Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Nov. 16, 2018 | Mar. 31, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CENT | ||
Entity Registrant Name | CENTRAL GARDEN & PET CO | ||
Entity Central Index Key | 887,733 | ||
Current Fiscal Year End Date | --09-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,145,135 | ||
Entity Public Float | $ 444,100 | ||
Class A common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 44,015,524 | ||
Entity Public Float | 1,420,500 | ||
Class B stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,652,262 | ||
Entity Public Float | $ 269 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 482,106 | $ 32,397 |
Restricted cash | 10,899 | 12,645 |
Accounts receivable, net | 275,908 | 237,868 |
Inventories | 427,823 | 382,101 |
Prepaid expenses and other | 20,562 | 18,045 |
Total current assets | 1,217,298 | 683,056 |
Plant, property and equipment, net | 217,647 | 180,913 |
Goodwill | 281,177 | 256,275 |
Other intangible assets, net | 152,265 | 116,067 |
Other assets | 38,822 | 70,595 |
Total | 1,907,209 | 1,306,906 |
Current liabilities: | ||
Accounts payable | 110,259 | 103,283 |
Accrued expenses | 102,583 | 116,549 |
Current portion of long-term debt | 122 | 375 |
Total current liabilities | 212,964 | 220,207 |
Long-term debt | 692,031 | 395,278 |
Deferred income taxes and other long-term obligations | 49,380 | 54,279 |
Commitments and contingencies (Note 11) | ||
Equity: | ||
Additional paid-in capital | 590,168 | 396,790 |
Retained earnings | 362,923 | 239,329 |
Accumulated other comprehensive loss | (1,218) | (951) |
Total Central Garden & Pet shareholders’ equity | 952,449 | 635,686 |
Noncontrolling interest | 385 | 1,456 |
Total equity | 952,834 | 637,142 |
Total | 1,907,209 | 1,306,906 |
Common stock | ||
Equity: | ||
Common stock | 121 | 122 |
Class A common stock | ||
Equity: | ||
Common stock | 439 | 380 |
Class B stock | ||
Equity: | ||
Common stock | $ 16 | $ 16 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 2,215,362 | $ 2,054,478 | $ 1,829,017 |
Cost of goods sold and occupancy | 1,539,986 | 1,421,670 | 1,275,967 |
Gross profit | 675,376 | 632,808 | 553,050 |
Selling, general and administrative expenses | 508,040 | 476,696 | 421,864 |
Intangible asset impairment | 0 | 0 | 1,828 |
Operating income | 167,336 | 156,112 | 129,358 |
Interest expense | (39,196) | (28,209) | (42,847) |
Interest income | 3,145 | 147 | 140 |
Other expense, net | (3,860) | (1,621) | (17,013) |
Income before income taxes and noncontrolling interest | 127,425 | 126,429 | 69,638 |
Income tax expense | 3,305 | 46,699 | 24,053 |
Net income including noncontrolling interest | 124,120 | 79,730 | 45,585 |
Net income attributable to noncontrolling interest | 526 | 902 | 1,071 |
Net income attributable to Central Garden & Pet Company | $ 123,594 | $ 78,828 | $ 44,514 |
Net income per share attributable to Central Garden & Pet Company: | |||
Basic (in usd per share) | $ 2.39 | $ 1.57 | $ 0.91 |
Diluted (in usd per share) | $ 2.32 | $ 1.52 | $ 0.87 |
Weighted average shares used in the computation of net income per share: | |||
Basic (in shares) | 51,716 | 50,230 | 48,964 |
Diluted (in shares) | 53,341 | 51,820 | 51,075 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 124,120 | $ 79,730 | $ 45,585 |
Other comprehensive income (loss): | |||
Foreign currency translation | (267) | 343 | (1,458) |
Total comprehensive income | 123,853 | 80,073 | 44,127 |
Comprehensive income attributable to noncontrolling interests | 526 | 902 | 1,071 |
Comprehensive income attributable to Central Garden & Pet Company | $ 123,327 | $ 79,171 | $ 43,056 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | Non-controlling Interest | Common stockCommon Stock | Class A common stockCommon Stock | Class B stockCommon Stock |
Balance, Beginning balance at Sep. 26, 2015 | $ 506,380 | $ 388,636 | $ 115,987 | $ 164 | $ 505,286 | $ 1,094 | $ 119 | $ 364 | $ 16 |
Shares, Issued, Beginning Balance at Sep. 26, 2015 | 11,908,317 | 36,462,299 | 1,652,262 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Amortization of share-based awards | 6,552 | 6,552 | 6,552 | ||||||
Tax deficiency on exercise of stock options, net of tax benefit | 6,865 | 6,865 | 6,865 | ||||||
Restricted share activity | (1,339) | (1,341) | (1,339) | $ 2 | |||||
Restricted share activity, shares | 202,916 | ||||||||
Issuance of common stock | (7,406) | (7,415) | (7,406) | $ 1 | $ 8 | ||||
Issuance of common stock, shares | 90,155 | 753,357 | |||||||
Repurchase of common stock | 0 | ||||||||
Distribution to noncontrolling interest | (592) | (592) | |||||||
Other comprehensive loss | (1,458) | (1,458) | (1,458) | ||||||
Net income (loss) | 45,585 | 44,514 | 44,514 | 1,071 | |||||
Balance, Ending balance at Sep. 24, 2016 | 554,587 | 393,297 | 160,501 | (1,294) | 553,014 | 1,573 | $ 120 | $ 374 | $ 16 |
Shares, Issued, Ending Balance at Sep. 24, 2016 | 11,998,472 | 37,418,572 | 1,652,262 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Amortization of share-based awards | 8,700 | 8,700 | 8,700 | ||||||
Tax benefit on exercise of stock options, net of tax deficiency | 19,942 | 19,942 | 19,942 | ||||||
Restricted share activity | (7,765) | (7,765) | (7,765) | ||||||
Restricted share activity, shares | (16,764) | (79,362) | |||||||
Issuance of common stock | (17,376) | (17,384) | (17,376) | $ 2 | $ 6 | ||||
Issuance of common stock, shares | 178,315 | 680,526 | |||||||
Distribution to noncontrolling interest | (1,019) | (1,019) | |||||||
Other comprehensive loss | 343 | 343 | 343 | ||||||
Net income (loss) | 79,730 | 78,828 | 78,828 | 902 | |||||
Balance, Ending balance at Sep. 30, 2017 | 637,142 | 396,790 | 239,329 | (951) | 635,686 | 1,456 | $ 122 | $ 380 | $ 16 |
Shares, Issued, Ending Balance at Sep. 30, 2017 | 12,160,023 | 38,019,736 | 1,652,262 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Amortization of share-based awards | 9,252 | 9,252 | 9,252 | ||||||
Restricted share activity | (7,429) | (7,428) | (7,429) | $ (1) | $ 0 | ||||
Restricted share activity, shares | (14,888) | 48,180 | |||||||
Issuance of common stock | 191,613 | 191,554 | 191,613 | $ 59 | |||||
Issuance of common stock, shares | 5,885,349 | ||||||||
Distribution to noncontrolling interest | (1,597) | (1,597) | |||||||
Other comprehensive loss | (267) | (267) | (267) | ||||||
Net income (loss) | 124,120 | 123,594 | 123,594 | 526 | |||||
Balance, Ending balance at Sep. 29, 2018 | $ 952,834 | $ 590,168 | $ 362,923 | $ (1,218) | $ 952,449 | $ 385 | $ 121 | $ 439 | $ 16 |
Shares, Issued, Ending Balance at Sep. 29, 2018 | 12,145,135 | 43,953,265 | 1,652,262 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 124,120 | $ 79,730 | $ 45,585 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 47,199 | 42,719 | 40,001 |
Amortization of deferred financing costs | 1,748 | 1,361 | 1,504 |
Stock-based compensation | 11,602 | 11,115 | 8,356 |
Excess tax benefits from stock-based awards | 0 | (19,946) | (6,869) |
Deferred income taxes | (4,833) | 10,789 | 3,189 |
Gain on sale of property and equipment | 0 | (2,050) | (2,544) |
Loss on disposal of property, plant and equipment | 273 | 65 | 1,163 |
Write-off of deferred financing costs | 0 | 0 | 3,337 |
Asset impairments | 0 | 0 | 19,367 |
Other | 1,840 | 3,999 | 987 |
Changes in assets and liabilities (excluding businesses acquired): | |||
Receivables | (28,741) | (32,419) | 27,444 |
Inventories | (15,087) | (15,885) | (6,519) |
Prepaid expenses and other assets | (3,803) | 2,845 | 6,901 |
Accounts payable | (1,163) | (2,143) | (2,793) |
Accrued expenses | (20,096) | 35,018 | 11,234 |
Other long-term obligations | 1,053 | (889) | 1,083 |
Net cash provided by operating activities | 114,112 | 114,309 | 151,426 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (37,845) | (44,659) | (27,622) |
Businesses acquired, net of cash acquired | (91,244) | (103,880) | (69,001) |
Escrow deposit for acquisition-related contingent consideration | 0 | (6,000) | 0 |
Proceeds from asset sales | 0 | 8,547 | 3,911 |
Change in restricted cash and cash equivalents. | 1,746 | (1,735) | 2,247 |
Payments for investments | (9,048) | (12,495) | 0 |
Other investing activities | (2,745) | (4,355) | (730) |
Net cash used in investing activities | (139,136) | (164,577) | (91,195) |
Cash flows from financing activities: | |||
Repayments on revolving line of credit | (23,000) | (552,000) | (419,000) |
Borrowings on revolving line of credit | 23,000 | 552,000 | 419,000 |
Repayments of long-term debt | (431) | (463) | (400,307) |
Issuance of long-term debt | 300,000 | 0 | 400,000 |
Proceeds from issuance of common stock, net of offering costs | 195,631 | 0 | 324 |
Excess tax benefits from stock-based awards | 0 | 19,946 | 6,869 |
Repurchase of common stock, including shares surrendered for tax withholding | (13,797) | (27,556) | (10,873) |
Payments of contingent consideration | (253) | (1,300) | (2,026) |
Distribution to noncontrolling interest | (1,597) | (1,019) | (592) |
Payment of financing costs | (4,770) | 0 | (7,560) |
Net cash provided (used) by financing activities | 474,783 | (10,392) | (14,165) |
Effect of exchange rate changes on cash and equivalents | (50) | 75 | (668) |
Net increase (decrease) in cash and cash equivalents | 449,709 | (60,585) | 45,398 |
Cash and cash equivalents at beginning of year | 32,397 | 92,982 | 47,584 |
Cash and cash equivalents at end of year | 482,106 | 32,397 | 92,982 |
Supplemental information: | |||
Cash paid for interest | 36,664 | 27,878 | 32,995 |
Cash paid for income taxes – net of refunds | 19,508 | 10,560 | 10,399 |
Non-cash investing and financing activities: | |||
Capital expenditures incurred but not paid | 2,386 | 3,106 | 2,743 |
Liability for contingent performance based payments | $ (2,888) | $ 2,830 | $ 2,590 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization – Central Garden & Pet Company (“Central”), a Delaware corporation, and subsidiaries (the “Company”), is a leading marketer and producer of quality branded products and distributor of third party products in the pet and lawn and garden supplies markets. Basis of Consolidation and Presentation – The consolidated financial statements include the accounts of Central and all majority-owned subsidiaries. All intercompany balances and transactions have been eliminated. The fiscal year ended September 30, 2017 included 53 weeks. The fiscal years ended September 29, 2018 and September 24, 2016 each included 52 weeks. Noncontrolling Interest – Noncontrolling interest in the Company’s consolidated financial statements represents the 20% interest not owned by the Company in a consolidated subsidiary. Since the Company controls this subsidiary, its financial statements are consolidated with those of the Company, and the noncontrolling owner’s 20% share of the subsidiary’s net assets and results of operations is deducted and reported as noncontrolling interest on the consolidated balance sheets and as net income attributable to noncontrolling interest in the consolidated statements of operations. Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including realization of accounts receivable and inventory and valuation of goodwill and intangibles. Actual results could differ from those estimates. Revenue Recognition – Sales are recognized when merchandise is shipped, risk of loss and title passes to the customer and the Company has no further obligations to provide services related to such merchandise. Discounts, volume-based rebate incentives and most cooperative advertising amounts are recorded as a reduction of sales. The Company’s practice on product returns is to accept and credit the return of unopened cases of products from customers where the quantity is small, where the product has been mis-shipped or the product is defective. Provisions are made for estimated sales returns which are deducted from net sales at the time of shipment. Sales also include shipping and handling costs billed directly to customers. The amount billed to customers for shipping and handling costs included in net sales for the fiscal years ended September 29, 2018 , September 30, 2017 and September 24, 2016 was $12.2 million , $9.4 million and $3.8 million , respectively. Cost of goods sold and occupancy consists of cost of product, inbound freight charges, purchasing and receiving costs, certain indirect purchasing, merchandise handling and storage costs, internal transfer costs as well as allocations of overhead costs, including depreciation, related to the Company’s facilities. Cost of goods sold excludes substantially all shipping and handling and out-bound freight costs to customers, which are included in selling, general and administrative expenses as delivery expenses. The cost of shipping and handling, including internal costs and payments to third parties, included in delivery expenses within selling, general and administrative expenses for the fiscal years ended September 29, 2018 , September 30, 2017 and September 24, 2016 was $70.1 million , $59.3 million and $48.9 million , respectively. Advertising Costs – The Company expenses the costs of advertising as incurred. Advertising expenses were $29.7 million , $34.5 million and $30.0 million in fiscal 2018 , 2017 and 2016 , respectively. 401(k) Plans – The Company sponsors several 401(k) plans which cover substantially all employees. The Company’s matching contributions expensed under these plans were $2.3 million for fiscal 2018 , $2.4 million for fiscal 2017 and $1.7 million for fiscal 2016 . In fiscal 2018 , 2017 and 2016 , the Company’s matching contributions made in the Company’s Class A common stock resulted in the issuance of approximately 61,000 , 81,000 and 99,000 shares, respectively. Other income (expense) consists principally of earnings (losses) from equity method investments and foreign exchange gains and losses. Income taxes are accounted for under the asset and liability method. Deferred income taxes result primarily from bad debt allowances, inventory and goodwill write-downs, amortization and depreciation. The Company establishes a valuation allowance for deferred tax assets when management believes it is more likely than not a deferred tax asset will not be realized. As of fiscal year-end 2018 and 2017 , the Company had valuation allowances related to various state and foreign net deferred tax assets of $6.8 million and $6.5 million , respectively. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law by the U.S. government. The Tax Reform Act significantly revised the U.S. corporate income tax code by, among other things, transitions the U.S. tax system to a new territorial system and lowered the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. In fiscal 2018, the Company's statutory federal corporate tax rate was a blended rate of 24.5% , which will be reduced to 21% in fiscal 2019 and thereafter. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. In transitioning to the new territorial tax system, the Tax Reform Act requires the Company to include certain untaxed foreign earnings of non-U.S. subsidiaries in its fiscal 2018 taxable income. Such foreign earnings are subject to a one-time tax at 15.5% of the amount held in cash or cash equivalents and at 8% on the remaining non-cash amount. The 15.5% and 8% tax, collectively referred to as the "transition tax", was estimated to be $0.2 million on foreign undistributed earnings of approximately $1.5 million and was recorded in the Company's first fiscal quarter ended December 30, 2017. The Company intends to elect to pay the transition tax over a period of eight years as permitted by the Tax Reform Act. While the Tax Reform Act provides for the full deduction of future foreign earnings (beyond the $1.5 million subject to the transition tax noted above) paid to U.S. parent corporations in the form of dividends, the Company continues to consider all such foreign earnings to be indefinitely reinvested overseas. Any potential deferred tax liability associated with these earnings is fully offset by either the dividend received deduction or foreign tax credits associated with the earnings. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017. This guidance allows registrants a “measurement period,” not to exceed one year from the date of enactment, to complete their accounting for the tax effects of the Tax Reform Act. SAB 118 further directs that during the measurement period, registrants who are able to make reasonable estimates of the tax effects of the Tax Reform Act should include those amounts in their financial statements as “provisional” amounts. Registrants should reflect adjustments over subsequent periods as they are able to refine their estimates and complete their accounting for the tax effects of the Tax Reform Act. The Company has made reasonable estimates and recorded provisional amounts in accordance with the requirements of SAB 118. While the Company has substantially completed the remeasurement of its deferred tax assets and liabilities, any further adjustments recorded to the provisional amounts through the first quarter of fiscal 2019 will be included as an adjustment to tax expense. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU adds guidance that answers questions regarding how certain income tax effects from the Tax Reform Act should be applied to companies’ financial statements. The guidance also lists which financial statement disclosures are required under a measurement period approach. As a result of the Tax Reform Act, the Company recorded a provisional tax benefit of $16.3 million due to the remeasurement of its deferred tax assets and liabilities, inclusive of a $0.2 million transition tax, in the three months ended December 30, 2017. Upon further analysis and refinement of its calculations, the Company adjusted its provisional amount by recording an additional tax benefit of $5.2 million during its fiscal quarter ended September 29, 2018, for a total year-to-date tax benefit of $21.5 million . Cash and cash equivalents include cash and all highly liquid instruments with a maturity of three months or less at the date of purchase. Restricted cash and cash equivalents include cash and highly liquid instruments that are used as collateral for stand–alone letter of credit agreements. These agreements require the Company to maintain specified amounts of cash as collateral in segregated accounts to support the letters of credit issued thereunder, which will affect the amount of cash the Company has available for other uses. The amount of cash collateral in these segregated accounts was approximately $10.9 million and $12.6 million as of September 29, 2018 and September 30, 2017, respectively, and is reflected in restricted cash on the consolidated balance sheets. Accounts receivable are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are past due. Allowance for doubtful accounts – Trade accounts receivable are regularly evaluated for collectability based on past credit history with customers, their expected returns and deductions and their current financial condition. See Note 5 - Allowance for Doubtful Accounts . Inventories , which primarily consist of garden products and pet supplies finished goods, are stated at the lower of FIFO cost or market. Cost includes certain indirect purchasing, merchandise handling and storage costs incurred to acquire or manufacture inventory, costs to unload, process and put away shipments received in order to prepare them to be picked for orders, and certain other overhead costs. The amount of such costs capitalized to inventory is computed based on an estimate of costs related to the procurement and processing of inventory to prepare it for sale compared to total product purchases. See Note 6 - Inventories, net . Land, buildings, improvements and equipment are stated at cost. Depreciation is computed by the straight-line method over 30 years for buildings. Improvements are amortized on a straight-line basis over the shorter of the useful life of the asset or the terms of the related leases. Depreciation on equipment and capitalized software is computed by the straight-line and accelerated methods over the estimated useful lives of three to 10 years . See Note 7 - Property and Equipment, Net . Long-Lived Assets – The Company reviews its long-lived assets, including amortizable and indefinite-lived intangible assets and property, plant and equipment, for potential impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable, and annually for indefinite-lived intangible assets. An impairment loss would be recognized for amortizable intangible assets and property, plant and equipment when estimated undiscounted future cash flows expected to result from the use of the asset are less than its carrying amount. An impairment loss would be recognized for an intangible asset with an indefinite useful life if its carrying value exceeds its fair value. Impairment, if any, is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. There were no impairment losses recorded in fiscal years 2018 or 2017. In fiscal 2016, the Company recognized non-cash asset impairment charges of approximately $1.8 million related to certain indefinite-lived intangible assets due to changes in the Company's operational strategy and declining volume of sales. Should market conditions or the assumptions used by the Company in determining the fair value of assets change, or management changes plans regarding the future use of certain assets, additional charges to operations may be required in the period in which such conditions occur. See Note 9 – Other Intangible Assets . Goodwill represents the excess of cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Identifiable intangible assets acquired in business combinations are recorded based on their fair values at the date of acquisition. Goodwill is not subject to amortization but must be evaluated for impairment annually. The Company tests for goodwill impairment annually or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 8– Goodwill . Investments – The Company owns membership interests ranging from 13% to 50% in nine unconsolidated companies. The Company accounts for its interest in these entities using the equity method and cost method. Equity method losses of $2.8 million in fiscal 2018 and $0.9 million in fiscal 2017 and equity method income of $0.4 million in fiscal 2016 are included in other income (expense) in the consolidated statements of operations. The Company’s investment in these entities was $18.5 million at September 29, 2018 and $9.2 million at September 30, 2017 and is included in Other assets in the Company's consolidated balance sheets. On an individual and combined basis, the assets, liabilities, revenues and expenses of these entities are not significant. During the fourth quarter of fiscal 2016, the Company determined that its equity method investments in two unconsolidated companies were impaired as a result of changes in marketplace conditions, which impacted the expected cash flows and the recoverability of the investment. Accordingly, the Company recorded a non-cash charge of approximately $16.6 million in fiscal 2016 to bring the carrying value of these investments to zero. The impairment charge is included in other expense in the Company's consolidated statements of operations. See Note 3 - Acquisitions . 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. The Company’s workers’ compensation, general liability and vehicle liability insurance policies include deductibles of $250,000 to $350,000 per occurrence. The Company maintains excess loss insurance that covers any health care claims in excess of $700,000 per person per year. The Company establishes reserves for losses based on its claims experience and actuarial estimates of the ultimate loss amount inherent in the claims, including claims incurred but not yet reported. Costs are recognized in the period the claim is incurred, and the financial statement accruals include an estimate of claims incurred but not yet reported. Fair Value of Financial Instruments – At September 29, 2018 and September 30, 2017 , the carrying amount of cash and cash equivalents, short term investments, accounts receivable and payable, short term borrowings and accrued liabilities approximates fair value because of the short term nature of these instruments. The estimated fair value of the Company’s senior subordinated notes is based on quoted market prices for these instruments. See Note 2 - Fair Value Measurements for further information regarding the fair value of the Company’s financial instruments. Stock-Based Compensation – Stock-based compensation cost is estimated at the grant date based on the fair value of the award and is expensed ratably over the service period of the award. Total compensation costs recognized under all share-based arrangements in fiscal 2018 was $11.6 million ( $8.4 million after tax), fiscal 2017 was $11.1 million ( $7.0 million after tax), and fiscal 2016 was $8.4 million ( $5.3 million after tax). See Note 13 - Stock-Based Compensation for further information. Total Comprehensive Income (Loss) – Total comprehensive income (loss) consists of two components: net income and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that under generally accepted accounting principles are recorded directly as an element of shareholders’ equity, but are excluded from net income. Other comprehensive income (loss) is comprised of currency translation adjustments relating to the Company’s foreign subsidiary whose functional currency is not the U.S. dollar, unrealized gains and losses on investments classified as available for sale, as well as the reclassification of realized gains and losses on investments classified as available for sale to net income. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted Stock Based Compensation In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation , which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 (i) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (ii) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (iii) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (iv) modifies statutory withholding tax requirements and (v) provides for a policy election to account for forfeitures as they occur. The Company adopted ASU 2016-09 on October 1, 2017. As a result of the adoption of ASU 2016-09, the Company now records excess tax benefits and shortfalls currently in its provision for income taxes. Upon adoption, the Company determined it had no previously unrecognized excess tax benefits. Additionally, the Company elected to account for forfeitures as they occur using a modified retrospective transition method, which requires the Company to record a cumulative-effect adjustment to accumulated earnings, and the Company determined that the cumulative impact was insignificant. The Company presents its excess tax benefits as a component of operating cash flows rather than financing cash flows on a prospective basis. Inventory Measurement In July 2015, the FASB issued ASU 2015-11 (ASU 2015-11), Simplifying the Measurement of Inventory . Under ASU 2015-11, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The standard defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. The Company adopted ASU 2015-11 on October 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the Company's consolidated financial statements. Income Taxes The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017. This guidance allows registrants a “measurement period,” not to exceed one year from the date of enactment, to complete their accounting for the tax effects of the Tax Reform Act. SAB 118 further directs that during the measurement period, registrants who are able to make reasonable estimates of the tax effects of the Tax Reform Act should include those amounts in their financial statements as “provisional” amounts. Registrants should reflect adjustments over subsequent periods as they are able to refine their estimates and complete their accounting for the tax effects of the Tax Reform Act. The Company has made reasonable estimates and recorded provisional amounts within the meaning of SAB 118. Any adjustments recorded to the provisional amounts through the first quarter of fiscal 2019 will be included as an adjustment to tax expense. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU adds guidance that answers questions regarding how certain income tax effects from the Tax Reform Act should be applied to companies’ financial statements. The guidance also lists which financial statement disclosures are required under a measurement period approach. Accounting Standards Not Yet Adopted Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers . This update was issued as Accounting Standards Codification Topic 606. The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB deferred the effective date of ASU 2014-09 for one year. ASU 2014-09 is effective for the Company in the first quarter of its fiscal year ending September 28, 2019. The Company intends to adopt under the modified retrospective approach, which recognizes the cumulative effect of adoption as an adjustment to retained earnings at the date of initial application. The guidance in this ASU requires the Company to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. The majority of the Company's revenue is generated from sales of pet and garden products, which will continue to be recognized when control of the goods is transferred to the customer. The Company generally anticipates having substantially similar performance obligations under the amended guidance as compared with deliverables and units of account currently being recognized. The Company intends to make policy elections within the amended standard that are consistent with its current accounting. The Company does not expect the adoption of this amended standard to have a material impact on its consolidated financial statements. The Company expects the impact of the adoption of this ASU would primarily change presentation within its consolidated financial statements but is currently not expected to have a material effect on income from operations. The Company’s assessment of the guidance in this ASU has identified customer related returns as transactions potentially affected by this guidance. On the consolidated balance sheet, reserves for returns will be included as other current liabilities rather than net accounts receivable and the value of inventory associated with reserves for sales returns will be included within prepaid expenses and other current assets. See Note 5 - Allowance for Doubtful Accounts for sales return reserves currently included as part of net accounts receivable. The Company is implementing changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. Leases In February 2016, the FASB issued ASU 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. ASU 2016-02 is effective for the Company in its first quarter of fiscal 2020 on a modified retrospective basis and earlier adoption is permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements, and it currently expects that most of its operating lease commitments will be subject to the new standard and the Company will record material long-term operating lease liabilities and long-term right-of-use assets upon the adoption of ASU 2016-02. Information on our current operating leases can be found in Note 11 - Commitments and Contingencies . Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The ASU provides additional clarification guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new guidance is effective for the Company as of September 30, 2018 on a retrospective basis. The Company intends to make policy elections within the amended standard that are consistent with its current classification and does not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-18) . This ASU clarifies the presentation of restricted cash on the statement of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning and ending cash balances on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, and is effective for the Company as of September 30, 2018 on a retrospective basis. The Company expects the adoption of this amended guidance to have no effect on our consolidated statements of operations, comprehensive income or our consolidated balance sheets. This amended guidance is expected to only result in a change in presentation of restricted cash and restricted cash equivalents on the Company's consolidated statement of cash flows. The Company held restricted cash balances of $10.9 million , $12.6 million and $10.9 million as of September 29, 2018, September 30, 2017 and September 24, 2016, respectively. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (ASU 2017-01), which requires an evaluation of whether substantially all of the fair value of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transaction does not qualify as a business. The guidance also requires an acquired business to include at least one substantive process and narrows the definition of outputs. The Company is required to apply this guidance to annual periods beginning after December 15, 2017, including interim periods within those periods. The guidance is effective for the Company September 30, 2018. The adoption of this ASU may have an impact on accounting for any future acquisitions the Company may have . Goodwill and Intangible Assets I n January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance is effective for annual periods or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, or the Company's first quarter of fiscal 2021. The amendment should be applied on a prospective basis. Based on the Company's most recent annual goodwill impairment test performed as of July 1, 2018, there were no reporting units for which the carrying amount of the reporting unit exceeded its fair value; therefore, this ASU would not currently have an impact on the Company's consolidated financial statements and related disclosures. However, if upon adoption the carrying amount of a reporting unit exceeds its fair value, the Company would be impacted by the amount of impairment recognized. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods, with early adoption permitted, and is effective for the Company in fiscal 2021. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the effect that ASU 2018-15 will have on its consolidated financial statements and related disclosures. Fair Value Disclosures In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. ASU 2018-13 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods, with early adoption permitted and is effective for the Company in fiscal 2021. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company is currently evaluating the effect that ASU 2018-13 will have on its consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Generally accepted accounting principles require financial assets and liabilities to be categorized based on the inputs used to calculate their fair values as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The Company’s financial instruments include cash and equivalents, restricted cash and equivalents, short term investments, accounts receivable and payable, derivative instruments, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 29, 2018 (in thousands): Level 1 Level 2 Level 3 Total Liabilities: Liability for contingent consideration (a) $ — $ — $ 8,224 $ 8,224 Total liabilities $ — $ — $ 8,224 $ 8,224 The following table presents our financial assets and liabilities at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 30, 2017 (in thousands): Level 1 Level 2 Level 3 Total Liabilities: Liability for contingent consideration (a) $ — $ — $ 9,343 $ 9,343 Total liabilities $ — $ — $ 9,343 $ 9,343 (a) The liability for contingent consideration relates to an earn-out for B2E, acquired in December 2012, future performance-based contingent payments for Hydro-Organics Wholesale, Inc., acquired in October 2015, future performance-based contingent payments for Segrest, Inc., acquired in October 2016, and future performance-based contingent payments for Bell Nursery, acquired in March 2018. The fair value of the estimated contingent consideration arrangement is determined based on the Company’s evaluation as to the probability and amount of any earn-out that will be achieved based on expected future performance by the acquired entity. This is presented as part of long-term liabilities in the Company's consolidated balance sheets. The following table provides a summary of changes in fair value of the Company's Level 3 financial instruments for the years ended September 29, 2018 and September 30, 2017 (in thousands): Amount Balance as of September 30, 2017 $ 9,343 Estimated contingent performance-based consideration established at the time of acquisition 2,022 Changes in the fair value of contingent performance-based payments (2,888 ) Performance-based payments made (253 ) Balance as of September 29, 2018 $ 8,224 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company measures certain non-financial assets and liabilities, including long-lived assets, goodwill and intangible assets, at fair value on a non-recurring basis. Fair value measurements of non-financial assets and non-financial liabilities are used primarily in the impairment analyses of long-lived assets, goodwill and other intangible assets. There were no impairment losses recorded in fiscal 2018 or fiscal 2017. During the fiscal year ended September 24, 2016, the carrying value of $1.8 million of indefinite-lived intangible assets was written down to its estimated fair value, resulting in impairment charges of $1.8 million , which was included in intangible asset impairment on the consolidated statements of operations for the period. See Note 9 – Other Intangible Assets . Fair Value of Other Financial Instruments In December 2017, the Company issued $300 million aggregate principal amount of 5.125% senior notes due February 2028 (the "2028 Notes"). The estimated fair value of the Company's 2028 Notes as of September 29, 2018 was $285.5 million million compared to a carrying value of $295.6 million . In November 2015, the Company issued $400 million aggregate principal amount of 6.125% senior notes due November 2023 (the “2023 Notes”). The estimated fair values of the Company’s 2023 Notes were $414.4 million as of September 29, 2018 and $ 427.9 million as of September 30, 2017, and the carrying values were $ 396.0 million as of September 29, 2018 and $ 395.2 million as of September 30, 2017. The estimated fair values are based on quoted market prices for these notes, which are Level 1 inputs within the fair value hierarchy. |
Acquisitions and Investments in
Acquisitions and Investments in Joint Ventures | 12 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Investments in Joint Ventures | Acquisitions and Investments in Joint Ventures Fiscal 2018 General Pet Supply O n April 2, 2018, the Company purchased substantially all of the assets of General Pet Supply, a leading Midwestern U.S. supplier of pet food and supplies for a purchase price of approximately $24.3 million . The purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $13.6 million , of which $8.1 million was allocated to identified intangible assets and approximately $5.5 million was included in goodwill in the Company’s consolidated balance sheet as of September 29, 2018. Financial results of General Pet Supply have been included in the results of operations within the Pet segment since the date of acquisition. The following table summarizes the purchase price and recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments. In thousands Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Current assets, net of cash and cash equivalents acquired 12,991 — 12,991 Fixed assets 1,014 516 1,530 Goodwill — 5,520 5,520 Other assets 14,147 (14,136 ) 11 Other intangible assets, net — 8,100 8,100 Current liabilities (3,506 ) — (3,506 ) Long-term obligations (361 ) (361 ) Net assets acquired, less cash and cash equivalents $ 24,285 — $ 24,285 (1) As previously reported in the Company's Form 10-Q for the period ended June 30, 2018. The impact to the consolidated statement of operations associated with the finalization of purchase accounting and true-up of intangible assets for General Pet Supply was immaterial. Bell Nursery On March 12, 2018, the Company purchased Bell Nursery Holdings, LLC ("Bell"), a leading grower and distributor of live flowers and plants in the mid-Atlantic region of the United States, for a purchase price of approximately $61 million plus contingent consideration of up to $10 million . The purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $13.6 million , of which $6.2 million was allocated to identified intangible assets and $7.4 million was included in goodwill in the Company's consolidated balance sheet as of September 29, 2018. Financial results of Bell have been included in the results of operations within the Garden segment since the date of acquisition. The following table summarizes the purchase price and recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments. In thousands Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Current assets, net of cash and cash equivalents acquired $ 28,330 $ (359 ) $ 27,971 Fixed assets 30,278 383 30,661 Goodwill — 7,415 7,415 Other assets 11,647 (11,647 ) — Other intangible assets, net — 6,230 6,230 Current liabilities (11,611 ) (2,022 ) (13,633 ) Net assets acquired, less cash and cash equivalents $ 58,644 $ — $ 58,644 (1) As previously reported in the Company's Form 10-Q for the periods ended March 31, 2018 and June 30, 2018. The impact to the consolidated statement of operations associated with the finalization of purchase accounting and true-up of intangible assets for Bell was immaterial. The Company expects all the goodwill from the acquisitions above to be deductible for tax purposes. Proforma financial information has not been presented as the Bell Nursery Holdings and General Pet Supply acquisitions were not considered material to the Company's overall consolidated financial statements during the periods presented. Investments During fiscal 2018, the Company made investments ranging from 13% to 20% in three ventures. The Company invested a total of $9.0 million in these businesses, which are accounted for under the cost method and equity method of accounting. Fiscal 2017 K&H Manufacturing, LLC On April 28, 2017, the Company purchased K&H Manufacturing, LLC ("K&H"), a producer of premium pet supplies and the largest marketer of heated pet products in the country, for a purchase price of approximately $48.0 million . The purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $41.2 million , of which $29.2 million was allocated to identified intangible assets and approximately $12 million is included in goodwill in the Company's consolidated balance sheet as of September 29, 2018. Financial results of K&H have been included in the results of operations within the Pet segment since the date of acquisition. The following table summarizes the purchase price and recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments. Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) In thousands Current assets, net of cash and cash equivalents acquired $ 5,439 $ 613 $ 6,052 Fixed assets 315 — 315 Other assets 41,781 (41,781 ) — Goodwill — 11,968 11,968 Other intangible assets — 29,200 29,200 Current liabilities (757 ) — (757 ) Net assets acquired, less cash and cash equivalents $ 46,778 $ — $ 46,778 (1) As previously reported in the Company's Form 10-Q for the periods ended June 24, 2017 and December 30, 2017, and the Company's Form 10-K for the period ended September 30, 2017. Segrest Inc. On October 21, 2016, the Company acquired Segrest, Inc., a wholesaler of aquarium fish and small live animals, for a purchase price of approximately $60.0 million , of which $6.0 million is in an escrow account managed by an independent trustee and is payable contingent upon future events. The purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $ 44.4 million , of which $27.7 million was allocated to identified intangible assets and $25.9 million is included in goodwill in the Company’s consolidated balance sheet as of September 29, 2018 . Financial results for Segrest have been included in the results of operations within the Pet segment since the date of acquisition. The following table summarizes the purchase price and the recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments (in thousands): Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Purchase Price Cash paid, net of cash acquired $ 54,043 $ — $ 54,043 Contingent consideration 6,000 (3,300 ) 2,700 $ 60,043 $ (3,300 ) $ 56,743 Allocation Current assets, net of cash and cash equivalents acquired $ 7,403 $ (300 ) $ 7,103 Fixed assets 7,011 2,242 9,253 Other assets 47,704 (47,704 ) — Goodwill 25,890 25,890 Other intangible assets 27,650 27,650 Current liabilities (2,075 ) (2,075 ) Deferred Tax Liability (11,078 ) (11,078 ) $ 60,043 $ (3,300 ) $ 56,743 (1) As previously reported in the Company's Form 10-Q for the periods ended December 24, 2016, March 25, 2017 and June 24, 2017. Proforma financial information has not been presented as the Segrest and K&H acquisitions were not considered material to the Company's overall consolidated financial statements during the periods presented. Equity Method Investments During fiscal 2017, the Company made investments in two ventures. The Company acquired a 45% interest in a mature, seasonal business and a 30% interest in a start-up company. The Company invested a total of $12.5 million in these businesses, which are accounted for under the equity method of accounting. Fiscal 2016 Hydro-Organics Wholesale Inc. On September 30, 2015, the Company purchased Hydro-Organics Wholesale, Inc., an organic fertilizer business, for approximately $7.8 million in cash and approximately $2.6 million of estimated contingent future performance-based payments, which are capped at $1.0 million per year. The purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $10.7 million , of which $5.2 million was allocated to identified intangible assets and $5.5 million is included in goodwill in the Company’s consolidated balance sheet as of September 30, 2017 . Financial results for Hydro-Organics Wholesale Inc. have been included in the results of operations within the Garden segment since the date of acquisition. DMC On December 1, 2015, the Company purchased the pet bedding business and certain other assets of National Consumers Outdoors Corp., formerly known as Dallas Manufacturing Company (“DMC”), for approximately $61 million . During the fourth quarter of fiscal 2016, the Company finalized the allocation of the purchase price to the fair value of the net tangible and intangible assets acquired. The purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $33.8 million , of which $18.7 million was allocated to identified intangible assets and $15.1 million is included in goodwill in the Company’s consolidated balance sheet as of September 30, 2017 . Financial results for DMC have been included in the results of operations within the Pet segment since the date of acquisition. The following table summarizes the preliminary recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments: In thousands Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Current assets, net of cash and cash equivalents acquired $ 41,170 $ 156 $ 41,326 Fixed assets 521 17 538 Goodwill — 15,058 15,058 Other assets 33,810 (33,790 ) 20 Other intangible assets, net — 18,700 18,700 Current liabilities (14,586 ) (40 ) (14,626 ) Net assets acquired, less cash and cash equivalents $ 60,915 $ 101 $ 61,016 (1) As previously reported in the Company's Form 10-Q for the periods ended December 26, 2015, March 26, 2016 and June 25, 2016 |
Concentration of Credit Risk an
Concentration of Credit Risk and Significant Customers and Suppliers | 12 Months Ended |
Sep. 29, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk and Significant Customers and Suppliers | Concentration of Credit Risk and Significant Customers and Suppliers Customer Concentration – Approximately 48% of the Company’s net sales for fiscal 2018 , 44% for fiscal 2017 and 42% for fiscal 2016 were derived from sales to the Company’s top five customers. The Company’s largest customer accounted for approximately 16% , 16% and 15% of the Company’s net sales in fiscal years 2018 , 2017 and 2016 , respectively. The Company’s second largest customer in 2018 accounted for approximately 11% of the Company’s net sales in fiscal year 2018 , and 8% of the Company's net sales in the fiscal years 2017 and 2016 , respectively. The Company’s third largest customer in 2018 accounted for approximately 8% , of the Company’s net sales in the fiscal years 2018 , 2017 and 2016 , respectively. The loss of, or significant adverse change in, the relationship between the Company and any of these three customers could have a material adverse effect on the Company’s business and financial results. The loss of or reduction in orders from any significant customer, losses arising from customer disputes regarding shipments, fees, merchandise condition or related matters, or the Company’s inability to collect accounts receivable from any major customer could also have a material adverse impact on the Company’s business and financial results. As of September 29, 2018 and September 30, 2017 , accounts receivable from the Company’s top five customers comprised approximately 46% and 44% of the Company’s total accounts receivable, including 14% and 10% from the Company’s largest customer. Supplier Concentration – While the Company purchases products from many different manufacturers and suppliers, approximately 8% , 9% and 9% of the Company’s cost of goods sold in fiscal years 2018 , 2017 and 2016 , respectively, were derived from products purchased from the Company’s five largest suppliers. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Sep. 29, 2018 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts includes reserves for collectability determined by past credit history with customers, their expected returns and deductions and their current financial condition. Changes in the allowance for doubtful accounts are summarized below (in thousands): Description Balances at Beginning of Period Charged/ (Credited) to Costs and Expenses Asset Write-Offs, Less Recoveries Balances at End of Period Fiscal Year Ended September 24, 2016 19,296 6,041 (4,268 ) 21,069 Fiscal Year Ended September 30, 2017 21,069 2,921 (2,554 ) 21,436 Fiscal Year Ended September 29, 2018 21,436 2,132 557 24,125 The allowance for doubtful accounts includes reserves for expected returns of $6.5 million , $6.9 million and $8.2 million as of September 29, 2018, September 30, 2017 and September 24, 2016, respectively. |
Inventories, net
Inventories, net | 12 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net of allowance for obsolescence, consist of the following (in thousands): September 29, September 30, Raw materials $ 117,539 $ 116,591 Work in progress 35,691 16,394 Finished goods 263,845 241,420 Supplies 10,748 7,696 Total inventories, net $ 427,823 $ 382,101 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Sep. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consists of the following (in thousands): September 29, September 30, Land $ 14,183 $ 8,942 Buildings and improvements 154,787 131,280 Transportation equipment 9,348 7,141 Machine and warehouse equipment 227,727 207,878 Capitalized software 114,878 117,360 Office furniture and equipment 27,734 27,355 Assets under construction 24,015 13,451 572,672 513,407 Accumulated depreciation and amortization (355,025 ) (332,494 ) $ 217,647 $ 180,913 Depreciation and amortization expense, including the amortization of intangible assets, charged to operations was $47.2 million , $42.7 million and $40.0 million for fiscal 2018 , 2017 and 2016 , respectively. Approximately $13.5 million as of September 30, 2017 was reclassified from machine and warehouse equipment to assets under construction to be consistent with current year presentation. |
Goodwill
Goodwill | 12 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill for the fiscal years ended September 29, 2018 , September 30, 2017 and September 24, 2016 (in thousands): Garden Products Segment Pet Products Segment Total Balance as of September 26, 2015 Goodwill $ 213,583 $ 405,067 $ 618,650 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) Balance as of — 209,089 209,089 Additions in fiscal 2016 5,473 16,823 22,296 Balance as of September 24, 2016 Goodwill 219,056 421,890 640,946 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) 5,473 225,912 231,385 Additions in fiscal 2017 25,890 25,890 Write off related to sale of business (1,000 ) (1,000 ) Balance as of September 30, 2017 Goodwill 219,056 446,780 665,836 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) 5,473 250,802 256,275 Additions in fiscal 2018 7,415 17,487 24,902 Balance as of September 29, 2018 Goodwill 226,471 464,267 690,738 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) $ 12,888 $ 268,289 $ 281,177 Additions or reductions to goodwill include acquisitions, sale of businesses, purchase price adjustments and adjustments of amounts upon finalization of purchase accounting. The Company tests goodwill for impairment annually (as of the first day of the fourth fiscal quarter), or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, by first assessing qualitative factors to determine whether it is more likely than not the fair value of the reporting unit is less than its carrying amount. If it is determined that it is more likely than not the fair value of the reporting unit is greater than its carrying amount, it is unnecessary to perform the two-step goodwill impairment test. If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the two-step test is performed to identify potential goodwill impairment. Based on certain circumstances, the Company may elect to bypass the qualitative assessment and proceed directly to performing the first step of the two-step goodwill impairment test, which compares the fair value of the Company’s reporting units to their related carrying values, including goodwill. If the fair value of the reporting unit is less than its carrying value, the Company performs an additional step to determine the implied fair value of goodwill associated with that reporting unit. The implied fair value of goodwill is determined by first allocating the fair value of the reporting unit to all of its assets and liabilities and then computing the excess of the reporting unit’s fair value over the amounts assigned to the assets and liabilities. If the carrying value of goodwill exceeds the implied fair value of goodwill, such excess represents the amount of goodwill impairment, and, accordingly, the Company recognizes such impairment. The Company’s goodwill impairment analysis also includes a comparison of the aggregate estimated fair value of its two reporting units to the Company’s total market capitalization. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. The estimate of fair value of each of the Company’s reporting units is based on the Company’s projection of revenues, gross margin, operating costs and cash flows considering historical and estimated future results, general economic and market conditions as well as the impact of planned business and operational strategies. The Company bases its fair value estimates on assumptions the Company believes to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Assumptions critical to the Company’s fair value estimates were: (i) discount rates used in determining the fair value of the reporting units; (ii) estimated future cash flows; and (iii) projected revenue and operating profit growth rates used in the reporting unit models. Actual results may differ from those estimates. The valuations employ present value techniques to measure fair value and consider market factors. In connection with the Company’s annual goodwill impairment testing performed during fiscal 2018 and fiscal 2017 , the Company made a qualitative evaluation about the likelihood of goodwill impairment to determine whether it was necessary to calculate the fair values of its reporting units under the two-step goodwill impairment test. The Company completed its qualitative assessment of potential goodwill impairment in each fiscal year and it was determined that it was more likely than not the fair values of the Company's reporting units were greater than their carrying amounts in each fiscal year, and accordingly, no further testing of goodwill was required in fiscal 2018 and 2017 . |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other Intangible Assets The following table summarizes the components of gross and net acquired intangible assets: Gross Accumulated Amortization Accumulated Impairment Net Carrying Value (in millions) September 29, 2018 Marketing-related intangible assets – amortizable $ 18.6 $ (14.2 ) $ — $ 4.4 Marketing-related intangible assets – nonamortizable 70.6 — (26.0 ) 44.6 Total 89.2 (14.2 ) (26.0 ) 49.0 Customer-related intangible assets – amortizable 128.3 (42.5 ) — 85.8 Other acquired intangible assets – amortizable 25.4 (14.5 ) — 10.9 Other acquired intangible assets – nonamortizable 7.8 — (1.2 ) 6.6 Total 33.2 (14.5 ) (1.2 ) 17.5 Total other intangible assets $ 250.7 $ (71.2 ) $ (27.2 ) $ 152.3 September 30, 2017 Marketing-related intangible assets – amortizable $ 16.9 $ (12.7 ) $ — $ 4.2 Marketing-related intangible assets – nonamortizable 62.7 — (26.0 ) 36.7 Total 79.6 (12.7 ) (26.0 ) 40.9 Customer-related intangible assets – amortizable 91.6 (32.2 ) — 59.4 Other acquired intangible assets – amortizable 22.1 (12.9 ) — 9.2 Other acquired intangible assets – nonamortizable 7.8 — (1.2 ) 6.6 Total 29.9 (12.9 ) (1.2 ) 15.8 Total other intangible assets $ 201.1 $ (57.8 ) $ (27.2 ) $ 116.1 September 24, 2016 Marketing-related intangible assets – amortizable $ 14.9 $ (11.3 ) $ — $ 3.6 Marketing-related intangible assets – nonamortizable 63.0 — (26.0 ) 37.0 Total 77.9 (11.3 ) (26.0 ) 40.6 Customer-related intangible assets – amortizable 65.6 (26.1 ) — 39.5 Other acquired intangible assets – amortizable 20.8 (11.6 ) — 9.2 Other acquired intangible assets – nonamortizable 7.8 — (1.2 ) 6.6 Total 28.6 (11.6 ) (1.2 ) 15.8 Total other intangible assets $ 172.1 $ (49.0 ) $ (27.2 ) $ 95.9 Other acquired intangible assets include contract-based and technology-based intangible assets. As part of its acquisitions of K&H in the third quarter of fiscal 2017, Bell Nursery in the second quarter of fiscal 2018 and General Pet Supply during the third quarter of fiscal 2018, the Company acquired approximately $9.6 million of marketing related intangible assets, $36.7 million of customer related intangible assets and $3.3 million of other intangible assets. See Note 3 – Acquisitions . As part of its acquisition of Segrest, Inc. in the first quarter of fiscal 2017, the Company acquired approximately $2.0 million of marketing related intangible assets, $27.3 million of customer related intangible assets and $1.3 million of other intangible assets. See Note 3 – Acquisitions . In fiscal 2016, the Company recognized a non-cash $1.8 million impairment charge to certain indefinite-lived intangible assets as a result of declining volume of sales. The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from three years to 25 years ; over weighted average remaining lives of four years for marketing-related intangibles, 10 years for customer-related intangibles and 11 years for other acquired