XML 33 R21.htm IDEA: XBRL DOCUMENT v3.20.4
SEGMENT INFORMATION
 3 Months Ended
Jan. 02, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company divides its operations into three reportable segments: U.S. Consumer, Hawthorne and Other. U.S. Consumer consists of the Company’s consumer lawn and garden business located in the geographic United States. Hawthorne consists of the Company’s indoor and hydroponic gardening business. Other consists of the Company’s consumer lawn and garden business in geographies other than the U.S. and the Company’s product sales to commercial nurseries, greenhouses and other professional customers. In addition, Corporate consists of general and administrative expenses and certain other income and expense items not allocated to the business segments. This identification of reportable segments is consistent with how the segments report to and are managed by the chief operating decision maker of the Company.
During the three months ended January 2, 2021, the Company changed its internal organization structure such that AeroGrow is now managed by and reported within the U.S. Consumer segment. Within the U.S. Consumer segment, AeroGrow will be integrated into the Company’s overall direct-to-consumer focus and strategy. AeroGrow was previously managed by and reported within the Hawthorne segment. The prior period amounts have been reclassified to conform with the new organization structure. This change in organization structure resulted in a change in the Company’s reporting units. As a result, goodwill included in impacted reporting units was reallocated using a relative fair value approach, resulting in $15.8 of goodwill reallocated from the Hawthorne segment to the U.S. Consumer segment during the three months ended January 2,
2021. In addition, the Company completed an assessment of potential goodwill impairment immediately before and after the reallocation and determined that no impairment existed.
The performance of each reportable segment is evaluated based on several factors, including income (loss) from continuing operations before income taxes, amortization, impairment, restructuring and other charges (“Segment Profit (Loss)”). Senior management uses Segment Profit (Loss) to evaluate segment performance because the Company believes this measure is indicative of performance trends and the overall earnings potential of each segment.
The following tables present financial information for the Company’s reportable segments for the periods indicated:
 THREE MONTHS ENDED
 JANUARY 2,
2021		DECEMBER 28,
2019
Net sales:
U.S. Consumer$408.2 $165.5 
Hawthorne
309.4 180.7 
Other31.0 19.6 
Consolidated$748.6 $365.8 
Segment Profit (Loss):
U.S. Consumer$45.3 $(40.1)
Hawthorne
40.4 12.5 
Other— (3.5)
Total Segment Profit (Loss)85.7 (31.1)
Corporate(34.6)(26.1)
Intangible asset amortization(7.4)(7.6)
Impairment, restructuring and other(9.7)2.2 
Costs related to refinancing— (15.1)
Interest expense(16.1)(20.0)
Other non-operating income, net15.2 2.6 
Income (loss) from continuing operations before income taxes$33.1 $(95.1)

The following table presents net sales by product category for the periods indicated:
THREE MONTHS ENDED
JANUARY 2,
2021		DECEMBER 28,
2019
U.S. Consumer:
Growing media and mulch$90.0 $44.8 
Lawn care166.0 50.8 
Controls62.5 28.8 
Roundup® marketing agreement
17.3 8.9 
Other, primarily gardening72.4 32.2 
Hawthorne:
Lighting115.3 60.8 
Nutrients56.9 37.6 
Growing media35.6 25.5 
Other, primarily hardware and growing environments101.6 56.8 
Other:
Growing media16.8 11.2 
Lawn care4.8 3.4 
Other, primarily gardening and controls9.4 5.0 
Total net sales$748.6 $365.8 
The following table presents net sales by geographic area for the periods indicated:
THREE MONTHS ENDED
JANUARY 2,
2021		DECEMBER 28,
2019
Net sales:
United States$680.5 $320.4 
International68.1 45.4 
$748.6 $365.8