Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

3 Months Ended

Dec. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Condensed Statement of Operations

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Three Months Ended December 30, 2017
	(in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	159,061		$	13,743		$	286,424		$	(17,217	)	$	442,011
Cost of goods sold and occupancy	125,479			11,816			189,051			(16,172		)	310,174
Gross profit	33,582			1,927			97,373			(1,045		)	131,837
Selling, general and administrative expenses	36,639			3,905			69,817			(1,045		)	109,316
Operating income (loss)	(3,057		)	(1,978		)	27,556			—			22,521
Interest expense	(7,385		)	(16		)	(4		)	—			(7,405		)
Interest income	186			1			—			—			187
Other (expense) income	(2,918		)	54			(225		)	—			(3,089		)
Income (loss) before taxes and equity in earnings (losses) of affiliates	(13,174		)	(1,939		)	27,327			—			12,214
Income tax expense (benefit)	14,425			1,282			(29,943		)	—			(14,236		)
Equity in earnings (losses) of affiliates	53,846			—			(2,900		)	(50,946		)	—
Net income (loss) including noncontrolling interest	26,247			(3,221		)	54,370			(50,946		)	26,450
Net income attributable to noncontrolling interest	—			203			—			—			203
Net income (loss) attributable to Central Garden & Pet Company	$	26,247		$	(3,424	)	$	54,370		$	(50,946	)	$	26,247

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Three Months Ended December 24, 2016
	(in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	155,518		$	14,024		$	266,438		$	(16,482	)	$	419,498
Cost of goods sold and occupancy	121,136			11,678			181,440			(15,434		)	298,820
Gross profit	34,382			2,346			84,998			(1,048		)	120,678
Selling, general and administrative expenses	35,965			3,664			62,159			(1,048		)	100,740
Operating income (loss)	(1,583		)	(1,318		)	22,839			—			19,938
Interest expense	(6,851		)	(17		)	(5		)	—			(6,873		)
Interest income	38			—			—			—			38
Other expense	(603		)	(193		)	(171		)	—			(967		)
Income (loss) before taxes and equity in earnings (losses) of affiliates	(8,999		)	(1,528		)	22,663			—			12,136
Income tax expense (benefit)	(3,192		)	(411		)	7,950			—			4,347
Equity in earnings (losses) of affiliates	13,444			—			(811		)	(12,633		)	—
Net income (loss) including noncontrolling interest	7,637			(1,117		)	13,902			(12,633		)	7,789
Net income attributable to noncontrolling interest	—			152			—			—			152
Net income (loss) attributable to Central Garden & Pet Company	$	7,637		$	(1,269	)	$	13,902		$	(12,633	)	$	7,637

Consolidating Condensed Statements of Comprehensive Income (Loss)

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Three Months Ended December 30, 2017
	(in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	26,247	$	(3,221	)	$	54,370		$	(50,946	)	$	26,450
Other comprehensive income (loss):
Foreign currency translation	44		43			(16		)	(27		)	44
Total comprehensive income (loss)	26,291		(3,178		)	54,354			(50,973		)	26,494
Comprehensive income attributable to noncontrolling interests	—		203			—			—			203
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	26,291	$	(3,381	)	$	54,354		$	(50,973	)	$	26,291

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Three Months Ended December 24, 2016
	(in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	7,637		$	(1,117	)	$	13,902		$	(12,633	)	$	7,789
Other comprehensive loss:
Foreign currency translation	(508		)	(355		)	(50		)	405			(508		)
Total comprehensive income (loss)	7,129			(1,472		)	13,852			(12,228		)	7,281
Comprehensive income attributable to noncontrolling interests	—			152			—			—			152
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	7,129		$	(1,624	)	$	13,852		$	(12,228	)	$	7,129