intangibles. Amortization expense for intangibles subject to amortization was approximately $12.7 million , $8.8 million and $5.8 million , for fiscal 2018 , 2017 and 2016 , respectively, and is classified within operating expenses in the consolidated statements of operations. Estimated annual amortization expense related to acquired intangible assets in each of the succeeding five years is estimated to be approximately $12 million per year from fiscal 2019 through fiscal 2023 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following: September 29, September 30, (in thousands) Senior notes, interest at 6.125%, payable semi-annually, principal due November 2023 $ 400,000 $ 400,000 Senior notes, interest at 5.125%, payable semi-annually, principal due February 2028 300,000 — Unamortized debt issuance costs (8,425 ) (4,840 ) Net carrying value 691,575 395,160 Asset-based revolving credit facility, interest at LIBOR plus a margin of 1.25% to 1.50% or Base Rate plus a margin of 0.25% to 0.50%, final maturity April 2021 — — Other notes payable 578 493 Total 692,153 395,653 Less current portion (122 ) (375 ) Long-term portion $ 692,031 $ 395,278 Senior Notes $300 Million 5.125% Senior Notes On December 14, 2017, the Company issued $300 million aggregate principal amount of 5.125% senior notes due February 2028 (the "2028 Notes"). The Company will use the net proceeds from the offering to finance future acquisitions and for general corporate purposes. The Company incurred approximately $4.8 million of debt issuance costs in conjunction with this transaction, which included underwriter fees and legal, accounting and rating agency expenses. The debt issuance costs are being amortized over the term of the 2028 Notes. The 2028 Notes require semiannual interest payments on February 1 and August 1, commencing August 1, 2018. The 2028 Notes are unconditionally guaranteed on a senior basis by the Company's existing and future domestic restricted subsidiaries who are borrowers under or guarantors of Central's senior secured revolving credit facility or who guarantee the 2023 Notes. The Company may redeem some or all of the 2028 Notes at any time, at its option, prior to January 1, 2023 at the principal amount plus a “make whole” premium. At any time prior to January 1, 2021, the Company may also redeem, at its option, up to 35% of the original aggregate principal amount of the notes with the proceeds of certain equity offerings at a redemption price of 105.125% of the principal amount of the notes. The Company may redeem some or all of the 2028 Notes, at its option, at any time on or after January 1, 2023 for 102.563% , on or after January 1, 2024 for 101.708% , on or after January 1, 2025 for 100.854% , and on or after January 1, 2026 for 100.0% , plus accrued and unpaid interest. The holders of the 2028 Notes have the right to require us to repurchase all or a portion of the 2028 Notes at a purchase price equal to 101.0% of the principal amount of the notes repurchased, plus accrued and unpaid interest upon the occurrence of a change of control. The 2028 Notes contain customary high yield covenants, including covenants limiting debt incurrence and restricted payments, subject to certain baskets and exceptions. The Company was in compliance with all financial covenants as of September 29, 2018 . $400 Million 6.125% Senior Notes On November 9, 2015, the Company issued $400 million aggregate principal amount of 6.125% senior notes due November 2023 (the "2023 Notes"). In December 2015, the Company used the net proceeds from the offering, together with available cash, to redeem its $400 million aggregate principal amount of 8.25% senior subordinated notes due March 2018 ("2018 Notes") at a price of 102.063% of the principal amount and to pay fees and expenses related to the offering. The 2023 Notes are unsecured senior obligations and are subordinated to all of the Company’s existing and future secured debt, including the Company’s Credit Facility, to the extent of the value of the collateral securing such indebtedness. The Company incurred approximately $6.3 million of debt issuance costs in conjunction with these transactions, which included underwriter fees and legal, accounting and rating agency expenses. The debt issuance costs are being amortized over the term of the 2023 Notes. The 2023 Notes require semiannual interest payments on May 15 and November 15. The 2023 Notes are unconditionally guaranteed on a senior basis by each of the Company’s existing and future domestic restricted subsidiaries which are borrowers under or guarantors of Central’s senior secured revolving credit facility. The 2023 Notes are unsecured senior obligations and are subordinated to all of the Company’s existing and future secured debt, including the Company’s Credit Facility, to the extent of the value of the collateral securing such indebtedness. The Company may redeem some or all of the 2023 Notes, at its option, at any time on or after November 15, 2018 for 104.594% , on or after November 15, 2019 for 103.063% , on or after November 15, 2020 for 101.531% and on or after November 15, 2021 for 100% , plus accrued and unpaid interest. The holders of the 2023 Notes have the right to require the Company to repurchase all or a portion of the 2023 Notes at a purchase price equal to 101% of the principal amount of the notes repurchased, plus accrued and unpaid interest upon the occurrence of a change of control. The 2023 Notes contain customary high yield covenants, including covenants limiting debt incurrence and restricted payments, subject to certain baskets and exceptions. The Company was in compliance with all financial covenants as of September 29, 2018 . Asset-Based Loan Facility Amendment On April 22, 2016, the Company entered into an amended and restated credit agreement which provides up to a $400 million principal amount senior secured asset-based revolving credit facility, with up to an additional $200 million principal amount available with the consent of the Lenders if the Company exercises the accordion feature set forth therein (collectively, the “Amended Credit Facility”). The Amended Credit Facility matures on April 22, 2021 . The Company may borrow, repay and reborrow amounts under the Amended Credit Facility until its maturity date, at which time all amounts outstanding under the Amended Credit Facility must be repaid in full. As of September 29, 2018 , there were no borrowings outstanding and no letters of credit outstanding under the Credit Facility. There were other letters of credit of $3.3 million outstanding as of September 29, 2018 . The Amended Credit Facility is subject to a borrowing base, calculated using a formula based upon eligible receivables and inventory, minus certain reserves and subject to restrictions. As of September 29, 2018 , the borrowing base and remaining borrowing availability was $394.8 million . Borrowings under the Amended Credit Facility bear interest at an index based on LIBOR or, at the option of the Company, the Base Rate (defined as the highest of (a) the SunTrust prime rate, (b) the Federal Funds Rate plus 0.5% and (c) one-month LIBOR plus 1.0% ), plus, in either case, an applicable margin based on the Company’s consolidated senior leverage ratio. Such applicable margin for LIBOR-based borrowings fluctuates between 1.25% - 1.5% and was 1.25% as of September 29, 2018 , and such applicable margin for Base Rate borrowings fluctuates between 0.25% - 0.5% and was 0.25% as of September 29, 2018 . As of September 29, 2018 , the applicable interest rate related to Base Rate borrowings was 5.5% , and the applicable interest rate related to LIBOR-based borrowings was 3.5% . The Company incurred approximately $1.2 million of debt issuance costs in conjunction with this transaction, which included underwriter fees, legal and accounting expenses. The debt issuance costs are being amortized over the term of the Amended Credit Facility. The Amended Credit Facility contains customary covenants, including financial covenants which require the Company to maintain a minimum fixed charge coverage ratio of 1.00 :1.00 upon reaching certain borrowing levels. The Amended Credit Facility is secured by substantially all assets of the Company. The Company was in compliance with all financial covenants under the Amended Credit Facility during the period ended September 29, 2018 . The scheduled principal repayments on long-term debt as of September 29, 2018 are as follows: (in thousands) Fiscal year: 2019 $ 122 2020 272 2021 93 2022 76 2023 15 Thereafter 700,000 Total $ 700,578 (1) (1) Debt repayments do not reflect the unamortized portion of deferred financing costs associated with the 2023 Notes and 2028 Notes of $8.4 million as of September 29, 2018 , of which, $4.0 million is amortizable until November 2023, and $4.4 million is amortizable until February 2028 and is included in the carrying value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Letters of credit – The Company had $3.3 million of outstanding letters of credit related to normal business transactions at September 29, 2018 . These agreements require the Company to maintain specified amounts of cash as collateral in segregated accounts to support the letters of credit issued thereunder, which will affect the amount of cash the Company has available for other uses. The amount of cash collateral in these segregated accounts was $10.9 million and $ 12.6 million as of September 29, 2018 and September 30, 2017 , respectively, and is reflected in “Restricted cash” on the Company's consolidated balance sheets. Purchase commitments – Production and purchase agreements (primarily for grass seed and grains) entered into in the ordinary course of business may obligate the Company to make future purchases based on estimated yields. The terms of these contracts vary; some have fixed prices or quantities while others have variable pricing and quantities. For certain agreements, management estimates are used to develop the quantities and pricing for anticipated purchases, and future purchases could vary significantly from such estimates. At September 29, 2018 , estimated annual purchase commitments were $88.6 million for fiscal 2019, $35.0 million for fiscal 2020, $23.3 million for fiscal 2021, $15.7 million for fiscal 2022, $10.1 million for fiscal 2023 and $0.4 million thereafter. Leases – The Company has operating lease agreements principally for office and warehouse facilities and equipment. Such leases have remaining terms of one to 11 years . Rental expense was $35.4 million for fiscal 2018 , $31.7 million for fiscal 2017 and $25.0 million for fiscal 2016 and is included in cost of goods sold and occupancy or selling, general and administrative expenses in the Company's consolidated statements of operations. Certain facility leases have renewal options and include escalation clauses. Minimum lease payments include scheduled rent increases pursuant to these escalation provisions. Aggregate minimum annual payments on non-cancelable operating leases at September 29, 2018 are as follows: (in thousands) Fiscal year: 2019 $ 32,905 2020 27,395 2021 18,398 2022 12,401 2023 6,728 Thereafter 22,546 Total $ 120,373 Contingencies The Company may from time to time become involved in legal proceedings in the ordinary course of business. Currently, the Company is not a party to any legal proceedings the resolution of which management believes could have a material effect on the Company’s financial position or results of operations with the exception of the proceeding below. In 2012, Nite Glow Industries, Inc and its owner, Marni Markell, (“Nite Glow”) filed suit in the United States District Court for New Jersey against the Company alleging that the applicator developed and used by the Company for certain of its branded topical flea and tick products infringes a patent held by Nite Glow and asserted related claims for breach of contract and misappropriation of confidential information based on the terms of a Non-Disclosure Agreement. On June 27, 2018, a jury returned a verdict in favor of Nite Glow on each of the three claims and awarded damages of approximately $12.6 million . The case is currently in the post-trial motion phase of proceedings and is expected to proceed to appeal once all such motions have been resolved. Unless the verdicts are over-turned in the post-trial proceedings, the Company intends to vigorously pursue its rights on appeal and believes that it will prevail on the merits. While the Company believes that the ultimate resolution of this matter will not have a material impact on the Company's consolidated financial statements, the outcome of litigation is inherently uncertain and the final resolution of this matter may result in expense to the Company in excess of management's expectations. During fiscal 2013, the Company received notices from several states stating that they have appointed an agent to conduct an examination of the books and records of the Company to determine whether it has complied with state unclaimed property laws. In addition to seeking unclaimed property subject to escheat laws, the states may seek interest, penalties and other relief. The examinations are at an early stage and, as such, management is unable to determine the impact, if any, on the Company’s financial position or results of operations. The Company has experienced, and may in the future experience, issues with products that may lead to product liability, recalls, withdrawals, replacements of products, or regulatory actions by governmental authorities. The Company has not experienced recent issues with products, the resolution of which management believes would have a material effect on the Company’s financial position or results of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income tax expense (benefit) consists of the following: Fiscal Year Ended September 29, September 30, September 24, (in thousands) Current: Federal $ 5,728 $ 32,755 $ 18,592 State 2,319 3,034 2,140 Foreign 91 121 110 Total 8,138 35,910 20,842 Deferred: Federal (3,676 ) 11,227 2,796 State (1,162 ) (1,038 ) 463 Foreign 5 600 (48 ) Total (4,833 ) 10,789 3,211 Total $ 3,305 $ 46,699 $ 24,053 A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Fiscal Year Ended September 29, September 30, September 24, Statutory federal income tax rate 24.5 % 35.0 % 35.0 % State income taxes, net of federal benefit 0.9 2.4 2.1 Other permanent differences (0.1 ) 0.3 (1.6 ) Adjustment of prior year accruals — (0.3 ) (0.6 ) Credits (0.8 ) (0.6 ) (1.0 ) Rate change - Tax reform (16.9 ) — — Stock based compensation (5.4 ) — — Other 0.4 0.1 0.6 Effective income tax rate (benefit) 2.6 % 36.9 % 34.5 % Deferred income taxes reflect the impact of “temporary differences” between asset and liability amounts for financial reporting purposes and such amounts as determined based on existing tax laws. The tax effect of temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows: September 29, 2018 September 30, 2017 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities (in thousands) Allowance for doubtful accounts $ 5,613 $ — $ 7,790 $ — Inventory write-downs 6,819 — 10,406 — Prepaid expenses — 1,408 — 1,740 Nondeductible reserves 983 — 1,485 — State taxes 74 — 276 — Employee benefits 5,578 — 10,007 — Depreciation and amortization — 65,983 — 84,059 Equity loss 2,053 — 4,243 — State net operating loss carryforward 6,722 — 5,182 — Stock based compensation 2,541 — 3,097 — State credits 2,742 — 2,403 — Other 4,240 — 5,768 — Valuation allowance (6,809 ) — (6,527 ) — Total $ 30,556 $ 67,391 $ 44,130 $ 85,799 The Company has state tax net operating losses of $116.6 million , which expire at various times between 2018 and 2038 , and foreign losses of $4.3 million , which do not expire. The Company has state income tax credits of $3.5 million , which expire at various times beginning in 2018 through 2038 . In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including past operating results, future taxable income, and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance against any deferred tax assets. The Company has determined there will be insufficient future separate state and foreign taxable income for the separate parent company and foreign subsidiaries to realize the deferred tax assets. Therefore, valuation allowances of $6.8 million and $6.5 million (net of federal impact) at September 29, 2018 and September 30, 2017 , respectively, have been provided to reduce state deferred tax assets to amounts considered recoverable. The Company classifies uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year . The Company recognizes interest and/or penalties related to income tax matters as a component of pretax income. As of September 29, 2018 and September 30, 2017 , accrued interest was less than $0.1 million and no penalties were accrued related to uncertain tax positions. The following table, which excludes interest and penalties, summarizes the activity related to the Company’s unrecognized tax benefits for fiscal years ended September 29, 2018 and September 30, 2017 (in thousands): Balance as of Balance as of September 24, 2016 $ 254 Increases related to prior year tax positions 4 Increases related to current year tax positions 67 Decreases related to prior year tax positions — Settlements — Decreases related to lapse of statute of limitations — Balance as of Balance as of September 30, 2017 $ 325 Increases related to prior year tax positions 138 Increases related to current year tax positions 83 Decreases related to prior year tax positions (28 ) Settlements — Decreases related to lapse of statute of limitations — Balance as of Balance as of September 29, 2018 $ 518 As of September 29, 2018 , unrecognized income tax benefits totaled approximately $0.5 million and all of the unrecognized tax benefits would, if recognized, impact the Company’s effective income tax rate. The Company is principally subject to taxation by the United States and various states within the United States. The Company’s tax filings in major jurisdictions are open to examination by tax authorities by the Internal Revenue Service from fiscal year ended 2015 forward and in various state taxing authorities generally from fiscal year ended 2014 forward. The Company believes there is a reasonable chance that its unrecognized tax benefits will decrease by $0.1 million within the next twelve months. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2003 Omnibus Equity Incentive Plan (the “2003 Plan”), as amended, allows for the grant of options, restricted stock and certain other specified types of awards to key employees, directors and consultants of the Company. The 2003 Plan is administered by the Compensation Committee of the Board of Directors, which is comprised only of independent directors, and which must approve individual awards to be granted, vesting and exercise of share conditions. There is a total of 5.8 million shares of Common Stock, 19.7 million shares of Class A Common Stock and 500,000 shares of Preferred Stock authorized under the 2003 Plan. If and when the Company issues any shares of Preferred Stock under the 2003 Plan, it will reduce the amount of Class A Common Stock available for future issuance in an amount equal to the number of shares of Class A Common Stock that are issuable upon conversion of such Preferred Stock. The Company has a Nonemployee Director Equity Incentive Plan (the “Director Plan”) which provides for the grant of options and restricted stock to nonemployee directors of the Company. The Director Plan, as amended, provides for the granting to each independent director of options to purchase a number of shares equal to $200,000 divided by the fair market value of the Company’s common stock on the date of each annual meeting of stockholders and a number of shares of restricted stock equal to $20,000 divided by such fair market value. As of September 29, 2018 , there were approximately 3.2 million shares of Class A Common Stock, no shares of Common Stock and no shares of Preferred Stock reserved for outstanding equity awards, and there were approximately 4.6 million shares of Common Stock, 11.5 million shares of Class A Common Stock and 0.5 million shares of Preferred Stock remaining for future awards. Stock Option Awards The Company recognized share-based compensation expense of $11.6 million , $11.1 million , and $8.4 million for the years ended September 29, 2018 , September 30, 2017 and September 24, 2016 , respectively, as a component of selling, general and administrative expenses. Share-based compensation expense in fiscal 2018 , 2017 and 2016 consisted of $3.9 million , $2.9 million , and $2.2 million , respectively, for stock options, and $5.4 million , $5.8 million and $4.5 million , respectively, for stock awards. Share-based compensation expense in fiscal 2018 , 2017 and 2016 also includes $2.3 million , $2.4 million and $1.7 million , respectively, for the Company’s 401(k) matching contributions. During fiscal 2018 , the Company granted time-based stock options with an exercise price based on the closing fair market value on the date of the grant. The majority of the options granted in fiscal 2018 vest in four annual installments commencing approximately one year from the date of grant and expire approximately six years after the grant date. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. Expected stock price volatilities are estimated based on the historical volatility of the Company’s stock price. The expected term of options granted is based on analyses of historical employee termination rates, option exercises and the contractual term of the option. The risk-free rates are based on U.S. Treasury yields, for notes with comparable terms as the option grants, in effect at the time of the grant. For purposes of this valuation model, no dividends have been assumed. The Company’s calculations were made using the Black-Scholes option pricing model with the following weighted average assumptions: expected life from the date of grant 3.7 years in fiscal 2018 , 2017 and 2016 ; stock price volatility, 31.6% in fiscal 2018 , 31.5% in fiscal 2017 , and 30.8% in fiscal 2016 ; risk free interest rates, 2.4% in fiscal 2018 , 2.0% in fiscal 2017 and 1.3% in 2016 ; and no dividends during the expected term. The following table summarizes option activity for the period ended September 29, 2018 : Number of Shares (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding at September 30, 2017 2,471 $ 16.79 4 years $ 50,420 Granted 547 $ 36.72 Exercised (627 ) $ 12.18 Canceled or expired (62 ) $ 22.51 Outstanding at September 29, 2018 2,329 $ 22.56 4 years $ 26,543 Exercisable at September 24, 2016 1,732 $ 11.46 2 years 22,954 Exercisable at September 30, 2017 458 $ 10.80 2 years 12,097 Exercisable at September 29, 2018 636 $ 16.35 3 years 10,731 Expected to vest after September 29, 2018 1,560 $ 24.90 4 years $ 12,861 The prices of options to purchase shares of common stock and Class A common stock outstanding at September 29, 2018 , September 30, 2017 and September 24, 2016 were between $6.43 to $38.10 per share, $6.43 to $33.15 per share and $6.43 to $15.56 per share, respectively. The weighted average grant date fair value of options granted during the fiscal years ended September 29, 2018 , September 30, 2017 and September 24, 2016 was $9.80 , $8.14 and $3.04 , respectively. The total intrinsic value of options exercised during the fiscal years ended September 29, 2018 , September 30, 2017 and September 24, 2016 was $16.6 million , $44.0 million , and $22.6 million , respectively. As of September 29, 2018 , there was $8.6 million of total unrecognized compensation cost related to nonvested stock options, which is expected to be recognized over a remaining weighted average vesting period of three years . Restricted Stock Awards As of September 29, 2018 and September 30, 2017 , there were approximately 0.9 million and 1.1 million , respectively, of restricted stock awards outstanding. Awards granted in fiscal 2018 and 2017 generally vest within four or five years from the date of grant. Restricted stock award activity during the period ended September 29, 2018 is summarized as follows: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Nonvested at September 30, 2017 1,137 $ 14.34 Granted 227 $ 37.78 Vested (482 ) $ 10.57 Forfeited (8 ) $ 8.39 Nonvested at September 29, 2018 874 $ 22.37 As of September 29, 2018 , there was $14.0 million of unrecognized compensation cost related to nonvested restricted stock awards, which is expected to be recognized over a weighted average period of three years . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity At September 29, 2018 and September 30, 2017 , there were 80,000,000 shares of common stock ( $0.01 par value) authorized, of which 12,145,135 and 12,160,023 , respectively, were outstanding, and 100,000,000 shares of non-voting Class A common stock ( $0.01 par value) authorized, of which 43,953,265 and 38,019,736 , respectively, were outstanding. The preferences and relative rights of the Class A common stock are identical to common stock in all respects, except that the Class A common stock generally has no voting rights unless otherwise required by Delaware law. There are 3,000,000 shares of Class B stock ( $0.01 par value) authorized, of which 1,652,262 were outstanding at September 29, 2018 and September 30, 2017 . The voting powers, preferences and relative rights of the Class B stock are identical to common stock in all respects except that (i) the holders of common stock are entitled to one vote per share and the holders of Class B stock are entitled to the lesser of ten votes per share or 49% of the total votes cast, (ii) stock dividends on common stock may be paid only in shares of common stock and stock dividends on Class B stock may be paid only in shares of Class B stock and (iii) shares of Class B stock have certain conversion rights and are subject to certain restrictions on ownership and transfer. Each share of Class B stock is convertible into one share of common stock, at the option of the holder. Additional shares of Class B stock may only be issued with majority approval of the holders of the common stock and Class B stock, voting as separate classes. There are 1,000,000 shares of preferred stock ( $0.01 par value) authorized, of which none were outstanding at September 29, 2018 and September 30, 2017 . In August 2018, the Company closed an underwritten public offering of its Class A common stock pursuant to a registration statement on Form S-3. The Company issued and sold an aggregate of 5,500,000 shares of common stock under the registration statement at a public offering price of $37.00 per share, including 550,000 shares issued upon exercise by the underwriters of their option to purchase additional shares. The Company received net proceeds of approximately $195.6 million after deducting underwriting discounts and commissions and other offering expenses payable by the Company. During fiscal 2011, the Company’s Board of Directors authorized a $100 million share repurchase program, in part, to minimize the dilutive impact of the Company’s stock-based equity compensation programs over time. During the fiscal year ended September 29, 2018 , the Company did not repurchase any of its stock. In total, as of September 29, 2018 , the Company had repurchased approximately 7.9 million shares for an aggregate price of approximately $65.0 million under the share repurchase program. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share (EPS) computations: Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Net Income Shares Per Share Net Income Shares Per Share Net Income (Loss) Shares Per Share (in thousands, except per share amounts) Basic EPS: Net income (loss) available to common shareholders $ 123,594 51,716 $ 2.39 $ 78,828 50,230 $ 1.57 $ 44,514 48,964 $ 0.91 Effect of dilutive securities: Options to purchase common stock 996 (0.05 ) 992 (0.03 ) 1,335 (0.02 ) Restricted shares 629 (0.02 ) 598 (0.02 ) 776 (0.02 ) Diluted EPS: Net income (loss) available to common shareholders $ 123,594 53,341 $ 2.32 $ 78,828 51,820 $ 1.52 $ 44,514 51,075 $ 0.87 For fiscal 2018, options to purchase two thousand shares were not included in the computation of diluted earnings per share because the option exercise prices were greater than the average market price of the common shares and, therefore, the effect of including these options would be anti-dilutive. For fiscal 2017, options to purchase 31 thousand shares were not included in the computation of diluted earnings per share because the option exercise prices were greater than the average market price of the common shares and, therefore, the effect of including these options would be anti-dilutive. For fiscal 2016, all options outstanding were included in the computation of diluted earnings per share. |
Quarterly Financial Data - Unau
Quarterly Financial Data - Unaudited | 12 Months Ended |
