Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

6 Months Ended

Mar. 28, 2020

Condensed Financial Information Disclosure [Abstract]

Consolidating Condensed Statement of Operations

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Three Months Ended March 28, 2020
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	218,951	$	35,651	$	473,627	$	(25,000)	$	703,229
Cost of goods sold and occupancy	167,640		33,240		318,451		(23,219)		496,112
Gross profit	51,311		2,411		155,176		(1,781)		207,117
Selling, general and administrative expenses	47,616		8,988		86,189		(1,781)		141,012
Operating income (loss)	3,695		(6,577)		68,987		—		66,105
Interest expense	(10,666)		(84)		(3)		—		(10,753)
Interest income	1,409		8		—		—		1,417
Other income (expense)	(361)		(668)		50		—		(979)
Income (loss) before taxes and equity in earnings (losses) of affiliates	(5,923)		(7,321)		69,034		—		55,790
Income tax expense (benefit)	(433)		185		12,896		—		12,648
Equity in earnings (loss) of affiliates	48,194		—		69		(48,263)		—
Net income (loss) including noncontrolling interest	42,704		(7,506)		56,207		(48,263)		43,142
Net loss attributable to noncontrolling interest	—		438		—		—		438
Net income (loss) attributable to Central Garden & Pet Company	$	42,704	$	(7,944)	$	56,207	$	(48,263)	$	42,704

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Three Months Ended March 30, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	214,042	$	35,191	$	449,810	$	(25,342)	$	673,701
Cost of goods sold and occupancy	163,133		30,343		297,864		(23,690)		467,650
Gross profit	50,909		4,848		151,946		(1,652)		206,051
Selling, general and administrative expenses	47,135		10,485		87,930		(1,652)		143,898
Operating income (loss)	3,774		(5,637)		64,016		—		62,153
Interest expense	(10,482)		(141)		(17)		—		(10,640)
Interest income	2,250		5		—		—		2,255
Other income (expense)	305		243		(48)		—		500
Income (loss) before taxes and equity in earnings (losses) of affiliates	(4,153)		(5,530)		63,951		—		54,268
Income tax expense (benefit)	(1,748)		(55)		13,349				11,546
Equity in earnings of affiliates	44,796		—		(101)		(44,695)		—
Net income (loss) including noncontrolling interest	42,391		(5,475)		50,501		(44,695)		42,722
Net income attributable to noncontrolling interest	—		331		—		—		331
Net income (loss) attributable to Central Garden & Pet Company	$	42,391	$	(5,806)	$	50,501	$	(44,695)	$	42,391

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Six Months Ended March 28, 2020
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	389,279	$	59,488	$	774,668	$	(37,378)	$	1,186,057
Cost of goods sold and occupancy	299,913		56,952		525,435		(34,626)		847,674
Gross profit	89,366		2,536		249,233		(2,752)		338,383
Selling, general and administrative expenses	90,853		16,807		165,305		(2,752)		270,213
Operating income (loss)	(1,487)		(14,271)		83,928		—		68,170
Interest expense	(21,244)		(144)		(6)		—		(21,394)
Interest income	3,406		15		—		—		3,421
Other income (expense)	(436)		69		(307)		—		(674)
Income (loss) before taxes and equity in earnings (losses) of affiliates	(19,761)		(14,331)		83,615		—		49,523
Income tax expense (benefit)	(4,331)		(180)		15,431		—		10,920
Equity in earnings of affiliates	53,717		—		(611)		(53,106)		—
Net income (loss) including noncontrolling interest	38,287		(14,151)		67,573		(53,106)		38,603
Net income attributable to noncontrolling interest	—		316		—		—		316
Net income (loss) attributable to Central Garden & Pet Company	$	38,287	$	(14,467)	$	67,573	$	(53,106)	$	38,287

