Business Segment Data

12 Months Ended

Sep. 24, 2016

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, Four Paws Products, TFH Publications, Kaytee, Aquatics, Interpet, IMS, Pets International, Breeder’s Choice and Life Sciences. These businesses are engaged in the manufacturing, purchase, sale and delivery of internally and externally produced pet supplies, books and food principally to independent pet distributors, national and regional retail chains, grocery stores, mass merchants and bookstores. The Garden segment consists of Pennington Seed, Hydro Organics, AMBRANDS, Lilly Miller, the Pottery Group and Gulfstream. Products manufactured, designed and sourced, 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, clay pottery, outdoor wooden planters and trellises, 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 intersegment 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	2016		2015		2014
Other pet products	$	689.3	$	594.7	$	774.2
Garden controls and fertilizer products	298.8		286.3		262.5
Wild bird feed	183.6		193.2		202.1
Grass seed	(1)		(1)		183.1
Other garden supplies	331.3		343.5		182.5
Dog and cat products	326.0		233.0		(1)
Total	$	1,829.0	$	1,650.7	$	1,604.4

(1) The product category was less than 10% of our consolidated net sales in the respective 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 (in thousands):

	Fiscal Year Ended
	September 24, 2016				September 26, 2015				September 27, 2014
Net sales:
Pet segment	$	1,081,853			$	894,549			$	845,505
Garden segment	747,164				756,188				758,852
Total	$	1,829,017			$	1,650,737			$	1,604,357
Operating income (loss):
Pet segment	$	119,930		(1)	$	98,798		(1)	$	88,077
Garden segment	70,317				60,145				41,020			(2)
Corporate	(60,889		)		(67,508		)		(72,884		)
Total	129,358				91,435				56,213
Interest expense	(42,847		)		(40,027		)		(42,844		)
Interest income	140				129				94
Other income (expense)	(17,013		)	(3)	13				403
Income (loss) before income taxes and noncontrolling interest	69,638				51,550				13,866
Income tax expense (benefit)	24,053				18,535				4,045
Net income (loss) including noncontrolling interest	45,585				33,015				9,821
Net income attributable to noncontrolling interest	1,071				1,044				1,017
Net income (loss) attributable to Central Garden & Pet Company	$	44,514			$	31,971			$	8,804
Assets:
Pet segment	$	508,879			$	465,171			$	414,279
Garden segment	304,901				310,981				337,461
Corporate and eliminations	398,413				355,445				396,987
Total	$	1,212,193			$	1,131,597			$	1,148,727
Depreciation and amortization:
Pet segment	$	22,556			$	15,885			$	17,256
Garden segment	6,098				5,988				6,793
Corporate	11,347				11,830				11,732
Total	$	40,001			$	33,703			$	35,781
Expenditures for long-lived assets:
Pet segment	$	18,939			$	17,060			$	8,561
Garden segment	4,750				2,432				5,541
Corporate	3,933				2,538				3,071
Total	$	27,622			$	22,030			$	17,173

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Noncontrolling interest is associated with the Garden segment.

(1) Includes a $1.8 million impairment charge in fiscal 2016 and a $7.3 million impairment charge in fiscal 2015 to indefinite-lived intangible assets as a result of increased competition and declining sales volume.

(2) Includes a $16.9 million charge related to certain products introduced in fiscal 2013 and a $4.9 million gain from the sale of manufacturing plant assets.

(3) Includes a $16.6 million impairment charge related to two equity method investments.