Sep. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data - Unaudited | Quarterly Financial Data – Unaudited Fiscal 2018 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (in thousands, except per share amounts) Net sales $ 442,011 $ 613,094 $ 657,943 $ 502,314 Gross profit 131,837 194,457 202,064 147,018 Net income attributable to Central Garden & Pet Company 26,247 (1 ) 45,234 41,545 10,568 (1 ) Net income per share: Basic $ 0.52 $ 0.89 $ 0.81 $ 0.20 Diluted $ 0.50 (1 ) $ 0.86 $ 0.79 $ 0.19 (1 ) Weighted average common shares outstanding: Basic 50,730 50,871 51,134 54,059 Diluted 52,695 52,658 52,575 55,376 (1) Net income attributable to Central Garden & Pet Company was impacted by a provisional tax benefit of $16.3 million recorded in the first quarter of fiscal 2018 and a tax benefit of $5.2 million recorded in the fourth quarter of fiscal 2018, for a total fiscal 2018 year-to-date tax benefit of $21.5 million . Fiscal 2017 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (in thousands, except per share amounts) Net sales $ 419,498 $ 569,924 $ 574,592 $ 490,464 Gross profit 120,678 183,529 183,273 145,328 Net income (loss) attributable to Central Garden & Pet Company 7,637 (1 ) 34,684 32,248 4,259 Net income (loss) per share: Basic $ 0.15 $ 0.69 $ 0.64 $ 0.08 Diluted $ 0.15 $ 0.67 $ 0.62 $ 0.08 Weighted average common shares outstanding: Basic 49,665 50,079 50,507 50,654 Diluted 51,810 51,983 51,825 51,935 (1) The Company recognized a $2.0 million gain in its Garden segment from the sale of a distribution facility during the first quarter of fiscal 2017. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Sep. 29, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties During fiscal 2018 , 2017 and 2016 , Tech Pac, a subsidiary of the Company, made purchases from Contract Packaging, Inc, (“CPI”), Tech Pac’s principal supplier and a minority 20% shareholder in Tech Pac. Tech Pac’s total purchases from CPI were approximately $51.1 million , $37.0 million and $36.5 million for fiscal years 2018 , 2017 and 2016 , respectively. Amounts due from CPI as of September 29, 2018 were $2.1 million and amounts due to CPI as of September 30, 2017 were $0.6 million . |
Business Segment Data
Business Segment Data | 12 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Data | Business Segment Data The Company’s chief operating decision-maker is its Chief Executive Officer. Operating segments are managed separately because each segment represents a strategic business that offers different products or services. The Company’s chief operating decision maker evaluates performance based on operating income or loss. The Company’s Corporate division is included in the following presentation since certain expenses of this division are not allocated separately to the two operating segments. Segment assets exclude cash equivalents, short-term investments, goodwill, and deferred taxes. Management has determined that the Company has two operating segments which are also reportable segments based on the level at which the chief operating decision maker reviews the results of operations to make decisions regarding performance assessment and resource allocation. These operating segments are the Pet segment and the Garden segment. Substantially all of the Company’s assets and operations relate to its business in the United States. The Pet segment consists of DMC, K&H Manufacturing, Four Paws Products, TFH Publications, Kaytee, Aquatics, Interpet, IMS, Pets International, Breeder’s Choice, Life Sciences, and Segrest. These businesses are engaged in the manufacturing, purchase, sale and delivery of internally and externally produced pet supplies, books, food, live fish and small animals principally to independent pet distributors, national and regional retail chains, grocery stores, mass merchants and bookstores. The Garden segment consists of Pennington Seed, Hydro Organics, AMBRANDS, Lilly Miller, the Pottery Group, Bell Nursery and Gulfstream. Products manufactured, designed and sourced, grown or distributed are products found typically in the lawn and garden sections of mass merchandisers, warehouse-type clubs, home improvement centers and nurseries and include grass seed, bird feed, clay pottery, outdoor wooden planters and trellises, live plants, herbicides and insecticides. These products are sold directly to national and regional retail chains, independent garden distributors, grocery stores, nurseries and garden supply retailers. The Corporate division includes expenses associated with corporate functions and projects, certain employee benefits, interest income, interest expense and inter-segment eliminations. The following table indicates each class of similar products which represented approximately 10% or more of the Company’s consolidated net sales in the fiscal years presented (in millions). Category 2018 2017 2016 Other pet products $ 896.5 $ 841.4 $ 689.3 Other garden supplies 528.8 464.9 331.3 Dog and cat products 444.4 405.0 326.0 Garden controls and fertilizer products 345.7 343.2 298.8 Wild bird feed — (1) — (1) 183.6 Total $ 2,215.4 $ 2,054.5 $ 1,829.0 See Note 4 - Concentration of Credit Risk and Significant Customers and Suppliers for the Company’s largest customers by segment. (1) The product category was less than 10% of the Company's consolidated net sales in the period. Financial information relating to the Company’s business segments for each of the three most recent fiscal years is presented in the table below (in thousands): Fiscal Year Ended September 29, 2018 September 30, 2017 September 24, 2016 Net sales: Pet segment $ 1,340,899 $ 1,246,354 $ 1,081,853 Garden segment 874,463 808,124 747,164 Total $ 2,215,362 $ 2,054,478 $ 1,829,017 Operating income (loss): Pet segment $ 140,353 $ 131,622 $ 119,930 (1) Garden segment 95,551 87,298 70,317 Corporate (68,568 ) (62,808 ) (60,889 ) Total 167,336 156,112 129,358 Interest expense (39,196 ) (28,209 ) (42,847 ) Interest income 3,145 147 140 Other expense (3,860 ) (1,621 ) (17,013 ) (2) Income before income taxes and noncontrolling interest 127,425 126,429 69,638 Income tax expense 3,305 46,699 24,053 Net income including noncontrolling interest 124,120 79,730 45,585 Net income attributable to noncontrolling interest 526 902 1,071 Net income attributable to Central Garden & Pet Company $ 123,594 $ 78,828 $ 44,514 Assets: Pet segment $ 683,938 $ 612,337 $ 508,879 Garden segment 407,483 311,026 304,901 Corporate and eliminations 815,788 383,543 366,903 Total $ 1,907,209 $ 1,306,906 $ 1,180,683 Depreciation and amortization: Pet segment $ 29,889 $ 26,044 $ 22,556 Garden segment 8,744 6,267 6,098 Corporate 8,566 10,408 11,347 Total $ 47,199 $ 42,719 $ 40,001 Expenditures for long-lived assets: Pet segment $ 26,979 $ 38,970 $ 18,939 Garden segment 8,016 4,948 4,750 Corporate 2,850 741 3,933 Total $ 37,845 $ 44,659 $ 27,622 Noncontrolling interest is associated with the Garden segment. (1) Includes a $1.8 million impairment charge in fiscal 2016. (2) Includes a $16.6 million impairment charge related to two equity method investments in fiscal 2016. |
Consolidating Condensed Financi
Consolidating Condensed Financial Information of Guarantor Subsidiaries | 12 Months Ended |
Sep. 29, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Condensed Financial Information of Guarantor Subsidiaries | Consolidating Condensed Financial Information of Guarantor Subsidiaries Certain 100% wholly-owned subsidiaries of the Company (as listed below, collectively the “Guarantor Subsidiaries”) have guaranteed fully and unconditionally, on a joint and several basis, the obligation to pay principal and interest on the Company’s 2023 and 2028 Notes. Certain subsidiaries and operating divisions are not guarantors of the Notes. Those subsidiaries that are guarantors and co-obligors of the Notes are as follows: Farnam Companies, Inc. Four Paws Products Ltd. Gulfstream Home & Garden, Inc. Hydro-Organics Wholesale, Inc. IMS Trading, LLC IMS Southern, LLC K&H Manufacturing, LLC Kaytee Products, Inc. Matson, LLC New England Pottery, LLC Pennington Seed, Inc. (including Gro Tec, Inc., NEXGEN Turf Research, LLC and All-Glass Aquarium Co., Inc.) Pets International, Ltd. Segrest, Inc. (including Blue Springs Hatchery, Inc., Segrest Farms, Inc., Florida Tropical Distributors International, Inc., Sun Pet, Ltd, Aquatica Tropicals, Inc., Quality Pets, LLC, Midwest Tropicals, LLC) T.F.H. Publications, Inc. Wellmark International (including B2E Corporation, B2E Microbials, LLC, B2E Manufacturing, LLC, Four Star Microbial Products, LLC and B2E Biotech LLC) In lieu of providing separate audited financial statements for the Guarantor Subsidiaries, the Company has included the accompanying consolidating condensed financial statements based on the Company’s understanding of the Securities and Exchange Commission’s interpretation and application of Rule 3-10 of the Securities and Exchange Commission’s Regulation S-X. CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Fiscal Year Ended September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net sales $ 730,439 $ 167,584 $ 1,397,688 $ (80,349 ) $ 2,215,362 Cost of goods sold and occupancy 568,145 128,944 917,276 (74,379 ) 1,539,986 Gross profit 162,294 38,640 480,412 (5,970 ) 675,376 Selling, general and administrative expenses 167,849 33,118 313,043 (5,970 ) 508,040 Operating income (loss) (5,555 ) 5,522 167,369 — 167,336 Interest expense (38,855 ) (547 ) 206 — (39,196 ) Interest income 3,138 6 1 — 3,145 Other income (expense) (4,269 ) (236 ) 645 — (3,860 ) Income (loss) before taxes and equity in earnings of affiliates (45,541 ) 4,745 168,221 — 127,425 Income tax expense (benefit) (1,138 ) 79 4,364 — 3,305 Equity in earnings of affiliates 167,997 — 1,133 (169,130 ) — Net income including noncontrolling interest 123,594 4,666 164,990 (169,130 ) 124,120 Noncontrolling interest — 526 — — 526 Net income attributable to Central Garden & Pet Company $ 123,594 $ 4,140 $ 164,990 $ (169,130 ) $ 123,594 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Fiscal Year Ended September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net sales $ 685,998 $ 79,681 $ 1,370,335 $ (81,536 ) $ 2,054,478 Cost of goods sold and occupancy 534,682 60,788 901,959 (75,759 ) 1,421,670 Gross profit 151,316 18,893 468,376 (5,777 ) 632,808 Selling, general and administrative expenses 154,267 18,416 309,790 (5,777 ) 476,696 Operating income (loss) (2,951 ) 477 158,586 — 156,112 Interest expense (28,051 ) (294 ) 136 — (28,209 ) Interest income 146 1 — — 147 Other income (expense) (2,379 ) 844 (86 ) — (1,621 ) Income (loss) before taxes and equity in earnings of affiliates (33,235 ) 1,028 158,636 — 126,429 Income tax expense (benefit) (11,981 ) 1,466 57,214 — 46,699 Equity in earnings of affiliates 100,082 — 420 (100,502 ) — Net income including noncontrolling interest 78,828 (438 ) 101,842 (100,502 ) 79,730 Noncontrolling interest — 902 — — 902 Net income (loss) attributable to Central Garden & Pet Company $ 78,828 $ (1,340 ) $ 101,842 $ (100,502 ) $ 78,828 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Fiscal Year Ended September 24, 2016 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net sales $ 587,579 $ 82,567 $ 1,238,339 $ (79,468 ) $ 1,829,017 Cost of goods sold and occupancy 466,543 62,727 820,573 (73,876 ) 1,275,967 Gross profit 121,036 19,840 417,766 (5,592 ) 553,050 Selling, general and administrative expenses 138,556 18,077 272,651 (5,592 ) 423,692 Operating income (loss) (17,520 ) 1,763 145,115 — 129,358 Interest expense (42,700 ) (266 ) 119 — (42,847 ) Interest income 136 4 — — 140 Other income (expense) (16,925 ) (113 ) 25 — (17,013 ) Income (loss) before taxes and equity in earnings of affiliates (77,009 ) 1,388 145,259 — 69,638 Income tax expense (benefit) (26,422 ) 923 49,552 — 24,053 Equity in earnings of affiliates 95,101 — 624 (95,725 ) — Net income including noncontrolling interest 44,514 465 96,331 (95,725 ) 45,585 Noncontrolling interest — 1,071 — — 1,071 Net income (loss) attributable to Central Garden & Pet Company $ 44,514 $ (606 ) $ 96,331 $ (95,725 ) $ 44,514 CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net income $ 123,594 $ 4,666 $ 164,990 $ (169,130 ) $ 124,120 Other comprehensive loss: Foreign currency translation (267 ) (145 ) (67 ) 212 (267 ) Total comprehensive income 123,327 4,521 164,923 (168,918 ) 123,853 Comprehensive income attributable to noncontrolling interests — 526 — — 526 Comprehensive income attributable to Central Garden & Pet Company $ 123,327 $ 3,995 $ 164,923 $ (168,918 ) $ 123,327 CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 78,828 $ (438 ) $ 101,842 $ (100,502 ) $ 79,730 Other comprehensive income: Foreign currency translation 343 169 108 (277 ) 343 Total comprehensive income (loss) 79,171 (269 ) 101,950 (100,779 ) 80,073 Comprehensive income attributable to noncontrolling interests — 902 — — 902 Comprehensive income (loss) attributable to Central Garden & Pet Company $ 79,171 $ (1,171 ) $ 101,950 $ (100,779 ) $ 79,171 CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended September 24, 2016 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net income $ 44,514 $ 465 $ 96,331 $ (95,725 ) $ 45,585 Other comprehensive Income (loss): Foreign currency translation (1,458 ) (1,132 ) 8 1,124 (1,458 ) Total comprehensive income (loss) 43,056 (667 ) 96,339 (94,601 ) 44,127 Comprehensive income attributable to noncontrolling interests — 1,071 — — 1,071 Comprehensive income (loss) attributable to Central Garden & Pet Company $ 43,056 $ (1,738 ) $ 96,339 $ (94,601 ) $ 43,056 CONSOLIDATING CONDENSED BALANCE SHEET September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 474,210 $ 6,005 $ 1,891 $ — $ 482,106 Restricted cash 10,899 — — — 10,899 Accounts receivable, net 94,657 9,647 171,604 — 275,908 Inventories 123,178 32,556 272,089 — 427,823 Prepaid expenses and other assets 6,304 1,455 12,803 — 20,562 Total current assets 709,248 49,663 458,387 — 1,217,298 Land, buildings, improvements and equipment, net 33,484 33,840 150,323 — 217,647 Goodwill 20,578 7,414 253,185 — 281,177 Other long term assets 62,199 7,469 133,145 (11,726 ) 191,087 Intercompany receivable 40,365 — 769,886 (810,251 ) — Investment in subsidiaries 1,618,378 — — (1,618,378 ) — Total $ 2,484,252 $ 98,386 $ 1,764,926 $ (2,440,355 ) $ 1,907,209 LIABILITIES AND EQUITY Accounts payable $ 33,122 $ 4,759 $ 72,378 $ — $ 110,259 Accrued expenses and other liabilities 44,142 4,746 53,695 — 102,583 Current portion of long term debt 116 — 6 — 122 Total current liabilities 77,380 9,505 126,079 — 212,964 Long-term debt 691,869 — 162 — 692,031 Intercompany payable 753,933 56,318 — (810,251 ) — Losses in excess of investment in subsidiaries — — 25,036 (25,036 ) — Other long-term obligations 8,621 — 52,485 (11,726 ) 49,380 Shareholders’ equity attributable to Central Garden & Pet 952,449 32,178 1,561,164 (1,593,342 ) 952,449 Noncontrolling interest — 385 — — 385 Total equity 952,449 32,563 1,561,164 (1,593,342 ) 952,834 Total $ 2,484,252 $ 98,386 $ 1,764,926 $ (2,440,355 ) $ 1,907,209 CONSOLIDATING CONDENSED BALANCE SHEET September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 19,238 $ 11,693 $ 1,466 $ — $ 32,397 Restricted cash 12,645 — — — 12,645 Accounts receivable, net 78,692 5,586 153,590 — 237,868 Inventories 125,797 9,493 246,811 — 382,101 Prepaid expenses and other assets 6,059 811 11,175 — 18,045 Total current assets 242,431 27,583 413,042 — 683,056 Land, buildings, improvements and equipment, net 38,170 4,225 138,518 — 180,913 Goodwill 15,058 — 241,217 — 256,275 Other long term assets 61,715 2,376 146,372 (23,801 ) 186,662 Intercompany receivable 36,606 — 662,137 (698,743 ) — Investment in subsidiaries 1,383,633 — — (1,383,633 ) — Total $ 1,777,613 $ 34,184 $ 1,601,286 $ (2,106,177 ) $ 1,306,906 LIABILITIES AND EQUITY Accounts payable $ 36,760 $ 3,076 $ 63,447 $ — $ 103,283 Accrued expenses and other liabilities 54,909 2,391 59,249 — 116,549 Current portion of long term debt — — 375 — 375 Total current liabilities 91,669 5,467 123,071 — 220,207 Long-term debt 395,160 — 118 — 395,278 Intercompany payable 647,409 51,334 — (698,743 ) — Losses in excess of investment in subsidiaries — — 19,782 (19,782 ) — Other long-term obligations 7,689 — 70,391 (23,801 ) 54,279 Shareholders’ equity attributable to Central Garden & Pet 635,686 (24,073 ) 1,387,924 (1,363,851 ) 635,686 Noncontrolling interest — 1,456 — — 1,456 Total equity 635,686 (22,617 ) 1,387,924 (1,363,851 ) 637,142 Total $ 1,777,613 $ 34,184 $ 1,601,286 $ (2,106,177 ) $ 1,306,906 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Fiscal Year Ended September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ (16,676 ) $ (1,288 ) $ 138,463 $ (6,387 ) $ 114,112 Additions to property, plant and equipment (6,633 ) (1,495 ) (29,717 ) — (37,845 ) Businesses acquired, net of cash acquired, and investments in joint ventures (91,244 ) — — — (91,244 ) Change in restricted cash and cash equivalents 1,746 — — — 1,746 Investment in equity method investee (9,048 ) (9,048 ) Other investing activities (2,745 ) — — — (2,745 ) Intercompany investing activities (3,760 ) — (107,749 ) 111,509 — Net cash used by investing activities (111,684 ) (1,495 ) (137,466 ) 111,509 (139,136 ) Repayments on revolving line of credit (23,000 ) — — — (23,000 ) Borrowings on revolving line of credit 23,000 — — — 23,000 Repayments of long-term debt (56 ) — (375 ) — (431 ) Issuance of long-term debt 300,000 — — — 300,000 Proceeds from issuance of common stock 195,631 — — — 195,631 Repurchase of common stock (13,797 ) — — — (13,797 ) Payment of deferred financing costs (4,770 ) — — — (4,770 ) Payments of contingent consideration — — (253 ) — (253 ) Distribution to parent — (6,387 ) — 6,387 — Distribution to noncontrolling interest — (1,597 ) — — (1,597 ) Intercompany financing activities 106,525 4,984 — (111,509 ) — Net cash provided (used) by financing activities 583,533 (3,000 ) (628 ) (105,122 ) 474,783 Effect of exchange rates on cash (201 ) 95 56 — (50 ) Net increase (decrease) in cash and cash equivalents 454,972 (5,688 ) 425 — 449,709 Cash and cash equivalents at beginning of year 19,238 11,693 1,466 — 32,397 Cash and cash equivalents at end of year $ 474,210 $ 6,005 $ 1,891 $ — $ 482,106 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Fiscal Year Ended September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ (7,418 ) $ 2,846 $ 122,957 $ (4,076 ) $ 114,309 Additions to property, plant and equipment (9,419 ) (805 ) (34,435 ) — (44,659 ) Businesses acquired, net of cash acquired, and investments in joint ventures (103,880 ) — — — (103,880 ) Proceeds from asset sales 229 — 8,318 — 8,547 Escrow deposit for acquisition related-contingent consideration (6,000 ) — — — (6,000 ) Change in restricted cash and cash equivalents (1,735 ) — — — (1,735 ) Investment in equity method investee (12,495 ) — — — (12,495 ) Other investing activities (4,355 ) — — — (4,355 ) Intercompany investing activities (3,828 ) — (94,763 ) 98,591 — Net cash used by investing activities (141,483 ) (805 ) (120,880 ) 98,591 (164,577 ) Repayments on revolving line of credit (552,000 ) — — — (552,000 ) Borrowings on revolving line of credit 552,000 — — — 552,000 Repayments of long-term debt (89 ) — (374 ) — (463 ) Excess tax benefits from stock-based awards 19,946 — — — 19,946 Repurchase of common stock (27,556 ) — — — (27,556 ) Payments of contingent consideration — (1,300 ) (1,300 ) Distribution to parent — (4,076 ) — 4,076 — Distribution to noncontrolling interest — (1,019 ) — — (1,019 ) Intercompany financing activities 93,445 5,146 — (98,591 ) — Net cash provided (used) by financing activities 85,746 51 (1,674 ) (94,515 ) (10,392 ) Effect of exchange rates on cash 235 (94 ) (66 ) — 75 Net increase (decrease) in cash and cash equivalents (62,920 ) 1,998 337 — (60,585 ) Cash and cash equivalents at beginning of year 82,158 9,695 1,129 — 92,982 Cash and cash equivalents at end of year $ 19,238 $ 11,693 $ 1,466 $ — $ 32,397 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Fiscal Year Ended September 24, 2016 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ 3,906 $ 2,654 $ 149,749 $ (4,883 ) $ 151,426 Additions to property, plant and equipment (4,513 ) (717 ) (22,392 ) — (27,622 ) Payments to acquire companies, net of expenses (69,001 ) — — — (69,001 ) Proceeds from asset sales — 3,911 3,911 Change in restricted cash and cash equivalents 2,247 — — — 2,247 Other investing activities (730 ) — — — (730 ) Intercompany investing activities (83 ) — (129,708 ) 129,791 — Net cash used by investing activities (72,080 ) (717 ) (148,189 ) 129,791 (91,195 ) Repayments on revolving line of credit (419,000 ) — — — (419,000 ) Borrowings on revolving line of credit 419,000 — — — 419,000 Repayments of long-term debt (400,286 ) — (21 ) — (400,307 ) Issuance of long-term debt 400,000 400,000 Proceeds from issuance of common stock 324 — — — 324 Excess tax benefits from stock-based awards 6,869 — — — 6,869 Repurchase of common stock (10,873 ) — — — (10,873 ) Payments of contingent consideration — (2,026 ) (2,026 ) Payment of deferred financing costs (7,560 ) — — — (7,560 ) Distribution to parent — (4,883 ) — 4,883 — Distribution to noncontrolling interest — (592 ) — — (592 ) Intercompany financing activities 127,044 2,747 — (129,791 ) — Net cash provided (used) by financing activities 115,518 (2,728 ) (2,047 ) (124,908 ) (14,165 ) Effect of exchange rates on cash (1,466 ) 464 334 — (668 ) Net increase (decrease) in cash and cash equivalents 45,878 (327 ) (153 ) — 45,398 Cash and cash equivalents at beginning of year 36,280 10,022 1,282 — 47,584 Cash and cash equivalents at end of year $ 82,158 $ 9,695 $ 1,129 $ — $ 92,982 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization – Central Garden & Pet Company (“Central”), a Delaware corporation, and subsidiaries (the “Company”), is a leading marketer and producer of quality branded products and distributor of third party products in the pet and lawn and garden supplies markets. |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation – The consolidated financial statements include the accounts of Central and all majority-owned subsidiaries. All intercompany balances and transactions have been eliminated. The fiscal year ended September 30, 2017 included 53 weeks. The fiscal years ended September 29, 2018 and September 24, 2016 each included 52 weeks. |
Noncontrolling Interest | Noncontrolling Interest – Noncontrolling interest in the Company’s consolidated financial statements represents the 20% interest not owned by the Company in a consolidated subsidiary. Since the Company controls this subsidiary, its financial statements are consolidated with those of the Company, and the noncontrolling owner’s 20% share of the subsidiary’s net assets and results of operations is deducted and reported as noncontrolling interest on the consolidated balance sheets and as net income attributable to noncontrolling interest in the consolidated statements of operations. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including realization of accounts receivable and inventory and valuation of goodwill and intangibles. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition – Sales are recognized when merchandise is shipped, risk of loss and title passes to the customer and the Company has no further obligations to provide services related to such merchandise. Discounts, volume-based rebate incentives and most cooperative advertising amounts are recorded as a reduction of sales. The Company’s practice on product returns is to accept and credit the return of unopened cases of products from customers where the quantity is small, where the product has been mis-shipped or the product is defective. Provisions are made for estimated sales returns which are deducted from net sales at the time of shipment. Sales also include shipping and handling costs billed directly to customers. |
Cost of goods sold and occupancy | Cost of goods sold and occupancy consists of cost of product, inbound freight charges, purchasing and receiving costs, certain indirect purchasing, merchandise handling and storage costs, internal transfer costs as well as allocations of overhead costs, including depreciation, related to the Company’s facilities. Cost of goods sold excludes substantially all shipping and handling and out-bound freight costs to customers, which are included in selling, general and administrative expenses as delivery expenses. |
Advertising Costs | Advertising Costs – The Company expenses the costs of advertising as incurred. |
Other income (expense) | Other income (expense) consists principally of earnings (losses) from equity method investments and foreign exchange gains and losses. |
Income taxes | Income taxes are accounted for under the asset and liability method. Deferred income taxes result primarily from bad debt allowances, inventory and goodwill write-downs, amortization and depreciation. The Company establishes a valuation allowance for deferred tax assets when management believes it is more likely than not a deferred tax asset will not be realized. As of fiscal year-end 2018 and 2017 , the Company had valuation allowances related to various state and foreign net deferred tax assets of $6.8 million and $6.5 million , respectively. |
Cash and cash equivalents | Cash and cash equivalents include cash and all highly liquid instruments with a maturity of three months or less at the date of purchase. |
Restricted cash and cash equivalents | Restricted cash and cash equivalents include cash and highly liquid instruments that are used as collateral for stand–alone letter of credit agreements. |
Accounts receivable | Accounts receivable are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are past due. |
Allowance for doubtful accounts | Allowance for doubtful accounts – Trade accounts receivable are regularly evaluated for collectability based on past credit history with customers, their expected returns and deductions and their current financial condition. |
Inventories | Inventories , which primarily consist of garden products and pet supplies finished goods, are stated at the lower of FIFO cost or market. Cost includes certain indirect purchasing, merchandise handling and storage costs incurred to acquire or manufacture inventory, costs to unload, process and put away shipments received in order to prepare them to be picked for orders, and certain other overhead costs. The amount of such costs capitalized to inventory is computed based on an estimate of costs related to the procurement and processing of inventory to prepare it for sale compared to total product purchases |
Land, buildings, improvements and equipment | Land, buildings, improvements and equipment are stated at cost. Depreciation is computed by the straight-line method over 30 years for buildings. Improvements are amortized on a straight-line basis over the shorter of the useful life of the asset or the terms of the related leases. Depreciation on equipment and capitalized software is computed by the straight-line and accelerated methods over the estimated useful lives of three to 10 years . |
Long-Lived Assets | Long-Lived Assets – The Company reviews its long-lived assets, including amortizable and indefinite-lived intangible assets and property, plant and equipment, for potential impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable, and annually for indefinite-lived intangible assets. An impairment loss would be recognized for amortizable intangible assets and property, plant and equipment when estimated undiscounted future cash flows expected to result from the use of the asset are less than its carrying amount. An impairment loss would be recognized for an intangible asset with an indefinite useful life if its carrying value exceeds its fair value. Impairment, if any, is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. There were no impairment losses recorded in fiscal years 2018 or 2017. In fiscal 2016, the Company recognized non-cash asset impairment charges of approximately $1.8 million related to certain indefinite-lived intangible assets due to changes in the Company's operational strategy and declining volume of sales. Should market conditions or the assumptions used by the Company in determining the fair value of assets change, or management changes plans regarding the future use of certain assets, additional charges to operations may be required in the period in which such conditions occur. |
Goodwill | Goodwill represents the excess of cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Identifiable intangible assets acquired in business combinations are recorded based on their fair values at the date of acquisition. Goodwill is not subject to amortization but must be evaluated for impairment annually. The Company tests for goodwill impairment annually or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. |
Investments | Investments – The Company owns membership interests ranging from 13% to 50% in nine unconsolidated companies. The Company accounts for its interest in these entities using the equity method and cost method. |
Insurance | 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. The Company’s workers’ compensation, general liability and vehicle liability insurance policies include deductibles of $250,000 to $350,000 per occurrence. The Company maintains excess loss insurance that covers any health care claims in excess of $700,000 per person per year. The Company establishes reserves for losses based on its claims experience and actuarial estimates of the ultimate loss amount inherent in the claims, including claims incurred but not yet reported. Costs are recognized in the period the claim is incurred, and the financial statement accruals include an estimate of claims incurred but not yet reported. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments – At September 29, 2018 and September 30, 2017 , the carrying amount of cash and cash equivalents, short term investments, accounts receivable and payable, short term borrowings and accrued liabilities approximates fair value because of the short term nature of these instruments. The estimated fair value of the Company’s senior subordinated notes is based on quoted market prices for these instruments. |
Stock-Based Compensation | Stock-Based Compensation – Stock-based compensation cost is estimated at the grant date based on the fair value of the award and is expensed ratably over the service period of the award. |
