Business Segment Data

12 Months Ended

Sep. 26, 2020

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, C&S Products, 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, food, live fish and small animals principally to independent pet distributors, national and regional retail chains, grocery stores, mass merchants and bookstores, as well as through eCommerce. The Garden segment consists of Pennington Seed, Hydro Organics, AMBRANDS, Lilly Miller, the Pottery Group, Bell Nursery, Arden Companies 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, terra cotta pottery, 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	2020		2019		2018
	(in millions)
Other pet products	$	705.2	$	613.4	$	606.7
Other garden products	607.6		560.8		445.7
Other manufacturers' products	600.7		504.5		454.3
Dog & cat products	502.1		452.1		445.1
Controls & fertilizer products	279.9		252.2		263.6
Total	$	2,695.5	$	2,383.0	$	2,215.4

See Note 4 – Concentration of Credit Risk and Significant Customers and Suppliers for the Company’s largest customers by segment.

Financial information relating to the Company’s business segments for each of the three most recent fiscal years is presented in the table below: 

	Fiscal Year Ended
	September 26, 2020		September 28, 2019			September 29, 2018
	(in thousands)
Net sales:
Pet segment	$	1,562,160	$	1,384,686		$	1,340,899
Garden segment	1,133,349		998,324			874,463
Total	$	2,695,509	$	2,383,010		$	2,215,362
Operating income (loss):
Pet segment	$	154,190	$	122,727	(1)	$	140,353
Garden segment	132,592		102,170			95,551
Corporate	(88,805)		(72,829)			(68,568)
Total	197,977		152,068			167,336
Interest expense	(44,016)		(42,614)			(39,196)
Interest income	4,027		9,554			3,145
Other income (expense), net	(4,250)		243			(3,860)
Income before income taxes and noncontrolling interest	153,738		119,251			127,425
Income tax expense	32,218		26,604			3,305
Net income including noncontrolling interest	121,520		92,647			124,120
Net income (loss) attributable to noncontrolling interest	844		(139)			526
Net income attributable to Central Garden & Pet Company	$	120,676	$	92,786		$	123,594
Assets:
Pet segment	$	813,416	$	734,380		$	683,938
Garden segment	545,886		463,889			407,483
Corporate and eliminations	980,062		826,751			815,788
Total	$	2,339,364	$	2,025,020		$	1,907,209
Depreciation and amortization:
Pet segment	$	35,186	$	32,803		$	29,889
Garden segment	13,520		11,959			8,744
Corporate	6,653		6,066			8,566
Total	$	55,359	$	50,828		$	47,199
Expenditures for long-lived assets:
Pet segment	$	28,270	$	20,793		$	26,979
Garden segment	11,013		9,068			8,016
Corporate	3,772		1,716			2,850
Total	$	43,055	$	31,577		$	37,845

Noncontrolling interest is associated with the Garden segment.

(1) Includes a $2.5 million impairment charge in fiscal 2019.