Consolidating Condensed Balance Sheet

	CONSOLIDATING CONDENSED BALANCE SHEET
	December 30, 2017
	(in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	277,608	$	5,858		$	—	$	—		$	283,466
Restricted cash	12,419		—			—		—			12,419
Accounts receivable, net	89,039		5,617			140,419		—			235,075
Inventories	141,788		12,723			285,910		—			440,421
Prepaid expenses and other	6,645		1,059			14,815		—			22,519
Total current assets	527,499		25,257			441,144		—			993,900
Land, buildings, improvements and equipment, net	35,972		4,180			139,078		—			179,230
Goodwill	15,058		—			241,217		—			256,275
Other long-term assets	55,752		2,032			143,741		(13,578		)	187,947
Intercompany receivable	38,956		—			677,979		(716,935		)	—
Investment in subsidiaries	1,437,506		—			—		(1,437,506		)	—
Total	$	2,110,743	$	31,469		$	1,643,159	$	(2,168,019	)	$	1,617,352
LIABILITIES AND EQUITY
Accounts payable	$	40,775	$	9,241		$	74,567	$	—		$	124,583
Accrued expenses	45,973		2,313			51,718		—			100,004
Current portion of long-term debt	—		—			372		—			372
Total current liabilities	86,748		11,554			126,657		—			224,959
Long-term debt	690,839		—			125		—			690,964
Intercompany payable	663,241		53,694			—		(716,935		)	—
Losses in excess of investment in subsidiaries	—		—			29,069		(29,069		)	—
Other long-term obligations	8,026		—			45,030		(13,578		)	39,478
Total Central Garden & Pet shareholders’ equity (deficit)	661,889		(33,841		)	1,442,278		(1,408,437		)	661,889
Noncontrolling interest	—		62			—		—			62
Total equity (deficit)	661,889		(33,779		)	1,442,278		(1,408,437		)	661,951
Total	$	2,110,743	$	31,469		$	1,643,159	$	(2,168,019	)	$	1,617,352

	CONSOLIDATING CONDENSED BALANCE SHEET
	December 24, 2016
	(in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,772	$	3,997		$	812	$	—		$	6,581
Restricted cash	10,981		—			—		—			10,981
Accounts receivable, net	72,850		6,919			112,455		—			192,224
Inventories	137,615		15,435			277,121		—			430,171
Prepaid expenses and other	7,972		897			13,530		—			22,399
Total current assets	231,190		27,248			403,918		—			662,356
Land, buildings, improvements and equipment, net	39,384		3,858			126,594		—			169,836
Goodwill	15,058		—			215,327		—			230,385
Other long-term assets	44,012		3,542			129,849		(23,226		)	154,177
Intercompany receivable	38,559		—			586,588		(625,147		)	—
Investment in subsidiaries	1,251,408		—			—		(1,251,408		)	—
Total	$	1,619,611	$	34,648		$	1,462,276	$	(1,899,781	)	$	1,216,754
LIABILITIES AND EQUITY
Accounts payable	$	46,208	$	7,146		$	81,883	$	—		$	135,237
Accrued expenses	42,223		1,362			50,909		—			94,494
Current portion of long-term debt	22		—			375		—			397
Total current liabilities	88,453		8,508			133,167		—			230,128
Long-term debt	394,564		—			447		—			395,011
Intercompany payable	575,187		49,960			—		(625,147		)	—
Losses in excess of investment in subsidiaries	—		—			21,014		(21,014		)	—
Other long-term obligations	2,158		—			52,727		(23,226		)	31,659
Total Central Garden & Pet shareholders’ equity (deficit)	559,249		(24,527		)	1,254,921		(1,230,394		)	559,249
Noncontrolling interest	—		707			—		—			707
Total equity (deficit)	559,249		(23,820		)	1,254,921		(1,230,394		)	559,956
Total	$	1,619,611	$	34,648		$	1,462,276	$	(1,899,781	)	$	1,216,754

	CONSOLIDATING CONDENSED BALANCE SHEET
	September 30, 2017
	(in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	19,238	$	11,693		$	1,466	$	—		$	32,397
Restricted cash	12,645		—			—		—			12,645
Accounts receivable, net	78,692		5,586			153,590		—			237,868
Inventories	125,797		9,493			246,811		—			382,101
Prepaid expenses and other assets	6,059		811			11,175		—			18,045
Total current assets	242,431		27,583			413,042		—			683,056
Land, buildings, improvements and equipment, net	38,170		4,225			138,518		—			180,913
Goodwill	15,058		—			241,217		—			256,275
Other long-term assets	61,715		2,376			146,372		(23,801		)	186,662
Intercompany receivable	36,606		—			662,137		(698,743		)	—
Investment in subsidiaries	1,383,633		—			—		(1,383,633		)	—
Total	$	1,777,613	$	34,184		$	1,601,286	$	(2,106,177	)	$	1,306,906
LIABILITIES AND EQUITY
Accounts payable	$	36,760	$	3,076		$	63,447	$	—		$	103,283
Accrued expenses and other liabilities	54,909		2,391			59,249		—			116,549
Current portion of long term debt	—		—			375		—			375
Total current liabilities	91,669		5,467			123,071		—			220,207
Long-term debt	395,160		—			118		—			395,278
Intercompany payable	647,409		51,334			—		(698,743		)	—
Losses in excess of investment in subsidiaries	—		—			19,782		(19,782		)	—
Other long-term obligations	7,689		—			70,391		(23,801		)	54,279
Total Central Garden & Pet shareholders’ equity (deficit)	635,686		(24,073		)	1,387,924		(1,363,851		)	635,686
Noncontrolling interest	—		1,456			—		—			1,456
Total equity (deficit)	635,686		(22,617		)	1,387,924		(1,363,851		)	637,142
Total	$	1,777,613	$	34,184		$	1,601,286	$	(2,106,177	)	$	1,306,906

