct. 29, 2015USD ($) | Dec. 20, 2013USD ($) |
Debt Disclosure [Line Items] | ||||||||
Leverage ratio | 3.10 | |||||||
Interest coverage ratio | 7.88 | |||||||
Long-term debt | $ 1,316,100,000 | $ 1,157,600,000 | ||||||
Accounts receivable pledged | 174,700,000 | 152,900,000 | ||||||
Unamortized debt issuance costs | $ 16,700,000 | $ 11,300,000 | ||||||
Debt, weighted average interest rate | 4.20% | 4.20% | ||||||
Beginning Fiscal Year 2016 | ||||||||
Debt Disclosure [Line Items] | ||||||||
Restricted payment limitation | $ 175,000,000 | |||||||
Beginning Fiscal Year 2018 | ||||||||
Debt Disclosure [Line Items] | ||||||||
Restricted payment limitation | $ 200,000,000 | |||||||
Interest rate swap agreements | ||||||||
Debt Disclosure [Line Items] | ||||||||
Derivative fixed rate | 0.83% | |||||||
Minimum | ||||||||
Debt Disclosure [Line Items] | ||||||||
Interest coverage ratio | 3 | |||||||
Maximum | ||||||||
Debt Disclosure [Line Items] | ||||||||
Leverage ratio | 4.50 | |||||||
Master Accounts Receivable Purchase Agreement | ||||||||
Debt Disclosure [Line Items] | ||||||||
Maximum amount allowable under MARP agreement | $ 400,000,000 | |||||||
Designated as Hedging Instruments | Interest rate swap agreements | ||||||||
Debt Disclosure [Line Items] | ||||||||
Notional amount | $ 650,000,000 | $ 1,300,000,000 | ||||||
Senior Notes – 6.000% | ||||||||
Debt Disclosure [Line Items] | ||||||||
Debt instrument stated interest rate (percent) | 6.00% | |||||||
Revolving loans | ||||||||
Debt Disclosure [Line Items] | ||||||||
Debt, weighted average interest rate | 3.50% | 4.00% | ||||||
Credit Facilities | ||||||||
Debt Disclosure [Line Items] | ||||||||
Senior secured credit facilities, maximum borrowing capacity | $ 1,900,000,000 | |||||||
Senior secured credit facilities, available borrowing capacity | $ 1,200,000,000 | |||||||
Credit Facilities | Third Amended and Restated Senior Secured Credit Agreement | ||||||||
Debt Disclosure [Line Items] | ||||||||
Senior secured credit facilities, maximum borrowing capacity | $ 1,700,000,000 | |||||||
Credit Facilities | Revolving loans | ||||||||
Debt Disclosure [Line Items] | ||||||||
Debt, maturity period | 5 years | |||||||
Senior secured credit facilities, maximum borrowing capacity | 1,600,000,000 | |||||||
Line Of Credit Facility, Additional Committed Credit | 500,000,000 | |||||||
Long-term debt | $ 417,400,000 | $ 816,300,000 | ||||||
Credit Facilities | Letter of Credit | ||||||||
Debt Disclosure [Line Items] | ||||||||
Senior secured credit facilities, maximum borrowing capacity | 100,000,000 | |||||||
Aggregate face amount of letters of credit outstanding | 26,500,000 | |||||||
Credit Facilities | Term loans | ||||||||
Debt Disclosure [Line Items] | ||||||||
Senior secured credit facilities, maximum borrowing capacity | $ 300,000,000 | |||||||
Long-term debt | 288,800,000 | 0 | ||||||
Master Accounts Receivable Purchase Agreement | ||||||||
Debt Disclosure [Line Items] | ||||||||
Amount available under MARP | 7,600,000 | |||||||
Long-term debt | 138,600,000 | 122,300,000 | ||||||
Senior Notes | Senior Notes – 6.625% | ||||||||
Debt Disclosure [Line Items] | ||||||||
Debt Instrument, Repurchased Face Amount | $ 200,000,000 | |||||||
Long-term debt | $ 0 | $ 200,000,000 | ||||||
Debt instrument stated interest rate (percent) | 6.625% | 6.625% | ||||||
Debt redemption price | 213,200,000 | |||||||
Interest Expense, Debt, Excluding Amortization | $ 6,600,000 | |||||||
Call premium | 6,600,000 | |||||||
Unamortized debt issuance costs | $ 2,200,000 | |||||||
Senior Notes | Senior Notes – 6.000% | ||||||||
Debt Disclosure [Line Items] | ||||||||
Long-term debt | $ 400,000,000 | $ 0 | ||||||
Debt instrument stated interest rate (percent) | 6.00% | 6.00% | ||||||
Proceed from issuance of unsecured debt | $ 400,000,000 | |||||||
Gavita Holdings B.V. | ||||||||
Debt Disclosure [Line Items] | ||||||||
Loans payable, noncurrent | $ 37,700,000 | |||||||
Subsequent Event [Member] | Designated as Hedging Instruments | Interest rate swap agreements | ||||||||
Debt Disclosure [Line Items] | ||||||||
Notional amount | $ 500,000,000 |
DEBT - Company's Debt Matures i
DEBT - Company's Debt Matures in Next Fiscal Years (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 185 | |
2,018 | 15.7 | |
2,019 | 15.6 | |
2,020 | 15.4 | |
2,021 | 646.1 | |
Thereafter | 438.3 | |
Long-term debt | $ 1,316.1 | $ 1,157.6 |
DEBT - Interest Rate Swap Agree
DEBT - Interest Rate Swap Agreements (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Interest Rate Swap, Instrument 1 | |
Derivative [Line Items] | |
Notional Amount | $ 50 |
Fixed Rate | 2.96% |
Interest Rate Swap, Instrument 2 | |
Derivative [Line Items] | |
Notional Amount | $ 200 |
Fixed Rate | 1.28% |
Interest Rate Swap, Instrument 3 | |
Derivative [Line Items] | |
Notional Amount | $ 150 |
Fixed Rate | 2.12% |
Interest Rate Swap, Instrument 4 | |
Derivative [Line Items] | |
Notional Amount | $ 50 |
Fixed Rate | 2.25% |
Interest Rate Swap, Instrument 5 | |
Derivative [Line Items] | |
Notional Amount | $ 200 |
Fixed Rate | 2.12% |
DEBT - Estimated Fair Values of
DEBT - Estimated Fair Values of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 13, 2015 | Sep. 30, 2015 |
Senior Notes – 6.000% | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | ||
Senior Notes | Senior Notes – 6.000% | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | 6.00% | |
Senior Notes | Senior Notes – 6.625% | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.625% | 6.625% | |
Carrying Amount | Credit Facilities | Revolving loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 417.4 | $ 816.3 | |
Carrying Amount | Credit Facilities | Term loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | 288.8 | 0 | |
Carrying Amount | Senior Notes | Senior Notes – 6.000% | |||
Debt Instrument [Line Items] | |||
Long-term debt | 400 | 0 | |
Carrying Amount | Senior Notes | Senior Notes – 6.625% | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 200 | |
Carrying Amount | Master Accounts Receivable Purchase Agreement | |||
Debt Instrument [Line Items] | |||
Long-term debt | 138.6 | 122.3 | |
Carrying Amount | Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | 71.3 | 19 | |
Fair Value | Credit Facilities | Revolving loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | 417.4 | 816.3 | |
Fair Value | Credit Facilities | Term loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | 288.8 | 0 | |
Fair Value | Senior Notes | Senior Notes – 6.000% | |||
Debt Instrument [Line Items] | |||
Long-term debt | 427 | 0 | |
Fair Value | Senior Notes | Senior Notes – 6.625% | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 206.3 | |
Fair Value | Master Accounts Receivable Purchase Agreement | |||
Debt Instrument [Line Items] | |||
Long-term debt | 138.6 | 122.3 | |
Fair Value | Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 71.3 | $ 19 |
EQUITY - Schedule of Authorized
EQUITY - Schedule of Authorized and Issued Shares (Detail) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Preferred shares, no par value: | ||
Authorized (in shares) | 200,000 | 200,000 |
Issued (in shares) | 0 | 0 |
Common shares, no par value, $.01 stated value per share: | ||
Common shares, stated value per share (USD per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 100,000,000 | 100,000,000 |
Issued (in shares) | 68,100,000 | 68,100,000 |
EQUITY - Additional Information
EQUITY - Additional Information (Detail) - USD ($) | Aug. 03, 2016 | Aug. 31, 2014 | May 31, 2011 | Aug. 31, 2010 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2016 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock repurchase authorized amount | $ 500,000,000 | $ 500,000,000 | |||||||
Share repurchase authorization expire | 5 years | 4 years | |||||||
Additional shares authorized repurchase | $ 500,000,000 | $ 200,000,000 | |||||||
Number of common shares repurchased (in shares) | 2,100,000 | 9,900,000 | |||||||
Value of common shares repurchased to be held in treasury | $ 145,700,000 | $ 521,200,000 | |||||||
Total repurchase amount | $ 1,000,000,000 | $ 700,000,000 | |||||||
Dividends declared (USD per share) | $ 2 | $ 1.91 | $ 1.82 | $ 3.7625 | |||||
Adjustment to outstanding stock options special dividend (in shares) | 0 | 0 | 98,186 | ||||||
Award vesting period | 3 years | ||||||||
Estimated share based award forfeited | 20.00% | ||||||||
Term of stock option of grants | 10 years | ||||||||
