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EQUITY | 6 Months Ended
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Apr. 03, 2021
Equity [Abstract] |
EQUITY | EQUITY The following tables provide a summary of the changes in total equity, equity attributable to controlling interest, and equity attributable to noncontrolling interests for each of the periods indicated:
| Common Shares and Capital in Excess of Stated Value |  | Retained Earnings |  | Treasury Shares |  | Accumulated Other Comprehensive Loss |  | Total Equity - Controlling Interest |  | Noncontrolling Interest |  | Total Equity
Balance at September 30, 2020 | $ | 482.5 |  |  | $ | 1,235.6 |  |  | $ | (921.8) |  |  | $ | (99.1) |  |  | $ | 697.2 |  |  | $ | 5.7 |  |  | $ | 702.9 |
Net income (loss) | — |  |  | 24.4 |  |  | — |  |  | — |  |  | 24.4 |  |  | 0.8 |  |  | 25.2 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | 15.6 |  |  | 15.6 |  |  | — |  |  | 15.6 |
Share-based compensation | 8.2 |  |  | — |  |  | — |  |  | — |  |  | 8.2 |  |  | — |  |  | 8.2 |
Dividends declared ($0.62 per share) | — |  |  | (35.7) |  |  | — |  |  | — |  |  | (35.7) |  |  | — |  |  | (35.7) |
Treasury share purchases | — |  |  | — |  |  | (38.4) |  |  | — |  |  | (38.4) |  |  | — |  |  | (38.4) |
Treasury share issuances | (0.1) |  |  | — |  |  | 1.3 |  |  | — |  |  | 1.2 |  |  | — |  |  | 1.2 |
Balance at January 2, 2021 | $ | 490.5 |  |  | $ | 1,224.4 |  |  | $ | (958.8) |  |  | $ | (83.5) |  |  | $ | 672.6 |  |  | $ | 6.4 |  |  | $ | 679.0 |
Net income (loss) | — |  |  | 310.0 |  |  | — |  |  | — |  |  | 310.0 |  |  | 0.2 |  |  | 310.2 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | 5.5 |  |  | 5.5 |  |  | — |  |  | 5.5 |
Share-based compensation | 17.7 |  |  | — |  |  | — |  |  | — |  |  | 17.7 |  |  | — |  |  | 17.7 |
Dividends declared ($0.62 per share) | — |  |  | (34.2) |  |  | — |  |  | — |  |  | (34.2) |  |  | — |  |  | (34.2) |
Treasury share purchases | — |  |  | — |  |  | (23.8) |  |  | — |  |  | (23.8) |  |  | — |  |  | (23.8) |
Treasury share issuances | (21.7) |  |  | — |  |  | 28.3 |  |  | — |  |  | 6.6 |  |  | — |  |  | 6.6 |
Acquisition of noncontrolling interests | (13.4) |  |  | — |  |  | — |  |  | — |  |  | (13.4) |  |  | (6.7) |  |  | (20.1) |
Balance at April 3, 2021 | $ | 473.0 |  |  | $ | 1,500.2 |  |  | $ | (954.3) |  |  | $ | (78.0) |  |  | $ | 940.9 |  |  | $ | — |  |  | $ | 940.9 |
The sum of the components may not equal due to rounding.