Consolidating Condensed Statement of Cash Flows

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
	Three Months Ended December 30, 2017
	(in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	(38,709	)	$	(105	)	$	20,988		$	(6,387	)	$	(24,213	)
Additions to property and equipment	(1,608		)	(83		)	(6,495		)				(8,186		)
Change in restricted cash and cash equivalents	226			—						—			226
Investments	(6,555		)	—						—			(6,555		)
Other investing activities	(1,200		)	—			—			—			(1,200		)
Intercompany investing activities	(2,351		)	—			(15,842		)	18,193			—
Net cash used by investing activities	(11,488		)	(83		)	(22,337		)	18,193			(15,715		)
Repayments on revolving line of credit	(23,000		)	—			—			—			(23,000		)
Borrowings under revolving line of credit	23,000			—			—			—			23,000
Issuance of long-term debt	300,000			—			—			—			300,000
Repayments under long-term debt	—			—			(7		)	—			(7		)
Payment of financing costs	(4,558		)	—			—			—			(4,558		)
Repurchase of common stock	(2,768		)	—			—			—			(2,768		)
Distribution to parent				(6,387		)	—			6,387			—
Distribution to noncontrolling interest				(1,597		)	—			—			(1,597		)
Payment of contingent consideration liability				—			(93		)	—			(93		)
Intercompany financing activities	15,833			2,360						(18,193		)	—
Net cash provided (used) by financing activities	308,507			(5,624		)	(100		)	(11,806		)	290,977
Effect of exchange rate changes on cash and cash equivalents	60			(23		)	(17		)	—			20
Net increase (decrease) in cash and cash equivalents	258,370			(5,835		)	(1,466		)	—			251,069
Cash and cash equivalents at beginning of period	19,238			11,693			1,466			—			32,397
Cash and cash equivalents at end of period	$	277,608		$	5,858		$	—		$	—		$	283,466

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
	Three Months Ended December 24, 2016
	(in thousands)
	Parent			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net cash (used) provided by operating activities	$	(27,540	)	$	(4,428	)	$	22,731		$	(4,076	)	$	(13,313	)
Additions to property, plant and equipment	(1,831		)	(110		)	(11,027		)	—			(12,968		)
Payments to acquire companies, net of cash acquired	(60,042		)	—						—			(60,042		)
Change in restricted cash and cash equivalents	(71		)	—			—			—			(71		)
Proceeds from sale of plant assets	2						7,958						7,960
Investments	(2,000		)										(2,000		)
Other investing activities	(265		)										(265		)
Intercompany investing activities	(5,781		)	—			(19,214		)	24,995			—
Net cash used by investing activities	(69,988		)	(110		)	(22,283		)	24,995			(67,386		)
Repayments under revolving line of credit	(1,000		)	—						—			(1,000		)
Borrowings under revolving line of credit	1,000			—			—			—			1,000
Issuance of long-term debt	(66		)	—			(8		)	—			(74		)
Excess tax benefits from stock-based awards	4,356			—			—			—			4,356
Repurchase of common stock	(7,913		)				—						(7,913		)
Distribution to parent	—			(4,076		)	—			4,076			—
Distribution to noncontrolling interest	—			(1,018		)	—			—			(1,018		)
Payment of contingent consideration	—			—			(860		)	—			(860		)
Intercompany financing activities	21,223			3,772			—			(24,995		)	—
Net cash provided (used) by financing activities	17,600			(1,322		)	(868		)	(20,919		)	(5,509		)
Effect of exchange rates on cash	(458		)	162			103			—			(193		)
Net decrease in cash and cash equivalents	(80,386		)	(5,698		)	(317		)	—			(86,401		)
Cash and cash equivalents at beginning of year	82,158			9,695			1,129			—			92,982
Cash and cash equivalents at end of year	$	1,772		$	3,997		$	812		$	—		$	6,581