Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

3 Months Ended

Dec. 26, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Condensed Statement of Operations

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Three Months Ended December 26, 2015 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	137,027		$	15,270		$	222,164		$	(14,649	)	$	359,812
Cost of goods sold and occupancy		110,259			12,946			150,489			(13,668	)		260,026
Gross profit		26,768			2,324			71,675			(981	)		99,786
Selling, general and administrative expenses		32,954			3,779			55,261			(981	)		91,013
Income (loss) from operations		(6,186	)		(1,455	)		16,414			0			8,773
Interest expense		(22,508	)		(12	)		375			0			(22,145	)
Interest income		21			1			0			0			22
Other income (expense)		(835	)		(66	)		428			0			(473	)
Income (loss) before taxes and equity in earnings (loss) of affiliates		(29,508	)		(1,532	)		17,217			0			(13,823	)
Income tax expense (benefit)		(11,145	)		(497	)		6,442			0			(5,200	)
Equity in earnings (loss) of affiliates		9,761			0			(762	)		(8,999	)		0
Net income (loss) including noncontrolling interest		(8,602	)		(1,035	)		10,013			(8,999	)		(8,623	)
Net loss attributable to noncontrolling interest		0			(21	)		0			0			(21	)
Net income (loss) attributable to Central Garden & Pet Company	$	(8,602	)	$	(1,014	)	$	10,013		$	(8,999	)	$	(8,602	)

	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Three Months Ended December 27, 2014 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	96,962		$	17,323		$	207,125		$	(14,090	)	$	307,320
Cost of goods sold and occupancy		78,779			14,578			139,091			(13,109	)		219,339
Gross profit		18,183			2,745			68,034			(981	)		87,981
Selling, general and administrative expenses		27,851			3,999			55,974			(981	)		86,843
Income (loss) from operations		(9,668	)		(1,254	)		12,060			0			1,138
Interest expense		(10,487	)		(15	)		(1	)		0			(10,503	)
Interest income		70			1			0			0			71
Other expense		(330	)		0			(38	)		0			(368	)
Income (loss) before taxes and equity in earnings (loss) of affiliates		(20,415	)		(1,268	)		12,021			0			(9,662	)
Income tax expense (benefit)		(8,457	)		(444	)		4,932			0			(3,969	)
Equity in earnings (loss) of affiliates		6,261			0			(587	)		(5,674	)		0
Net income (loss) including noncontrolling interest		(5,697	)		(824	)		6,502			(5,674	)		(5,693	)
Net income attributable to noncontrolling interest		0			4			0			0			4
Net income (loss) attributable to Central Garden & Pet Company	$	(5,697	)	$	(828	)	$	6,502		$	(5,674	)	$	(5,697	)

Consolidating Condensed Statements of Comprehensive Income (Loss)

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended December 26, 2015 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(8,602	)	$	(1,035	)	$	10,013		$	(8,999	)	$	(8,623	)
Other comprehensive loss:
Foreign currency translation		(233	)		(142	)		(51	)		193			(233	)
Total comprehensive income (loss)		(8,835	)		(1,177	)		9,962			(8,806	)		(8,856	)
Comprehensive loss attributable to noncontrolling interests		0			(21	)		0			0			(21	)
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(8,835	)	$	(1,156	)	$	9,962		$	(8,806	)	$	(8,835	)

	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended December 27, 2014 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(5,697	)	$	(824	)	$	6,502		$	(5,674	)	$	(5,693	)
Other comprehensive loss:
Foreign currency translation		(552	)		(345	)		(104	)		449			(552	)
Unrealized loss on securities		(10	)		(0	)		(0	)		(0	)		(10	)
Total comprehensive income (loss)		(6,259	)		(1,169	)		6,398			(5,225	)		(6,255	)
Comprehensive income attributable to noncontrolling interests		0			4			0			0			4
Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(6,259	)	$	(1,173	)	$	6,398		$	(5,225	)	$	(6,259	)