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Six Months Ended March 30, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	387,448	$	58,820	$	729,644	$	(40,221)	$	1,135,691
Cost of goods sold and occupancy	299,146		52,346		485,547		(37,581)		799,458
Gross profit	88,302		6,474		244,097		(2,640)		336,233
Selling, general and administrative expenses	90,800		17,836		157,903		(2,640)		263,899
Operating income (loss)	(2,498)		(11,362)		86,194		—		72,334
Interest expense	(20,979)		(255)		(20)		—		(21,254)
Interest income	4,783		9		—		—		4,792
Other income (expense)	342		27		(61)		—		308
Income (loss) before taxes and equity in earnings (losses) of affiliates	(18,352)		(11,581)		86,113		—		56,180
Income tax expense (benefit)	(3,836)		(311)		15,966		—		11,819
Equity in earnings (losses) of affiliates	58,710		—		(1,213)		(57,497)		—
Net income (loss) including noncontrolling interest	44,194		(11,270)		68,934		(57,497)		44,361
Net income attributable to noncontrolling interest	—		167		—		—		167
Net income (loss) attributable to Central Garden & Pet Company	$	44,194	$	(11,437)	$	68,934	$	(57,497)	$	44,194

Consolidating Condensed Statements of Comprehensive Income (Loss)

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Three Months Ended March 28, 2020
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	42,704	$	(7,506)	$	56,207	$	(48,263)	$	43,142
Other comprehensive loss:
Foreign currency translation	(405)		(227)		(83)		310		(405)
Total comprehensive income (loss)	42,299		(7,733)		56,124		(47,953)		42,737
Comprehensive income attributable to noncontrolling interests	—		438		—		—		438
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	42,299	$	(8,171)	$	56,124	$	(47,953)	$	42,299

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Three Months Ended March 30, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	42,391	$	(5,475)	$	50,501	$	(44,695)	$	42,722
Other comprehensive income:
Foreign currency translation	212		127		35		(162)		212
Total comprehensive income (loss)	42,603		(5,348)		50,536		(44,857)		42,934
Comprehensive income attributable to noncontrolling interests	—		331		—		—		331
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	42,603	$	(5,679)	$	50,536	$	(44,857)	$	42,603

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Six Months Ended March 28, 2020
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net income	$	38,287	$	(14,151)	$	67,573	$	(53,106)	$	38,603
Other comprehensive income (loss):
Foreign currency translation	32		70		(62)		(8)		32
Total comprehensive income (loss)	38,319		(14,081)		67,511		(53,114)		38,635
Comprehensive income attributable to noncontrolling interests	—		316		—		—		316
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	38,319	$	(14,397)	$	67,511	$	(53,114)	$	38,319

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Six Months Ended March 30, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net income	$	44,194	$	(11,270)	$	68,934	$	(57,497)	$	44,361
Other comprehensive loss:
Foreign currency translation	(62)		(2)		(60)		62		(62)
Total comprehensive income	44,132		(11,272)		68,874		(57,435)		44,299
Comprehensive income (loss) attributable to noncontrolling interests	—		167		—		—		167
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	44,132	$	(11,439)	$	68,874	$	(57,435)	$	44,132

