Annual report pursuant to Section 13 and 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

v3.5.0.2
Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)
12 Months Ended
Sep. 24, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Condensed Statement of Operations
 
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 STATEMENT OF OPERATIONS
 
Fiscal Year Ended September 26, 2015
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
484,310

 
$
100,127

 
$
1,146,821

 
$
(80,521
)
 
$
1,650,737

Cost of goods sold and occupancy
379,235

 
76,597

 
781,797

 
(74,944
)
 
1,162,685

Gross profit
105,075

 
23,530

 
365,024

 
(5,577
)
 
488,052

Selling, general and administrative expenses
124,613

 
18,329

 
259,252

 
(5,577
)
 
396,617

Operating income (loss)
(19,538
)
 
5,201

 
105,772

 

 
91,435

Interest expense
(39,893
)
 
(268
)
 
134

 

 
(40,027
)
Interest income
126

 
3

 

 

 
129

Other income (expense)
(372
)
 
407

 
(22
)
 

 
13

Income (loss) before taxes and equity in earnings of affiliates
(59,677
)
 
5,343

 
105,884

 

 
51,550

Income tax expense (benefit)
(21,500
)
 
2,089

 
37,946

 

 
18,535

Equity in earnings of affiliates
70,148

 

 
2,445

 
(72,593
)
 

Net income including noncontrolling interest
31,971

 
3,254

 
70,383

 
(72,593
)
 
33,015

Noncontrolling interest

 
1,044

 

 

 
1,044

Net income attributable to Central Garden & Pet Company
$
31,971

 
$
2,210

 
$
70,383

 
$
(72,593
)
 
$
31,971

 
 
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
 
Fiscal Year Ended September 27, 2014
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
460,781

 
$
109,453

 
$
1,103,926

 
$
(69,803
)
 
$
1,604,357

Cost of goods sold and occupancy
370,492

 
87,028

 
757,217

 
(64,404
)
 
1,150,333

Gross profit
90,289

 
22,425

 
346,709

 
(5,399
)
 
454,024

Selling, general and administrative expenses
117,240

 
18,230

 
267,740

 
(5,399
)
 
397,811

Operating income (loss)
(26,951
)
 
4,195

 
78,969

 

 
56,213

Interest expense
(42,742
)
 
(218
)
 
116

 

 
(42,844
)
Interest income
92

 
2

 

 

 
94

Other income (expense)
186

 
583

 
(366
)
 

 
403

Income (loss) before taxes and equity in earnings of affiliates
(69,415
)
 
4,562

 
78,719

 

 
13,866

Income tax expense (benefit)
(26,962
)
 
756

 
30,251

 

 
4,045

Equity in earnings of affiliates
51,257

 

 
1,506

 
(52,763
)
 

Net income (loss) including noncontrolling interest
8,804

 
3,806

 
49,974

 
(52,763
)
 
9,821

Noncontrolling interest

 
1,017

 

 

 
1,017

Net income (loss) attributable to Central Garden & Pet Company
$
8,804

 
$
2,789

 
$
49,974

 
$
(52,763
)
 
$
8,804

Consolidating Condensed Statements of Comprehensive Income
 
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 attributable to Central Garden & Pet Company
$
43,056

 
$
(1,738
)
 
$
96,339

 
$
(94,601
)
 
$
43,056

 
 
CONSOLIDATING CONDENSED STATEMENTS OF
COMPREHENSIVE INCOME
 
Fiscal Year Ended September 26, 2015
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
31,971

 
$
3,254

 
$
70,383

 
$
(72,593
)
 
$
33,015

Other comprehensive income:

 

 

 

 

Unrealized loss on securities
(10
)
 

 


 


 
(10
)
Reclassification of realized loss on securities included in net income
20

 

 

 

 
20

Foreign currency translation
(1,078
)
 
(537
)
 
(380
)
 
917

 
(1,078
)
Total comprehensive income
30,903

 
2,717

 
70,003

 
(71,676
)
 
31,947

Comprehensive income attributable to noncontrolling interests

 
1,044

 

 

 
1,044

Comprehensive income attributable to Central Garden & Pet Company
$
30,903

 
$
1,673

 
$
70,003

 
$
(71,676
)
 
$
30,903

 
 
CONSOLIDATING CONDENSED STATEMENTS OF
COMPREHENSIVE INCOME
 
Fiscal Year Ended September 27, 2014
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
8,804

 
$
3,806

 
$
49,974

 
$
(52,763
)
 
$
9,821

Other comprehensive loss:

 

 

 

 

Unrealized loss on securities
(10
)
 

 

 

 
(10
)
Foreign currency translation

 
(200
)
 

 

 
(200
)
Total comprehensive income (loss)
8,794

 
3,606

 
49,974

 
(52,763
)
 
9,611

Comprehensive income attributable to noncontrolling interests

 
1,017

 

 

 
1,017

Comprehensive loss attributable to Central Garden & Pet Company
$
8,794

 
$
2,589

 
$
49,974

 
$
(52,763
)
 