Total Comprehensive Income (Loss) | Total Comprehensive Income (Loss) – Total comprehensive income (loss) consists of two components: net income and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that under generally accepted accounting principles are recorded directly as an element of shareholders’ equity, but are excluded from net income. Other comprehensive income (loss) is comprised of currency translation adjustments relating to the Company’s foreign subsidiary whose functional currency is not the U.S. dollar, unrealized gains and losses on investments classified as available for sale, as well as the reclassification of realized gains and losses on investments classified as available for sale to net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted Stock Based Compensation In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation , which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 (i) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (ii) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (iii) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (iv) modifies statutory withholding tax requirements and (v) provides for a policy election to account for forfeitures as they occur. The Company adopted ASU 2016-09 on October 1, 2017. As a result of the adoption of ASU 2016-09, the Company now records excess tax benefits and shortfalls currently in its provision for income taxes. Upon adoption, the Company determined it had no previously unrecognized excess tax benefits. Additionally, the Company elected to account for forfeitures as they occur using a modified retrospective transition method, which requires the Company to record a cumulative-effect adjustment to accumulated earnings, and the Company determined that the cumulative impact was insignificant. The Company presents its excess tax benefits as a component of operating cash flows rather than financing cash flows on a prospective basis. Inventory Measurement In July 2015, the FASB issued ASU 2015-11 (ASU 2015-11), Simplifying the Measurement of Inventory . Under ASU 2015-11, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The standard defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. The Company adopted ASU 2015-11 on October 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the Company's consolidated financial statements. Income Taxes The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017. This guidance allows registrants a “measurement period,” not to exceed one year from the date of enactment, to complete their accounting for the tax effects of the Tax Reform Act. SAB 118 further directs that during the measurement period, registrants who are able to make reasonable estimates of the tax effects of the Tax Reform Act should include those amounts in their financial statements as “provisional” amounts. Registrants should reflect adjustments over subsequent periods as they are able to refine their estimates and complete their accounting for the tax effects of the Tax Reform Act. The Company has made reasonable estimates and recorded provisional amounts within the meaning of SAB 118. Any adjustments recorded to the provisional amounts through the first quarter of fiscal 2019 will be included as an adjustment to tax expense. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This ASU adds guidance that answers questions regarding how certain income tax effects from the Tax Reform Act should be applied to companies’ financial statements. The guidance also lists which financial statement disclosures are required under a measurement period approach. Accounting Standards Not Yet Adopted Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers . This update was issued as Accounting Standards Codification Topic 606. The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB deferred the effective date of ASU 2014-09 for one year. ASU 2014-09 is effective for the Company in the first quarter of its fiscal year ending September 28, 2019. The Company intends to adopt under the modified retrospective approach, which recognizes the cumulative effect of adoption as an adjustment to retained earnings at the date of initial application. The guidance in this ASU requires the Company to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. The majority of the Company's revenue is generated from sales of pet and garden products, which will continue to be recognized when control of the goods is transferred to the customer. The Company generally anticipates having substantially similar performance obligations under the amended guidance as compared with deliverables and units of account currently being recognized. The Company intends to make policy elections within the amended standard that are consistent with its current accounting. The Company does not expect the adoption of this amended standard to have a material impact on its consolidated financial statements. The Company expects the impact of the adoption of this ASU would primarily change presentation within its consolidated financial statements but is currently not expected to have a material effect on income from operations. The Company’s assessment of the guidance in this ASU has identified customer related returns as transactions potentially affected by this guidance. On the consolidated balance sheet, reserves for returns will be included as other current liabilities rather than net accounts receivable and the value of inventory associated with reserves for sales returns will be included within prepaid expenses and other current assets. See Note 5 - Allowance for Doubtful Accounts for sales return reserves currently included as part of net accounts receivable. The Company is implementing changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. Leases In February 2016, the FASB issued ASU 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. ASU 2016-02 is effective for the Company in its first quarter of fiscal 2020 on a modified retrospective basis and earlier adoption is permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements, and it currently expects that most of its operating lease commitments will be subject to the new standard and the Company will record material long-term operating lease liabilities and long-term right-of-use assets upon the adoption of ASU 2016-02. Information on our current operating leases can be found in Note 11 - Commitments and Contingencies . Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The ASU provides additional clarification guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new guidance is effective for the Company as of September 30, 2018 on a retrospective basis. The Company intends to make policy elections within the amended standard that are consistent with its current classification and does not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-18) . This ASU clarifies the presentation of restricted cash on the statement of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning and ending cash balances on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, and is effective for the Company as of September 30, 2018 on a retrospective basis. The Company expects the adoption of this amended guidance to have no effect on our consolidated statements of operations, comprehensive income or our consolidated balance sheets. This amended guidance is expected to only result in a change in presentation of restricted cash and restricted cash equivalents on the Company's consolidated statement of cash flows. The Company held restricted cash balances of $10.9 million , $12.6 million and $10.9 million as of September 29, 2018, September 30, 2017 and September 24, 2016, respectively. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (ASU 2017-01), which requires an evaluation of whether substantially all of the fair value of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transaction does not qualify as a business. The guidance also requires an acquired business to include at least one substantive process and narrows the definition of outputs. The Company is required to apply this guidance to annual periods beginning after December 15, 2017, including interim periods within those periods. The guidance is effective for the Company September 30, 2018. The adoption of this ASU may have an impact on accounting for any future acquisitions the Company may have . Goodwill and Intangible Assets I n January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance is effective for annual periods or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, or the Company's first quarter of fiscal 2021. The amendment should be applied on a prospective basis. Based on the Company's most recent annual goodwill impairment test performed as of July 1, 2018, there were no reporting units for which the carrying amount of the reporting unit exceeded its fair value; therefore, this ASU would not currently have an impact on the Company's consolidated financial statements and related disclosures. However, if upon adoption the carrying amount of a reporting unit exceeds its fair value, the Company would be impacted by the amount of impairment recognized. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods, with early adoption permitted, and is effective for the Company in fiscal 2021. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the effect that ASU 2018-15 will have on its consolidated financial statements and related disclosures. Fair Value Disclosures In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. ASU 2018-13 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods, with early adoption permitted and is effective for the Company in fiscal 2021. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company is currently evaluating the effect that ASU 2018-13 will have on its consolidated financial statements and related disclosures. |
Fair Value Measurements | Generally accepted accounting principles require financial assets and liabilities to be categorized based on the inputs used to calculate their fair values as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The Company’s financial instruments include cash and equivalents, restricted cash and equivalents, short term investments, accounts receivable and payable, derivative instruments, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 29, 2018 (in thousands): Level 1 Level 2 Level 3 Total Liabilities: Liability for contingent consideration (a) $ — $ — $ 8,224 $ 8,224 Total liabilities $ — $ — $ 8,224 $ 8,224 The following table presents our financial assets and liabilities at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 30, 2017 (in thousands): Level 1 Level 2 Level 3 Total Liabilities: Liability for contingent consideration (a) $ — $ — $ 9,343 $ 9,343 Total liabilities $ — $ — $ 9,343 $ 9,343 (a) The liability for contingent consideration relates to an earn-out for B2E, acquired in December 2012, future performance-based contingent payments for Hydro-Organics Wholesale, Inc., acquired in October 2015, future performance-based contingent payments for Segrest, Inc., acquired in October 2016, and future performance-based contingent payments for Bell Nursery, acquired in March 2018. The fair value of the estimated contingent consideration arrangement is determined based on the Company’s evaluation as to the probability and amount of any earn-out that will be achieved based on expected future performance by the acquired entity. This is presented as part of long-term liabilities in the Company's consolidated balance sheets. |
Summary of Changes in Fair Value of Level 3 Financial Instruments | The following table provides a summary of changes in fair value of the Company's Level 3 financial instruments for the years ended September 29, 2018 and September 30, 2017 (in thousands): Amount Balance as of September 30, 2017 $ 9,343 Estimated contingent performance-based consideration established at the time of acquisition 2,022 Changes in the fair value of contingent performance-based payments (2,888 ) Performance-based payments made (253 ) Balance as of September 29, 2018 $ 8,224 |
Acquisitions and Investments _2
Acquisitions and Investments in Joint Ventures (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
General Pet Supply | |
Business Acquisition [Line Items] | |
Summary of Recording of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price and recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments. In thousands Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Current assets, net of cash and cash equivalents acquired 12,991 — 12,991 Fixed assets 1,014 516 1,530 Goodwill — 5,520 5,520 Other assets 14,147 (14,136 ) 11 Other intangible assets, net — 8,100 8,100 Current liabilities (3,506 ) — (3,506 ) Long-term obligations (361 ) (361 ) Net assets acquired, less cash and cash equivalents $ 24,285 — $ 24,285 (1) As previously reported in the Company's Form 10-Q for the period ended June 30, 2018. |
Bell Nursery | |
Business Acquisition [Line Items] | |
Summary of Recording of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price and recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments. In thousands Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Current assets, net of cash and cash equivalents acquired $ 28,330 $ (359 ) $ 27,971 Fixed assets 30,278 383 30,661 Goodwill — 7,415 7,415 Other assets 11,647 (11,647 ) — Other intangible assets, net — 6,230 6,230 Current liabilities (11,611 ) (2,022 ) (13,633 ) Net assets acquired, less cash and cash equivalents $ 58,644 $ — $ 58,644 (1) As previously reported in the Company's Form 10-Q for the periods ended March 31, 2018 and June 30, 2018. |
K&H Manufacturing | |
Business Acquisition [Line Items] | |
Summary of Recording of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price and recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments. Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) In thousands Current assets, net of cash and cash equivalents acquired $ 5,439 $ 613 $ 6,052 Fixed assets 315 — 315 Other assets 41,781 (41,781 ) — Goodwill — 11,968 11,968 Other intangible assets — 29,200 29,200 Current liabilities (757 ) — (757 ) Net assets acquired, less cash and cash equivalents $ 46,778 $ — $ 46,778 (1) As previously reported in the Company's Form 10-Q for the periods ended June 24, 2017 and December 30, 2017, and the Company's Form 10-K for the period ended September 30, 2017. |
Segrest Inc. | |
Business Acquisition [Line Items] | |
Summary of Recording of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price and the recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments (in thousands): Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Purchase Price Cash paid, net of cash acquired $ 54,043 $ — $ 54,043 Contingent consideration 6,000 (3,300 ) 2,700 $ 60,043 $ (3,300 ) $ 56,743 Allocation Current assets, net of cash and cash equivalents acquired $ 7,403 $ (300 ) $ 7,103 Fixed assets 7,011 2,242 9,253 Other assets 47,704 (47,704 ) — Goodwill 25,890 25,890 Other intangible assets 27,650 27,650 Current liabilities (2,075 ) (2,075 ) Deferred Tax Liability (11,078 ) (11,078 ) $ 60,043 $ (3,300 ) $ 56,743 (1) As previously reported in the Company's Form 10-Q for the periods ended December 24, 2016, March 25, 2017 and June 24, 2017. |
DMC | |
Business Acquisition [Line Items] | |
Summary of Recording of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments: In thousands Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted) Current assets, net of cash and cash equivalents acquired $ 41,170 $ 156 $ 41,326 Fixed assets 521 17 538 Goodwill — 15,058 15,058 Other assets 33,810 (33,790 ) 20 Other intangible assets, net — 18,700 18,700 Current liabilities (14,586 ) (40 ) (14,626 ) Net assets acquired, less cash and cash equivalents $ 60,915 $ 101 $ 61,016 (1) As previously reported in the Company's Form 10-Q for the periods ended December 26, 2015, March 26, 2016 and June 25, 2016 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Receivables [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts are summarized below (in thousands): Description Balances at Beginning of Period Charged/ (Credited) to Costs and Expenses Asset Write-Offs, Less Recoveries Balances at End of Period Fiscal Year Ended September 24, 2016 19,296 6,041 (4,268 ) 21,069 Fiscal Year Ended September 30, 2017 21,069 2,921 (2,554 ) 21,436 Fiscal Year Ended September 29, 2018 21,436 2,132 557 24,125 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net of Allowance for Obsolescence | Inventories, net of allowance for obsolescence, consist of the following (in thousands): September 29, September 30, Raw materials $ 117,539 $ 116,591 Work in progress 35,691 16,394 Finished goods 263,845 241,420 Supplies 10,748 7,696 Total inventories, net $ 427,823 $ 382,101 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consists of the following (in thousands): September 29, September 30, Land $ 14,183 $ 8,942 Buildings and improvements 154,787 131,280 Transportation equipment 9,348 7,141 Machine and warehouse equipment 227,727 207,878 Capitalized software 114,878 117,360 Office furniture and equipment 27,734 27,355 Assets under construction 24,015 13,451 572,672 513,407 Accumulated depreciation and amortization (355,025 ) (332,494 ) $ 217,647 $ 180,913 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the fiscal years ended September 29, 2018 , September 30, 2017 and September 24, 2016 (in thousands): Garden Products Segment Pet Products Segment Total Balance as of September 26, 2015 Goodwill $ 213,583 $ 405,067 $ 618,650 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) Balance as of — 209,089 209,089 Additions in fiscal 2016 5,473 16,823 22,296 Balance as of September 24, 2016 Goodwill 219,056 421,890 640,946 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) 5,473 225,912 231,385 Additions in fiscal 2017 25,890 25,890 Write off related to sale of business (1,000 ) (1,000 ) Balance as of September 30, 2017 Goodwill 219,056 446,780 665,836 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) 5,473 250,802 256,275 Additions in fiscal 2018 7,415 17,487 24,902 Balance as of September 29, 2018 Goodwill 226,471 464,267 690,738 Accumulated impairment losses (213,583 ) (195,978 ) (409,561 ) $ 12,888 $ 268,289 $ 281,177 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Gross and Net Acquired Intangible Assets | The following table summarizes the components of gross and net acquired intangible assets: Gross Accumulated Amortization Accumulated Impairment Net Carrying Value (in millions) September 29, 2018 Marketing-related intangible assets – amortizable $ 18.6 $ (14.2 ) $ — $ 4.4 Marketing-related intangible assets – nonamortizable 70.6 — (26.0 ) 44.6 Total 89.2 (14.2 ) (26.0 ) 49.0 Customer-related intangible assets – amortizable 128.3 (42.5 ) — 85.8 Other acquired intangible assets – amortizable 25.4 (14.5 ) — 10.9 Other acquired intangible assets – nonamortizable 7.8 — (1.2 ) 6.6 Total 33.2 (14.5 ) (1.2 ) 17.5 Total other intangible assets $ 250.7 $ (71.2 ) $ (27.2 ) $ 152.3 September 30, 2017 Marketing-related intangible assets – amortizable $ 16.9 $ (12.7 ) $ — $ 4.2 Marketing-related intangible assets – nonamortizable 62.7 — (26.0 ) 36.7 Total 79.6 (12.7 ) (26.0 ) 40.9 Customer-related intangible assets – amortizable 91.6 (32.2 ) — 59.4 Other acquired intangible assets – amortizable 22.1 (12.9 ) — 9.2 Other acquired intangible assets – nonamortizable 7.8 — (1.2 ) 6.6 Total 29.9 (12.9 ) (1.2 ) 15.8 Total other intangible assets $ 201.1 $ (57.8 ) $ (27.2 ) $ 116.1 September 24, 2016 Marketing-related intangible assets – amortizable $ 14.9 $ (11.3 ) $ — $ 3.6 Marketing-related intangible assets – nonamortizable 63.0 — (26.0 ) 37.0 Total 77.9 (11.3 ) (26.0 ) 40.6 Customer-related intangible assets – amortizable 65.6 (26.1 ) — 39.5 Other acquired intangible assets – amortizable 20.8 (11.6 ) — 9.2 Other acquired intangible assets – nonamortizable 7.8 — (1.2 ) 6.6 Total 28.6 (11.6 ) (1.2 ) 15.8 Total other intangible assets $ 172.1 $ (49.0 ) $ (27.2 ) $ 95.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt consists of the following: September 29, September 30, (in thousands) Senior notes, interest at 6.125%, payable semi-annually, principal due November 2023 $ 400,000 $ 400,000 Senior notes, interest at 5.125%, payable semi-annually, principal due February 2028 300,000 — Unamortized debt issuance costs (8,425 ) (4,840 ) Net carrying value 691,575 395,160 Asset-based revolving credit facility, interest at LIBOR plus a margin of 1.25% to 1.50% or Base Rate plus a margin of 0.25% to 0.50%, final maturity April 2021 — — Other notes payable 578 493 Total 692,153 395,653 Less current portion (122 ) (375 ) Long-term portion $ 692,031 $ 395,278 |
Scheduled Principal Repayments on Long-Term Debt | The scheduled principal repayments on long-term debt as of September 29, 2018 are as follows: (in thousands) Fiscal year: 2019 $ 122 2020 272 2021 93 2022 76 2023 15 Thereafter 700,000 Total $ 700,578 (1) (1) Debt repayments do not reflect the unamortized portion of deferred financing costs associated with the 2023 Notes and 2028 Notes of $8.4 million as of September 29, 2018 , of which, $4.0 million is amortizable until November 2023, and $4.4 million is amortizable until February 2028 and is included in the carrying value. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate Minimum Annual Payments on Non-Cancelable Operating Leases | Aggregate minimum annual payments on non-cancelable operating leases at September 29, 2018 are as follows: (in thousands) Fiscal year: 2019 $ 32,905 2020 27,395 2021 18,398 2022 12,401 2023 6,728 Thereafter 22,546 Total $ 120,373 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax Expense (Benefit) | The provision for income tax expense (benefit) consists of the following: Fiscal Year Ended September 29, September 30, September 24, (in thousands) Current: Federal $ 5,728 $ 32,755 $ 18,592 State 2,319 3,034 2,140 Foreign 91 121 110 Total 8,138 35,910 20,842 Deferred: Federal (3,676 ) 11,227 2,796 State (1,162 ) (1,038 ) 463 Foreign 5 600 (48 ) Total (4,833 ) 10,789 3,211 Total $ 3,305 $ 46,699 $ 24,053 |
Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate | A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Fiscal Year Ended September 29, September 30, September 24, Statutory federal income tax rate 24.5 % 35.0 % 35.0 % State income taxes, net of federal benefit 0.9 2.4 2.1 Other permanent differences (0.1 ) 0.3 (1.6 ) Adjustment of prior year accruals — (0.3 ) (0.6 ) Credits (0.8 ) (0.6 ) (1.0 ) Rate change - Tax reform (16.9 ) — — Stock based compensation (5.4 ) — — Other 0.4 0.1 0.6 Effective income tax rate (benefit) 2.6 % 36.9 % 34.5 % |
Tax Effect of Temporary Differences and Carryforwards which Give Rise to Deferred Tax Assets and Liabilities | The tax effect of temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows: September 29, 2018 September 30, 2017 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities (in thousands) Allowance for doubtful accounts $ 5,613 $ — $ 7,790 $ — Inventory write-downs 6,819 — 10,406 — Prepaid expenses — 1,408 — 1,740 Nondeductible reserves 983 — 1,485 — State taxes 74 — 276 — Employee benefits 5,578 — 10,007 — Depreciation and amortization — 65,983 — 84,059 Equity loss 2,053 — 4,243 — State net operating loss carryforward 6,722 — 5,182 — Stock based compensation 2,541 — 3,097 — State credits 2,742 — 2,403 — Other 4,240 — 5,768 — Valuation allowance (6,809 ) — (6,527 ) — Total $ 30,556 $ 67,391 $ 44,130 $ 85,799 |
Activity Related to Company's Unrecognized Tax Benefits | The following table, which excludes interest and penalties, summarizes the activity related to the Company’s unrecognized tax benefits for fiscal years ended September 29, 2018 and September 30, 2017 (in thousands): Balance as of Balance as of September 24, 2016 $ 254 Increases related to prior year tax positions 4 Increases related to current year tax positions 67 Decreases related to prior year tax positions — Settlements — Decreases related to lapse of statute of limitations — Balance as of Balance as of September 30, 2017 $ 325 Increases related to prior year tax positions 138 Increases related to current year tax positions 83 Decreases related to prior year tax positions (28 ) Settlements — Decreases related to lapse of statute of limitations — Balance as of Balance as of September 29, 2018 $ 518 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes option activity for the period ended September 29, 2018 : Number of Shares (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding at September 30, 2017 2,471 $ 16.79 4 years $ 50,420 Granted 547 $ 36.72 Exercised (627 ) $ 12.18 Canceled or expired (62 ) $ 22.51 Outstanding at September 29, 2018 2,329 $ 22.56 4 years $ 26,543 Exercisable at September 24, 2016 1,732 $ 11.46 2 years 22,954 Exercisable at September 30, 2017 458 $ 10.80 2 years 12,097 Exercisable at September 29, 2018 636 $ 16.35 3 years 10,731 Expected to vest after September 29, 2018 1,560 $ 24.90 4 years $ 12,861 |
Summary of Restricted Stock Award Activity | Restricted stock award activity during the period ended September 29, 2018 is summarized as follows: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Nonvested at September 30, 2017 1,137 $ 14.34 Granted 227 $ 37.78 Vested (482 ) $ 10.57 Forfeited (8 ) $ 8.39 Nonvested at September 29, 2018 874 $ 22.37 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Numerators and Denominators in Basic and Diluted Earnings (Loss) Per Share | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share (EPS) computations: Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Net Income Shares Per Share Net Income Shares Per Share Net Income (Loss) Shares Per Share (in thousands, except per share amounts) Basic EPS: Net income (loss) available to common shareholders $ 123,594 51,716 $ 2.39 $ 78,828 50,230 $ 1.57 $ 44,514 48,964 $ 0.91 Effect of dilutive securities: Options to purchase common stock 996 (0.05 ) 992 (0.03 ) 1,335 (0.02 ) Restricted shares 629 (0.02 ) 598 (0.02 ) 776 (0.02 ) Diluted EPS: Net income (loss) available to common shareholders $ 123,594 53,341 $ 2.32 $ 78,828 51,820 $ 1.52 $ 44,514 51,075 $ 0.87 |
Quarterly Financial Data - Un_2
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data - Unaudited | Fiscal 2018 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (in thousands, except per share amounts) Net sales $ 442,011 $ 613,094 $ 657,943 $ 502,314 Gross profit 131,837 194,457 202,064 147,018 Net income attributable to Central Garden & Pet Company 26,247 (1 ) 45,234 41,545 10,568 (1 ) Net income per share: Basic $ 0.52 $ 0.89 $ 0.81 $ 0.20 Diluted $ 0.50 (1 ) $ 0.86 $ 0.79 $ 0.19 (1 ) Weighted average common shares outstanding: Basic 50,730 50,871 51,134 54,059 Diluted 52,695 52,658 52,575 55,376 (1) Net income attributable to Central Garden & Pet Company was impacted by a provisional tax benefit of $16.3 million recorded in the first quarter of fiscal 2018 and a tax benefit of $5.2 million recorded in the fourth quarter of fiscal 2018, for a total fiscal 2018 year-to-date tax benefit of $21.5 million . Fiscal 2017 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (in thousands, except per share amounts) Net sales $ 419,498 $ 569,924 $ 574,592 $ 490,464 Gross profit 120,678 183,529 183,273 145,328 Net income (loss) attributable to Central Garden & Pet Company 7,637 (1 ) 34,684 32,248 4,259 Net income (loss) per share: Basic $ 0.15 $ 0.69 $ 0.64 $ 0.08 Diluted $ 0.15 $ 0.67 $ 0.62 $ 0.08 Weighted average common shares outstanding: Basic 49,665 50,079 50,507 50,654 Diluted 51,810 51,983 51,825 51,935 (1) The Company recognized a $2.0 million gain in its Garden segment from the sale of a distribution facility during the first quarter of fiscal 2017. |
Business Segment Data (Tables)
Business Segment Data (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Class of Similar Products Which Represented Approximately 10% or More of Company's Consolidated Net Sales | The following table indicates each class of similar products which represented approximately 10% or more of the Company’s consolidated net sales in the fiscal years presented (in millions). Category 2018 2017 2016 Other pet products $ 896.5 $ 841.4 $ 689.3 Other garden supplies 528.8 464.9 331.3 Dog and cat products 444.4 405.0 326.0 Garden controls and fertilizer products 345.7 343.2 298.8 Wild bird feed — (1) — (1) 183.6 Total $ 2,215.4 $ 2,054.5 $ 1,829.0 See Note 4 - Concentration of Credit Risk and Significant Customers and Suppliers for the Company’s largest customers by segment. (1) The product category was less than 10% of the Company's consolidated net sales in the period. |
Financial Information Relating to Company's Business Segments | Financial information relating to the Company’s business segments for each of the three most recent fiscal years is presented in the table below (in thousands): Fiscal Year Ended September 29, 2018 September 30, 2017 September 24, 2016 Net sales: Pet segment $ 1,340,899 $ 1,246,354 $ 1,081,853 Garden segment 874,463 808,124 747,164 Total $ 2,215,362 $ 2,054,478 $ 1,829,017 Operating income (loss): Pet segment $ 140,353 $ 131,622 $ 119,930 (1) Garden segment 95,551 87,298 70,317 Corporate (68,568 ) (62,808 ) (60,889 ) Total 167,336 156,112 129,358 Interest expense (39,196 ) (28,209 ) (42,847 ) Interest income 3,145 147 140 Other expense (3,860 ) (1,621 ) (17,013 ) (2) Income before income taxes and noncontrolling interest 127,425 126,429 69,638 Income tax expense 3,305 46,699 24,053 Net income including noncontrolling interest 124,120 79,730 45,585 Net income attributable to noncontrolling interest 526 902 1,071 Net income attributable to Central Garden & Pet Company $ 123,594 $ 78,828 $ 44,514 Assets: Pet segment $ 683,938 $ 612,337 $ 508,879 Garden segment 407,483 311,026 304,901 Corporate and eliminations 815,788 383,543 366,903 Total $ 1,907,209 $ 1,306,906 $ 1,180,683 Depreciation and amortization: Pet segment $ 29,889 $ 26,044 $ 22,556 Garden segment 8,744 6,267 6,098 Corporate 8,566 10,408 11,347 Total $ 47,199 $ 42,719 $ 40,001 Expenditures for long-lived assets: Pet segment $ 26,979 $ 38,970 $ 18,939 Garden segment 8,016 4,948 4,750 Corporate 2,850 741 3,933 Total $ 37,845 $ 44,659 $ 27,622 Noncontrolling interest is associated with the Garden segment. (1) Includes a $1.8 million impairment charge in fiscal 2016. (2) Includes a $16.6 million impairment charge related to two equity method investments in fiscal 2016. |
