Annual report pursuant to Section 13 and 15(d)

Business Segment Data

v2.3.0.15
Business Segment Data
 12 Months Ended
Sep. 24, 2011
Business Segment Data [Abstract]  
Business Segment Data

17. Business Segment Data

An operating segment is defined as a portion of an enterprise engaged in business activities about which separate financial information is available and evaluated regularly by the chief operating decision-maker in determining how to allocate resources and in assessing performance. 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 Executive Officer evaluates performance based on profit or loss from operations. 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, deferred taxes and goodwill.

Management has determined that the Company has two operating segments which are also reportable segments based on the level at which the Chief Executive Officer reviews the results of operations to make decisions regarding performance assessment and resource allocation. These operating segments are the Pet Products Group and the Garden Products Group. Substantially all of the Company's assets and operations relate to its business in the United States.

The Pet Products Group segment consists of Four Paws Products, TFH Publications, Kaytee, Aquatics, Interpet, Pets International, Breeder's Choice and Life Sciences. These businesses are engaged in the manufacturing, purchase, sale and delivery of internally and externally produced pet supplies, books and food principally to independent pet distributors, national and regional retail chains, grocery stores, mass merchants and bookstores. The Garden Products segment consists of Pennington Seed, Matthews Four Seasons, Grant's, AMBRANDS, Lilly Miller, the Pottery Group, Gulfstream and GKI/Bethlehem Lighting. Products manufactured, designed and sourced, 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, 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, goodwill, interest income, interest expense and intersegment eliminations.

The following table indicates each class of similar products which represented more than 10% of the Company's consolidated net sales in the fiscal years presented (in millions).

 

Category

    2011      2010      2009  

Pet supplies (excluding bird feed)

    $ 773.1       $ 766.5       $ 756.8   

Garden chemicals and control products

      260.0         255.5         270.5   

Other garden supplies

      212.1         196.0         211.8   

Bird feed

      197.5         168.9         200.7   

Grass seed

      185.9         136.7         174.5   
  

 

 

     

 

 

     

 

 

  

Total

    $ 1,628.6       $ 1,523.6       $ 1,614.3   
  

 

 

     

 

 

     

 

 

  

The Company's largest customer represented approximately 16%, 17% and 18% of the total company net sales in fiscal 2011, 2010 and fiscal 2009, respectively, and represented approximately 28% of Garden Products' net sales in fiscal 2011, 31% in fiscal 2010 and 32% in fiscal 2009. Sales to the Company's second largest customer represented approximately 12%,10% and 11% of total company net sales in fiscal 2011, 2010 and 2009, respectively, and represented approximately 24% of Garden Products' net sales in fiscal 2011, and 22% in both fiscal years 2010 and 2009. Sales to the Company's third largest customer represented approximately 15% of Garden Products' net sales in fiscal 2011, 18% in fiscal 2010 and 14% in fiscal 2009. The Pet Products' largest customer represented approximately 12% of Pet Products' net sales in fiscal 2011, 11% in fiscal 2010 and approximately 10% in fiscal 2009.

 

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 24,
2011		     September 25,
2010 		    September 26,
2009 		 
                 (in thousands)  

Net sales:

       

Pet Products

    $ 851,307      $ 840,576      $ 833,178   

Garden Products

      777,345        683,072        781,122   
  

 

 

    

 

 

    

 

 

  

Total

    $ 1,628,652      $ 1,523,648      $ 1,614,300   
  

 

 

    

 

 

    

 

 

  

Income (loss) from operations:

       

Pet Products

    $ 77,623      $ 97,893  (1)    $ 102,156   

Garden Products

      50,013        52,995        68,927   

Corporate

      (42,461 )      (41,814 )      (45,097 ) 
  

 

 

    

 

 

    

 

 

  

Total

      85,175        109,074        125,986   

Interest expense

      (38,044 )      (33,706 )      (22,710 ) 

Interest income

      296        119        649   

Other income

      550        419        52   
  

 

 

    

 

 

    

 

 

  

Income before income taxes and noncontrolling interest

      47,977        75,906        103,977   

Income taxes

      19,595        28,110        36,368   
  

 

 

    

 

 

    

 

 

  

Net income including noncontrolling interest

      28,382        47,796        67,609   

Net income attributable to noncontrolling interest

      59        1,963        1,661   
  

 

 

    

 

 

    

 

 

  

Net income attributable to Central Garden & Pet Company

    $ 28,323      $ 45,833      $ 65,948   
  

 

 

    

 

 

    

 

 

  

Assets:

       

Pet Products

    $ 396,637      $ 385,894      $ 394,150   

Garden Products

      350,234        323,387        348,825   

Corporate and eliminations

      346,132        421,603        407,950   
  

 

 

    

 

 

    

 

 

  

Total

    $ 1,093,003      $ 1,130,884      $ 1,150,925   
  

 

 

    

 

 

    

 

 

  

Depreciation and amortization:

       

Pet Products

    $ 14,479      $ 15,422      $ 15,844   

Garden Products

      5,986        6,107        6,571   

Corporate

      8,101        7,340        6,740   
  

 

 

    

 

 

    

 

 

  

Total

    $ 28,566      $ 28,869      $ 29,155   
  

 

 

    

 

 

    

 

 

  

Expenditures for long-lived assets:

       

Pet Products

    $ 9,953      $ 8,216      $ 7,148   

Garden Products

      5,902        2,984        3,154   

Corporate

      15,708        12,990        6,203   
  

 

 

    

 

 

    

 

 

  

Total

    $ 31,563      $ 24,190      $ 16,505   
  

 

 

    

 

 

    

 

 

  

Noncontrolling interest is associated with Garden Products.

 

(1) Includes indefinite-lived intangible asset impairment of $12,000.