$
8,594

Consolidating Condensed Balance Sheet
 
 
CONSOLIDATING CONDENSED BALANCE SHEET
 
 
September 24, 2016
 
 
(in thousands)
 
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
82,158

 
$
9,695

 
$
1,129

 
$

 
$
92,982

Restricted cash
 
10,910

 

 

 

 
10,910

Accounts receivable, net
 
59,617

 
5,156

 
136,378

 

 
201,151

Inventories
 
113,317

 
11,752

 
236,935

 

 
362,004

Prepaid expenses and other assets
 
20,978

 
817

 
25,964

 

 
47,759

Total current assets
 
286,980

 
27,420

 
400,406

 

 
714,806

Land, buildings, improvements and equipment, net
 
41,083

 
3,897

 
113,244

 

 
158,224

Goodwill
 
15,058

 

 
216,327

 

 
231,385

Other long term assets
 
30,555

 
2,980

 
85,701

 
(11,458
)
 
107,778

Intercompany receivable
 
32,778

 

 
567,374

 
(600,152
)
 

Investment in subsidiaries
 
1,176,990

 

 

 
(1,176,990
)
 

Total
 
$
1,583,444

 
$
34,297

 
$
1,383,052

 
$
(1,788,600
)
 
$
1,212,193

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
34,096

 
$
3,953

 
$
64,364

 
$

 
$
102,413

Accrued expenses and other liabilities
 
47,862

 
1,410

 
50,071

 

 
99,343

Current portion of long term debt
 
88

 

 
375

 

 
463

Total current liabilities
 
82,046

 
5,363

 
114,810

 

 
202,219

Long-term debt
 
394,364

 

 
442

 

 
394,806

Intercompany payable
 
553,964

 
46,188

 

 
(600,152
)
 

Losses in excess of investment in subsidiaries
 

 

 
16,126

 
(16,126
)
 

Other long-term obligations
 
56

 

 
71,983

 
(11,458
)
 
60,581

Shareholders’ equity attributable to Central Garden & Pet
 
553,014

 
(18,827
)
 
1,179,691

 
(1,160,864
)
 
553,014

Noncontrolling interest
 

 
1,573

 

 

 
1,573

Total equity
 
553,014

 
(17,254
)
 
1,179,691

 
(1,160,864
)
 
554,587

Total
 
$
1,583,444

 
$
34,297

 
$
1,383,052

 
$
(1,788,600
)
 
$
1,212,193


 
CONSOLIDATING CONDENSED BALANCE SHEET
 
September 26, 2015
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS

 

Cash and cash equivalents
$
36,280

 
$
10,022

 
$
1,282

 
$

 
$
47,584

Restricted cash
13,157

 

 

 

 
13,157

Accounts receivable, net
46,326

 
6,775

 
154,301

 

 
207,402

Inventories
86,109

 
11,690

 
238,147

 

 
335,946

Prepaid expenses and other assets
22,926

 
848

 
25,957

 

 
49,731

Total current assets
204,798

 
29,335

 
419,687

 

 
653,820

Land, buildings, improvements and equipment, net
51,409

 
3,663

 
107,737

 

 
162,809

Goodwill

 

 
209,089

 

 
209,089

Other long term assets
25,881

 
3,662

 
82,436

 
(6,100
)
 
105,879

Intercompany receivable
32,695

 

 
437,385

 
(470,080
)
 

Investment in subsidiaries
1,075,028

 

 

 
(1,075,028
)
 

Total
$
1,389,811

 
$
36,660

 
$
1,256,334

 
$
(1,551,208
)
 
$
1,131,597

LIABILITIES AND EQUITY


 


 


 


 


Accounts payable
$
20,506

 
$
2,543

 
$
65,840

 
$

 
$
88,889

Accrued expenses and other liabilities
38,723

 
1,789

 
47,212

 

 
87,724

Current portion of long term debt
261

 

 
30

 

 
291

Total current liabilities
59,490

 
4,332

 
113,082

 

 
176,904

Long-term debt
396,626

 

 
65

 

 
396,691

Intercompany payable
426,639

 
43,441

 

 
(470,080
)
 

Losses in excess of investment in subsidiaries

 

 
11,867

 
(11,867
)
 

Other long-term obligations
1,770

 

 
55,952

 
(6,100
)
 
51,622

Shareholders’ equity attributable to Central Garden & Pet
505,286

 
(12,207
)
 
1,075,368

 
(1,063,161
)
 
505,286

Noncontrolling interest

 
1,094

 

 

 
1,094

Total equity
505,286

 
(11,113
)
 
1,075,368

 
(1,063,161
)
 
506,380

Total
$
1,389,811

 
$
36,660

 
$
1,256,334

 
$
(1,551,208
)
 
$
1,131,597

Consolidating Condensed Statement of Cash Flows
 
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
 
Fiscal Year Ended September 24, 2016
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$
3,514

 
$
2,654

 
$
150,141

 
$
(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 disposal of land, buildings, etc.