Consolidating Condensed Finan_2
Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Condensed Statement of Operations | CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Fiscal Year Ended September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net sales $ 730,439 $ 167,584 $ 1,397,688 $ (80,349 ) $ 2,215,362 Cost of goods sold and occupancy 568,145 128,944 917,276 (74,379 ) 1,539,986 Gross profit 162,294 38,640 480,412 (5,970 ) 675,376 Selling, general and administrative expenses 167,849 33,118 313,043 (5,970 ) 508,040 Operating income (loss) (5,555 ) 5,522 167,369 — 167,336 Interest expense (38,855 ) (547 ) 206 — (39,196 ) Interest income 3,138 6 1 — 3,145 Other income (expense) (4,269 ) (236 ) 645 — (3,860 ) Income (loss) before taxes and equity in earnings of affiliates (45,541 ) 4,745 168,221 — 127,425 Income tax expense (benefit) (1,138 ) 79 4,364 — 3,305 Equity in earnings of affiliates 167,997 — 1,133 (169,130 ) — Net income including noncontrolling interest 123,594 4,666 164,990 (169,130 ) 124,120 Noncontrolling interest — 526 — — 526 Net income attributable to Central Garden & Pet Company $ 123,594 $ 4,140 $ 164,990 $ (169,130 ) $ 123,594 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Fiscal Year Ended September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net sales $ 685,998 $ 79,681 $ 1,370,335 $ (81,536 ) $ 2,054,478 Cost of goods sold and occupancy 534,682 60,788 901,959 (75,759 ) 1,421,670 Gross profit 151,316 18,893 468,376 (5,777 ) 632,808 Selling, general and administrative expenses 154,267 18,416 309,790 (5,777 ) 476,696 Operating income (loss) (2,951 ) 477 158,586 — 156,112 Interest expense (28,051 ) (294 ) 136 — (28,209 ) Interest income 146 1 — — 147 Other income (expense) (2,379 ) 844 (86 ) — (1,621 ) Income (loss) before taxes and equity in earnings of affiliates (33,235 ) 1,028 158,636 — 126,429 Income tax expense (benefit) (11,981 ) 1,466 57,214 — 46,699 Equity in earnings of affiliates 100,082 — 420 (100,502 ) — Net income including noncontrolling interest 78,828 (438 ) 101,842 (100,502 ) 79,730 Noncontrolling interest — 902 — — 902 Net income (loss) attributable to Central Garden & Pet Company $ 78,828 $ (1,340 ) $ 101,842 $ (100,502 ) $ 78,828 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Fiscal Year Ended September 24, 2016 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net sales $ 587,579 $ 82,567 $ 1,238,339 $ (79,468 ) $ 1,829,017 Cost of goods sold and occupancy 466,543 62,727 820,573 (73,876 ) 1,275,967 Gross profit 121,036 19,840 417,766 (5,592 ) 553,050 Selling, general and administrative expenses 138,556 18,077 272,651 (5,592 ) 423,692 Operating income (loss) (17,520 ) 1,763 145,115 — 129,358 Interest expense (42,700 ) (266 ) 119 — (42,847 ) Interest income 136 4 — — 140 Other income (expense) (16,925 ) (113 ) 25 — (17,013 ) Income (loss) before taxes and equity in earnings of affiliates (77,009 ) 1,388 145,259 — 69,638 Income tax expense (benefit) (26,422 ) 923 49,552 — 24,053 Equity in earnings of affiliates 95,101 — 624 (95,725 ) — Net income including noncontrolling interest 44,514 465 96,331 (95,725 ) 45,585 Noncontrolling interest — 1,071 — — 1,071 Net income (loss) attributable to Central Garden & Pet Company $ 44,514 $ (606 ) $ 96,331 $ (95,725 ) $ 44,514 |
Consolidating Condensed Statements of Comprehensive Income | CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net income $ 123,594 $ 4,666 $ 164,990 $ (169,130 ) $ 124,120 Other comprehensive loss: Foreign currency translation (267 ) (145 ) (67 ) 212 (267 ) Total comprehensive income 123,327 4,521 164,923 (168,918 ) 123,853 Comprehensive income attributable to noncontrolling interests — 526 — — 526 Comprehensive income attributable to Central Garden & Pet Company $ 123,327 $ 3,995 $ 164,923 $ (168,918 ) $ 123,327 CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 78,828 $ (438 ) $ 101,842 $ (100,502 ) $ 79,730 Other comprehensive income: Foreign currency translation 343 169 108 (277 ) 343 Total comprehensive income (loss) 79,171 (269 ) 101,950 (100,779 ) 80,073 Comprehensive income attributable to noncontrolling interests — 902 — — 902 Comprehensive income (loss) attributable to Central Garden & Pet Company $ 79,171 $ (1,171 ) $ 101,950 $ (100,779 ) $ 79,171 CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended September 24, 2016 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net income $ 44,514 $ 465 $ 96,331 $ (95,725 ) $ 45,585 Other comprehensive Income (loss): Foreign currency translation (1,458 ) (1,132 ) 8 1,124 (1,458 ) Total comprehensive income (loss) 43,056 (667 ) 96,339 (94,601 ) 44,127 Comprehensive income attributable to noncontrolling interests — 1,071 — — 1,071 Comprehensive income (loss) attributable to Central Garden & Pet Company $ 43,056 $ (1,738 ) $ 96,339 $ (94,601 ) $ 43,056 |
Consolidating Condensed Balance Sheet | CONSOLIDATING CONDENSED BALANCE SHEET September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 474,210 $ 6,005 $ 1,891 $ — $ 482,106 Restricted cash 10,899 — — — 10,899 Accounts receivable, net 94,657 9,647 171,604 — 275,908 Inventories 123,178 32,556 272,089 — 427,823 Prepaid expenses and other assets 6,304 1,455 12,803 — 20,562 Total current assets 709,248 49,663 458,387 — 1,217,298 Land, buildings, improvements and equipment, net 33,484 33,840 150,323 — 217,647 Goodwill 20,578 7,414 253,185 — 281,177 Other long term assets 62,199 7,469 133,145 (11,726 ) 191,087 Intercompany receivable 40,365 — 769,886 (810,251 ) — Investment in subsidiaries 1,618,378 — — (1,618,378 ) — Total $ 2,484,252 $ 98,386 $ 1,764,926 $ (2,440,355 ) $ 1,907,209 LIABILITIES AND EQUITY Accounts payable $ 33,122 $ 4,759 $ 72,378 $ — $ 110,259 Accrued expenses and other liabilities 44,142 4,746 53,695 — 102,583 Current portion of long term debt 116 — 6 — 122 Total current liabilities 77,380 9,505 126,079 — 212,964 Long-term debt 691,869 — 162 — 692,031 Intercompany payable 753,933 56,318 — (810,251 ) — Losses in excess of investment in subsidiaries — — 25,036 (25,036 ) — Other long-term obligations 8,621 — 52,485 (11,726 ) 49,380 Shareholders’ equity attributable to Central Garden & Pet 952,449 32,178 1,561,164 (1,593,342 ) 952,449 Noncontrolling interest — 385 — — 385 Total equity 952,449 32,563 1,561,164 (1,593,342 ) 952,834 Total $ 2,484,252 $ 98,386 $ 1,764,926 $ (2,440,355 ) $ 1,907,209 CONSOLIDATING CONDENSED BALANCE SHEET September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 19,238 $ 11,693 $ 1,466 $ — $ 32,397 Restricted cash 12,645 — — — 12,645 Accounts receivable, net 78,692 5,586 153,590 — 237,868 Inventories 125,797 9,493 246,811 — 382,101 Prepaid expenses and other assets 6,059 811 11,175 — 18,045 Total current assets 242,431 27,583 413,042 — 683,056 Land, buildings, improvements and equipment, net 38,170 4,225 138,518 — 180,913 Goodwill 15,058 — 241,217 — 256,275 Other long term assets 61,715 2,376 146,372 (23,801 ) 186,662 Intercompany receivable 36,606 — 662,137 (698,743 ) — Investment in subsidiaries 1,383,633 — — (1,383,633 ) — Total $ 1,777,613 $ 34,184 $ 1,601,286 $ (2,106,177 ) $ 1,306,906 LIABILITIES AND EQUITY Accounts payable $ 36,760 $ 3,076 $ 63,447 $ — $ 103,283 Accrued expenses and other liabilities 54,909 2,391 59,249 — 116,549 Current portion of long term debt — — 375 — 375 Total current liabilities 91,669 5,467 123,071 — 220,207 Long-term debt 395,160 — 118 — 395,278 Intercompany payable 647,409 51,334 — (698,743 ) — Losses in excess of investment in subsidiaries — — 19,782 (19,782 ) — Other long-term obligations 7,689 — 70,391 (23,801 ) 54,279 Shareholders’ equity attributable to Central Garden & Pet 635,686 (24,073 ) 1,387,924 (1,363,851 ) 635,686 Noncontrolling interest — 1,456 — — 1,456 Total equity 635,686 (22,617 ) 1,387,924 (1,363,851 ) 637,142 Total $ 1,777,613 $ 34,184 $ 1,601,286 $ (2,106,177 ) $ 1,306,906 |
Consolidating Condensed Statement of Cash Flows | CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Fiscal Year Ended September 29, 2018 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ (16,676 ) $ (1,288 ) $ 138,463 $ (6,387 ) $ 114,112 Additions to property, plant and equipment (6,633 ) (1,495 ) (29,717 ) — (37,845 ) Businesses acquired, net of cash acquired, and investments in joint ventures (91,244 ) — — — (91,244 ) Change in restricted cash and cash equivalents 1,746 — — — 1,746 Investment in equity method investee (9,048 ) (9,048 ) Other investing activities (2,745 ) — — — (2,745 ) Intercompany investing activities (3,760 ) — (107,749 ) 111,509 — Net cash used by investing activities (111,684 ) (1,495 ) (137,466 ) 111,509 (139,136 ) Repayments on revolving line of credit (23,000 ) — — — (23,000 ) Borrowings on revolving line of credit 23,000 — — — 23,000 Repayments of long-term debt (56 ) — (375 ) — (431 ) Issuance of long-term debt 300,000 — — — 300,000 Proceeds from issuance of common stock 195,631 — — — 195,631 Repurchase of common stock (13,797 ) — — — (13,797 ) Payment of deferred financing costs (4,770 ) — — — (4,770 ) Payments of contingent consideration — — (253 ) — (253 ) Distribution to parent — (6,387 ) — 6,387 — Distribution to noncontrolling interest — (1,597 ) — — (1,597 ) Intercompany financing activities 106,525 4,984 — (111,509 ) — Net cash provided (used) by financing activities 583,533 (3,000 ) (628 ) (105,122 ) 474,783 Effect of exchange rates on cash (201 ) 95 56 — (50 ) Net increase (decrease) in cash and cash equivalents 454,972 (5,688 ) 425 — 449,709 Cash and cash equivalents at beginning of year 19,238 11,693 1,466 — 32,397 Cash and cash equivalents at end of year $ 474,210 $ 6,005 $ 1,891 $ — $ 482,106 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Fiscal Year Ended September 30, 2017 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ (7,418 ) $ 2,846 $ 122,957 $ (4,076 ) $ 114,309 Additions to property, plant and equipment (9,419 ) (805 ) (34,435 ) — (44,659 ) Businesses acquired, net of cash acquired, and investments in joint ventures (103,880 ) — — — (103,880 ) Proceeds from asset sales 229 — 8,318 — 8,547 Escrow deposit for acquisition related-contingent consideration (6,000 ) — — — (6,000 ) Change in restricted cash and cash equivalents (1,735 ) — — — (1,735 ) Investment in equity method investee (12,495 ) — — — (12,495 ) Other investing activities (4,355 ) — — — (4,355 ) Intercompany investing activities (3,828 ) — (94,763 ) 98,591 — Net cash used by investing activities (141,483 ) (805 ) (120,880 ) 98,591 (164,577 ) Repayments on revolving line of credit (552,000 ) — — — (552,000 ) Borrowings on revolving line of credit 552,000 — — — 552,000 Repayments of long-term debt (89 ) — (374 ) — (463 ) Excess tax benefits from stock-based awards 19,946 — — — 19,946 Repurchase of common stock (27,556 ) — — — (27,556 ) Payments of contingent consideration — (1,300 ) (1,300 ) Distribution to parent — (4,076 ) — 4,076 — Distribution to noncontrolling interest — (1,019 ) — — (1,019 ) Intercompany financing activities 93,445 5,146 — (98,591 ) — Net cash provided (used) by financing activities 85,746 51 (1,674 ) (94,515 ) (10,392 ) Effect of exchange rates on cash 235 (94 ) (66 ) — 75 Net increase (decrease) in cash and cash equivalents (62,920 ) 1,998 337 — (60,585 ) Cash and cash equivalents at beginning of year 82,158 9,695 1,129 — 92,982 Cash and cash equivalents at end of year $ 19,238 $ 11,693 $ 1,466 $ — $ 32,397 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Fiscal Year Ended September 24, 2016 (in thousands) Parent Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ 3,906 $ 2,654 $ 149,749 $ (4,883 ) $ 151,426 Additions to property, plant and equipment (4,513 ) (717 ) (22,392 ) — (27,622 ) Payments to acquire companies, net of expenses (69,001 ) — — — (69,001 ) Proceeds from asset sales — 3,911 3,911 Change in restricted cash and cash equivalents 2,247 — — — 2,247 Other investing activities (730 ) — — — (730 ) Intercompany investing activities (83 ) — (129,708 ) 129,791 — Net cash used by investing activities (72,080 ) (717 ) (148,189 ) 129,791 (91,195 ) Repayments on revolving line of credit (419,000 ) — — — (419,000 ) Borrowings on revolving line of credit 419,000 — — — 419,000 Repayments of long-term debt (400,286 ) — (21 ) — (400,307 ) Issuance of long-term debt 400,000 400,000 Proceeds from issuance of common stock 324 — — — 324 Excess tax benefits from stock-based awards 6,869 — — — 6,869 Repurchase of common stock (10,873 ) — — — (10,873 ) Payments of contingent consideration — (2,026 ) (2,026 ) Payment of deferred financing costs (7,560 ) — — — (7,560 ) Distribution to parent — (4,883 ) — 4,883 — Distribution to noncontrolling interest — (592 ) — — (592 ) Intercompany financing activities 127,044 2,747 — (129,791 ) — Net cash provided (used) by financing activities 115,518 (2,728 ) (2,047 ) (124,908 ) (14,165 ) Effect of exchange rates on cash (1,466 ) 464 334 — (668 ) Net increase (decrease) in cash and cash equivalents 45,878 (327 ) (153 ) — 45,398 Cash and cash equivalents at beginning of year 36,280 10,022 1,282 — 47,584 Cash and cash equivalents at end of year $ 82,158 $ 9,695 $ 1,129 $ — $ 92,982 |
Organization and Significant _3
Organization and Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 29, 2018 | Dec. 30, 2017 | Dec. 24, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cost of goods sold and occupancy | $ 1,539,986 | $ 1,421,670 | $ 1,275,967 | |||
Cost of shipping and handling included in selling, general and administrative expenses | 70,100 | 59,300 | 48,900 | |||
Advertising expenses | 29,700 | 34,500 | 30,000 | |||
Employees benefit plan | 2,300 | 2,400 | 1,700 | |||
Valuation allowances related to net deferred tax assets | $ 6,809 | $ 6,809 | $ 6,527 | |||
Maturity period of debt instruments (in months) | 3 months | |||||
Capitalized costs write off | $ 1,800 | |||||
Statutory federal income tax rate | 24.50% | 35.00% | 35.00% | |||
Foreign earnings held in cash or cash equivalents, tax rate (as a percent) | 15.50% | |||||
Foreign earnings held in non-cash, tax rate (as a percent) | 8.00% | |||||
Transition tax | $ 200 | $ 200 | ||||
Foreign undistributed earnings | $ 1,500 | |||||
Provisional tax benefit | $ 5,200 | $ 16,300 | $ 21,500 | |||
Building | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Useful life | 30 years | |||||
Minimum | Equipment and Capitalized Software | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Useful life | 3 years | |||||
Maximum | Equipment and Capitalized Software | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Useful life | 10 years | |||||
Class A common stock | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
401(k) matching contributions made in Class A common stock | 61 | 81 | 99 | |||
Subsidiaries | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Noncontrolling interest owned by the subsidiary | 20.00% | 20.00% | ||||
Shipping and Handling | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cost of goods sold and occupancy | $ 12,200 | $ 9,400 | $ 3,800 |
Organization and Significant _4
Organization and Significant Accounting Policies - Additional Information 1 (Detail) | 12 Months Ended | ||
Sep. 29, 2018USD ($)Companies | Sep. 30, 2017USD ($) | Sep. 24, 2016USD ($) | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Number of unconsolidated companies | Companies | 9 | ||
Equity income (loss) | $ 2,800,000 | $ 900,000 | $ (400,000) |
Investment in unconsolidated companies | 18,500,000 | 9,200,000 | |
Excess loss insurance that covers any health care claims | 700,000 | ||
Stock-based compensation | 11,602,000 | 11,115,000 | 8,356,000 |
Stock-based compensation after tax | 8,400,000 | 7,000,000 | 5,300,000 |
Restricted cash | $ 10,899,000 | 12,645,000 | $ 10,900,000 |
Minimum | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Owned percentage in unconsolidated entities (as percent) | 13.00% | ||
General liability and vehicle liability insurance policies | $ 250,000 | ||
Maximum | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Owned percentage in unconsolidated entities (as percent) | 50.00% | ||
General liability and vehicle liability insurance policies | $ 350,000 | ||
Other income (expense) | Purishield LLC and Ceregenin LLC | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Non-cash impairment charge | $ 16,600,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Liabilities: | ||
Total liabilities | $ 8,224 | $ 9,343 |
Liability for Contingent Consideration | ||
Liabilities: | ||
Total liabilities | 8,224 | 9,343 |
Level 1 | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 1 | Liability for Contingent Consideration | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 2 | Liability for Contingent Consideration | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 3 | ||
Liabilities: | ||
Total liabilities | 8,224 | 9,343 |
Level 3 | Liability for Contingent Consideration | ||
Liabilities: | ||
Total liabilities | $ 8,224 | $ 9,343 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Financial Instruments (Detail) - Level 3 $ in Thousands | 12 Months Ended |
Sep. 29, 2018USD ($) | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Roll Forward] | |
Beginning balance | $ 9,343 |
Estimated contingent performance-based consideration established at the time of acquisition | 2,022 |
Changes in the fair value of contingent performance-based payments | (2,888) |
Performance-based payments made | (253) |
Ending balance | $ 8,224 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | Dec. 14, 2017 | Nov. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Indefinite-lived intangible assets, impairment charge | $ 0 | $ 1,800 | $ 1,800 | ||
Indefinite-lived intangible assets, carrying value | 1,800 | ||||
Carrying value of senior subordinated notes | 692,153 | 395,653 | |||
Senior notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of senior subordinated notes | $ 691,575 | 395,160 | |||
Senior Notes Due February 2028 | Senior notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of senior subordinated notes | $ 300,000 | ||||
Debt instrument interest rate stated, percentage | 5.125% | 5.125% | 5.125% | ||
Senior Notes Due February 2028 | Senior notes | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated fair value of senior subordinated notes due 2018 | $ 285,500 | ||||
Senior Notes Due February 2028 | Senior notes | Carrying (Reported) Amount, Fair Value Disclosure | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of senior subordinated notes | 295,600 | ||||
Senior Notes Due November 2023 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of senior subordinated notes | $ 400,000 | ||||
Debt instrument interest rate stated, percentage | 6.125% | ||||
Senior Notes Due November 2023 | Senior notes | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated fair value of senior subordinated notes due 2018 | 414,400 | $ 427,900 | |||
Senior Notes Due November 2023 | Senior notes | Carrying (Reported) Amount, Fair Value Disclosure | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of senior subordinated notes | $ 396,000 | $ 395,200 |
Acquisitions and Investments _3
Acquisitions and Investments in Joint Ventures - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 02, 2018 | Mar. 12, 2018 | Apr. 28, 2017 | Oct. 21, 2016 | Dec. 01, 2015 | Sep. 30, 2015 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | Jun. 24, 2017 | Sep. 27, 2014 |
Business Acquisition [Line Items] | |||||||||||
Investments in business | $ 9,048 | $ 12,495 | $ 0 | ||||||||
Excess of purchase price included in goodwill | 281,177 | $ 256,275 | $ 231,385 | $ 209,089 | |||||||
Mature, seasonal business | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent interest in ventures | 45.00% | ||||||||||
Start-up company | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent interest in ventures | 30.00% | ||||||||||
General Pet Supply | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cost of acquisition | $ 24,300 | ||||||||||
Purchase price in excess of fair value | 13,600 | ||||||||||
Other intangible assets | 8,100 | ||||||||||
Excess of purchase price included in intangible assets | 8,100 | ||||||||||
Excess of purchase price included in goodwill | 5,520 | $ 5,500 | |||||||||
Goodwill | 5,520 | ||||||||||
Bell Nursery | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cost of acquisition | $ 61,000 | ||||||||||
Purchase price in excess of fair value | 13,600 | ||||||||||
Contingent consideration | 10,000 | ||||||||||
Other intangible assets | 6,230 | $ 29,200 | |||||||||
Excess of purchase price included in intangible assets | 6,230 | 29,200 | |||||||||
Excess of purchase price included in goodwill | 7,415 | 0 | |||||||||
Goodwill | 7,415 | (41,781) | |||||||||
K&H Manufacturing | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cost of acquisition | 48,000 | ||||||||||
Purchase price in excess of fair value | 41,200 | ||||||||||
Other intangible assets | 29,200 | ||||||||||
Excess of purchase price included in goodwill | $ 12,000 | ||||||||||
Segrest Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price in excess of fair value | $ 44,400 | ||||||||||
Cost of acquisition | 56,743 | ||||||||||
Contingent consideration | 2,700 | ||||||||||
Other intangible assets | 27,650 | ||||||||||
Cash paid, net of cash acquired | 54,043 | ||||||||||
Excess of purchase price included in intangible assets | 27,650 | ||||||||||
Excess of purchase price included in goodwill | 25,890 | ||||||||||
Goodwill | 25,890 | ||||||||||
Hydro Organics Wholesale Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price in excess of fair value | $ 10,700 | ||||||||||
Cash paid, net of cash acquired | 7,800 | ||||||||||
Excess of purchase price included in intangible assets | 5,200 | ||||||||||
Excess of purchase price included in goodwill | $ 5,500 | ||||||||||
Hydro Organics Wholesale Inc | Future Performance | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | 2,600 | ||||||||||
Contingent consideration cap | $ 1,000 | ||||||||||
DMC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price in excess of fair value | $ 33,800 | ||||||||||
Cost of acquisition | 61,000 | ||||||||||
Other intangible assets | 18,700 | ||||||||||
Excess of purchase price included in intangible assets | 18,700 | ||||||||||
Excess of purchase price included in goodwill | 15,058 | $ 15,100 | |||||||||
Goodwill | 15,058 | ||||||||||
Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent interest in ventures | 13.00% | ||||||||||
Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent interest in ventures | 20.00% | ||||||||||
Amounts Previously Recognized as of Acquisition Date | General Pet Supply | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Excess of purchase price included in intangible assets | 0 | ||||||||||
Excess of purchase price included in goodwill | $ 0 | ||||||||||
Amounts Previously Recognized as of Acquisition Date | Bell Nursery | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Excess of purchase price included in intangible assets | 0 | 0 | |||||||||
Excess of purchase price included in goodwill | $ 0 | $ 41,781 | |||||||||
Amounts Previously Recognized as of Acquisition Date | Segrest Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cost of acquisition | 60,043 | ||||||||||
Contingent consideration | 6,000 | ||||||||||
Cash paid, net of cash acquired | $ 54,043 | ||||||||||
Amounts Previously Recognized as of Acquisition Date | DMC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Excess of purchase price included in intangible assets | 0 | ||||||||||
Excess of purchase price included in goodwill | $ 0 |
Acquisitions and Investments _4
Acquisitions and Investments in Joint Ventures - Summary of Recording of Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Apr. 02, 2018 | Mar. 12, 2018 | Apr. 28, 2017 | Oct. 21, 2016 | Dec. 01, 2015 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | Sep. 27, 2014 |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 281,177 | $ 256,275 | $ 231,385 | $ 209,089 | |||||
General Pet Supply | |||||||||
Business Acquisition [Line Items] | |||||||||
Current assets, net of cash and cash equivalents acquired | $ 12,991 | ||||||||
Fixed assets | 1,530 | ||||||||
Other assets | 11 | ||||||||
Goodwill | 5,520 | $ 5,500 | |||||||
Other intangible assets | 8,100 | ||||||||
Current liabilities | (3,506) | ||||||||
Long-term obligations | (361) | ||||||||
Net assets acquired, less cash and cash equivalents | 24,285 | ||||||||
Measurement Period Adjustments | |||||||||
Current assets, net of cash and cash equivalents acquired | 0 | ||||||||
Fixed assets | 516 | ||||||||
Other assets | (14,136) | ||||||||
Goodwill | 5,520 | ||||||||
Other intangible assets | 8,100 | ||||||||
Current liabilities | 0 | ||||||||
Long-term obligations | |||||||||
Net assets acquired, less cash and cash equivalents | 0 | ||||||||
Bell Nursery | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration | $ 10,000 | ||||||||
Current assets, net of cash and cash equivalents acquired | 27,971 | $ 6,052 | |||||||
Fixed assets | 30,661 | 315 | |||||||
Other assets | 0 | 11,968 | |||||||
Goodwill | 7,415 | 0 | |||||||
Other intangible assets | 6,230 | 29,200 | |||||||
Current liabilities | (13,633) | (757) | |||||||
Net assets acquired, less cash and cash equivalents | 58,644 | 46,778 | |||||||
Measurement Period Adjustments | |||||||||
Current assets, net of cash and cash equivalents acquired | (359) | 613 | |||||||
Fixed assets | 383 | 0 | |||||||
Other assets | (11,647) | 11,968 | |||||||
Goodwill | 7,415 | (41,781) | |||||||
Other intangible assets | 6,230 | 29,200 | |||||||
Current liabilities | (2,022) | 0 | |||||||
Net assets acquired, less cash and cash equivalents | 0 | 0 | |||||||
Segrest Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid, net of cash acquired | $ 54,043 | ||||||||
Contingent consideration | 2,700 | ||||||||
Cost of acquisition | 56,743 | ||||||||
Current assets, net of cash and cash equivalents acquired | 7,103 | ||||||||
Fixed assets | 9,253 | ||||||||
Other assets | 0 | ||||||||
Goodwill | 25,890 | ||||||||
Other intangible assets | 27,650 | ||||||||
Current liabilities | (2,075) | ||||||||
Deferred Tax Liability | (11,078) | ||||||||
Net assets acquired, less cash and cash equivalents | 56,743 | ||||||||
Measurement Period Adjustments | |||||||||
Contingent consideration | (3,300) | ||||||||
Current assets, net of cash and cash equivalents acquired | (300) | ||||||||
Fixed assets | 2,242 | ||||||||
Other assets | (47,704) | ||||||||
Goodwill | 25,890 | ||||||||
Other intangible assets | 27,650 | ||||||||
Deferred Tax Liability | (11,078) | ||||||||
Net assets acquired, less cash and cash equivalents | (3,300) | ||||||||
DMC | |||||||||
Business Acquisition [Line Items] | |||||||||
Cost of acquisition | $ 61,000 | ||||||||
Current assets, net of cash and cash equivalents acquired | 41,326 | ||||||||
Fixed assets | 538 | ||||||||
Other assets | 20 | ||||||||
Goodwill | 15,058 | $ 15,100 | |||||||
Other intangible assets | 18,700 | ||||||||
Current liabilities | (14,626) | ||||||||
Net assets acquired, less cash and cash equivalents | 61,016 | ||||||||
Measurement Period Adjustments | |||||||||
Contingent consideration | 101 | ||||||||
Current assets, net of cash and cash equivalents acquired | 156 | ||||||||
Fixed assets | 17 | ||||||||
Other assets | (33,790) | ||||||||
Goodwill | 15,058 | ||||||||
Other intangible assets | 18,700 | ||||||||
Current liabilities | (40) | ||||||||
Amounts Previously Recognized as of Acquisition Date | General Pet Supply | |||||||||
Business Acquisition [Line Items] | |||||||||
Current assets, net of cash and cash equivalents acquired | 12,991 | ||||||||
Fixed assets | 1,014 | ||||||||
Other assets | 14,147 | ||||||||
Goodwill | 0 | ||||||||
Other intangible assets | 0 | ||||||||
Current liabilities | (3,506) | ||||||||
Long-term obligations | (361) | ||||||||
Net assets acquired, less cash and cash equivalents | $ 24,285 | ||||||||
Amounts Previously Recognized as of Acquisition Date | Bell Nursery | |||||||||
Business Acquisition [Line Items] | |||||||||
Current assets, net of cash and cash equivalents acquired | 28,330 | 5,439 | |||||||
Fixed assets | 30,278 | 315 | |||||||
Other assets | 11,647 | 0 | |||||||
Goodwill | 0 | 41,781 | |||||||
Other intangible assets | 0 | 0 | |||||||
Current liabilities | (11,611) | (757) | |||||||
Net assets acquired, less cash and cash equivalents | $ 58,644 | $ 46,778 | |||||||
Amounts Previously Recognized as of Acquisition Date | Segrest Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid, net of cash acquired | 54,043 | ||||||||
Contingent consideration | 6,000 | ||||||||
Cost of acquisition | 60,043 | ||||||||
Current assets, net of cash and cash equivalents acquired | 7,403 | ||||||||
Fixed assets | 7,011 | ||||||||
Other assets | 47,704 | ||||||||
Current liabilities | (2,075) | ||||||||
Net assets acquired, less cash and cash equivalents | $ 60,043 | ||||||||
Amounts Previously Recognized as of Acquisition Date | DMC | |||||||||
Business Acquisition [Line Items] | |||||||||
Current assets, net of cash and cash equivalents acquired | 41,170 | ||||||||
Fixed assets | 521 | ||||||||
Other assets | 33,810 | ||||||||
Goodwill | 0 | ||||||||
Other intangible assets | 0 | ||||||||
Current liabilities | (14,586) | ||||||||
Net assets acquired, less cash and cash equivalents | $ 60,915 |
Concentration of Credit Risk _2
Concentration of Credit Risk and Significant Customers and Suppliers - Additional Information (Detail) | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Concentration Risk [Line Items] | |||
Percentage of net sales | 48.00% | 44.00% | 42.00% |
