Annual report pursuant to Section 13 and 15(d)

Business Segment Data

v3.22.2.2
Business Segment Data
 12 Months Ended
Sep. 24, 2022
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 Nylabone Products, IMS Trading, Four Paws Products, Central Specialty Pet (Avian and Small Animal, C&S Products and Aquatics), Segrest, K&H Pet Products, Arden, DMC, Life Sciences, Interpet, General Pet and Pet Distribution. These businesses are engaged in the manufacture, purchase, sale and delivery of internally and externally produced pet supplies, animal health and insect controls, aquariums, books, dog treats and food, as well as live fish and small animals principally to independent pet distributors, big-box retailers, regional retailer chains, e-commerce retailers, grocery stores and mass merchants. The Garden segment consists of Grass Seed, Bird Feed, Chemicals and Fertilizers, Excel Marketing, Gulfstream, Hydro-Organics, Pottery (terra-cotta), Cedarworks, Bell Nursery, Hopewell Nursery, DMO, Green Garden, D&D Commodities and Garden Distribution. Products manufactured, designed and sourced, or distributed include products found typically in the lawn and garden sections of mass merchandisers, warehouse-type clubs, home improvement centers and nurseries and include live plants; grass, vegetable, flower and herb seed; wild bird feed, bird houses and other birding accessories; terra-cotta pottery; herbicides, pesticides and insecticides. These products are sold directly to national and regional retail chains, independent garden distributors, online retailers, 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 2022 2021 2020
(in millions)
Other garden products $ 865.3  $ 876.6  $ 491.7 
Other pet products 765.9  767.0  821.1 
Other manufacturers' products 730.2 749.1 600.7 
Dog & cat products 542.9 570.9  502.1 
Wild bird 434.3 340.1  —  (1)
Controls & fertilizer products —  (1) —  (1) 279.9 
Total $ 3,338.6  $ 3,303.7  $ 2,695.5 
(1) The product category was less than 10% of our consolidated net sales in the period.
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 24, 2022   September 25, 2021   September 26, 2020
(in thousands)
Net sales:
Pet segment $ 1,878,110     $ 1,894,929     $ 1,678,027 
Garden segment 1,460,478     1,408,755     1,017,482 
Total $ 3,338,588     $ 3,303,684     $ 2,695,509 
Operating income (loss):
Pet segment $ 208,924  $ 208,201  $ 171,369 
Garden segment 153,956     138,755  115,413 
Corporate (102,844) (92,460) (88,805)
Total 260,036  254,496  197,977 
Interest expense (58,253) (58,597) (44,016)
Interest income 719     415     4,027 
Other expense, net (3,596) (1,506) (4,250)
Income before income taxes and noncontrolling interest 198,906     194,808     153,738 
Income tax expense 46,234     42,035     32,218 
Net income including noncontrolling interest 152,672     152,773     121,520 
Net income attributable to noncontrolling interest 520     1,027     844 
Net income attributable to Central Garden & Pet Company $ 152,152     $ 151,746     $ 120,676 
Assets:
Pet segment $ 1,069,167     $ 966,437     $ 877,901 
Garden segment 1,405,802     1,313,899     481,401 
Corporate and eliminations 807,033     836,344     980,062 
Total $ 3,282,002     $ 3,116,680     $ 2,339,364 
Depreciation and amortization:
Pet segment $ 38,960     $ 36,952     $ 38,116 
Garden segment 36,583     33,050     10,590 
Corporate 5,405     4,725     6,653 
Total $ 80,948     $ 74,727     $ 55,359 
Expenditures for long-lived assets:
Pet segment $ 46,917     $ 44,919     $ 31,106 
Garden segment 65,126     34,043     8,177 
Corporate 3,162     1,371     3,772 
Total $ 115,205     $ 80,333     $ 43,055 
Noncontrolling interest is associated with the Garden segment.