Common share available for issue under share-based plan (in shares) | 23,100,000 | 23,100,000 | |||||||
Common shares were available to underlie the grant of new share-based award (in shares) | 1,900,000 | 1,900,000 | |||||||
Total unrecognized compensation cost related to non-vested share-based awards | $ 10,300,000 | $ 10,300,000 | |||||||
Expected weighted average period for unrecognized compensation cost | 1 year 8 months | ||||||||
Tax benefit realized from tax deduction associated with exercise of stock option | $ 15,100,000 | ||||||||
Value of treasury shares for payment | 16,200,000 | $ 37,600,000 | $ 27,000,000 | ||||||
Intrinsic value of stock options exercised | 13,600,000 | 16,300,000 | 21,300,000 | ||||||
Cash received from exercise of stock options | $ 14,700,000 | $ 24,300,000 | $ 20,000,000 | ||||||
Principal Owner | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Ownership of outstanding common shares | 26.00% | 26.00% | |||||||
Tender offer for ownership of voting power (as a percent) | 100.00% | 100.00% | |||||||
Condition for ownership of voting stock | 50.00% | 50.00% | |||||||
Miracle-Gro | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Condition for ownership of voting stock | 49.00% | 49.00% | |||||||
Treasury Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share issued under employee purchase plan (shares) | 700,000 | 900,000 | 800,000 | ||||||
Value of treasury shares for payment | $ 36,500,000 | $ 50,000,000 | $ 40,300,000 | ||||||
Treasury Shares | Bio-Organic Solutions, Inc. | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share issued under employee purchase plan (shares) | 100,000 | 200,000 | |||||||
Value of treasury shares for payment | $ 4,200,000 | $ 8,300,000 | |||||||
Share-based compensation awards and employee stock purchase plan | Treasury Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share issued under employee purchase plan (shares) | 600,000 | 900,000 | |||||||
Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Remaining unexercisable stock options expected to vest (in shares) | 800,000 | 800,000 | |||||||
Weighted average exercise price of remaining unexercisable stock options expected to vest (USD per share) | $ 66.09 | $ 66.09 | |||||||
Intrinsic value of remaining unexercisable stock options expected to vest | $ 12,900,000 | $ 12,900,000 | |||||||
Average remaining term of remaining unexercisable stock options expected to vest in the future | 8 years 292 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 | $ 7,600,000 | $ 6,200,000 | $ 3,400,000 |
EQUITY - Share-Based Compensati
EQUITY - Share-Based Compensation Awards Granted (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted, options (in shares) | 0 | 0 | 98,186 |
Total share-based awards | 604,293 | 627,418 | 311,962 |
Aggregate fair value at grant dates (in millions) | $ 16.4 | $ 17 | $ 17.5 |
Performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted, other than options (in shares) | 56,315 | 78,352 | 161,229 |
Employees | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted, options (in shares) | 444,890 | 440,690 | 0 |
Employees | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted, other than options (in shares) | 74,467 | 78,463 | 112,315 |
Employees | Performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted, other than options (in shares) | 56,315 | 78,352 | 161,229 |
Board of Directors | Deferred stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards granted, other than options (in shares) | 28,621 | 29,913 | 38,418 |
EQUITY - Schedule of Share-Base
EQUITY - Schedule of Share-Based Compensation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | |||
Share-based compensation | $ 15.6 | $ 13.2 | $ 11.1 |
Tax benefit recognized | $ 6 | $ 5.1 | $ 3.9 |
EQUITY - Schedule of Aggregate
EQUITY - Schedule of Aggregate Stock Option and SAR Activity (Detail) - Stock Option Program and Stock Appreciation Rights Program (SARs) shares in Millions | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
No. of Options/SARs | |
Beginning balance (shares) | shares | 1.8 |
Granted (shares) | shares | 0.4 |
Exercised (shares) | shares | (0.4) |
Forfeited (shares) | shares | 0 |
Ending balance (shares) | shares | 1.8 |
Exercisable (shares) | shares | 1 |
WTD. Avg. Exercise Price | |
Beginning balance (US$ per share) | $ / shares | $ 44.38 |
Granted (US$ per share) | $ / shares | 68.68 |
Exercised (US$ per share) | $ / shares | 38.21 |
Forfeited (US$ per share) | $ / shares | 0 |
Ending balance (US$ per share) | $ / shares | 51.38 |
Exercisable (US$ per share) | $ / shares | $ 38.42 |
EQUITY - Summary of Certain Inf
EQUITY - Summary of Certain Information Pertaining to Stock Option Awards Outstanding and Exercisable (Detail) - Stock Option Program and Stock Appreciation Rights Program (SARs) - $ / shares shares in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Awards Outstanding | ||
No. of Options/ SARs (in shares) | 1.8 | 1.8 |
WTD. Avg. Remaining Life | 5 years 10 months 21 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 51.38 | $ 44.38 |
Awards Exercisable | ||
No. of Options/ SARS (in shares) | 1 | |
WTD. Avg. Remaining Life | 3 years 3 months 22 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 38.42 | |
$20.59 - $20.59 | ||
Range of Exercise Price | ||
Exercise Price, minimum | 20.59 | |
Exercise Price, maximum | $ 20.59 | |
Awards Outstanding | ||
No. of Options/ SARs (in shares) | 0.2 | |
WTD. Avg. Remaining Life | 2 years 4 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 20.59 | |
Awards Exercisable | ||
No. of Options/ SARS (in shares) | 0.2 | |
WTD. Avg. Remaining Life | 2 years 4 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 20.59 | |
$30.07 - $36.86 | ||
Range of Exercise Price | ||
Exercise Price, minimum | 30.07 | |
Exercise Price, maximum | $ 36.86 | |
Awards Outstanding | ||
No. of Options/ SARs (in shares) | 0.2 | |
WTD. Avg. Remaining Life | 1 year 1 month 2 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 36.47 | |
Awards Exercisable | ||
No. of Options/ SARS (in shares) | 0.2 | |
WTD. Avg. Remaining Life | 1 year 1 month 2 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 36.47 | |
$38.81 - $49.19 | ||
Range of Exercise Price | ||
Exercise Price, minimum | 38.81 | |
Exercise Price, maximum | $ 49.19 | |
Awards Outstanding | ||
No. of Options/ SARs (in shares) | 0.6 | |
WTD. Avg. Remaining Life | 4 years 5 months 5 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 45.42 | |
Awards Exercisable | ||
No. of Options/ SARS (in shares) | 0.6 | |
WTD. Avg. Remaining Life | 4 years 5 months 5 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 45.42 | |
$63.43 - $68.68 | ||
Range of Exercise Price | ||
Exercise Price, minimum | 63.43 | |
Exercise Price, maximum | $ 68.68 | |
Awards Outstanding | ||
No. of Options/ SARs (in shares) | 0.8 | |
WTD. Avg. Remaining Life | 8 years 10 months 10 days | |
WTD. Avg. Exercise Price (US$ per share) | $ 66.24 | |
Awards Exercisable | ||
No. of Options/ SARS (in shares) | 0 | |
WTD. Avg. Remaining Life | 0 years | |
WTD. Avg. Exercise Price (US$ per share) | $ 0 |
EQUITY - Schedule of Intrinsic
EQUITY - Schedule of 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, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding | $ 57.7 |
Exercisable | $ 43.3 |
EQUITY - Schedule of Weighted A
EQUITY - Schedule of Weighted Average Assumptions for Awards Granted (Detail) | 12 Months Ended |
Sep. 30, 2016$ / shares | |
Equity [Abstract] | |
Expected market price volatility (as a percent) | 25.50% |
Risk-free interest rates (as a percent) | 1.50% |
Expected dividend yield (as a percent) | 2.70% |
Expected life of stock options in years | 6 years 7 days |
Estimated weighted-average fair value per stock option (US$ per share) | $ 12.33 |
EQUITY - Schedule of Restricted
EQUITY - Schedule of Restricted Share-Based Award Activity (Detail) - Restricted Stock, Restricted Stock Units and Deferred Stock Units - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
No. of Shares | |||
Beginning Balance (in shares) | 381,509 | 433,892 | 409,651 |
Granted (in shares) | 103,088 | 108,376 | 150,733 |
Vested (in shares) | (161,440) | (135,562) | (81,597) |
Forfeited (in shares) | (17,494) | (25,197) | (44,895) |
Ending Balance (in shares) | 305,663 | 381,509 | 433,892 |
WTD. Avg. Grant Date Fair Value per Share | |||
Beginning Balance (USD per share) | $ 57.22 | $ 52.55 | $ 47.36 |
Granted (USD per share) | 69 | 63.85 | 59.35 |
Vested (USD per share) | 47.21 | 47.33 | 41.88 |
