XML 42 R25.htm IDEA: XBRL DOCUMENT v3.23.3
Business Segment Data
 12 Months Ended
Sep. 30, 2023
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).
Category202320222021
(in millions)
Other garden products$832.2 $865.3 $876.6 
Other pet products699.4 765.9 767.0 
Other manufacturers' products734.9730.2749.1 
Dog & cat products568.6542.9 570.9 
Wild bird475434.3 340.1 
Controls & fertilizer products— — (1)— 
Total$3,310.1 $3,338.6 $3,303.7 
(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 30, 2023 September 24, 2022 September 25, 2021
(in thousands)
Net sales:
Pet segment$1,877,177   $1,878,110   $1,894,929 
Garden segment1,432,906   1,460,478   1,408,755 
Total$3,310,083   $3,338,588   $3,303,684 
Operating income (loss):
Pet segment$198,004 $208,924 $208,201 
Garden segment123,455   153,956 138,755 
Corporate(110,813)(102,844)(92,460)
Total210,646 260,036 254,496 
Interest expense(57,025)(58,253)(58,597)
Interest income7,362   719   415 
Other expense, net1,462 (3,596)(1,506)
Income before income taxes and noncontrolling interest162,445   198,906   194,808 
Income tax expense 36,348   46,234   42,035 
Net income including noncontrolling interest126,097   152,672   152,773 
Net income attributable to noncontrolling interest454   520   1,027 
Net income attributable to Central Garden & Pet Company$125,643   $152,152   $151,746 
Assets:
Pet segment$944,359   $1,069,167   $966,437 
Garden segment1,349,426   1,405,802   1,313,899 
Corporate and eliminations1,084,863   807,033   836,344 
Total$3,378,648   $3,282,002   $3,116,680 
Depreciation and amortization:
Pet segment$41,126   $38,960   $36,952 
Garden segment43,375   36,583   33,050 
Corporate3,199   5,405   4,725 
Total$87,700   $80,948   $74,727 
Expenditures for long-lived assets:
Pet segment$33,515   $46,917   $44,919 
Garden segment19,109   65,126   34,043 
Corporate1,342   3,162   1,371 
Total$53,966   $115,205   $80,333 
Noncontrolling interest is associated with the Garden segment.