Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

3 Months Ended

Dec. 28, 2019

Condensed Financial Information Disclosure [Abstract]

Consolidating Condensed Statement of Operations

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Three Months Ended December 28, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	170,328	$	23,837	$	301,041	$	(12,378)	$	482,828
Cost of goods sold and occupancy	132,273		23,712		206,984		(11,407)		351,562
Gross profit	38,055		125		94,057		(971)		131,266
Selling, general and administrative expenses	43,237		7,819		79,116		(971)		129,201
Operating income (loss)	(5,182)		(7,694)		14,941		—		2,065
Interest expense	(10,578)		(60)		(3)		—		(10,641)
Interest income	1,997		7		—		—		2,004
Other income (expense)	(75)		737		(357)		—		305
Income (loss) before taxes and equity in earnings (losses) of affiliates	(13,838)		(7,010)		14,581		—		(6,267)
Income tax expense (benefit)	(3,898)		(365)		2,535		—		(1,728)
Equity in earnings (loss) of affiliates	5,523		—		(680)		(4,843)		—
Net income (loss) including noncontrolling interest	(4,417)		(6,645)		11,366		(4,843)		(4,539)
Net loss attributable to noncontrolling interest	—		(122)		—		—		(122)
Net income (loss) attributable to Central Garden & Pet Company	$	(4,417)	$	(6,523)	$	11,366	$	(4,843)	$	(4,417)

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
	Three Months Ended December 29, 2018
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	173,406	$	23,629	$	279,834	$	(14,879)	$	461,990
Cost of goods sold and occupancy	136,013		22,003		187,683		(13,891)		331,808
Gross profit	37,393		1,626		92,151		(988)		130,182
Selling, general and administrative expenses	43,665		7,351		69,973		(988)		120,001
Operating income (loss)	(6,272)		(5,725)		22,178		—		10,181
Interest expense	(10,497)		(114)		(3)		—		(10,614)
Interest income	2,533		4		—		—		2,537
Other income (expense)	37		(216)		(13)		—		(192)
Income (loss) before taxes and equity in earnings (losses) of affiliates	(14,199)		(6,051)		22,162		—		1,912
Income tax expense (benefit)	(2,088)		(256)		2,617				273
Equity in earnings of affiliates	13,914		—		(1,112)		(12,802)		—
Net income (loss) including noncontrolling interest	1,803		(5,795)		18,433		(12,802)		1,639
Net income (loss) attributable to noncontrolling interest	—		(164)		—		—		(164)
Net income (loss) attributable to Central Garden & Pet Company	$	1,803	$	(5,631)	$	18,433	$	(12,802)	$	1,803

Consolidating Condensed Statements of Comprehensive Income (Loss)

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Three Months Ended December 28, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(4,417)	$	(6,645)	$	11,366	$	(4,843)	$	(4,539)
Other comprehensive income:
Foreign currency translation	436		297		21		(318)		436
Total comprehensive income (loss)	(3,981)		(6,348)		11,387		(5,161)		(4,103)
Comprehensive loss attributable to noncontrolling interests	—		(122)		—		—		(122)
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(3,981)	$	(6,226)	$	11,387	$	(5,161)	$	(3,981)

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Three Months Ended December 29, 2018
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	1,803	$	(5,795)	$	18,433	$	(12,802)	$	1,639
Other comprehensive loss:
Foreign currency translation	(274)		(129)		(95)		224		(274)
Total comprehensive income (loss)	1,529		(5,924)		18,338		(12,578)		1,365
Comprehensive loss attributable to noncontrolling interests	—		(164)		—		—		(164)
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	1,529	$	(5,760)	$	18,338	$	(12,578)	$	1,529