Forfeited (USD per share) | 60.18 | 58.44 | 47.43 |
Ending Balance (USD per share) | $ 66.31 | $ 57.22 | $ 52.55 |
EQUITY - Schedule of Performanc
EQUITY - Schedule of Performance-Based Award Activity (Detail) - Performance Based Units - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
No. of Units | |||
Beginning Balance (in shares) | 339,224 | 311,249 | 261,917 |
Granted (in shares) | 56,315 | 78,352 | 161,229 |
Vested (in shares) | (128,941) | (49,467) | 0 |
Forfeited (in shares) | 0 | (910) | (111,897) |
Ending Balance (in shares) | 266,598 | 339,224 | 311,249 |
WTD. Avg. Grant Date Fair Value per Unit | |||
Beginning Balance (USD per share) | $ 54.86 | $ 51.21 | $ 46.81 |
Granted (USD per share) | 68.68 | 63.36 | 59.39 |
Vested (USD per share) | 45.06 | 47.66 | 0 |
Forfeited (USD per share) | 47.66 | 53.24 | |
Ending Balance (USD per share) | $ 62.52 | $ 54.86 | $ 51.21 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Number of common shares covered by out-of-the-money stock options | 200,000 | 300,000 | 0 |
EARNINGS PER COMMON SHARE - Sch
EARNINGS PER COMMON SHARE - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Income attributable to controlling interest from continuing operations | $ 253.8 | $ 138.9 | $ 145.8 | ||||||||
Income from discontinued operations | $ (6.7) | $ 85.7 | $ (16) | $ (1.5) | $ 16.7 | $ 17.9 | $ (14.3) | $ 0.6 | 61.5 | 20.9 | 20.7 |
Net income attributable to controlling interest | $ (26.6) | $ 213.1 | $ 210.1 | $ (81.3) | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | $ 315.3 | $ 159.8 | $ 166.5 |
BASIC EARNINGS PER COMMON SHARE: | |||||||||||
Weighted-average Common Shares outstanding during the period | 60.6 | 61.1 | 61.4 | 61.5 | 61.4 | 61.3 | 60.9 | 60.8 | 61.1 | 61.1 | 61.6 |
Income from continuing operations (USD per share) | $ (0.33) | $ 2.09 | $ 3.68 | $ (1.30) | $ (0.65) | $ 1.89 | $ 2.28 | $ (1.24) | $ 4.15 | $ 2.27 | $ 2.37 |
Income (loss) from discontinued operations (USD per share) | (0.11) | 1.40 | (0.26) | (0.02) | 0.27 | 0.29 | (0.23) | 0.01 | 1.01 | 0.35 | 0.33 |
Basic net income per common share (USD per share) | $ (0.44) | $ 3.49 | $ 3.42 | $ (1.32) | $ (0.38) | $ 2.18 | $ 2.05 | $ (1.23) | $ 5.16 | $ 2.62 | $ 2.70 |
DILUTED EARNINGS PER COMMON SHARE: | |||||||||||
Weighted-average Common Shares outstanding during the period | 60.6 | 61.1 | 61.4 | 61.5 | 61.4 | 61.3 | 60.9 | 60.8 | 61.1 | 61.1 | 61.6 |
Dilutive potential Common Shares | 0.9 | 1.1 | 1.1 | ||||||||
Weighted-average number of Common Shares outstanding and dilutive potential Common Shares | 60.6 | 61.9 | 62.2 | 61.5 | 61.4 | 62.3 | 62.1 | 60.8 | 62 | 62.2 | 62.7 |
Income from continuing operations (USD per share) | $ (0.33) | $ 2.06 | $ 3.64 | $ (1.30) | $ (0.65) | $ 1.85 | $ 2.24 | $ (1.24) | $ 4.09 | $ 2.23 | $ 2.32 |
Income (loss) from discontinued operations (USD per share) | (0.11) | 1.38 | (0.26) | (0.02) | 0.27 | 0.29 | (0.23) | 0.01 | 1 | 0.34 | 0.33 |
Diluted net income per common share (USD per share) | $ (0.44) | $ 3.44 | $ 3.38 | $ (1.32) | $ (0.38) | $ 2.14 | $ 2.01 | $ (1.23) | $ 5.09 | $ 2.57 | $ 2.65 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) For Income Taxes Allocated to Continuing Operation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Current: | |||
Federal | $ 93.4 | $ 63.8 | $ 60.2 |
State | 12.4 | 8.3 | 7.5 |
Foreign | 4.4 | 2.2 | 3.5 |
Total Current | 110.2 | 74.3 | 71.2 |
Deferred: | |||
Federal | 28.2 | (1) | 7.9 |
State | 2.3 | 1.2 | 1.2 |
Foreign | (1.3) | (0.7) | (0.1) |
Total Deferred | 29.2 | (0.5) | 9 |
Provision for income taxes | $ 139.4 | $ 73.8 | $ 80.2 |
INCOME TAXES - Domestic and For
INCOME TAXES - Domestic and Foreign Components of Income From Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 362.3 | $ 185.2 | $ 200.1 |
Foreign | 30.4 | 26.4 | 25.6 |
Income from continuing operations before income taxes | $ 392.7 | $ 211.6 | $ 225.7 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of The Federal Corporate Income Tax Rate and The Effective Tax Rate (Detail) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 35.00% | 35.00% | 35.00% |
Effect of foreign operations | 0.10% | (0.60%) | 1.70% |
State taxes, net of federal benefit | 2.70% | 3.20% | 2.70% |
Domestic Production Activities Deduction permanent difference | (2.50%) | (3.20%) | (2.70%) |
Effect of other permanent differences | 0.30% | 0.10% | 0.30% |
Research and Experimentation and other federal tax credits | (0.20%) | (0.20%) | (0.90%) |
Resolution of prior tax contingencies | (0.20%) | 0.40% | 0.20% |
Other | 0.30% | 0.20% | (0.70%) |
Effective income tax rate | 35.50% | 34.90% | 35.60% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
DEFERRED TAX ASSETS | ||
Inventories | $ 10.8 | $ 14.1 |
Accrued liabilities | 58.8 | 71.6 |
Postretirement benefits | 33.3 | 30.3 |
Accounts receivable | 6.3 | 8.3 |
State NOL carryovers | 0.6 | 1 |
Foreign NOL carryovers | 45.3 | 45 |
Foreign tax credit carryovers | 7.4 | 8.6 |
Interest rate swaps | 2.4 | 4.9 |
Other | 3.4 | 3.3 |
Gross deferred tax assets | 168.3 | 187.1 |
Valuation allowance | (45.1) | (45.8) |
Total deferred tax assets | 123.2 | 141.3 |
DEFERRED TAX LIABILITIES | ||
Property, plant and equipment | (65.7) | (59.7) |
Intangible assets | (114.2) | (114.8) |
Outside basis difference in equity investments | (83.3) | 0 |
Other | (17) | (14) |
Total deferred tax liabilities | 280.2 | 188.5 |
Net deferred tax liability | $ (157) | $ (47.2) |
INCOME TAXES - Net Current and
INCOME TAXES - Net Current and Non-Current Components of Deferred Income Taxes Recognized in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Income Tax Disclosure [Abstract] | ||
Net current deferred tax assets (classified with prepaid and other current assets) | $ 62.1 | $ 78.2 |
Net non-current deferred tax liabilities (classified with other liabilities) | (219.1) | (125.4) |
Net deferred tax asset (liability) | $ (157) | $ (47.2) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Valuation allowance | $ 45.1 | $ 45.8 | ||
Foreign net operating losses on foreign disregarded entities | 171.5 | |||
Statutory tax benefit of net operating loss carryovers and related valuation allowances | 40.7 | 41.2 | ||
Foreign net operating losses | 45.3 | 45 | ||
Tax benefit associated with losses | 3.7 | |||
Foreign tax credit carryovers | 7.4 | 8.6 | ||
State net operating losses carryforward | 6.1 | |||
Deferred tax liability related to outside basis difference in equity | (83.3) | 0 | ||
Deferred tax on unremitted earnings | 139 | |||
Cash and cash equivalents | 50.1 | 71.4 | $ 89.3 | $ 129.8 |
Gross unrecognized tax benefits | 5.1 | 9.2 | 11.2 | $ 6.7 |
Unrecognized tax benefits that would have an impact on the effective tax rate | 3.5 | 6.6 | 8.5 | |
Unrecognized tax benefits accrued payment of interest | 1.1 | 1.8 | 1.8 | |
Unrecognized tax benefits accrued payment of penalties | 0.5 | 0.7 | $ 0.6 | |
Recognized benefit related to tax interest and penalties | 0.9 | |||
U.S. state and local tax authorities | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Valuation allowance | 0.4 | |||
Valuation allowance | $ 0.2 | |||
State net operating losses carryforward period, minimum | 5 years | |||
State net operating losses carryforward period, maximum | 20 years | |||
Tax benefits associated with state tax credits | $ 0.7 | 0.6 | ||
Foreign Country | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Foreign net operating losses | 17.8 | |||
Valuation allowance | 0.4 | |||
Cash and cash equivalents | $ 39.9 | $ 55.1 |
INCOME TAXES - Reconciliatio113
INCOME TAXES - Reconciliation of the Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 9.2 | $ 11.2 | $ 6.7 |
Additions for tax positions of the current year | 0.3 | 0.2 | 0.2 |
Additions for tax positions of prior years | 1.9 | 4.1 | 7.6 |
Reductions for tax positions of prior years | (2.6) | (3.2) | (2.7) |
Settlements with tax authorities | (2.7) | (2.7) | 0 |
Expiration of statutes of limitation | (1) | (0.4) | (0.6) |
Balance at end of year | $ 5.1 | $ 9.2 | $ 11.2 |
DERIVATIVE INSTRUMENTS AND H114
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Derivatives not designated as Hedging Instruments | Foreign currency swap contracts | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional amount | $ 165.8 | $ 52.3 |
Fair value of foreign currency contracts | 0.4 | (0.7) |
Designated as Hedging Instruments | Interest rate swap agreements | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional amount | 650 | $ 1,300 |