Percentage of accounts receivable | 46.00% | 44.00% | |
Percentage of accounts receivable including Company's largest customer | 14.00% | 10.00% | |
Percentage of cost of goods sold | 8.00% | 9.00% | 9.00% |
Sales Revenue, Net | Customer Concentration Risk | Customer One | |||
Concentration Risk [Line Items] | |||
Percentage of largest customer accounted of the Company's net sales | 16.00% | 16.00% | 15.00% |
Sales Revenue, Net | Customer Concentration Risk | Customer Two | |||
Concentration Risk [Line Items] | |||
Percentage of largest customer accounted of the Company's net sales | 11.00% | 8.00% | 8.00% |
Sales Revenue, Net | Customer Concentration Risk | Customer Three | |||
Concentration Risk [Line Items] | |||
Percentage of largest customer accounted of the Company's net sales | 8.00% | 8.00% | 8.00% |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balances at Beginning of Period | $ 21,436 | $ 21,069 | $ 19,296 |
Charged/ (Credited) to Costs and Expenses | 2,132 | 2,921 | 6,041 |
Asset Write-Offs | (2,554) | (4,268) | |
Asset Recoveries | 557 | ||
Balances at End of Period | 24,125 | 21,436 | 21,069 |
Reserves for expected returns | $ 6,500 | $ 6,900 | $ 8,200 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net of Allowance for Obsolescence (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 117,539 | $ 116,591 |
Work in progress | 35,691 | 16,394 |
Finished goods | 263,845 | 241,420 |
Supplies | 10,748 | 7,696 |
Total inventories, net | $ 427,823 | $ 382,101 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 572,672 | $ 513,407 |
Accumulated depreciation and amortization | (355,025) | (332,494) |
Property and equipment, net | 217,647 | 180,913 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,183 | 8,942 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 154,787 | 131,280 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,348 | 7,141 |
Machine and warehouse equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 227,727 | 207,878 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 114,878 | 117,360 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27,734 | 27,355 |
Assets under construction | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 24,015 | $ 13,451 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense, including the amortization of intangible assets | $ 47,199 | $ 42,719 | $ 40,001 |
Machine and warehouse equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment reclassified | (13,500) | ||
Assets under construction | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment reclassified | $ 13,500 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | Sep. 27, 2014 | |
Goodwill [Line Items] | ||||
Goodwill | $ 690,738 | $ 665,836 | $ 640,946 | $ 618,650 |
Accumulated impairment losses | (409,561) | (409,561) | (409,561) | (409,561) |
Total goodwill | 281,177 | 256,275 | 231,385 | 209,089 |
Additions in fiscal year | 24,902 | 25,890 | 22,296 | |
Write off related to sale of business | (1,000) | |||
Garden Products Segment | ||||
Goodwill [Line Items] | ||||
Goodwill | 226,471 | 219,056 | 219,056 | 213,583 |
Accumulated impairment losses | (213,583) | (213,583) | (213,583) | (213,583) |
Total goodwill | 12,888 | 5,473 | 5,473 | 0 |
Additions in fiscal year | 7,415 | 5,473 | ||
Write off related to sale of business | ||||
Pet Products Segment | ||||
Goodwill [Line Items] | ||||
Goodwill | 464,267 | 446,780 | 421,890 | 405,067 |
Accumulated impairment losses | (195,978) | (195,978) | (195,978) | (195,978) |
Total goodwill | 268,289 | 250,802 | 225,912 | $ 209,089 |
Additions in fiscal year | $ 17,487 | 25,890 | $ 16,823 | |
Write off related to sale of business | $ (1,000) |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 12 Months Ended |
Sep. 29, 2018Segments | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Number of reportable segments | 2 |
Other Intangible Assets - Compo
Other Intangible Assets - Components of Gross and Net Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | $ 250,700 | $ 201,100 | $ 172,100 |
Accumulated Amortization | (71,200) | (57,800) | (49,000) |
Accumulated Impairment | (27,200) | (27,200) | (27,200) |
Net Carrying Value | 152,265 | 116,067 | 95,900 |
Marketing-Related Intangible Assets | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | 89,200 | 79,600 | 77,900 |
Accumulated Amortization | (14,200) | (12,700) | (11,300) |
Accumulated Impairment | (26,000) | (26,000) | (26,000) |
Net Carrying Value | 49,000 | 40,900 | 40,600 |
Other Acquired Intangible Assets | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | 33,200 | 29,900 | 28,600 |
Accumulated Amortization | (14,500) | (12,900) | (11,600) |
Accumulated Impairment | (1,200) | (1,200) | (1,200) |
Net Carrying Value | 17,500 | 15,800 | 15,800 |
Amortizable | Marketing-Related Intangible Assets | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | 18,600 | 16,900 | 14,900 |
Accumulated Amortization | (14,200) | (12,700) | (11,300) |
Accumulated Impairment | 0 | 0 | 0 |
Net Carrying Value | 4,400 | 4,200 | 3,600 |
Amortizable | Customer-Related Intangible Assets | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | 128,300 | 91,600 | 65,600 |
Accumulated Amortization | (42,500) | (32,200) | (26,100) |
Accumulated Impairment | 0 | 0 | 0 |
Net Carrying Value | 85,800 | 59,400 | 39,500 |
Amortizable | Other Acquired Intangible Assets | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | 25,400 | 22,100 | 20,800 |
Accumulated Amortization | (14,500) | (12,900) | (11,600) |
Accumulated Impairment | 0 | 0 | 0 |
Net Carrying Value | 10,900 | 9,200 | 9,200 |
Nonamortizable | Marketing-Related Intangible Assets | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | 70,600 | 62,700 | 63,000 |
Accumulated Amortization | 0 | 0 | 0 |
Accumulated Impairment | (26,000) | (26,000) | (26,000) |
Net Carrying Value | 44,600 | 36,700 | 37,000 |
Nonamortizable | Other Acquired Intangible Assets | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross | 7,800 | 7,800 | 7,800 |
Accumulated Amortization | 0 | 0 | 0 |
Accumulated Impairment | (1,200) | (1,200) | (1,200) |
Net Carrying Value | $ 6,600 | $ 6,600 | $ 6,600 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | Jun. 30, 2018 | Dec. 24, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets, impairment charge | $ 0 | $ 1,800,000 | $ 1,800,000 | ||
Amortization expense for intangibles | 12,700,000 | $ 8,800,000 | $ 5,800,000 | ||
Estimated annual amortization expense related to acquired intangible assets, 2019 | 12,000,000 | ||||
Estimated annual amortization expense related to acquired intangible assets, 2020 | 12,000,000 | ||||
Estimated annual amortization expense related to acquired intangible assets, 2021 | 12,000,000 | ||||
Estimated annual amortization expense related to acquired intangible assets, 2022 | 12,000,000 | ||||
Estimated annual amortization expense related to acquired intangible assets, 2023 | $ 12,000,000 | ||||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining lives of acquired intangible assets | 3 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining lives of acquired intangible assets | 25 years | ||||
Marketing-Related Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining lives of acquired intangible assets | 4 years | ||||
Customer-Related Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining lives of acquired intangible assets | 10 years | ||||
Other Acquired Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining lives of acquired intangible assets | 11 years | ||||
K&H, Bell Nursery, and General Pet Supply | Marketing-Related Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, net | $ 9,600,000 | ||||
K&H, Bell Nursery, and General Pet Supply | Customer-Related Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, net | 36,700,000 | ||||
K&H, Bell Nursery, and General Pet Supply | Other Acquired Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, net | $ 3,300,000 | ||||
Segrest Inc. | Marketing-Related Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, net | $ 2,000,000 | ||||
Segrest Inc. | Customer-Related Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, net | 27,300,000 | ||||
Segrest Inc. | Other Acquired Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, net | $ 1,300,000 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Components of long-term debt | ||
Unamortized debt issuance costs | $ (8,400) | |
Total | 692,153 | $ 395,653 |
Less current portion | (122) | (375) |
Long-term portion | 692,031 | 395,278 |
Senior notes, interest at 6.125%, payable semi-annually, principal due November 2023 | ||
Components of long-term debt | ||
Unamortized debt issuance costs | (4,000) | |
Senior notes, interest at 5.125%, payable semi-annually, principal due February 2028 | ||
Components of long-term debt | ||
Unamortized debt issuance costs | (4,400) | |
Senior notes | ||
Components of long-term debt | ||
Unamortized debt issuance costs | (8,425) | (4,840) |
Total | 691,575 | 395,160 |
Senior notes | Senior notes, interest at 6.125%, payable semi-annually, principal due November 2023 | ||
Components of long-term debt | ||
Gross carrying value | 400,000 | 400,000 |
Senior notes | Senior notes, interest at 5.125%, payable semi-annually, principal due February 2028 | ||
Components of long-term debt | ||
Gross carrying value | 300,000 | 0 |
Total | 300,000 | |
Asset-based revolving credit facility | Asset-based revolving credit facility, interest at LIBOR plus a margin of 1.25% to 1.50% or Base Rate plus a margin of 0.25% to 0.50%, final maturity April 2021 | ||
Components of long-term debt | ||
Total | 0 | 0 |
Other notes payable | ||
Components of long-term debt | ||
Total | $ 578 | $ 493 |
Long-Term Debt - Components o_2
Long-Term Debt - Components of Long-Term Debt 2 (Detail) | 12 Months Ended | |||
Sep. 29, 2018 | Dec. 14, 2017 | Sep. 30, 2017 | Nov. 09, 2015 | |
Senior notes | Senior notes, interest at 6.125%, payable semi-annually, principal due November 2023 | ||||
Components of long-term debt | ||||
Debt instrument interest rate stated, percentage | 6.125% | 6.125% | ||
Senior notes | Senior notes, interest at 5.125%, payable semi-annually, principal due February 2028 | ||||
Components of long-term debt | ||||
Debt instrument interest rate stated, percentage | 5.125% | 5.125% | 5.125% | |
Asset-based revolving credit facility | Asset-based revolving credit facility, interest at LIBOR plus a margin of 1.25% to 1.50% or Base Rate plus a margin of 0.25% to 0.50%, final maturity April 2021 | LIBOR | Minimum | ||||
Components of long-term debt | ||||
Applicable interest margin rate on the credit facility | 1.25% | |||
Asset-based revolving credit facility | Asset-based revolving credit facility, interest at LIBOR plus a margin of 1.25% to 1.50% or Base Rate plus a margin of 0.25% to 0.50%, final maturity April 2021 | LIBOR | Maximum | ||||
Components of long-term debt | ||||
Applicable interest margin rate on the credit facility | 1.50% | |||
Asset-based revolving credit facility | Asset-based revolving credit facility, interest at LIBOR plus a margin of 1.25% to 1.50% or Base Rate plus a margin of 0.25% to 0.50%, final maturity April 2021 | Base Rate | Minimum | ||||
Components of long-term debt | ||||
Applicable interest margin rate on the credit facility | 0.25% | |||
Asset-based revolving credit facility | Asset-based revolving credit facility, interest at LIBOR plus a margin of 1.25% to 1.50% or Base Rate plus a margin of 0.25% to 0.50%, final maturity April 2021 | Base Rate | Maximum | ||||
Components of long-term debt | ||||
Applicable interest margin rate on the credit facility | 0.50% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Dec. 14, 2017 | Apr. 22, 2016 | Nov. 09, 2015 | Dec. 31, 2015 | Sep. 29, 2018 | Sep. 30, 2017 |
Components of long-term debt | ||||||
Unamortized debt issuance costs | $ 8,400,000 | |||||
Senior Notes Due February 2028 | ||||||
Components of long-term debt | ||||||
Unamortized debt issuance costs | 4,400,000 | |||||
Senior Notes Due November 2023 | ||||||
Components of long-term debt | ||||||
Unamortized debt issuance costs | 4,000,000 | |||||
Senior notes | ||||||
Components of long-term debt | ||||||
Unamortized debt issuance costs | $ 8,425,000 | $ 4,840,000 | ||||
Senior notes | Senior Notes Due February 2028 | ||||||
Components of long-term debt | ||||||
Debt, aggregate principal amount | $ 300,000,000 | |||||
Debt instrument interest rate stated, percentage | 5.125% | 5.125% | 5.125% | |||
Debt issuance costs | $ 4,800,000 | |||||
Redemption percentage | 35.00% | |||||
Debt redemption price percentage | 105.125% | |||||
Senior notes | Senior Notes Due February 2028 | Redemption period one | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 102.563% | |||||
Senior notes | Senior Notes Due February 2028 | Redemption period two | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 101.708% | |||||
Senior notes | Senior Notes Due February 2028 | Redemption period three | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 100.854% | |||||
Senior notes | Senior Notes Due February 2028 | Redemption period four | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 100.00% | |||||
Senior notes | Senior Notes Due November 2023 | ||||||
Components of long-term debt | ||||||
Debt, aggregate principal amount | $ 400,000,000 | |||||
Debt instrument interest rate stated, percentage | 6.125% | 6.125% | ||||
Debt issuance costs | $ 6,300,000 | |||||
Debt redemption price percentage | 101.00% | |||||
Senior notes | Senior Notes Due November 2023 | Redemption period one | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 104.594% | |||||
Senior notes | Senior Notes Due November 2023 | Redemption period two | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 103.063% | |||||
Senior notes | Senior Notes Due November 2023 | Redemption period three | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 101.531% | |||||
Senior notes | Senior Notes Due November 2023 | Redemption period four | ||||||
Components of long-term debt | ||||||
Debt redemption price percentage | 100.00% | |||||
Senior notes | Senior Notes Due March 2018 | ||||||
Components of long-term debt | ||||||
Debt, aggregate principal amount | $ 400,000,000 | |||||
Debt instrument interest rate stated, percentage | 8.25% | |||||
Debt redemption price percentage | 102.063% | |||||
Asset-based revolving credit facility | Asset-based Revolving Credit Facility | ||||||
Components of long-term debt | ||||||
Debt issuance costs | $ 1,200,000 | |||||
Credit facility, maximum principal amount | $ 400,000,000 | |||||
Credit facility, additional borrowings available | $ 200,000,000 | |||||
Credit facility, maturity date | Apr. 22, 2021 | |||||
Borrowings outstanding | 0 | |||||
Letters of credit outstanding | 0 | |||||
Other letters of credit outstanding | 3,300,000 | |||||
Borrowing availability | $ 394,800,000 | |||||
Credit facility, base rate computation, option second description, basis spread percentage | 0.50% | |||||
Credit facility, basis percentage for calculation of variable rate spread | 1.00% | |||||
Debt instrument fixed charge coverage ratio | 1 | |||||
Asset-based revolving credit facility | Asset-based Revolving Credit Facility | LIBOR | ||||||
Components of long-term debt | ||||||
Applicable interest margin rate on the credit facility | 1.25% | |||||
Applicable interest rate on the credit facility | 3.50% | |||||
Asset-based revolving credit facility | Asset-based Revolving Credit Facility | Base Rate | ||||||
Components of long-term debt | ||||||
Applicable interest margin rate on the credit facility | 0.25% | |||||
Applicable interest rate on the credit facility | 5.50% | |||||
Asset-based revolving credit facility | Asset-based Revolving Credit Facility | Minimum | LIBOR | ||||||
Components of long-term debt | ||||||
Applicable interest margin rate on the credit facility | 1.25% | |||||
Asset-based revolving credit facility | Asset-based Revolving Credit Facility | Minimum | Base Rate | ||||||
Components of long-term debt | ||||||
Applicable interest margin rate on the credit facility | 0.25% | |||||
Asset-based revolving credit facility | Asset-based Revolving Credit Facility | Maximum | LIBOR | ||||||
Components of long-term debt | ||||||
Applicable interest margin rate on the credit facility | 1.50% | |||||
Asset-based revolving credit facility | Asset-based Revolving Credit Facility | Maximum | Base Rate | ||||||
Components of long-term debt | ||||||
Applicable interest margin rate on the credit facility | 0.50% |
Long-Term Debt - Scheduled Prin
Long-Term Debt - Scheduled Principal Repayments on Long-Term Debt (Detail) $ in Thousands | Sep. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 122 |
2,020 | 272 |
2,021 | 93 |
2,022 | 76 |
2,023 | 15 |
Thereafter | 700,000 |
Total | 700,578 |
Unamortized debt issuance costs | $ 8,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Jun. 27, 2018USD ($)claim | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 24, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||
Outstanding letters of credit | $ 3,300 | |||
Restricted cash | 10,899 | $ 12,645 | $ 10,900 | |
Estimated annual purchase commitments for fiscal 2019 | 88,600 | |||
Estimated annual purchase commitments for fiscal 2020 | 35,000 | |||
Estimated annual purchase commitments for fiscal 2021 | 23,300 | |||
Estimated annual purchase commitments for fiscal 2022 | 15,700 | |||
Estimated annual purchase commitments for fiscal 2023 | 10,100 | |||
Estimated annual purchase commitments for thereafter | $ 400 | |||
Minimum operating lease agreement terms (in years) | 1 year | |||
Maximum operating lease agreement terms (in years) | 11 years | |||
Operating lease rental expense | $ 35,400 | $ 31,700 | $ 25,000 | |
Number of claims | claim | 3 | |||
Awarded damages | $ 12,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Aggregate Minimum Annual Payments on Non-Cancelable Operating Leases (Detail) $ in Thousands | Sep. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 32,905 |
2,020 | 27,395 |
2,021 | 18,398 |
2,022 | 12,401 |
2,023 | 6,728 |
Thereafter | 22,546 |
Total | $ 120,373 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Current: | |||
Federal | $ 5,728 | $ 32,755 | $ 18,592 |
State | 2,319 | 3,034 | 2,140 |
Foreign | 91 | 121 | 110 |
Total | 8,138 | 35,910 | 20,842 |
Deferred: | |||
Federal | (3,676) | 11,227 | 2,796 |
State | (1,162) | (1,038) | 463 |
Foreign | 5 | 600 | (48) |
Total | (4,833) | 10,789 | 3,211 |
Total | $ 3,305 | $ 46,699 | $ 24,053 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 24.50% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 0.90% | 2.40% | 2.10% |
Other permanent differences | (0.10%) | 0.30% | (1.60%) |
Adjustment of prior year accruals | 0.00% | (0.30%) | (0.60%) |
Credits | (0.80%) | (0.60%) | (1.00%) |
Rate change - Tax reform | (16.90%) | 0.00% | 0.00% |
Stock based compensation | (5.40%) | 0.00% | 0.00% |
Other | 0.40% | 0.10% | 0.60% |
Effective income tax rate (benefit) | 2.60% | 36.90% | 34.50% |
Income Taxes - Tax Effect of Te
Income Taxes - Tax Effect of Temporary Differences and Carryforwards which Give Rise to Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Current: | ||
Allowance for doubtful accounts, Deferred Tax Assets | $ 5,613 | $ 7,790 |
Inventory write-downs, Deferred Tax Assets | 6,819 | 10,406 |
Prepaid expenses, Deferred Tax Assets | 0 | 0 |
Nondeductible reserves, Deferred Tax Assets | 983 | 1,485 |
State taxes, Deferred Tax Assets | 74 | 276 |
Employee benefits, Deferred Tax Assets | 5,578 | 10,007 |
Allowance for doubtful accounts, Deferred Tax Liabilities | 0 | 0 |
Inventory write-downs, Deferred Tax Liabilities | 0 | 0 |
Prepaid expenses, Deferred Tax Liabilities | 1,408 | 1,740 |
Nondeductible reserves, Deferred Tax Liabilities | 0 | 0 |
State taxes, Deferred Tax Liabilities | 0 | 0 |
Employee benefits, Deferred Tax Liabilities | 0 | 0 |
Noncurrent: | ||
Depreciation and amortization, Deferred Tax Assets | 0 | 0 |
Equity loss, Deferred Tax Assets | 2,053 | 4,243 |
State net operating loss carryforward, Deferred Tax Assets | 6,722 | 5,182 |
Stock based compensation, Deferred Tax Assets | 2,541 | 3,097 |
State credits, Deferred Tax Assets | 2,742 | 2,403 |
Other, Deferred Tax Assets | 4,240 | 5,768 |
Valuation allowance, Deferred Tax Assets | (6,809) | (6,527) |
Depreciation and amortization, Deferred Tax Liabilities | 65,983 | 84,059 |
Equity loss, Deferred Tax Liabilities | 0 | 0 |
State net operating loss carryforward, Deferred Tax Liabilities | 0 | 0 |
Stock based compensation, Deferred Tax Liabilities | 0 | 0 |
State credits, Deferred Tax Liabilities | 0 | 0 |
Other, Deferred Tax Liabilities | 0 | 0 |
Valuation allowance, Deferred Tax Liabilities | 0 | 0 |
Total, Deferred Tax Assets | 30,556 | 44,130 |
Total, Deferred Tax Liabilities | $ 67,391 | $ 85,799 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Sep. 29, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
State tax net operating losses | $ 116,600,000 | |
Foreign losses | 4,300,000 | |
State income tax credits | 3,500,000 | |
Valuation allowances | 6,809,000 | $ 6,527,000 |
Accrued interest (less than) | 100,000 | |
Penalties were accrued related to uncertain tax positions | 0 | |
Unrecognized tax benefit may be recognized within twelve months as a result of a settlement | 500,000 | |
Decrease in unrecognized tax benefits | $ 100,000 |
Income Taxes - Activity Related
Income Taxes - Activity Related to Company's Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance | $ 325 | $ 254 |
Increases related to prior year tax positions | 138 | 4 |
Increases related to current year tax positions | 83 | 67 |
Decreases related to prior year tax positions | (28) | 0 |
Settlements | 0 | 0 |
Decreases related to lapse of statute of limitations | 0 | 0 |
Ending Balance | $ 518 | $ 325 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granting of options | 547,000 | ||
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 11.6 | $ 11.1 | $ 8.4 |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted stock | 227,000 | ||
Restricted Stock Awards | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 5.4 | 5.8 | 4.5 |
Stock Options | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3.9 | 2.9 | 2.2 |
401 (K) | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2.3 | $ 2.4 | $ 1.7 |
2003 Plan | Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, number of shares | 5,800,000 | ||
Shares reserved for outstanding equity awards | 3,200,000 | ||
Shares reserved for future awards | 4,600,000 | ||
2003 Plan | Class A common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, number of shares | 19,700,000 | ||
Shares reserved for outstanding equity awards | 0 | ||
Shares reserved for future awards | 11,500,000 | ||
2003 Plan | Preferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, number of shares | 500,000,000 | ||
Shares reserved for outstanding equity awards | 0 | ||
Shares reserved for future awards | 500,000 | ||
Director Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granting of options | 200,000 | ||
Director Plan | Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted stock | 20,000 |
Stock-Based Compensation - Ad_2
Stock-Based Compensation - Additional Information 1 (Detail) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Sep. 29, 2018USD ($)Installment$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 24, 2016USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend during expected term (in usd per share) | $ 0 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of vesting installments | Installment | 4 | ||
Expiration period approximately | 6 years | ||
Expected life of option award | 3 years 8 months | ||
Stock price volatility (percent) | 31.60% | 31.50% | 30.80% |
Risk free interest rates (percent) | 2.40% | 2.00% | 1.30% |
Weighted average grant date fair value of options granted (in usd per share) | $ / shares | $ 9.80 | $ 8.14 | $ 3.04 |
Total intrinsic value of options exercised | $ 16,600,000 | $ 44,000,000 | $ 22,600,000 |
Total unrecognized compensation cost | $ 8,600,000 | ||
Nonvested stock options remaining weighted average vesting period | 3 years | ||
Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options to purchase common stock (in usd per share) | $ / shares | $ 6.43 | $ 6.43 | $ 6.43 |
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options to purchase common stock (in usd per share) | $ / shares | $ 38.10 | $ 33.15 | $ 15.56 |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 14,000,000 | ||
Nonvested stock options remaining weighted average vesting period | 3 years | ||
Restricted stock awards outstanding, shares | shares | 874 | 1,137 | |
Restricted Stock Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based payment award vesting conditional period of employment | 4 years | 4 years | |
Restricted Stock Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based payment award vesting conditional period of employment | 5 years | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Number of Shares | |||
Beginning Balance, Outstanding, Number of Shares | 2,471 | ||
Granted, Number of Shares | 547 | ||
Exercised, Number of Shares | (627) | ||
Cancelled or expired, Number of Shares | (62) | ||
Ending Balance, Outstanding, Number of Shares | 2,329 | 2,471 | |
Weighted Average Exercise Price per Share | |||
Beginning Balance, Outstanding, Weighted Average Exercise Price per share (in usd per share) | $ 16.79 | $ 11.46 | |
Granted, Weighted Average Exercise Price per share (in usd per share) | 36.72 | ||
Exercised, Weighted Average Exercise Price per share (in usd per share) | 12.18 | ||
Cancelled or expired, Weighted Average Exercise Price per share (in usd per share) | 22.51 | ||
Ending Balance, Outstanding, Weighted Average Exercise Price per share (in usd per share) | $ 22.56 | $ 16.79 | $ 11.46 |
Exercisable, Number of Shares | 636 | 458 | 1,732 |
Expected to vest, Number of Shares | 1,560 | ||
Exercised, Weighted Average Exercise Price per share (in usd per share) | $ 16.35 | $ 10.80 | |
Expected to vest, Weighted Average Exercise Price per share (in usd per share) | $ 24.90 | ||
Outstanding, Weighted Average Remaining Contractual Life | 4 years | 4 years | 2 years |
Exercisable, Weighted Average Remaining Contractual Life | 3 years | 2 years | |
Expected to vest, Weighted Average Remaining Contractual Life | 4 years | ||
Outstanding, Aggregate Intrinsic Value | $ 26,543 | $ 50,420 | $ 22,954 |
Exercisable, Aggregate Intrinsic Value | 10,731 | $ 12,097 | |
Expected to Vest, Aggregate Intrinsic Value | $ 12,861 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Award Activity (Detail) - Restricted Stock Awards shares in Thousands | 12 Months Ended |
Sep. 29, 2018$ / sharesshares | |
Number of Shares | |
Beginning Balance, Nonvested, Number of Shares | shares | 1,137 |
Granted, Number of Shares | shares | 227 |
Vested, Number of Shares | shares | (482) |
Forfeited, Number of Shares | shares | (8) |
Ending Balance, Nonvested, Number of Shares | shares | 874 |
Weighted Average Grant Date Fair Value per Share | |
Beginning Balance, Nonvested, Weighted Average Grant Date Fair Value per Share (in usd per share) | $ / shares | $ 14.34 |
Granted, Weighted Average Grant Date Fair Value per Share (in usd per share) | $ / shares | 37.78 |
Vested, Weighted Average Grant Date Fair Value per Share (in usd per share) | $ / shares | 10.57 |
Forfeited, Weighted Average Grant Date Fair Value per Share (in usd per share) | $ / shares | 8.39 |
Ending Balance, Nonvested, Weighted Average Grant Date Fair Value per Share (in usd per share) | $ / shares | $ 22.37 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2018USD ($)$ / sharesshares | Sep. 29, 2018USD ($)vote$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 24, 2016USD ($) | Sep. 24, 2011USD ($) | |
Class of Stock [Line Items] | |||||
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 | |||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Proceeds from issuance of common stock, net of offering costs | $ | $ 195,631,000 | $ 0 | $ 324,000 | ||
Common stock | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (in shares) | 80,000,000 | 80,000,000 | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, shares outstanding | 12,145,135 | 12,160,023 | |||
Authorized amount to repurchase stock | $ | $ 100,000,000 | ||||
Aggregate stock repurchased shares | 7,900,000 | ||||
Aggregate stock repurchased value | $ | $ 65,000,000 | ||||
Class A common stock | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, shares outstanding | 43,953,265 | 38,019,736 | |||
Shares issued and sold (in shares) | 5,500,000 | ||||
Shares issued and sold (in dollars per share) | $ / shares | $ 37 | ||||
Shares issued upon exercise of option (in shares) | 550,000 | ||||
Proceeds from issuance of common stock, net of offering costs | $ | $ 195,600,000 | ||||
Class B stock | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (in shares) | 3,000,000 | 3,000,000 | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, shares outstanding | 1,652,262 | 1,652,262 | |||
Percentage of vote cast for shares (percent) | 49.00% | ||||
Convertible shares conversion ratio | 1 | ||||
Minimum | Class B stock | |||||
Class of Stock [Line Items] | |||||
Number of voting powers | vote | 1 | ||||
Maximum | Class B stock | |||||
Class of Stock [Line Items] | |||||
Number of voting powers | vote | 10 |
Earnings Per Share - Numerators
Earnings Per Share - Numerators and Denominators in Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 24, 2017 | Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) available to common shareholders basic | $ 123,594 | $ 78,828 | $ 44,514 | ||||||||
Net income (loss) available to common shareholders diluted | $ 123,594 | $ 78,828 | $ 44,514 | ||||||||
Net income (loss) available to common shareholders basic (in shares) | 54,059 | 51,134 | 50,871 | 50,730 | 50,654 | 50,507 | 50,079 | 49,665 | 51,716 | 50,230 | 48,964 |