Consolidating Condensed Balance Sheet

	CONSOLIDATING CONDENSED BALANCE SHEET
	December 28, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	435,169	$	9,467	$	1,177	$	—	$	445,813
Restricted cash	12,990		—		—		—		12,990
Short term investments	—		—		—		—		—
Accounts receivable, net	99,521		9,261		159,447		—		268,229
Inventories, net	141,336		37,999		377,144		—		556,479
Prepaid expenses and other	12,338		1,337		23,894		—		37,569
Total current assets	701,354		58,064		561,662		—		1,321,080
Property, plant and equipment, net	27,857		35,118		178,820		—		241,795
Goodwill	20,578		7,414		261,862		—		289,854
Operating lease right-of-use assets	51,232		6,680		47,365		—		105,277
Other long-term assets	47,882		5,099		136,249		(12,079)		177,151
Intercompany receivable	40,813		—		861,972		(902,785)		—
Investment in subsidiaries	1,790,591		—		—		(1,790,591)		—
Total	$	2,680,307	$	112,375	$	2,047,930	$	(2,705,455)	$	2,135,157
LIABILITIES AND EQUITY
Accounts payable	$	61,493	$	17,065	$	106,101	$	—	$	184,659
Accrued expenses	56,374		4,049		64,351		—		124,774
Current operating lease liability	20,251		3,398		10,671		—		34,320
Current portion of long-term debt	107		—		—		—		107
Total current liabilities	138,225		24,512		181,123		—		343,860
Long-term debt	693,329		—		—		—		693,329
Operating lease long term liabilities	33,212		3,264		38,807				75,283
Intercompany payable	841,709		61,077		—		(902,786)		—
Losses in excess of investment in subsidiaries	—		—		26,246		(26,246)		—
Other long-term obligations	708		—		60,884		(12,079)		49,513
Total Central Garden & Pet shareholders’ equity (deficit)	973,124		23,474		1,740,870		(1,764,344)		973,124
Noncontrolling interest	—		48		—				48
Total equity	973,124		23,522		1,740,870		(1,764,344)		973,172
Total	$	2,680,307	$	112,375	$	2,047,930	$	(2,705,455)	$	2,135,157

	CONSOLIDATING CONDENSED BALANCE SHEET
	December 29, 2018
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	470,049	$	6,500	$	2,188	$	—	$	478,737
Restricted cash	10,921		—		—		—		10,921
Accounts receivable, net	95,399		9,736		145,088		—		250,223
Inventories, net	137,158		36,698		319,889		—		493,745
Prepaid expenses and other	16,268		1,635		20,495		—		38,398
Total current assets	729,795		54,569		487,660		—		1,272,024
Property, plant and equipment, net	31,311		33,483		146,766		—		211,560
Goodwill	20,578		7,414		253,185		—		281,177
Other long-term assets	54,972		6,663		132,846		(8,396)		186,085
Intercompany receivable	100,968		—		775,169		(876,137)		—
Investment in subsidiaries	1,632,068		—		—		(1,632,068)		—
Total	$	2,569,692	$	102,129	$	1,795,626	$	(2,516,601)	$	1,950,846
LIABILITIES AND EQUITY
Accounts payable	$	47,350	$	12,359	$	81,477	$	—	$	141,186
Accrued expenses	48,038		4,159		56,048		—		108,245
Current portion of long-term debt	117		—		—		—		117
Total current liabilities	95,505		16,518		137,525		—		249,548
Long-term debt	692,157		—		175		—		692,332
Intercompany payable	817,165		58,972		—		(876,137)		—
Losses in excess of investment in subsidiaries	—		—		26,148		(26,148)		—
Other long-term obligations	8,602		—		52,276		(8,396)		52,482
Total Central Garden & Pet shareholders’ equity (deficit)	956,263		26,418		1,579,502		(1,605,920)		956,263
Noncontrolling interest	—		221		—		—		221
Total equity	956,263		26,639		1,579,502		(1,605,920)		956,484
Total	$	2,569,692	$	102,129	$	1,795,626	$	(2,516,601)	$	1,950,846