Interest rate loss amount expected to be reclassified to earnings during the next 12 months | 2 | |
Designated as Hedging Instruments | Commodity hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Commodity loss amount expected to be reclassified to earnings during the next 12 months | $ 0.2 |
DERIVATIVE INSTRUMENTS AND H115
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Commodity Contracts that Hedge Forecasted Purchases (Detail) gal in Thousands | Sep. 30, 2016tonsgal | Sep. 30, 2015tonsgal |
Urea | ||
Derivative [Line Items] | ||
Outstanding commodity contracts | tons | 40,500 | 52,500 |
Diesel | ||
Derivative [Line Items] | ||
Outstanding commodity contracts | 6,384 | 5,250 |
Heating Oil | ||
Derivative [Line Items] | ||
Outstanding commodity contracts | 1,722 | 2,772 |
DERIVATIVE INSTRUMENTS AND H116
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Values of the Company's Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives instruments | $ (6.4) | $ (18.6) |
Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives instruments | (6.7) | (14.7) |
Designated as Hedging Instruments | Interest rate swap agreements | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (3.3) | (8.8) |
Designated as Hedging Instruments | Interest rate swap agreements | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (3.1) | (4.6) |
Designated as Hedging Instruments | Commodity hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (0.3) | (1.3) |
Derivatives not designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives instruments | 0.3 | (3.9) |
Derivatives not designated as Hedging Instruments | Foreign currency swap contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (0.8) | (0.7) |
Derivatives not designated as Hedging Instruments | Foreign currency swap contracts | Prepaid and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1.2 | |
Derivatives not designated as Hedging Instruments | Commodity hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (0.1) | $ (3.2) |
DERIVATIVE INSTRUMENTS AND H117
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on OCI and the Condensed, Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Derivatives not designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Statement of Operations | $ (10.8) | $ (2.3) |
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 | (2.8) | (10.4) |
Derivatives not designated as Hedging Instruments | Currency forward contracts | Other income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Statement of Operations | (8) | 8.1 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Recognized in AOCI | (1.5) | (8.6) |
Amount of Gain/(Loss) Reclassified From AOCI Into Statement of Operations | (5.8) | (6.5) |
Cash Flow Hedging | Interest rate swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Recognized in AOCI | (0.9) | (7.7) |
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 | (5) | (6.5) |
Cash Flow Hedging | Commodity hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Recognized in AOCI | (0.6) | (0.9) |
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 | $ (0.8) | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 11.5 | $ 28.6 |
Other | 22.7 | 8.9 |
Total assets | 35.4 | 37.5 |
Long-term debt | (38.3) | |
Total Liabilities | (45.9) | (18.6) |
Interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (6.4) | (13.4) |
Currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1.2 | |
Derivative liabilities | (0.8) | (0.7) |
Commodity hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (0.4) | (4.5) |
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 | 11.5 | 28.6 |
Other | 11.8 | 8.9 |
Total assets | 23.3 | 37.5 |
Long-term debt | 0 | |
Total Liabilities | 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 liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Currency forward contracts | ||
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) | 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 | 1.2 | 0 |
Long-term debt | 0 | |
Total Liabilities | (7.6) | (18.6) |
Significant Other Observable Inputs (Level 2) | Interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (6.4) | (13.4) |
Significant Other Observable Inputs (Level 2) | Currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1.2 | |
Derivative liabilities | (0.8) | (0.7) |
Significant Other Observable Inputs (Level 2) | Commodity hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (0.4) | (4.5) |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Other | 10.9 | 0 |
Total assets | 10.9 | 0 |
Long-term debt | (38.3) | |
Total Liabilities | (38.3) | 0 |
Unobservable Inputs (Level 3) | Interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Unobservable Inputs (Level 3) | Currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Unobservable Inputs (Level 3) | Commodity hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
OPERATING LEASES - Future Minim
OPERATING LEASES - Future Minimum Lease Payments for Operating Leases (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 40.9 |
2,018 | 36.1 |
2,019 | 30.7 |
2,020 | 23.5 |
2,021 | 18.3 |
Thereafter | 21.5 |
Total future minimum lease payments | $ 171 |
OPERATING LEASES - Additional I
OPERATING LEASES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 58.8 | $ 56.2 | $ 50.6 |
Car and Light Truck Leases | |||
Operating Leased Assets [Line Items] | |||
Residual value guarantee | $ 2.6 |
OPERATING LEASES - Other residu
OPERATING LEASES - Other residual Value Guarantee Amounts (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Corporate Aircraft | |
Property Subject to or Available for Operating Lease [Line Items] | |
Amount of Guarantee | $ 27 |
COMMITMENTS - Unconditional Pur
COMMITMENTS - Unconditional Purchase Obligations That Have Not Been Recognized (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2,017 | $ 140.4 |
2,018 | 66.1 |
2,019 | 33.8 |
2,020 | 23 |
2,021 | 15.6 |
Thereafter | 6.2 |
Unrecorded Unconditional Purchase Obligation | $ 285.1 |
CONTINGENCIES (Detail)
CONTINGENCIES (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued liabilities related to other regulatory matters which are accounted for in the Other liabilities | $ 4 |
CONCENTRATIONS OF CREDIT RISK -
CONCENTRATIONS OF CREDIT RISK - Concentrations of Accounts Receivable Credit Risk (Detail) - Geographic Concentration Risk - United States | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Sales | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 82.00% | 81.00% | 80.00% |
Net Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 74.00% | 69.00% |
CONCENTRATIONS OF CREDIT RIS125
CONCENTRATIONS OF CREDIT RISK - Percentages of Three Largest Customers Consolidated Net Sales (Detail) - Customer Concentration Risk - customer | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Sales | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 3 | ||
Net Sales | Home Depot | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 34.00% | 33.00% | 35.00% |
Net Sales | Lowe’s | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 16.00% | 17.00% | 19.00% |
Net Sales | Walmart | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 11.00% | 12.00% | 13.00% |
Net Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 3 | ||
Net Accounts Receivable | 3 Largest Customers | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 56.00% | 60.00% |
OTHER INCOME, NET (Detail)
OTHER INCOME, NET (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | |||
Royalty income, net | $ (6.2) | $ (1.3) | $ (1.8) |
Interest on loans receivable | (3.9) | 0 | 0 |
Foreign currency losses | 0.7 | 1.6 | 1 |
Equity in income of unconsolidated affiliates | 0 | 0 | (5.7) |
Other | (4.4) | (2.4) | (4.2) |
Total | $ (13.8) | $ (2.1) | $ (10.7) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 12 Months Ended |
Sep. 30, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
TruGreen Joint Venture | |
Segment Reporting Information [Line Items] | |
Percent ownership | 30.00% |
SEGMENT INFORMATION - Segment F
SEGMENT INFORMATION - Segment Financial Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 402.3 | $ 994.1 | $ 1,245.2 | $ 194.5 | $ 375.4 | $ 1,111.3 | $ 1,071.8 | $ 169.5 | $ 2,836.1 | $ 2,728 | $ 2,578.3 |
Intangible asset amortization | (18.8) | (15.7) | (13) | ||||||||
Impairment, restructuring and other | 47.2 | (76.6) | (50) | ||||||||
Equity in income of unconsolidated affiliates | 7.8 | 0 | 0 | ||||||||
Costs related to refinancing | (8.8) | 0 | (10.7) | ||||||||