Consolidating Condensed Balance Sheet

	CONSOLIDATING CONDENSED BALANCE SHEET
	March 28, 2020
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	319,187	$	11,165	$	1,203	$	—	$	331,555
Restricted cash	13,021		—		—		—		13,021
Accounts receivable, net	137,422		18,661		304,902		—		460,985
Inventories, net	125,002		46,241		345,964		—		517,207
Prepaid expenses and other	7,626		1,839		26,695		—		36,160
Total current assets	602,258		77,906		678,764		—		1,358,928
Property, plant and equipment, net	27,561		34,962		179,355		—		241,878
Goodwill	20,577		7,414		261,863		—		289,854
Operating lease right-of-use assets	48,013		5,916		45,169		—		99,098
Other long-term assets	48,172		4,791		133,690		(9,004)		177,649
Intercompany receivable	62,722		—		815,955		(878,677)		—
Investment in subsidiaries	1,838,475		—		—		(1,838,475)		—
Total	$	2,647,778	$	130,989	$	2,114,796	$	(2,726,156)	$	2,167,407
LIABILITIES AND EQUITY
Accounts payable	$	53,323	$	22,800	$	110,748	$	—	$	186,871
Accrued expenses	59,861		5,216		72,646		—		137,723
Current operating lease liability	19,306		3,206		9,891		—		32,403
Current portion of long-term debt	103		—		—		—		103
Total current liabilities	132,593		31,222		193,285		—		357,100
Long-term debt	693,622		—		—		—		693,622
Operating lease long term liabilities	30,721		2,670		37,369		—		70,760
Intercompany payable	797,082		81,595		—		(878,677)		—
Losses in excess of investment in subsidiaries	—		—		26,408		(26,408)		—
Other long-term obligations	747		—		60,740		(9,004)		52,483
Total Central Garden & Pet shareholders’ equity (deficit)	993,013		15,073		1,796,994		(1,812,067)		993,013
Noncontrolling interest	—		429		—		—		429
Total equity	993,013		15,502		1,796,994		(1,812,067)		993,442
Total	$	2,647,778	$	130,989	$	2,114,796	$	(2,726,156)	$	2,167,407

	CONSOLIDATING CONDENSED BALANCE SHEET
	March 30, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	322,149	$	6,354	$	1,221	$	—	$	329,724
Restricted cash	10,888		—		5,227		—		16,115
Accounts receivable, net	134,251		22,844		299,034		—		456,129
Inventories, net	138,778		46,035		332,345		—		517,158
Prepaid expenses and other	8,355		1,386		23,420		—		33,161
Total current assets	614,421		76,619		661,247		—		1,352,287
Property, plant and equipment, net	29,701		36,180		151,657		—		217,538
Goodwill	20,578		7,414		253,185		—		281,177
Other long-term assets	47,512		6,273		147,035		(5,682)		195,138
Intercompany receivable	59,152		—		680,937		(740,089)		—
Investment in subsidiaries	1,688,163		—		—		(1,688,163)		—
Total	$	2,459,527	$	126,486	$	1,894,061	$	(2,433,934)	$	2,046,140
LIABILITIES AND EQUITY
Accounts payable	$	41,488	$	21,833	$	94,275	$	—	$	157,596
Accrued expenses	55,181		6,200		75,032		—		136,413
Current portion of long-term debt	119		—		5,000		—		5,119
Total current liabilities	96,788		28,033		174,307		—		299,128
Long-term debt	692,459		—		187		—		692,646
Intercompany payable	662,927		77,163		—		(740,090)		—
Losses in excess of investment in subsidiaries	—		—		26,248		(26,248)		—
Other long-term obligations	8,604		—		52,142		(5,682)		55,064
Total Central Garden & Pet shareholders’ equity (deficit)	998,749		20,737		1,641,177		(1,661,914)		998,749
Noncontrolling interest	—		553		—		—		553
Total equity	998,749		21,290		1,641,177		(1,661,914)		999,302
Total	$	2,459,527	$	126,486	$	1,894,061	$	(2,433,934)	$	2,046,140

