Annual report pursuant to Section 13 and 15(d)

Business Segment Data

v3.20.2
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.