Interest expense | (65.6) | (50.5) | (47.3) | ||||||||
Depreciation and amortization | 70.4 | 63.7 | 60.5 | ||||||||
Capital expenditures | 56.7 | 58 | 84.4 | ||||||||
Assets | 2,808.8 | 2,527.2 | 2,808.8 | 2,527.2 | |||||||
Assets held for sale | 0 | 220.3 | 0 | 220.3 | |||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 277.9 | 142.4 | 277.9 | 142.4 | |||||||
U.S. Consumer | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,187.4 | 2,141.8 | 2,037.4 | ||||||||
Depreciation and amortization | 47.7 | 45.5 | 43.5 | ||||||||
Capital expenditures | 46.3 | 52.5 | 78.6 | ||||||||
U.S. Consumer | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 1,770.7 | 1,622.5 | 1,770.7 | 1,622.5 | |||||||
Europe Consumer | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 274.2 | 304.7 | 336.7 | ||||||||
Depreciation and amortization | 7.2 | 8.6 | 11.5 | ||||||||
Capital expenditures | 3 | 3.1 | 4.1 | ||||||||
Europe Consumer | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 192.1 | 217.9 | 192.1 | 217.9 | |||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 374.5 | 281.5 | 204.2 | ||||||||
Depreciation and amortization | 15.5 | 9.6 | 5.5 | ||||||||
Capital expenditures | 7.4 | 2.4 | 1.7 | ||||||||
Other | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 568.1 | $ 324.1 | 568.1 | 324.1 | |||||||
Continuing Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 392.7 | 211.6 | 225.7 | ||||||||
Intangible asset amortization | (18) | (15) | (12.3) | ||||||||
Impairment, restructuring and other | 27.7 | (90) | (50) | ||||||||
Equity in income of unconsolidated affiliates | 19.5 | 0 | 0 | ||||||||
Costs related to refinancing | (8.8) | 0 | (10.7) | ||||||||
Interest expense | (65.6) | (50.5) | (47.3) | ||||||||
Continuing Operations | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 534.7 | 465.6 | 438 | ||||||||
Continuing Operations | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | (96.8) | (98.5) | (92) | ||||||||
Continuing Operations | U.S. Consumer | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 500.4 | 439.2 | 399.7 | ||||||||
Continuing Operations | Europe Consumer | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | 13.5 | 14.1 | 20.9 | ||||||||
Continuing Operations | Other | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from continuing operations before income taxes | $ 20.8 | $ 12.3 | $ 17.4 |
SEGMENT INFORMATION - Net Sales
SEGMENT INFORMATION - Net Sales by Product Category (Details) - Product Concentration - Net Sales | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue from External Customer [Line Items] | |||
Concentration percentage | 100.00% | 100.00% | 100.00% |
Lawn care | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 29.00% | 31.00% | 33.00% |
Growing media | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 38.00% | 38.00% | 36.00% |
Controls | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 15.00% | 16.00% | 16.00% |
Roundup® Marketing Agreement | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 5.00% | 4.00% | 5.00% |
Other, primarily gardening, hydroponics and landscape | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 13.00% | 11.00% | 10.00% |
SEGMENT INFORMATION - Net sa130
SEGMENT INFORMATION - Net sales and long-lived assets by geographic area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 402.3 | $ 994.1 | $ 1,245.2 | $ 194.5 | $ 375.4 | $ 1,111.3 | $ 1,071.8 | $ 169.5 | $ 2,836.1 | $ 2,728 | $ 2,578.3 |
Long-lived assets | 736.9 | 614.4 | 736.9 | 614.4 | 539.1 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,315.1 | 2,220 | 2,065.2 | ||||||||
Long-lived assets | 531 | 540.6 | 531 | 540.6 | 448 | ||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 521 | 508 | 513.1 | ||||||||
Long-lived assets | $ 205.9 | $ 73.8 | $ 205.9 | $ 73.8 | $ 91.1 |
QUARTERLY CONSOLIDATED FINAN131
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) - Unaudited Quarterly Results of Operation (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 402.3 | $ 994.1 | $ 1,245.2 | $ 194.5 | $ 375.4 | $ 1,111.3 | $ 1,071.8 | $ 169.5 | $ 2,836.1 | $ 2,728 | $ 2,578.3 |
Gross profit | 99.7 | 357.4 | 521.6 | 16.7 | 90.8 | 385.8 | 424.8 | 6.6 | 995.4 | 908 | 890.1 |
Income (loss) from continuing operations | (20.2) | 127 | 225.8 | (79.3) | (41.3) | 115.1 | 138.6 | (74.6) | 253.3 | 137.8 | 145.5 |
Income from discontinued operations, net of tax | (6.7) | 85.7 | (16) | (1.5) | 16.7 | 17.9 | (14.3) | 0.6 | 61.5 | 20.9 | 20.7 |
Net income (loss) | (26.9) | 212.7 | 209.8 | (80.8) | (24.6) | 133 | 124.3 | (74) | 314.8 | 158.7 | 166.2 |
Income (loss) attributable to controlling interest | $ (26.6) | $ 213.1 | $ 210.1 | $ (81.3) | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | $ 315.3 | $ 159.8 | $ 166.5 |
Basic earnings (loss) per common share: | |||||||||||
Income (loss) from continuing operations (USD per share) | $ (0.33) | $ 2.09 | $ 3.68 | $ (1.30) | $ (0.65) | $ 1.89 | $ 2.28 | $ (1.24) | $ 4.15 | $ 2.27 | $ 2.37 |
Income (loss) from discontinued operations (USD per share) | (0.11) | 1.40 | (0.26) | (0.02) | 0.27 | 0.29 | (0.23) | 0.01 | 1.01 | 0.35 | 0.33 |
Basic net income per common share (USD per share) | $ (0.44) | $ 3.49 | $ 3.42 | $ (1.32) | $ (0.38) | $ 2.18 | $ 2.05 | $ (1.23) | $ 5.16 | $ 2.62 | $ 2.70 |
Common shares used in basic EPS calculation | 60.6 | 61.1 | 61.4 | 61.5 | 61.4 | 61.3 | 60.9 | 60.8 | 61.1 | 61.1 | 61.6 |
Diluted earnings (loss) per common share: | |||||||||||
Income (loss) from continuing operations (USD per share) | $ (0.33) | $ 2.06 | $ 3.64 | $ (1.30) | $ (0.65) | $ 1.85 | $ 2.24 | $ (1.24) | $ 4.09 | $ 2.23 | $ 2.32 |
Income (loss) from discontinued operations (USD per share) | (0.11) | 1.38 | (0.26) | (0.02) | 0.27 | 0.29 | (0.23) | 0.01 | 1 | 0.34 | 0.33 |
Diluted net income per common share (USD per share) | $ (0.44) | $ 3.44 | $ 3.38 | $ (1.32) | $ (0.38) | $ 2.14 | $ 2.01 | $ (1.23) | $ 5.09 | $ 2.57 | $ 2.65 |
Common shares and dilutive potential common shares used in diluted EPS calculation | 60.6 | 61.9 | 62.2 | 61.5 | 61.4 | 62.3 | 62.1 | 60.8 | 62 | 62.2 | 62.7 |
QUARTERLY CONSOLIDATED FINAN132
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Quarterly Financial Information [Line Items] | |||||||||||
Percentage of annual net sales from combined second and third quarter sales | 75.00% | 75.00% | 75.00% | ||||||||
Restructuring costs | $ 6.7 | $ 9.3 | $ 9.6 | ||||||||
Restructuring recoveries | $ 36.5 | ||||||||||
Scotts LawnService | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring costs | 9 | $ 1.4 | |||||||||
Bonus S | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring recoveries | $ 5.4 | 50 | |||||||||
Resolution of consumer complaints | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring costs | 5.4 | $ 24.7 | $ 37.7 | ||||||||
Deal related costs | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring costs | 2.3 | 1.7 | 0.9 | ||||||||
Termination benefits | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring costs | $ 5.4 | $ 0.9 | $ 6.6 | $ 5.1 | |||||||
TruGreen Joint Venture | Deal related costs | Scotts LawnService | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring costs | $ 1.6 | $ 2.8 |
FINANCIAL INFORMATION FOR SU133
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 15, 2015 | Oct. 13, 2015 | Jan. 15, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Long-term debt | $ 1,316.1 | $ 1,157.6 | ||||
Dividends paid to Parent or Subsidiary Guarantors included in operating activities | 194.1 | 0 | $ 0 | |||
Parent | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Dividends paid to Parent or Subsidiary Guarantors included in operating activities | 934.4 | 255.5 | 422.8 | |||
Subsidiary Guarantors | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Dividends paid to Parent or Subsidiary Guarantors included in operating activities | $ 1.5 | $ 25.8 | $ 1.3 | |||
Senior Notes – 6.000% | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument stated interest rate (percent) | 6.00% | |||||
Senior Notes, 7.25% Due 2018 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument stated interest rate (percent) | 7.25% | |||||
Long-term debt | $ 200 | |||||
Senior Notes, 6.625% Due 2020 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument stated interest rate (percent) | 6.625% | |||||
Long-term debt | $ 200 |
FINANCIAL INFORMATION FOR SU134