Consolidating Condensed Balance Sheet

	CONSOLIDATING CONDENSED BALANCE SHEET December 26, 2015 (in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	3,162	$	5,034		$	810	$	0		$	9,006
Restricted cash		11,939		0			0		0			11,939
Accounts receivable, net		74,855		7,398			113,104		0			195,357
Inventories		142,215		17,252			256,991		0			416,458
Prepaid expenses and other		35,478		957			23,438		0			59,873
Total current assets		267,649		30,641			394,343		0			692,633
Land, buildings, improvements and equipment, net		51,182		3,787			108,979		0			163,948
Goodwill		0		0			209,089		0			209,089
Other long-term assets		68,077		3,539			75,988		(2,065	)		145,539
Intercompany receivable		33,184		0			459,209		(492,393	)		0
Investment in subsidiaries		1,062,324		0			0		(1,062,324	)		0
Total	$	1,482,416	$	37,967		$	1,247,608	$	(1,556,782	)	$	1,211,209
LIABILITIES AND EQUITY
Accounts payable	$	54,043	$	9,084		$	65,964	$	0		$	129,091
Accrued expenses		42,452		1,520			45,075		0			89,047
Current portion of long-term debt		262		0			30		0			292
Total current liabilities		96,757		10,604			111,069		0			218,430
Long-term debt		435,835		0			58		0			435,893
Intercompany payable		447,265		45,128			0		(492,393	)		0
Losses in excess of investment in subsidiaries		0		0			17,513		(17,513	)		0
Other long-term obligations		4,159		0			55,911		(2,065	)		58,005
Total Central Garden & Pet shareholders’ equity		498,400		(18,246	)		1,063,057		(1,044,811	)		498,400
Noncontrolling interest		0		481			0		0			481
Total equity		498,400		(17,765	)		1,063,057		(1,044,811	)		498,881
Total	$	1,482,416	$	37,967		$	1,247,608	$	(1,556,782	)	$	1,211,209

	CONSOLIDATING CONDENSED BALANCE SHEET December 27, 2014 (in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	71,579	$	5,505		$	2,504	$	0		$	79,588
Restricted cash		19,690		0			0		0			19,690
Short term investments		9,992		0			0		0			9,992
Accounts receivable, net		38,580		7,573			96,724		0			142,877
Inventories		101,870		22,481			275,585		0			399,936
Prepaid expenses and other		33,095		962			30,223		0			64,280
Total current assets		274,806		36,521			405,036		0			716,363
Land, buildings, improvements and equipment, net		59,829		3,607			100,110		0			163,546
Goodwill		0		0			208,233		0			208,233
Other long-term assets		17,153		4,121			83,088		(8,197	)		96,165
Intercompany receivable		37,337		0			378,847		(416,184	)		0
Investment in subsidiaries		989,226		0			0		(989,226	)		0
Total	$	1,378,351	$	44,249		$	1,175,314	$	(1,413,607	)	$	1,184,307
LIABILITIES AND EQUITY
Accounts payable	$	39,847	$	10,077		$	78,561	$	0		$	128,485
Accrued expenses		47,888		1,751			43,569		0			93,208
Current portion of long-term debt		50,259		0			30					50,289
Total current liabilities		137,994		11,828			122,160		0			271,982
Long-term debt		395,170		0			87		0			395,257
Intercompany payable		368,765		47,419			0		(416,184	)		0
Losses in excess of investment in subsidiaries		0		0			14,900		(14,900	)		0
Other long-term obligations		1,620		0			48,789		(8,197	)		42,212
Central Garden & Pet shareholders’ equity		474,802		(15,052	)		989,378		(974,326	)		474,802
Noncontrolling interest		0		54			0		0			54
Total equity		474,802		(14,998	)		989,378		(974,326	)		474,856
Total	$	1,378,351	$	44,249		$	1,175,314	$	(1,413,607	)	$	1,184,307

	CONSOLIDATING CONDENSED BALANCE SHEET September 26, 2015 (in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	37,131	$	10,022		$	431	$	0		$	47,584
Restricted cash		13,157		0			0		0			13,157
Accounts receivable, net		51,376		6,775			149,251		0			207,402
Inventories		101,952		11,690			222,304		0			335,946
Prepaid expenses and other assets		23,807		848			25,076		0			49,731
Total current assets		227,423		29,335			397,062		0			653,820
Land, buildings, improvements and equipment, net		53,044		3,663			106,102		0			162,809
Goodwill		0		0			209,089		0			209,089
Other long-term assets		30,831		3,662			77,519		(6,133	)		105,879
Intercompany receivable		10,311		0			440,327		(450,638	)		0
Investment in subsidiaries		1,052,755		0			0		(1,052,755	)		0
Total	$	1,374,364	$	36,660		$	1,230,099	$	(1,509,526	)	$	1,131,597
LIABILITIES AND EQUITY
Accounts payable	$	23,544	$	2,543		$	62,802	$	0		$	88,889
Accrued expenses and other liabilities		39,680		1,789			46,255		0			87,724
Current portion of long term debt		261		0			30		0			291
Total current liabilities		63,485		4,332			109,087		0			176,904
Long-term debt		396,626		0			65		0			396,691
Intercompany payable		407,197		43,441			0		(450,638	)		0
Losses in excess of investment in subsidiaries		0		0			11,867		(11,867	)		0
Other long-term obligations		1,770		0			55,985		(6,133	)		51,622
Shareholders’ equity attributable to Central Garden & Pet		505,286		(12,207	)		1,053,095		(1,040,888	)		505,286
Noncontrolling interest		0		1,094			0		0			1,094
Total equity		505,286		(11,113	)		1,053,095		(1,040,888	)		506,380
Total	$	1,374,364	$	36,660		$	1,230,099	$	(1,509,526	)	$	1,131,597