 

 
3,911

 

 
3,911

Change in restricted cash and cash equivalents
2,247

 

 

 

 
2,247

Maturities of short term investments

 

 

 

 

Investment in short term investments

 

 

 

 

Other investing activities
(730
)
 

 

 

 
(730
)
Intercompany investing activities
(83
)
 

 
(130,100
)
 
130,183

 

Net cash used by investing activities
(72,080
)
 
(717
)
 
(148,581
)
 
130,183

 
(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
127,436

 
2,747

 

 
(130,183
)
 

Net cash provided (used) by financing activities
115,910

 
(2,728
)
 
(2,047
)
 
(125,300
)
 
(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


 
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
 
Fiscal Year Ended September 26, 2015
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used) provided by operating activities
$
(16,823
)
 
$
7,372

 
$
103,619

 
$
(6,719
)
 
$
87,449

Additions to property, plant and equipment
(2,721
)
 
(405
)
 
(18,904
)
 

 
(22,030
)
Payments to acquire companies, net of expenses
(38,384
)
 

 

 

 
(38,384
)
Change in restricted cash and cash equivalents
1,126

 

 

 

 
1,126

Maturities of short term investments
9,997

 

 

 

 
9,997

Investment in short term investments
(17
)
 

 

 

 
(17
)
Other investing activities
(546
)
 

 

 

 
(546
)
Intercompany investing activities
(15,789
)
 

 
(85,963
)
 
101,752

 

Net cash (used) provided by investing activities
(46,334
)
 
(405
)
 
(104,867
)
 
101,752

 
(49,854
)
Repayments on revolving line of credit
(312,000
)
 

 

 

 
(312,000
)
Borrowings on revolving line of credit
312,000

 

 

 

 
312,000

Repayments of long-term debt
(50,262
)
 

 
(27
)
 

 
(50,289
)
Proceeds from issuance of common stock
200

 

 

 

 
200

Excess tax benefits from stock-based awards
2,154

 

 

 

 
2,154

Repurchase of common stock
(18,497
)
 

 

 

 
(18,497
)
Payment of deferred financing costs
(258
)
 

 

 

 
(258
)
Distribution to parent

 
(6,719
)
 

 
6,719

 

Distribution to noncontrolling interest

 
(1,680
)
 

 

 
(1,680
)
Intercompany financing activities
103,326

 
(1,574
)
 

 
(101,752
)
 

Net cash provided (used) by financing activities
36,663

 
(9,973
)
 
(27
)
 
(95,033
)
 
(68,370
)
Effect of exchange rates on cash
(697
)
 
222

 
158

 

 
(317
)
Net increase (decrease) in cash and cash equivalents
(27,191
)
 
(2,784
)
 
(1,117
)
 

 
(31,092
)
Cash and cash equivalents at beginning of year
63,471

 
12,806

 
2,399

 

 
78,676

Cash and cash equivalents at end of year
$
36,280

 
$
10,022

 
$
1,282

 
$

 
$
47,584


 
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
 
Fiscal Year Ended September 27, 2014
 
(in thousands)
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used) provided by operating activities
$
(4,139
)
 
$
7,420

 
$
125,720

 
$
(2,534
)
 
$
126,467

Additions to property, plant and equipment
(6,721
)
 
(1,027
)
 
(9,425
)
 

 
(17,173
)
Businesses acquired, net of cash acquired

 

 
(20,282
)
 

 
(20,282
)
Proceeds from disposal of plant and equipment

 

 
8,737

 

 
8,737

Change in restricted cash and cash equivalents
(14,283
)
 

 

 

 
(14,283
)
Maturities of short term investments
17,820

 

 

 

 
17,820

Investment in short term investments
(10,000
)
 

 

 

 
(10,000
)
Intercompany investing activities
(6,726
)
 

 
(104,926
)
 
111,652

 

Net cash (used) provided by investing activities
(19,910
)
 
(1,027
)
 
(125,896
)
 
111,652

 
(35,181
)
Repayments on revolving line of credit
(301,000
)
 

 

 

 
(301,000
)
Borrowings on revolving line of credit
278,000

 

 

 

 
278,000

Repayments of long-term debt
(243
)
 

 
(124
)
 

 
(367
)
Proceeds from issuance of common stock
1,165

 

 

 

 
1,165

Excess tax benefits from stock-based awards
498

 

 

 

 
498

Repurchase of common stock
(2,332
)
 

 

 

 
(2,332
)
Payment of deferred financing costs
(3,090
)
 

 

 

 
(3,090
)
Distribution to parent

 
(2,534
)
 

 
2,534

 

Distribution to noncontrolling interest

 
(633
)
 

 

 
(633
)
Intercompany financing activities
109,057

 
2,595

 

 
(111,652
)
 

Net cash provided (used) by financing activities
82,055

 
(572
)
 
(124
)
 
(109,118
)
 
(27,759
)
Effect of exchange rates on cash
27

 
(18
)
 
(16
)
 

 
(7
)
Net increase (decrease) in cash and cash equivalents
58,033

 
5,803

 
(316
)
 

 
63,520

Cash and cash equivalents at beginning of year
5,438

 
7,003

 
2,715

 

 
15,156

Cash and cash equivalents at end of year
$
63,471

 
$
12,806

 
$
2,399

 
$

 
$
78,676