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS - Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | $ 402.3 | $ 994.1 | $ 1,245.2 | $ 194.5 | $ 375.4 | $ 1,111.3 | $ 1,071.8 | $ 169.5 | $ 2,836.1 | $ 2,728 | $ 2,578.3 |
Cost of sales | 1,833 | 1,813.4 | 1,688.2 | ||||||||
Cost of sales—impairment, restructuring and other | 7.7 | 6.6 | 0 | ||||||||
Gross profit | 99.7 | 357.4 | 521.6 | 16.7 | 90.8 | 385.8 | 424.8 | 6.6 | 995.4 | 908 | 890.1 |
Operating expenses: | |||||||||||
Selling, general and administrative | 597.1 | 571.4 | 567.1 | ||||||||
Impairment, restructuring and other | (47.2) | 76.6 | 50 | ||||||||
Other income, net | (13.8) | (2.1) | (10.7) | ||||||||
Income (loss) from operations | 459.3 | 262.1 | 283.7 | ||||||||
Equity (income) loss in subsidiaries | 0 | 0 | |||||||||
Other non-operating (income) loss | 0 | 0 | |||||||||
Equity in (income)/loss of unconsolidated affiliates | (7.8) | 0 | 0 | ||||||||
Costs related to refinancing | 8.8 | 0 | 10.7 | ||||||||
Interest expense | 65.6 | 50.5 | 47.3 | ||||||||
Income from continuing operations before income taxes | 392.7 | 211.6 | 225.7 | ||||||||
Income tax (benefit) expense from continuing operations | 139.4 | 73.8 | 80.2 | ||||||||
Income (loss) from continuing operations | (20.2) | 127 | 225.8 | (79.3) | (41.3) | 115.1 | 138.6 | (74.6) | 253.3 | 137.8 | 145.5 |
Income from discontinued operations, net of tax | (6.7) | 85.7 | (16) | (1.5) | 16.7 | 17.9 | (14.3) | 0.6 | 61.5 | 20.9 | 20.7 |
Net income (loss) | (26.9) | 212.7 | 209.8 | (80.8) | (24.6) | 133 | 124.3 | (74) | 314.8 | 158.7 | 166.2 |
Net loss attributable to noncontrolling interest | 0.5 | 1.1 | 0.3 | ||||||||
Net income attributable to controlling interest | $ (26.6) | $ 213.1 | $ 210.1 | $ (81.3) | $ (23.6) | $ 133.4 | $ 124.6 | $ (74.6) | 315.3 | 159.8 | 166.5 |
Reportable Legal Entities | Parent | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Cost of sales—impairment, restructuring and other | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 0 | 0 | 0 | ||||||||
Impairment, restructuring and other | 0 | 0 | 0 | ||||||||
Other income, net | (0.5) | 0 | 0 | ||||||||
Income (loss) from operations | 0.5 | 0 | 0 | ||||||||
Equity (income) loss in subsidiaries | (348.2) | (179.2) | (193.2) | ||||||||
Other non-operating (income) loss | (22) | (27.9) | (21.3) | ||||||||
Equity in (income)/loss of unconsolidated affiliates | 0 | ||||||||||
Costs related to refinancing | 8.8 | 0 | 10.7 | ||||||||
Interest expense | 62.1 | 55.2 | 52.5 | ||||||||
Income from continuing operations before income taxes | 299.8 | 151.9 | 151.3 | ||||||||
Income tax (benefit) expense from continuing operations | (17.2) | (9.6) | (14.9) | ||||||||
Income (loss) from continuing operations | 317 | 161.5 | 166.2 | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Net income (loss) | 317 | 161.5 | 166.2 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | 0.3 | ||||||||
Net income attributable to controlling interest | 317 | 161.5 | 166.5 | ||||||||
Reportable Legal Entities | Non- Guarantors | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 550.5 | 535.9 | 527.3 | ||||||||
Cost of sales | 398.6 | 386.7 | 369.4 | ||||||||
Cost of sales—impairment, restructuring and other | 1.8 | 3.5 | |||||||||
Gross profit | 150.1 | 145.7 | 157.9 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 140.2 | 140.3 | 145.2 | ||||||||
Impairment, restructuring and other | 1.9 | 7 | 2.8 | ||||||||
Other income, net | (0.5) | 1.1 | (2.1) | ||||||||
Income (loss) from operations | 8.5 | (2.7) | 12 | ||||||||
Equity (income) loss in subsidiaries | 0 | 0 | |||||||||
Other non-operating (income) loss | (22.4) | (23.5) | (22.2) | ||||||||
Equity in (income)/loss of unconsolidated affiliates | 0.1 | ||||||||||
Costs related to refinancing | 0 | 0 | 0 | ||||||||
Interest expense | 4.3 | 2.6 | 0.9 | ||||||||
Income from continuing operations before income taxes | 26.5 | 18.2 | 33.3 | ||||||||
Income tax (benefit) expense from continuing operations | 9.3 | 6.4 | 11.5 | ||||||||
Income (loss) from continuing operations | 17.2 | 11.8 | 21.8 | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0.4 | ||||||||
Net income (loss) | 17.2 | 11.8 | 22.2 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to controlling interest | 17.2 | 11.8 | 22.2 | ||||||||
Reportable Legal Entities | Subsidiary Guarantors | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 2,285.6 | 2,192.1 | 2,051 | ||||||||
Cost of sales | 1,434.4 | 1,426.7 | 1,318.8 | ||||||||
Cost of sales—impairment, restructuring and other | 5.9 | 3.1 | |||||||||
Gross profit | 845.3 | 762.3 | 732.2 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 455.4 | 429.4 | 421.9 | ||||||||
Impairment, restructuring and other | (49.1) | 69.6 | 47.2 | ||||||||
Other income, net | (12.8) | (3.2) | (8.6) | ||||||||
Income (loss) from operations | 451.8 | 266.5 | 271.7 | ||||||||
Equity (income) loss in subsidiaries | (8.4) | (6.1) | (8.9) | ||||||||
Other non-operating (income) loss | 0 | 0 | 0 | ||||||||
Equity in (income)/loss of unconsolidated affiliates | (7.9) | ||||||||||
Costs related to refinancing | 0 | 0 | 0 | ||||||||
Interest expense | 43.6 | 44.1 | 37.4 | ||||||||
Income from continuing operations before income taxes | 424.5 | 228.5 | 243.2 | ||||||||
Income tax (benefit) expense from continuing operations | 147.3 | 77 | 83.6 | ||||||||
Income (loss) from continuing operations | 277.2 | 151.5 | 159.6 | ||||||||
Income from discontinued operations, net of tax | 61.5 | 20.9 | 20.3 | ||||||||
Net income (loss) | 338.7 | 172.4 | 179.9 | ||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | 0.3 | ||||||||
Net income attributable to controlling interest | 338.7 | 172.4 | 180.2 | ||||||||
Eliminations | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Cost of sales—impairment, restructuring and other | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 1.5 | 1.7 | 0 | ||||||||
Impairment, restructuring and other | 0 | 0 | 0 | ||||||||
Other income, net | 0 | 0 | 0 | ||||||||
Income (loss) from operations | (1.5) | (1.7) | 0 | ||||||||
Equity (income) loss in subsidiaries | 356.6 | 185.3 | 202.1 | ||||||||
Other non-operating (income) loss | 44.4 | 51.4 | 43.5 | ||||||||
Equity in (income)/loss of unconsolidated affiliates | 0 | ||||||||||
Costs related to refinancing | 0 | 0 | 0 | ||||||||
Interest expense | (44.4) | (51.4) | (43.5) | ||||||||
Income from continuing operations before income taxes | (358.1) | (187) | (202.1) | ||||||||
Income tax (benefit) expense from continuing operations | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations | (358.1) | (187) | (202.1) | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Net income (loss) | (358.1) | (187) | (202.1) | ||||||||
Net loss attributable to noncontrolling interest | 0.5 | 1.1 | (0.3) | ||||||||
Net income attributable to controlling interest | $ (357.6) | $ (185.9) | $ (202.4) |
FINANCIAL INFORMATION FOR SU135
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS - Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income (loss) | $ (26.9) | $ 212.7 | $ 209.8 | $ (80.8) | $ (24.6) | $ 133 | $ 124.3 | $ (74) | $ 314.8 | $ 158.7 | $ 166.2 |
Net foreign currency translation adjustment | (6.2) | (14.2) | (8.2) | ||||||||
Net change in derivatives | 4.3 | (2.1) | 4.6 | ||||||||
Net change in pension and other post retirement benefits | (8.2) | (4.3) | (4.8) | ||||||||
Total other comprehensive income (loss) | (10.1) | (20.6) | (8.4) | ||||||||
Comprehensive income (loss) | 304.7 | 138.1 | 157.8 | ||||||||
Reportable Legal Entities | Parent | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income (loss) | 317 | 161.5 | 166.2 | ||||||||
Net foreign currency translation adjustment | (6.2) | (14.2) | (8.2) | ||||||||
Net change in derivatives | 4.3 | (2.1) | 4.6 | ||||||||
Net change in pension and other post retirement benefits | (8.2) | (4.3) | (4.8) | ||||||||
Total other comprehensive income (loss) | (10.1) | (20.6) | (8.4) | ||||||||
Comprehensive income (loss) | 306.9 | 140.9 | 157.8 | ||||||||
Reportable Legal Entities | Subsidiary Guarantors | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income (loss) | 338.7 | 172.4 | 179.9 | ||||||||
Net foreign currency translation adjustment | 0 | 0 | 0 | ||||||||
Net change in derivatives | 0.3 | (0.8) | 1.3 | ||||||||
Net change in pension and other post retirement benefits | 0.4 | (5.4) | 0.7 | ||||||||
Total other comprehensive income (loss) | 0.7 | (6.2) | 2 | ||||||||
Comprehensive income (loss) | 339.4 | 166.2 | 181.9 | ||||||||