Consolidating Condensed Statement of Cash Flows

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Three Months Ended December 26, 2015 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	(18,211	)	$	(1,039	)	$	23,653		$	(4,884	)	$	(481	)
Additions to property, plant and equipment		(606	)		(226	)		(4,424	)		0			(5,256	)
Payments to acquire companies, net of cash acquired		(68,529	)		0			0			0			(68,529	)
Change in restricted cash and cash equivalents		1,218			(0	)		(0	)		(0	)		1,218
Other investing activities		(200	)											(200	)
Intercompany investing activities		(22,874	)		(0	)		(18,881	)		41,755			0
Net cash used by investing activities		(90,991	)		(226	)		(23,305	)		41,755			(72,767	)
Repayments on revolving line of credit		(37,000	)		0			0			0			(37,000	)
Borrowings on revolving line of credit		79,000			0			0			0			79,000
Repayments of long-term debt		(400,064	)		(0	)		(8	)		(0	)		(400,072	)
Issuance of long-term debt		400,000												400,000
Excess tax benefits from stock-based awards		900			0			0			0			900
Repurchase of common stock		(1,167	)		(0	)		(0	)		(0	)		(1,167	)
Distribution to parent		0			(4,884	)		0			4,884			0
Distribution to noncontrolling interest		0			(592	)		0			0			(592	)
Payment of financing costs		(6,324	)											(6,324	)
Intercompany financing activities		40,069			1,686			0			(41,755	)		0
Net cash (used) provided by financing activities		75,414			(3,790	)		(8	)		(36,871	)		34,745
Effect of exchange rates on cash		(181	)		67			39			(0	)		(75	)
Net increase (decrease) in cash and cash equivalents		(33,969	)		(4,988	)		379			0			(38,578	)
Cash and cash equivalents at beginning of period		37,131			10,022			431			0			47,584
Cash and cash equivalents at end of period	$	3,162		$	5,034		$	810		$	0		$	9,006

	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Three Months Ended December 27, 2014 (in thousands)
	Parent			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net cash (used) provided by operating activities	$	(6,874	)	$	(1,400	)	$	30,845		$	(6,719	)	$	15,852
Additions to property, plant and equipment		(589	)		(64	)		(3,416	)		0			(4,069	)
Change in restricted cash and cash equivalents		(5,407	)		0			0			0			(5,407	)
Investment in short term investments		(12	)		0			0			0			(12	)
Intercompany investing activities		(20,431	)		0			(27,423	)		47,854			0
Net cash (used) provided by investing activities		(26,439	)		(64	)		(30,839	)		47,854			(9,488	)
Repayments of long-term debt		(67	)		0			(5	)		0			(72	)
Proceeds from issuance of common stock		188			0			0			0			188
Excess tax benefits from stock-based awards		40			0			0			0			40
Repurchase of common stock		(3,742	)		0			0			0			(3,742	)
Distribution to parent		0			(6,719	)		0			6,719			0
Distribution to noncontrolling interest		0			(1,680	)		0			0			(1,680	)
Intercompany financing activities		45,450			2,404			0			(47,854	)		0
Net cash provided (used) by financing activities		41,869			(5,995	)		(5	)		(41,135	)		(5,266	)
Effect of exchange rates on cash		(448	)		158			104			0			(186	)
Net increase (decrease) in cash and cash equivalents		8,108			(7,301	)		105			0			912
Cash and cash equivalents at beginning of year		63,471			12,806			2,399			0			78,676
Cash and cash equivalents at end of year	$	71,579		$	5,505		$	2,504		$	0		$	79,588