	CONSOLIDATING CONDENSED BALANCE SHEET
	September 28, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	489,590	$	7,308	$	851	$	—	$	497,749
Restricted cash	12,952		—		—		—		12,952
Accounts receivable, net	99,372		11,551		189,212		—		300,135
Inventories, net	121,344		30,826		314,027		—		466,197
Prepaid expenses and other assets	9,339		1,241		19,580		—		30,160
Total current assets	732,597		50,926		523,670		—		1,307,193
Property, plant and equipment, net	27,395		35,854		182,156		—		245,405
Goodwill	20,578		7,414		258,085		—		286,077
Other long-term assets	55,690		5,487		139,138		(13,970)		186,345
Intercompany receivable	37,544		—		879,231		(916,775)		—
Investment in subsidiaries	1,784,750		—		—		(1,784,750)		—
Total	$	2,658,554	$	99,681	$	1,982,280	$	(2,715,495)	$	2,025,020
LIABILITIES AND EQUITY
Accounts payable	$	47,506	$	6,895	$	94,845	$	—	$	149,246
Accrued expenses and other liabilities	54,623		4,814		69,729		—		129,166
Current portion of long term debt	113		—		—		—		113
Total current liabilities	102,242		11,709		164,574		—		278,525
Long-term debt	693,037		—		—		—		693,037
Intercompany payable	858,673		58,102		—		(916,775)		—
Losses in excess of investment in subsidiaries	—		—		25,567		(25,567)		—
Other long-term obligations	8,595		—		62,656		(13,970)		57,281
Total Central Garden & Pet shareholders’ equity (deficit)	996,007		29,700		1,729,483		(1,759,183)		996,007
Noncontrolling interest	—		170		—		—		170
Total equity	996,007		29,870		1,729,483		(1,759,183)		996,177
Total	$	2,658,554	$	99,681	$	1,982,280	$	(2,715,495)	$	2,025,020

Consolidating Condensed Statement of Cash Flows

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
	Six Months Ended March 28, 2020
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net cash used by operating activities	$	(25,504)	$	(19,073)	$	(47,851)	$	(230)	$	(92,658)
Additions to property, plant and equipment	(4,236)		(291)		(14,960)		—		(19,487)
Investments	(4,439)		—		—		—		(4,439)
Other investing activities	(437)		—		—		—		(437)
Intercompany investing activities	(25,179)		—		63,276		(38,097)		—
Net cash (used) provided by investing activities	(34,291)		(291)		48,316		(38,097)		(24,363)
Repayments of long-term debt	(59)		—		—		—		(59)
Payment of financing costs	(959)								(959)
Repurchase of common stock	(48,026)		—		—		—		(48,026)
Distribution to parent	—		(230)		—		230		—
Distribution to noncontrolling interest	—		(57)		—		—		(57)
Payment of contingent consideration liability	—		—		(90)		—		(90)
Intercompany financing activities	(61,589)		23,492		—		38,097		—
Net cash (used) provided by financing activities	(110,633)		23,205		(90)		38,327		(49,191)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	94		16		(23)		—		87
Net increase (decrease) in cash, cash equivalents and restricted cash	(170,334)		3,857		352		—		(166,125)
Cash, cash equivalents and restricted cash at beginning of period	502,542		7,308		851		—		510,701
Cash, cash equivalents and restricted cash at end of period	$	332,208	$	11,165	$	1,203	$	—	$	344,576

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
	Six Months Ended March 30, 2019
	(in thousands)
	Parent		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net cash (used) provided by operating activities	$	(23,565)	$	(17,128)	$	(38,626)	$	—	$	(79,319)
Additions to property, plant and equipment	(1,716)		(3,350)		(9,236)		—		(14,302)
Payments to acquire companies, net of cash acquired	(11,137)		—		—		—		(11,137)
Investments	(1,749)		—		—		—		(1,749)
Other investing activities	(368)		—		—		—		(368)
Intercompany investing activities	(18,788)		—		88,949		(70,161)		—
Net cash used by investing activities	(33,758)		(3,350)		79,713		(70,161)		(27,556)
Repayments of long-term debt	(3)		—		(36,463)		—		(36,466)
Repurchase of common stock	(3,739)		—		—		—		(3,739)
Payment of contingent consideration	—		—		(66)		—		(66)
Intercompany financing activities	(91,005)		20,844		—		70,161		—
Net cash provided (used) by financing activities	(94,747)		20,844		(36,529)		70,161		(40,271)
Effect of exchange rates on cash, cash equivalents and restricted cash	(2)		(17)		(1)		—		(20)
Net increase (decrease) in cash, cash equivalents and restricted cash	(152,072)		349		4,557		—		(147,166)
Cash, cash equivalents and restricted cash at beginning of period	485,109		6,005		1,891		—		493,005
Cash, cash equivalents and restricted cash at end of period	$	333,037	$	6,354	$	6,448	$	—	$	345,839