Reportable Legal Entities | Non- Guarantors | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income (loss) | 17.2 | 11.8 | 22.2 | ||||||||
Net foreign currency translation adjustment | (6.2) | (14.2) | (8.2) | ||||||||
Net change in derivatives | 0 | 0 | 0 | ||||||||
Net change in pension and other post retirement benefits | (8.6) | 1.1 | (5.5) | ||||||||
Total other comprehensive income (loss) | (14.8) | (13.1) | (13.7) | ||||||||
Comprehensive income (loss) | 2.4 | (1.3) | 8.5 | ||||||||
Eliminations | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income (loss) | (358.1) | (187) | (202.1) | ||||||||
Net foreign currency translation adjustment | 6.2 | 14.2 | 8.2 | ||||||||
Net change in derivatives | (0.3) | 0.8 | (1.3) | ||||||||
Net change in pension and other post retirement benefits | 8.2 | 4.3 | 4.8 | ||||||||
Total other comprehensive income (loss) | 14.1 | 19.3 | 11.7 | ||||||||
Comprehensive income (loss) | $ (344) | $ (167.7) | $ (190.4) |
FINANCIAL INFORMATION FOR SU136
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS - Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ 237.4 | $ 246.9 | $ 240.9 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 2.4 | 5.5 | 3.7 |
Proceeds from sale of business, net of transaction costs | 0 | 0 | 7.2 |
Investments in property, plant and equipment | (58.3) | (61.7) | (87.6) |
Investments in loans receivable | (90) | 0 | 0 |
Net distributions from unconsolidated affiliates | 194.1 | 0 | 0 |
Proceeds from sale and leaseback transaction | 0 | 0 | 35.1 |
Cash contributed to TruGreen Joint Venture | (24.2) | 0 | 0 |
Investments in acquired businesses, net of cash acquired | (158.4) | (180.2) | (114) |
Return of investments from affiliates | 0 | ||
Investment in marketing and license agreement | 0 | (300) | 0 |
Investing cash flows from (to) affiliates | 0 | 0 | |
Net cash used in investing activities | (134.4) | (536.4) | (155.6) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 2,069.1 | 1,836 | 1,932.8 |
Repayments under revolving and bank lines of credit and term loans | (2,150.4) | (1,458) | (1,525.3) |
Proceeds from issuance of 6.000% Senior Notes | 400 | 0 | 0 |
Repayment of 7.25% senior notes | (200) | ||
Repayment of 6.625% Senior Notes | 200 | ||
Financing and issuance fees | (11.2) | (0.5) | (6.1) |
Dividends paid | (116.6) | (111.3) | (230.8) |
Purchase of Common Shares | (130.8) | (14.8) | (120) |
Payments on sellers notes | (2.8) | (1.5) | (0.8) |
Excess tax benefits from share-based payment arrangements | 5.8 | 4.7 | 5.9 |
Cash received from exercise of stock options | 14.7 | 24.3 | 20 |
Financing cash flows from (to) affiliates | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (122.2) | 278.9 | (124.3) |
Effect of exchange rate changes on cash | (2.1) | (7.3) | (1.5) |
Net increase (decrease) in cash and cash equivalents | (21.3) | (17.9) | (40.5) |
Cash and cash equivalents at beginning of year | 71.4 | 89.3 | 129.8 |
Cash and cash equivalents at end of year | 50.1 | 71.4 | 89.3 |
Parent | |||
INVESTING ACTIVITIES | |||
Net distributions from unconsolidated affiliates | 934.4 | 255.5 | 422.8 |
Subsidiary Guarantors | |||
INVESTING ACTIVITIES | |||
Net distributions from unconsolidated affiliates | 1.5 | 25.8 | 1.3 |
Reportable Legal Entities | Parent | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 18 | 239.4 | 388.8 |
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 |
Investments in loans receivable | 0 | ||
Net distributions from unconsolidated affiliates | 0 | ||
Proceeds from sale and leaseback transaction | 0 | ||
Cash contributed to TruGreen Joint Venture | 0 | ||
Investments in acquired businesses, net of cash acquired | 0 | 0 | 0 |
Return of investments from affiliates | 934.3 | ||
Investment in marketing and license agreement | 0 | ||
Investing cash flows from (to) affiliates | (914.2) | (141.9) | |
Net cash used in investing activities | 20.1 | (141.9) | 0 |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 0 | 0 | 0 |
Repayments under revolving and bank lines of credit and term loans | 0 | 0 | 0 |
Proceeds from issuance of 6.000% Senior Notes | 400 | ||
Repayment of 7.25% senior notes | (200) | ||
Repayment of 6.625% Senior Notes | 200 | ||
Financing and issuance fees | (11.2) | (0.4) | (6.1) |
Dividends paid | (116.6) | (111.3) | (230.8) |
Purchase of Common Shares | (130.8) | (14.8) | (120) |
Payments on sellers notes | 0 | 0 | 0 |
Excess tax benefits from share-based payment arrangements | 5.8 | 4.7 | 0 |
Cash received from exercise of stock options | 14.7 | 24.3 | 20 |
Financing cash flows from (to) affiliates | 0 | 0 | 148.1 |
Net cash provided by (used in) financing activities | (38.1) | (97.5) | (388.8) |
Effect of exchange rate changes on cash | 0 | 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 |
Reportable Legal Entities | Subsidiary Guarantors | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 212.8 | 249.3 | 254.5 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 2.4 | 5.5 | 3.7 |
Proceeds from sale of business, net of transaction costs | 6.6 | ||
Investments in property, plant and equipment | (49) | (56.6) | (81) |
Investments in loans receivable | (90) | ||
Net distributions from unconsolidated affiliates | 194.1 | ||
Proceeds from sale and leaseback transaction | 35.1 | ||
Cash contributed to TruGreen Joint Venture | (24.2) | ||
Investments in acquired businesses, net of cash acquired | 0 | (170.8) | (58.9) |
Return of investments from affiliates | 0 | ||
Investment in marketing and license agreement | (300) | ||
Investing cash flows from (to) affiliates | (29.1) | 0 | |
Net cash used in investing activities | 4.2 | (521.9) | (94.5) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 1,819.5 | 1,568.1 | 1,596.1 |
Repayments under revolving and bank lines of credit and term loans | (1,937.7) | (1,284.1) | (1,184.7) |
Proceeds from issuance of 6.000% Senior Notes | 0 | ||
Repayment of 7.25% senior notes | 0 | ||
Repayment of 6.625% Senior Notes | 0 | ||
Financing and issuance fees | 0 | (0.1) | 0 |
Dividends paid | (909.4) | (255.5) | (404.9) |
Purchase of Common Shares | 0 | 0 | 0 |
Payments on sellers notes | (2.3) | (1.5) | (0.8) |
Excess tax benefits from share-based payment arrangements | 0 | 0 | 5.9 |
Cash received from exercise of stock options | 0 | 0 | 0 |
Financing cash flows from (to) affiliates | 808.2 | 230 | (151.1) |
Net cash provided by (used in) financing activities | (221.7) | 256.9 | (139.5) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (4.7) | (15.7) | 20.5 |
Cash and cash equivalents at beginning of year | 7.4 | 23.1 | 2.6 |
Cash and cash equivalents at end of year | 2.7 | 7.4 | 23.1 |
Reportable Legal Entities | Non- Guarantors | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 10.2 | 39.5 | 21.7 |
INVESTING ACTIVITIES | |||
Proceeds from sale of long-lived assets | 0 | 0 | 0 |
Proceeds from sale of business, net of transaction costs | 0.6 | ||
Investments in property, plant and equipment | (9.3) | (5.1) | (6.6) |
Investments in loans receivable | 0 | ||
Net distributions from unconsolidated affiliates | 0 | ||
Proceeds from sale and leaseback transaction | 0 | ||
Cash contributed to TruGreen Joint Venture | 0 | ||
Investments in acquired businesses, net of cash acquired | (158.4) | (9.4) | (55.1) |
Return of investments from affiliates | 0 | ||
Investment in marketing and license agreement | 0 | ||
Investing cash flows from (to) affiliates | 0 | 0 | |
Net cash used in investing activities | (167.7) | (14.5) | (61.1) |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 249.6 | 267.9 | 336.7 |
Repayments under revolving and bank lines of credit and term loans | (212.7) | (173.9) | (340.6) |
Proceeds from issuance of 6.000% Senior Notes | 0 | ||
Repayment of 7.25% senior notes | 0 | ||
Repayment of 6.625% Senior Notes | 0 | ||
Financing and issuance fees | 0 | 0 | 0 |
Dividends paid | (26.5) | (25.8) | (19.2) |
Purchase of Common Shares | 0 | 0 | 0 |
Payments on sellers notes | (0.5) | 0 | 0 |
Excess tax benefits from share-based payment arrangements | 0 | 0 | 0 |
Cash received from exercise of stock options | 0 | 0 | 0 |
Financing cash flows from (to) affiliates | 133.1 | (88.1) | 3 |
Net cash provided by (used in) financing activities | 143 | (19.9) | (20.1) |
Effect of exchange rate changes on cash | (2.1) | (7.3) | (1.5) |
Net increase (decrease) in cash and cash equivalents | (16.6) | (2.2) | (61) |
Cash and cash equivalents at beginning of year | 64 | 66.2 | 127.2 |
Cash and cash equivalents at end of year | 47.4 | 64 | 66.2 |