	CONSOLIDATING CONDENSED BALANCE SHEET
	September 28, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	489,590	$	7,308	$	851	$	—	$	497,749
Restricted cash	12,952		—		—		—		12,952
Accounts receivable, net	99,372		11,551		189,212		—		300,135
Inventories, net	121,344		30,826		314,027		—		466,197
Prepaid expenses and other assets	9,339		1,241		19,580		—		30,160
Total current assets	732,597		50,926		523,670		—		1,307,193
Property, plant and equipment, net	27,395		35,854		182,156		—		245,405
Goodwill	20,578		7,414		258,085		—		286,077
Other long-term assets	55,690		5,487		139,138		(13,970)		186,345
Intercompany receivable	37,544		—		879,231		(916,775)		—
Investment in subsidiaries	1,784,750		—		—		(1,784,750)		—
Total	$	2,658,554	$	99,681	$	1,982,280	$	(2,715,495)	$	2,025,020
LIABILITIES AND EQUITY
Accounts payable	$	47,506	$	6,895	$	94,845	$	—	$	149,246
Accrued expenses and other liabilities	54,623		4,814		69,729		—		129,166
Current portion of long term debt	113		—		—		—		113
Total current liabilities	102,242		11,709		164,574		—		278,525
Long-term debt	693,037		—		—		—		693,037
Intercompany payable	858,673		58,102		—		(916,775)		—
Losses in excess of investment in subsidiaries	—		—		25,567		(25,567)		—
Other long-term obligations	8,595		—		62,656		(13,970)		57,281
Total Central Garden & Pet shareholders’ equity (deficit)	996,007		29,700		1,729,483		(1,759,183)		996,007
Noncontrolling interest	—		170		—		—		170
Total equity	996,007		29,870		1,729,483		(1,759,183)		996,177
Total	$	2,658,554	$	99,681	$	1,982,280	$	(2,715,495)	$	2,025,020

Consolidating Condensed Statement of Cash Flows

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
	Three Months Ended December 28, 2019
	(in thousands)
	Parent		Non- Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net cash used by operating activities	$	(8,297)	$	(1,238)	$	(8,487)	$	—	$	(18,022)
Additions to property, plant and equipment	(1,817)		188		(8,248)		—		(9,877)
Investments	(424)		—		—		—		(424)
Other investing activities	(75)		—		—		—		(75)
Intercompany investing activities	(3,270)		—		17,258		(13,988)		—
Net cash (used) provided by investing activities	(5,586)		188		9,010		(13,988)		(10,376)
Repayments of long-term debt	(31)		—		—		—		(31)
Payment of financing costs	(869)								(869)
Repurchase of common stock	(23,054)		—		—		—		(23,054)
Payment of contingent consideration liability	—		—		(77)		—		(77)
Intercompany financing activities	(16,962)		2,974		—		13,988		—
Net cash (used) provided by financing activities	(40,916)		2,974		(77)		13,988		(24,031)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	416		235		(120)		—		531
Net increase (decrease) in cash, cash equivalents and restricted cash	(54,383)		2,159		326		—		(51,898)
Cash, cash equivalents and restricted cash at beginning of period	502,542		7,308		851		—		510,701
Cash, cash equivalents and restricted cash at end of period	$	448,159	$	9,467	$	1,177	$	—	$	458,803

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
	Three Months Ended December 29, 2018
	(in thousands)
	Parent		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminations		Consolidated
Net cash (used) provided by operating activities	$	(3,592)	$	(1,459)	$	11,851	$	—	$	6,800
Additions to property, plant and equipment	(873)		(704)		(6,261)		—		(7,838)
Investments	(1,499)		—		—		—		(1,499)
Other investing activities	(50)		—		—		—		(50)
Intercompany investing activities	(60,604)		—		(5,283)		65,887		—
Net cash used by investing activities	(63,026)		(704)		(11,544)		65,887		(9,387)
Repayments of long-term debt	(28)		—		(6)		—		(34)
Repurchase of common stock	(547)		—		—		—		(547)
Payment of contingent consideration	—		—		(54)		—		(54)
Intercompany financing activities	63,233		2,654		—		(65,887)		—
Net cash provided (used) by financing activities	62,658		2,654		(60)		(65,887)		(635)
Effect of exchange rates on cash, cash equivalents and restricted cash	(179)		4		50		—		(125)
Net increase (decrease) in cash, cash equivalents and restricted cash	(4,139)		495		297		—		(3,347)
Cash, cash equivalents and restricted cash at beginning of period	485,109		6,005		1,891		—		493,005
Cash, cash equivalents and restricted cash at end of period	$	480,970	$	6,500	$	2,188	$	—	$	489,658