Options to purchase common stock (in shares) | 996 | 992 | 1,335 | ||||||||
Restricted shares (in shares) | 629 | 598 | 776 | ||||||||
Net income (loss) available to common shareholders diluted (in shares) | 55,376 | 52,575 | 52,658 | 52,695 | 51,935 | 51,825 | 51,983 | 51,810 | 53,341 | 51,820 | 51,075 |
Net income (loss) available to common shareholders basic (in usd per share) | $ 0.20 | $ 0.81 | $ 0.89 | $ 0.52 | $ 0.08 | $ 0.64 | $ 0.69 | $ 0.15 | $ 2.39 | $ 1.57 | $ 0.91 |
Options to purchase common stock (in usd per share) | (0.05) | (0.03) | (0.02) | ||||||||
Restricted shares (in usd per share) | (0.02) | (0.02) | (0.02) | ||||||||
Net income (loss) available to common shareholders diluted (in usd per share) | $ 0.19 | $ 0.79 | $ 0.86 | $ 0.50 | $ 0.08 | $ 0.62 | $ 0.67 | $ 0.15 | $ 2.32 | $ 1.52 | $ 0.87 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock outstanding, not included in computation of diluted earnings per share (in shares) | 2 | 31 |
Quarterly Financial Data - Un_3
Quarterly Financial Data - Unaudited - Schedule of Quarterly Financial Data - Unaudited (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 24, 2017 | Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | $ 502,314 | $ 657,943 | $ 613,094 | $ 442,011 | $ 490,464 | $ 574,592 | $ 569,924 | $ 419,498 | $ 2,215,362 | $ 2,054,478 | $ 1,829,017 | ||
Gross profit | 147,018 | 202,064 | 194,457 | 131,837 | 145,328 | 183,273 | 183,529 | 120,678 | 675,376 | 632,808 | 553,050 | ||
Net income (loss) attributable to Central Garden & Pet Company | $ 10,568 | $ 41,545 | $ 45,234 | $ 26,247 | $ 4,259 | $ 32,248 | $ 34,684 | $ 7,637 | $ 123,594 | $ 78,828 | $ 44,514 | ||
Net income per share: | |||||||||||||
Basic (in usd per share) | $ 0.20 | $ 0.81 | $ 0.89 | $ 0.52 | $ 0.08 | $ 0.64 | $ 0.69 | $ 0.15 | $ 2.39 | $ 1.57 | $ 0.91 | ||
Diluted (in usd per share) | $ 0.19 | $ 0.79 | $ 0.86 | $ 0.50 | $ 0.08 | $ 0.62 | $ 0.67 | $ 0.15 | $ 2.32 | $ 1.52 | $ 0.87 | ||
Weighted average common shares outstanding: | |||||||||||||
Basic (in shares) | 54,059 | 51,134 | 50,871 | 50,730 | 50,654 | 50,507 | 50,079 | 49,665 | 51,716 | 50,230 | 48,964 | ||
Diluted (in shares) | 55,376 | 52,575 | 52,658 | 52,695 | 51,935 | 51,825 | 51,983 | 51,810 | 53,341 | 51,820 | 51,075 | ||
Provisional tax benefit | $ 5,200 | $ 16,300 | $ 21,500 | ||||||||||
Garden segment | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||
Gain on sale of a distribution facility | $ 2,000 |
Transactions with Related Par_2
Transactions with Related Parties - Additional Information (Detail) - Contract Packaging, Inc. - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Related Party Transaction [Line Items] | |||
Percentage of shares held by CPI in Tech Pac | 20.00% | 20.00% | 20.00% |
Amount due to related party | $ 2.1 | $ 0.6 | |
Tech Pac | |||
Related Party Transaction [Line Items] | |||
Purchases products from related party | $ 51.1 | $ 37 | $ 36.5 |
Business Segment Data - Additio
Business Segment Data - Additional Information (Detail) | 12 Months Ended |
Sep. 29, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segment Data - Class o
Business Segment Data - Class of Similar Products Which Represented Approximately 10% or More of Company's Consolidated Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 24, 2017 | Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 502,314 | $ 657,943 | $ 613,094 | $ 442,011 | $ 490,464 | $ 574,592 | $ 569,924 | $ 419,498 | $ 2,215,362 | $ 2,054,478 | $ 1,829,017 |
Other pet products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 896,500 | 841,400 | 689,300 | ||||||||
Other garden supplies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 528,800 | 464,900 | 331,300 | ||||||||
Dog and cat products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 444,400 | 405,000 | 326,000 | ||||||||
Garden controls and fertilizer products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 345,700 | 343,200 | 298,800 | ||||||||
Wild bird feed | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 0 | $ 0 | $ 183,600 |
Business Segment Data - Financi
Business Segment Data - Financial Information Relating to Company's Business Segments (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017USD ($) | Jun. 24, 2017USD ($) | Mar. 25, 2017USD ($) | Dec. 24, 2016USD ($) | Sep. 24, 2016USD ($)JointVenture | Jun. 25, 2016USD ($) | Mar. 26, 2016USD ($) | Dec. 26, 2015USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 24, 2016USD ($)JointVenture | |
Net sales: | |||||||||||
Net sales | $ 502,314 | $ 657,943 | $ 613,094 | $ 442,011 | $ 490,464 | $ 574,592 | $ 569,924 | $ 419,498 | $ 2,215,362 | $ 2,054,478 | $ 1,829,017 |
Income (loss) from operations: | |||||||||||
Operating income (loss) | 167,336 | 156,112 | 129,358 | ||||||||
Interest expense | (39,196) | (28,209) | (42,847) | ||||||||
Interest income | 3,145 | 147 | 140 | ||||||||
Other expense, net | (3,860) | (1,621) | (17,013) | ||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 127,425 | 126,429 | 69,638 | ||||||||
Income tax expense | 3,305 | 46,699 | 24,053 | ||||||||
Net income including noncontrolling interest | 124,120 | 79,730 | 45,585 | ||||||||
Net income attributable to noncontrolling interest | 526 | 902 | 1,071 | ||||||||
Net income attributable to Central Garden & Pet Company | 10,568 | $ 41,545 | $ 45,234 | $ 26,247 | 4,259 | $ 32,248 | $ 34,684 | $ 7,637 | 123,594 | 78,828 | 44,514 |
Assets: | |||||||||||
Total assets | 1,306,906 | $ 1,180,683 | 1,907,209 | 1,306,906 | 1,180,683 | ||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 47,199 | 42,719 | 40,001 | ||||||||
Expenditures for long-lived assets: | |||||||||||
Expenditures for long-lived assets: | 37,845 | 44,659 | 27,622 | ||||||||
Indefinite-lived intangible assets, impairment charge | 0 | 1,800 | 1,800 | ||||||||
Non-cash impairment charge | 0 | 0 | $ 19,367 | ||||||||
Number of joint ventures | JointVenture | 2 | 2 | |||||||||
Purishield LLC and Ceregenin LLC | |||||||||||
Expenditures for long-lived assets: | |||||||||||
Non-cash impairment charge | $ 16,600 | ||||||||||
Operating Segments | Pet segment | |||||||||||
Net sales: | |||||||||||
Net sales | 1,340,899 | 1,246,354 | 1,081,853 | ||||||||
Income (loss) from operations: | |||||||||||
Operating income (loss) | 140,353 | 131,622 | 119,930 | ||||||||
Assets: | |||||||||||
Total assets | 612,337 | $ 508,879 | 683,938 | 612,337 | 508,879 | ||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 29,889 | 26,044 | 22,556 | ||||||||
Expenditures for long-lived assets: | |||||||||||
Expenditures for long-lived assets: | 26,979 | 38,970 | 18,939 | ||||||||
Indefinite-lived intangible assets, impairment charge | 1,800 | ||||||||||
Operating Segments | Garden segment | |||||||||||
Net sales: | |||||||||||
Net sales | 874,463 | 808,124 | 747,164 | ||||||||
Income (loss) from operations: | |||||||||||
Operating income (loss) | 95,551 | 87,298 | 70,317 | ||||||||
Assets: | |||||||||||
Total assets | 311,026 | 304,901 | 407,483 | 311,026 | 304,901 | ||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 8,744 | 6,267 | 6,098 | ||||||||
Expenditures for long-lived assets: | |||||||||||
Expenditures for long-lived assets: | 8,016 | 4,948 | 4,750 | ||||||||
Corporate | |||||||||||
Income (loss) from operations: | |||||||||||
Operating income (loss) | (68,568) | (62,808) | (60,889) | ||||||||
Assets: | |||||||||||
Total assets | $ 383,543 | $ 366,903 | 815,788 | 383,543 | 366,903 | ||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 8,566 | 10,408 | 11,347 | ||||||||
Expenditures for long-lived assets: | |||||||||||
Expenditures for long-lived assets: | $ 2,850 | $ 741 | $ 3,933 |
Consolidating Condensed Finan_3
Consolidating Condensed Financial Information of Guarantor Subsidiaries - Additional Information (Detail) | 12 Months Ended |
Sep. 29, 2018 | |
Guarantor Subsidiaries | |
Condensed Financial Statements, Captions [Line Items] | |
Collective ownership percentage on guarantor subsidiaries | 100.00% |
Consolidating Condensed Finan_4
Consolidating Condensed Financial Information of Guarantor Subsidiaries - Consolidating Condensed Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 24, 2017 | Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | $ 502,314 | $ 657,943 | $ 613,094 | $ 442,011 | $ 490,464 | $ 574,592 | $ 569,924 | $ 419,498 | $ 2,215,362 | $ 2,054,478 | $ 1,829,017 |
Cost of goods sold and occupancy | 1,539,986 | 1,421,670 | 1,275,967 | ||||||||
Gross profit | 147,018 | 202,064 | 194,457 | 131,837 | 145,328 | 183,273 | 183,529 | 120,678 | 675,376 | 632,808 | 553,050 |
Selling, general and administrative expenses | 508,040 | 476,696 | 423,692 | ||||||||
Operating income | 167,336 | 156,112 | 129,358 | ||||||||
Interest expense | (39,196) | (28,209) | (42,847) | ||||||||
Interest income | 3,145 | 147 | 140 | ||||||||
Other expense, net | (3,860) | (1,621) | (17,013) | ||||||||
Income before income taxes and noncontrolling interest | 127,425 | 126,429 | 69,638 | ||||||||
Income tax expense | 3,305 | 46,699 | 24,053 | ||||||||
Equity in earnings of affiliates | 0 | 0 | 0 | ||||||||
Net income including noncontrolling interest | 124,120 | 79,730 | 45,585 | ||||||||
Noncontrolling interest | 526 | 902 | 1,071 | ||||||||
Net income attributable to Central Garden & Pet Company | $ 10,568 | $ 41,545 | $ 45,234 | $ 26,247 | $ 4,259 | $ 32,248 | $ 34,684 | $ 7,637 | 123,594 | 78,828 | 44,514 |
Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | (80,349) | (81,536) | (79,468) | ||||||||
Cost of goods sold and occupancy | (74,379) | (75,759) | (73,876) | ||||||||
Gross profit | (5,970) | (5,777) | (5,592) | ||||||||
Selling, general and administrative expenses | (5,970) | (5,777) | (5,592) | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Income before income taxes and noncontrolling interest | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Equity in earnings of affiliates | (169,130) | (100,502) | (95,725) | ||||||||
Net income including noncontrolling interest | (169,130) | (100,502) | (95,725) | ||||||||
Noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to Central Garden & Pet Company | (169,130) | (100,502) | (95,725) | ||||||||
Parent | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 730,439 | 685,998 | 587,579 | ||||||||
Cost of goods sold and occupancy | 568,145 | 534,682 | 466,543 | ||||||||
Gross profit | 162,294 | 151,316 | 121,036 | ||||||||
Selling, general and administrative expenses | 167,849 | 154,267 | 138,556 | ||||||||
Operating income | (5,555) | (2,951) | (17,520) | ||||||||
Interest expense | (38,855) | (28,051) | (42,700) | ||||||||
Interest income | 3,138 | 146 | 136 | ||||||||
Other expense, net | (4,269) | (2,379) | (16,925) | ||||||||
Income before income taxes and noncontrolling interest | (45,541) | (33,235) | (77,009) | ||||||||
Income tax expense | (1,138) | (11,981) | (26,422) | ||||||||
Equity in earnings of affiliates | 167,997 | 100,082 | 95,101 | ||||||||
Net income including noncontrolling interest | 123,594 | 78,828 | 44,514 | ||||||||
Noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to Central Garden & Pet Company | 123,594 | 78,828 | 44,514 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 167,584 | 79,681 | 82,567 | ||||||||
Cost of goods sold and occupancy | 128,944 | 60,788 | 62,727 | ||||||||
Gross profit | 38,640 | 18,893 | 19,840 | ||||||||
Selling, general and administrative expenses | 33,118 | 18,416 | 18,077 | ||||||||
Operating income | 5,522 | 477 | 1,763 | ||||||||
Interest expense | (547) | (294) | (266) | ||||||||
Interest income | 6 | 1 | 4 | ||||||||
Other expense, net | (236) | 844 | (113) | ||||||||
Income before income taxes and noncontrolling interest | 4,745 | 1,028 | 1,388 | ||||||||
Income tax expense | 79 | 1,466 | 923 | ||||||||
Equity in earnings of affiliates | 0 | 0 | 0 | ||||||||
Net income including noncontrolling interest | 4,666 | (438) | 465 | ||||||||
Noncontrolling interest | 526 | 902 | 1,071 | ||||||||
Net income attributable to Central Garden & Pet Company | 4,140 | (1,340) | (606) | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 1,397,688 | 1,370,335 | 1,238,339 | ||||||||
Cost of goods sold and occupancy | 917,276 | 901,959 | 820,573 | ||||||||
Gross profit | 480,412 | 468,376 | 417,766 | ||||||||
Selling, general and administrative expenses | 313,043 | 309,790 | 272,651 | ||||||||
Operating income | 167,369 | 158,586 | 145,115 | ||||||||
Interest expense | 206 | 136 | 119 | ||||||||
Interest income | 1 | 0 | 0 | ||||||||
Other expense, net | 645 | (86) | 25 | ||||||||
Income before income taxes and noncontrolling interest | 168,221 | 158,636 | 145,259 | ||||||||
Income tax expense | 4,364 | 57,214 | 49,552 | ||||||||
Equity in earnings of affiliates | 1,133 | 420 | 624 | ||||||||
Net income including noncontrolling interest | 164,990 | 101,842 | 96,331 | ||||||||
Noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to Central Garden & Pet Company | $ 164,990 | $ 101,842 | $ 96,331 |
Consolidating Condensed Finan_5
Consolidating Condensed Financial Information of Guarantor Subsidiaries - Consolidating Condensed Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $ 124,120 | $ 79,730 | $ 45,585 |
Other comprehensive income (loss): | |||
Foreign currency translation | (267) | 343 | (1,458) |
Total comprehensive income | 123,853 | 80,073 | 44,127 |
Comprehensive income attributable to noncontrolling interests | 526 | 902 | 1,071 |
Comprehensive income attributable to Central Garden & Pet Company | 123,327 | 79,171 | 43,056 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | (169,130) | (100,502) | (95,725) |
Other comprehensive income (loss): | |||
Foreign currency translation | 212 | (277) | 1,124 |
Total comprehensive income | (168,918) | (100,779) | (94,601) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Central Garden & Pet Company | (168,918) | (100,779) | (94,601) |
Parent | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 123,594 | 78,828 | 44,514 |
Other comprehensive income (loss): | |||
Foreign currency translation | (267) | 343 | (1,458) |
Total comprehensive income | 123,327 | 79,171 | 43,056 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Central Garden & Pet Company | 123,327 | 79,171 | 43,056 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 4,666 | (438) | 465 |
Other comprehensive income (loss): | |||
Foreign currency translation | (145) | 169 | (1,132) |
Total comprehensive income | 4,521 | (269) | (667) |
Comprehensive income attributable to noncontrolling interests | 526 | 902 | 1,071 |
Comprehensive income attributable to Central Garden & Pet Company | 3,995 | (1,171) | (1,738) |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 164,990 | 101,842 | 96,331 |
Other comprehensive income (loss): | |||
Foreign currency translation | (67) | 108 | 8 |
Total comprehensive income | 164,923 | 101,950 | 96,339 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Central Garden & Pet Company | $ 164,923 | $ 101,950 | $ 96,339 |
Consolidating Condensed Finan_6
Consolidating Condensed Financial Information of Guarantor Subsidiaries - Consolidating Condensed Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 |
ASSETS | |||||
Cash and cash equivalents | $ 482,106 | $ 32,397 | $ 92,982 | $ 47,584 | |
Restricted cash | 10,899 | 12,645 | 10,900 | ||
Accounts receivable, net | 275,908 | 237,868 | |||
Inventories | 427,823 | 382,101 | |||
Prepaid expenses and other assets | 20,562 | 18,045 | |||
Total current assets | 1,217,298 | 683,056 | |||
Land, buildings, improvements and equipment, net | 217,647 | 180,913 | |||
Goodwill | 281,177 | 256,275 | 231,385 | $ 209,089 | |
Other long term assets | 191,087 | 186,662 | |||
Intercompany receivable | 0 | 0 | |||
Investment in subsidiaries | 0 | 0 | |||
Total | 1,907,209 | 1,306,906 | 1,180,683 | ||
LIABILITIES AND EQUITY | |||||
Accounts payable | 110,259 | 103,283 | |||
Accounts Payable and Other Accrued Liabilities, Current | 116,549 | ||||
Accrued expenses | 102,583 | 116,549 | |||
Current portion of long-term debt | 122 | 375 | |||
Total current liabilities | 212,964 | 220,207 | |||
Long-term debt | 692,031 | 395,278 | |||
Intercompany payable | 0 | 0 | |||
Losses in excess of investment in subsidiaries | 0 | 0 | |||
Other long-term obligations | 49,380 | 54,279 | |||
Shareholders’ equity attributable to Central Garden & Pet | 952,449 | 635,686 | |||
Noncontrolling interest | 385 | 1,456 | |||
Total equity | 952,834 | 637,142 | 554,587 | 506,380 | |
Total | 1,907,209 | 1,306,906 | |||
Eliminations | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Prepaid expenses and other assets | 0 | 0 | |||
Total current assets | 0 | 0 | |||
Land, buildings, improvements and equipment, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Other long term assets | (11,726) | (23,801) | |||
Intercompany receivable | (810,251) | (698,743) | |||
Investment in subsidiaries | (1,618,378) | (1,383,633) | |||
Total | (2,440,355) | (2,106,177) | |||
LIABILITIES AND EQUITY | |||||
Accounts payable | 0 | 0 | |||
Accounts Payable and Other Accrued Liabilities, Current | 0 | ||||
Accrued expenses | 0 | ||||
Current portion of long-term debt | 0 | 0 | |||
Total current liabilities | 0 | 0 | |||
Long-term debt | 0 | 0 | |||
Intercompany payable | (810,251) | (698,743) | |||
Losses in excess of investment in subsidiaries | (25,036) | (19,782) | |||
Other long-term obligations | (11,726) | (23,801) | |||
Shareholders’ equity attributable to Central Garden & Pet | (1,593,342) | (1,363,851) | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | (1,593,342) | (1,363,851) | |||
Total | (2,440,355) | (2,106,177) | |||
Parent | Reportable Legal Entities | |||||
ASSETS | |||||
Cash and cash equivalents | 474,210 | 19,238 | 82,158 | 36,280 | |
Restricted cash | 10,899 | 12,645 | |||
Accounts receivable, net | 94,657 | 78,692 | |||
Inventories | 123,178 | 125,797 | |||
Prepaid expenses and other assets | 6,304 | 6,059 | |||
Total current assets | 709,248 | 242,431 | |||
Land, buildings, improvements and equipment, net | 33,484 | 38,170 | |||
Goodwill | 20,578 | 15,058 | |||
Other long term assets | 62,199 | 61,715 | |||
Intercompany receivable | 40,365 | 36,606 | |||
Investment in subsidiaries | 1,618,378 | 1,383,633 | |||
Total | 2,484,252 | 1,777,613 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable | 33,122 | 36,760 | |||
Accounts Payable and Other Accrued Liabilities, Current | 54,909 | ||||
Accrued expenses | 44,142 | ||||
Current portion of long-term debt | 116 | 0 | |||
Total current liabilities | 77,380 | 91,669 | |||
Long-term debt | 691,869 | 395,160 | |||
Intercompany payable | 753,933 | 647,409 | |||
Losses in excess of investment in subsidiaries | 0 | 0 | |||
Other long-term obligations | 8,621 | 7,689 | |||
Shareholders’ equity attributable to Central Garden & Pet | 952,449 | 635,686 | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | 952,449 | 635,686 | |||
Total | 2,484,252 | 1,777,613 | |||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
ASSETS | |||||
Cash and cash equivalents | 6,005 | 11,693 | 9,695 | 10,022 | |
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 9,647 | 5,586 | |||
Inventories | 32,556 | 9,493 | |||
Prepaid expenses and other assets | 1,455 | 811 | |||
Total current assets | 49,663 | 27,583 | |||
Land, buildings, improvements and equipment, net | 33,840 | 4,225 | |||
Goodwill | 7,414 | 0 | |||
Other long term assets | 7,469 | 2,376 | |||
Intercompany receivable | 0 | 0 | |||
Investment in subsidiaries | 0 | 0 | |||
Total | 98,386 | 34,184 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable | 4,759 | 3,076 | |||
Accounts Payable and Other Accrued Liabilities, Current | 2,391 | ||||
Accrued expenses | 4,746 | ||||
Current portion of long-term debt | 0 | 0 | |||
Total current liabilities | 9,505 | 5,467 | |||
Long-term debt | 0 | 0 | |||
Intercompany payable | 56,318 | 51,334 | |||
Losses in excess of investment in subsidiaries | 0 | 0 | |||
Other long-term obligations | 0 | 0 | |||
Shareholders’ equity attributable to Central Garden & Pet | 32,178 | (24,073) | |||
Noncontrolling interest | 385 | 1,456 | |||
Total equity | 32,563 | (22,617) | |||
Total | 98,386 | 34,184 | |||
Guarantor Subsidiaries | Reportable Legal Entities | |||||
ASSETS | |||||
Cash and cash equivalents | 1,891 | 1,466 | $ 1,129 | $ 1,282 | |
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 171,604 | 153,590 | |||
Inventories | 272,089 | 246,811 | |||
Prepaid expenses and other assets | 12,803 | 11,175 | |||
Total current assets | 458,387 | 413,042 | |||
Land, buildings, improvements and equipment, net | 150,323 | 138,518 | |||
Goodwill | 253,185 | 241,217 | |||
Other long term assets | 133,145 | 146,372 | |||
Intercompany receivable | 769,886 | 662,137 | |||
Investment in subsidiaries | 0 | 0 | |||
Total | 1,764,926 | 1,601,286 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable | 72,378 | 63,447 | |||
Accounts Payable and Other Accrued Liabilities, Current | 59,249 | ||||
Accrued expenses | 53,695 | ||||
Current portion of long-term debt | 6 | 375 | |||
Total current liabilities | 126,079 | 123,071 | |||
Long-term debt | 162 | 118 | |||
Intercompany payable | 0 | 0 | |||
Losses in excess of investment in subsidiaries | 25,036 | 19,782 | |||
Other long-term obligations | 52,485 | 70,391 | |||
Shareholders’ equity attributable to Central Garden & Pet | 1,561,164 | 1,387,924 | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | 1,561,164 | 1,387,924 | |||
Total | $ 1,764,926 | $ 1,601,286 |
Consolidating Condensed Finan_7
Consolidating Condensed Financial Information of Guarantor Subsidiaries - Consolidating Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 24, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | $ 114,112 | $ 114,309 | $ 151,426 |
Additions to property, plant and equipment | (37,845) | (44,659) | (27,622) |
Businesses acquired, net of cash acquired, and investments in joint ventures | (91,244) | (103,880) | (69,001) |
Proceeds from asset sales | 0 | 8,547 | 3,911 |
Escrow deposit for acquisition-related contingent consideration | 0 | (6,000) | 0 |
Change in restricted cash and cash equivalents. | 1,746 | (1,735) | 2,247 |
Payments for investments | (9,048) | (12,495) | 0 |
Other investing activities | (2,745) | (4,355) | (730) |
Intercompany investing activities | 0 | 0 | 0 |
Net cash used in investing activities | (139,136) | (164,577) | (91,195) |
Repayments on revolving line of credit | (23,000) | (552,000) | (419,000) |
Borrowings on revolving line of credit | 23,000 | 552,000 | 419,000 |
Repayments of long-term debt | (431) | (463) | (400,307) |
Issuance of long-term debt | 300,000 | 0 | 400,000 |
Proceeds from issuance of common stock, net of offering costs | 195,631 | 0 | 324 |
Excess tax benefits from stock-based awards | 0 | 19,946 | 6,869 |
Repurchase of common stock | (13,797) | (27,556) | (10,873) |
Payments of contingent consideration | (253) | (1,300) | (2,026) |
Payment of deferred financing costs | (4,770) | 0 | (7,560) |
Distribution to parent | 0 | 0 | 0 |
Distribution to noncontrolling interest | (1,597) | (1,019) | (592) |
Intercompany financing activities | 0 | 0 | 0 |
Net cash provided (used) by financing activities | 474,783 | (10,392) | (14,165) |
Effect of exchange rates on cash | (50) | 75 | (668) |
Net increase (decrease) in cash and cash equivalents | 449,709 | (60,585) | 45,398 |
Cash and cash equivalents at beginning of year | 32,397 | 92,982 | 47,584 |
Cash and cash equivalents at end of year | 482,106 | 32,397 | 92,982 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | (6,387) | (4,076) | (4,883) |
Additions to property, plant and equipment | 0 | 0 | 0 |
Businesses acquired, net of cash acquired, and investments in joint ventures | 0 | 0 | 0 |
Proceeds from asset sales | 0 | ||
Escrow deposit for acquisition-related contingent consideration | 0 | ||
Change in restricted cash and cash equivalents. | 0 | 0 | 0 |
Payments for investments | 0 | ||
Other investing activities | 0 | 0 | 0 |
Intercompany investing activities | 111,509 | 98,591 | 129,791 |
Net cash used in investing activities | 111,509 | 98,591 | 129,791 |
Repayments on revolving line of credit | 0 | 0 | 0 |
Borrowings on revolving line of credit | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Issuance of long-term debt | 0 | ||
Proceeds from issuance of common stock, net of offering costs | 0 | 0 | |
Excess tax benefits from stock-based awards | 0 | 0 | |
Repurchase of common stock | 0 | 0 | 0 |
Payments of contingent consideration | 0 | ||
Payment of deferred financing costs | 0 | 0 | |
Distribution to parent | 6,387 | 4,076 | 4,883 |
Distribution to noncontrolling interest | 0 | 0 | 0 |
Intercompany financing activities | (111,509) | (98,591) | (129,791) |
Net cash provided (used) by financing activities | (105,122) | (94,515) | (124,908) |
Effect of exchange rates 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 |
Parent | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | (16,676) | (7,418) | 3,906 |
Additions to property, plant and equipment | (6,633) | (9,419) | (4,513) |
Businesses acquired, net of cash acquired, and investments in joint ventures | (91,244) | (103,880) | (69,001) |
Proceeds from asset sales | 229 | 0 | |
Escrow deposit for acquisition-related contingent consideration | (6,000) | ||
Change in restricted cash and cash equivalents. | 1,746 | (1,735) | 2,247 |
Payments for investments | (9,048) | (12,495) | |
Other investing activities | (2,745) | (4,355) | (730) |
Intercompany investing activities | (3,760) | (3,828) | (83) |
Net cash used in investing activities | (111,684) | (141,483) | (72,080) |
Repayments on revolving line of credit | (23,000) | (552,000) | (419,000) |
Borrowings on revolving line of credit | 23,000 | 552,000 | 419,000 |
Repayments of long-term debt | (56) | (89) | (400,286) |
Issuance of long-term debt | 300,000 | 400,000 | |
Proceeds from issuance of common stock, net of offering costs | 195,631 | 324 | |
Excess tax benefits from stock-based awards | 19,946 | 6,869 | |
Repurchase of common stock | (13,797) | (27,556) | (10,873) |
Payments of contingent consideration | 0 | 0 | 0 |
Payment of deferred financing costs | (4,770) | (7,560) | |
Distribution to parent | 0 | 0 | 0 |
Distribution to noncontrolling interest | 0 | 0 | 0 |
Intercompany financing activities | 106,525 | 93,445 | 127,044 |
Net cash provided (used) by financing activities | 583,533 | 85,746 | 115,518 |
Effect of exchange rates on cash | (201) | 235 | (1,466) |
Net increase (decrease) in cash and cash equivalents | 454,972 | (62,920) | 45,878 |
Cash and cash equivalents at beginning of year | 19,238 | 82,158 | 36,280 |
Cash and cash equivalents at end of year | 474,210 | 19,238 | 82,158 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | (1,288) | 2,846 | 2,654 |
Additions to property, plant and equipment | (1,495) | (805) | (717) |
Businesses acquired, net of cash acquired, and investments in joint ventures | 0 | 0 | 0 |
Proceeds from asset sales | 0 | ||
Escrow deposit for acquisition-related contingent consideration | 0 | ||
Change in restricted cash and cash equivalents. | 0 | 0 | 0 |
Payments for investments | 0 | ||
Other investing activities | 0 | 0 | 0 |
Intercompany investing activities | 0 | 0 | 0 |
Net cash used in investing activities | (1,495) | (805) | (717) |
Repayments on revolving line of credit | 0 | 0 | 0 |
Borrowings on revolving line of credit | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Issuance of long-term debt | 0 | ||
Proceeds from issuance of common stock, net of offering costs | 0 | 0 | |
Excess tax benefits from stock-based awards | 0 | 0 | |
Repurchase of common stock | 0 | 0 | 0 |
Payments of contingent consideration | 0 | ||
Payment of deferred financing costs | 0 | 0 | |
Distribution to parent | (6,387) | (4,076) | (4,883) |
Distribution to noncontrolling interest | (1,597) | (1,019) | (592) |
Intercompany financing activities | 4,984 | 5,146 | 2,747 |
Net cash provided (used) by financing activities | (3,000) | 51 | (2,728) |
Effect of exchange rates on cash | 95 | (94) | 464 |
Net increase (decrease) in cash and cash equivalents | (5,688) | 1,998 | (327) |
Cash and cash equivalents at beginning of year | 11,693 | 9,695 | 10,022 |
Cash and cash equivalents at end of year | 6,005 | 11,693 | 9,695 |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | 138,463 | 122,957 | 149,749 |
Additions to property, plant and equipment | (29,717) | (34,435) | (22,392) |
Businesses acquired, net of cash acquired, and investments in joint ventures | 0 | 0 | 0 |
Proceeds from asset sales | 8,318 | 3,911 | |
Escrow deposit for acquisition-related contingent consideration | 0 | ||
Change in restricted cash and cash equivalents. | 0 | 0 | 0 |
Payments for investments | 0 | ||
Other investing activities | 0 | 0 | 0 |
Intercompany investing activities | (107,749) | (94,763) | (129,708) |
Net cash used in investing activities | (137,466) | (120,880) | (148,189) |
Repayments on revolving line of credit | 0 | 0 | 0 |
Borrowings on revolving line of credit | 0 | 0 | 0 |
Repayments of long-term debt | (375) | (374) | (21) |
Issuance of long-term debt | 0 | ||
Proceeds from issuance of common stock, net of offering costs | 0 | 0 | |
Excess tax benefits from stock-based awards | 0 | 0 | |
Repurchase of common stock | 0 | 0 | 0 |
Payments of contingent consideration | (253) | (1,300) | (2,026) |
Payment of deferred financing costs | 0 | 0 | |
Distribution to parent | 0 | 0 | 0 |
Distribution to noncontrolling interest | 0 | 0 | 0 |
Intercompany financing activities | 0 | 0 | 0 |
Net cash provided (used) by financing activities | (628) | (1,674) | (2,047) |
Effect of exchange rates on cash | 56 | (66) | 334 |
Net increase (decrease) in cash and cash equivalents | 425 | 337 | (153) |
Cash and cash equivalents at beginning of year | 1,466 | 1,129 | 1,282 |
Cash and cash equivalents at end of year | $ 1,891 | $ 1,466 | $ 1,129 |