Eliminations | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (3.6) | (281.3) | (424.1) |
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 |
Investments in loans receivable | 0 | ||
Net distributions from unconsolidated affiliates | 0 | ||
Proceeds from sale and leaseback transaction | 0 | ||
Cash contributed to TruGreen Joint Venture | 0 | ||
Investments in acquired businesses, net of cash acquired | 0 | 0 | 0 |
Return of investments from affiliates | (934.3) | ||
Investment in marketing and license agreement | 0 | ||
Investing cash flows from (to) affiliates | 943.3 | 141.9 | |
Net cash used in investing activities | 9 | 141.9 | 0 |
FINANCING ACTIVITIES | |||
Borrowings under revolving and bank lines of credit and term loans | 0 | 0 | 0 |
Repayments under revolving and bank lines of credit and term loans | 0 | 0 | 0 |
Proceeds from issuance of 6.000% Senior Notes | 0 | ||
Repayment of 7.25% senior notes | 0 | ||
Repayment of 6.625% Senior Notes | 0 | ||
Financing and issuance fees | 0 | 0 | 0 |
Dividends paid | 935.9 | 281.3 | 424.1 |
Purchase of Common Shares | 0 | 0 | 0 |
Payments on sellers notes | 0 | 0 | 0 |
Excess tax benefits from share-based payment arrangements | 0 | 0 | 0 |
Cash received from exercise of stock options | 0 | 0 | 0 |
Financing cash flows from (to) affiliates | (941.3) | (141.9) | 0 |
Net cash provided by (used in) financing activities | (5.4) | 139.4 | 424.1 |
Effect of exchange rate changes on cash | 0 | 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 |
FINANCIAL INFORMATION FOR SU137
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS - Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 50.1 | $ 71.4 | $ 89.3 | $ 129.8 |
Accounts receivable, net | 196.4 | 157.7 | ||
Accounts receivable pledged | 174.7 | 152.9 | ||
Inventories | 448.2 | 395.8 | ||
Assets held for sale | 0 | 220.3 | ||
Prepaid and other current assets | 122.3 | 121.1 | ||
Total current assets | 991.7 | 1,119.2 | ||
Investment in unconsolidated affiliates | 101 | 0 | ||
Property, plant and equipment, net | 470.8 | 444.1 | ||
Goodwill | 373.2 | 283.8 | 219 | |
Intangible assets, net | 750.9 | 655.1 | ||
Other assets | 121.2 | 25 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany assets | 0 | 0 | ||
Total assets | 2,808.8 | 2,527.2 | ||
Current liabilities: | ||||
Current portion of debt | 185 | 132.6 | ||
Accounts payable | 165.9 | 193.1 | ||
Liabilities held for sale | 0 | 41.7 | ||
Other current liabilities | 242.2 | 251.2 | ||
Total current liabilities | 593.1 | 618.6 | ||
Long-term debt | 1,131.1 | 1,025 | ||
Other liabilities | 350.3 | 250.5 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany liabilities | 0 | |||
Total liabilities | 2,074.5 | 1,894.1 | ||
Total equity—controlling interest | 715.2 | 620.7 | ||
Noncontrolling interest | 19.1 | 12.4 | ||
Total equity | 734.3 | 633.1 | 567.2 | 710.5 |
Total liabilities and equity | 2,808.8 | 2,527.2 | ||
Reportable Legal Entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable pledged | 0 | 0 | ||
Inventories | 0 | 0 | ||
Assets held for sale | 0 | |||
Prepaid and other current assets | 0.1 | 0 | ||
Total current assets | 0.1 | 0 | ||
Investment in unconsolidated affiliates | 0 | |||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 19.2 | 16.3 | ||
Equity investment in subsidiaries | 808.8 | 461.3 | ||
Intercompany assets | 1,013 | 1,179.4 | ||
Total assets | 1,841.1 | 1,657 | ||
Current liabilities: | ||||
Current portion of debt | 15 | 0 | ||
Accounts payable | 0 | 0 | ||
Liabilities held for sale | 0 | |||
Other current liabilities | 16.6 | 15.5 | ||
Total current liabilities | 31.6 | 15.5 | ||
Long-term debt | 1,091.1 | 1,016.3 | ||
Other liabilities | 3.2 | 4.5 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany liabilities | 0 | 0 | ||
Total liabilities | 1,125.9 | 1,036.3 | ||
Total equity—controlling interest | 715.2 | 620.7 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 715.2 | 620.7 | ||
Total liabilities and equity | 1,841.1 | 1,657 | ||
Reportable Legal Entities | Subsidiary Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 2.7 | 7.4 | 23.1 | 2.6 |
Accounts receivable, net | 92.4 | 63.3 | ||
Accounts receivable pledged | 174.7 | 152.9 | ||
Inventories | 327.8 | 306.9 | ||
Assets held for sale | 220.3 | |||
Prepaid and other current assets | 82.8 | 86.4 | ||
Total current assets | 680.4 | 837.2 | ||
Investment in unconsolidated affiliates | 100.3 | |||
Property, plant and equipment, net | 392.1 | 388 | ||
Goodwill | 260.4 | 260.2 | ||
Intangible assets, net | 596.4 | 584.6 | ||
Other assets | 103.8 | 11 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany assets | 0 | 0 | ||
Total assets | 2,133.4 | 2,081 | ||
Current liabilities: | ||||
Current portion of debt | 154.2 | 122.9 | ||
Accounts payable | 108.8 | 136.7 | ||
Liabilities held for sale | 41.7 | |||
Other current liabilities | 143.6 | 162.7 | ||
Total current liabilities | 406.6 | 464 | ||
Long-term debt | 575.7 | 724.9 | ||
Other liabilities | 268.7 | 226 | ||
Equity investment in subsidiaries | 161 | 156.2 | ||
Intercompany liabilities | 147.2 | 296.6 | ||
Total liabilities | 1,559.2 | 1,867.7 | ||
Total equity—controlling interest | 574.2 | 213.3 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 574.2 | 213.3 | ||
Total liabilities and equity | 2,133.4 | 2,081 | ||
Reportable Legal Entities | Non- Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 47.4 | 64 | 66.2 | 127.2 |
Accounts receivable, net | 104 | 94.4 | ||
Accounts receivable pledged | 0 | 0 | ||
Inventories | 120.4 | 88.9 | ||
Assets held for sale | 0 | |||
Prepaid and other current assets | 39.4 | 34.7 | ||
Total current assets | 311.2 | 282 | ||
Investment in unconsolidated affiliates | 0.7 | |||
Property, plant and equipment, net | 78.7 | 56.1 | ||
Goodwill | 101.2 | 12 | ||
Intangible assets, net | 144.3 | 58.8 | ||
Other assets | 0.7 | 15 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany assets | 0 | 0 | ||
Total assets | 636.8 | 423.9 | ||
Current liabilities: | ||||
Current portion of debt | 30.8 | 9.7 | ||
Accounts payable | 57.1 | 56.4 | ||
Liabilities held for sale | 0 | |||
Other current liabilities | 82 | 73 | ||
Total current liabilities | 169.9 | 139.1 | ||
Long-term debt | 117.2 | 100.1 | ||
Other liabilities | 76 | 32.3 | ||
Equity investment in subsidiaries | 0 | 0 | ||
Intercompany liabilities | 187.1 | 47.5 | ||
Total liabilities | 550.2 | 319 | ||
Total equity—controlling interest | 86.6 | 104.9 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 86.6 | 104.9 | ||
Total liabilities and equity | 636.8 | 423.9 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable pledged | 0 | 0 | ||
Inventories | 0 | 0 | ||
Assets held for sale | 0 | |||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Investment in unconsolidated affiliates | 0 | |||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 11.6 | 11.6 | ||
Intangible assets, net | 10.2 | 11.7 | ||
Other assets | (2.5) | (17.3) | ||
Equity investment in subsidiaries | (808.8) | (461.3) | ||
Intercompany assets | (1,013) | (1,179.4) | ||
Total assets | (1,802.5) | (1,634.7) | ||
Current liabilities: | ||||
Current portion of debt | (15) | 0 | ||
Accounts payable | 0 | 0 | ||
Liabilities held for sale | 0 | |||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (15) | 0 | ||
Long-term debt | (652.9) | (816.3) | ||
Other liabilities | 2.4 | (12.3) | ||
Equity investment in subsidiaries | (161) | (156.2) | ||
Intercompany liabilities | (334.3) | (344.1) | ||
Total liabilities | (1,160.8) | (1,328.9) | ||
Total equity—controlling interest | (660.8) | (318.2) | ||
Noncontrolling interest | 19.1 | 12.4 | ||
Total equity | (641.7) | (305.8) | ||
Total liabilities and equity | $ (1,802.5) | $ (1,634.7) |
Schedule II - Valuation and 138
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for doubtful accounts | |||
Valuation Allowance [Line Items] | |||
Balance at Beginning of Period | $ 6.5 | $ 5.5 | $ 7.5 |
Reserves Acquired | 0 | 0 | 0 |
Additions Charged to Expense | 4.1 | 1.4 | 1.6 |
Deductions Credited and Write-Offs | (3.4) | (0.4) | (3.6) |
Balance at End of Period | 7.2 | 6.5 | 5.5 |
Income tax valuation allowance | |||
Valuation Allowance [Line Items] | |||
Balance at Beginning of Period | 45.8 | 48.3 | 51.5 |
Reserves Acquired | 0 | 0 | 0 |
Additions Charged to Expense | (0.9) | 1.5 | (1.5) |
Deductions Credited and Write-Offs | 0.2 | (4) | (1.7) |
Balance at End of Period | $ 45.1 | $ 45.8 | $ 48.3 |