| Common Shares and Capital in Excess of Stated Value |  | Retained Earnings |  | Treasury Shares |  | Accumulated Other Comprehensive Loss |  | Total Equity - Controlling Interest |  | Noncontrolling Interest |  | Total Equity
Balance at September 30, 2019 | $ | 442.2 |  |  | $ | 1,274.7 |  |  | $ | (904.3) |  |  | $ | (93.9) |  |  | $ | 718.7 |  |  | $ | 4.5 |  |  | $ | 723.2 |
Net income (loss) | — |  |  | (71.4) |  |  | — |  |  | — |  |  | (71.4) |  |  | 0.1 |  |  | (71.3) |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | 2.9 |  |  | 2.9 |  |  | — |  |  | 2.9 |
Share-based compensation | 7.0 |  |  | — |  |  | — |  |  | — |  |  | 7.0 |  |  | — |  |  | 7.0 |
Dividends declared ($0.58 per share) | — |  |  | (33.5) |  |  | — |  |  | — |  |  | (33.5) |  |  | — |  |  | (33.5) |
Treasury share issuances | (0.3) |  |  | — |  |  | 1.2 |  |  | — |  |  | 0.9 |  |  | — |  |  | 0.9 |
Balance at December 28, 2019 | $ | 448.9 |  |  | $ | 1,169.8 |  |  | $ | (903.1) |  |  | $ | (91.0) |  |  | $ | 624.6 |  |  | $ | 4.7 |  |  | $ | 629.3 |
Net income (loss) | — |  |  | 252.2 |  |  | — |  |  | — |  |  | 252.2 |  |  | 0.2 |  |  | 252.4 |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | (16.9) |  |  | (16.9) |  |  | — |  |  | (16.9) |
Share-based compensation | 12.0 |  |  | — |  |  | — |  |  | — |  |  | 12.0 |  |  | — |  |  | 12.0 |
Dividends declared ($0.58 per share) | — |  |  | (33.0) |  |  | — |  |  | — |  |  | (33.0) |  |  | — |  |  | (33.0) |
Treasury share purchases | — |  |  | — |  |  | (52.9) |  |  | — |  |  | (52.9) |  |  | — |  |  | (52.9) |
Treasury share issuances | (10.5) |  |  | — |  |  | 14.2 |  |  | — |  |  | 3.7 |  |  | — |  |  | 3.7 |
Balance at March 28, 2020 | $ | 450.5 |  |  | $ | 1,389.0 |  |  | $ | (941.9) |  |  | $ | (107.9) |  |  | $ | 789.7 |  |  | $ | 4.9 |  |  | $ | 794.6 |
The sum of the components may not equal due to rounding. Changes in AOCL by component were as follows for each of the periods indicated:
|  | Three Months Ended
|  | Foreign Currency Translation Adjustments |  | Net Unrealized Gain (Loss) On Derivative Instruments |  | Net Unrealized Gain (Loss) in Pension and Other Post-Retirement Benefits |  | Accumulated Other Comprehensive Income (Loss)
Balance at January 2, 2021 |  | $ | 6.2 |  |  | $ | (10.7) |  |  | $ | (79.0) |  |  | $ | (83.5) |
Other comprehensive income (loss) before reclassifications |  | (4.3) |  |  | 10.0 |  |  | — |  |  | 5.7 |
Amounts reclassified from accumulated other comprehensive net income (loss) |  | — |  |  | 2.7 |  |  | 0.5 |  |  | 3.2 |
Income tax benefit (expense) |  | — |  |  | (3.3) |  |  | (0.1) |  |  | (3.4) |
Net current period other comprehensive income (loss) |  | (4.3) |  |  | 9.4 |  |  | 0.4 |  |  | 5.5 |
Balance at April 3, 2021 |  | $ | 1.9 |  |  | $ | (1.3) |  |  | $ | (78.6) |  |  | $ | (78.0) |
Balance at December 28, 2019 |  | $ | (12.8) |  |  | $ | (8.7) |  |  | $ | (69.5) |  |  | $ | (91.0) |
Other comprehensive income (loss) before reclassifications |  | (9.9) |  |  | (15.0) |  |  | — |  |  | (24.9) |
Amounts reclassified from accumulated other comprehensive net income (loss) |  | — |  |  | 2.6 |  |  | 2.9 |  |  | 5.5 |
Income tax benefit (expense) |  | — |  |  | 3.2 |  |  | (0.7) |  |  | 2.5 |
Net current period other comprehensive income (loss) |  | (9.9) |  |  | (9.2) |  |  | 2.2 |  |  | (16.9) |
Balance at March 28, 2020 |  | $ | (22.7) |  |  | $ | (17.9) |  |  | $ | (67.3) |  |  | $ | (107.9) |
The sum of the components may not equal due to rounding.
|  | Six Months Ended
|  | Foreign Currency Translation Adjustments |  | Net Unrealized Gain (Loss) On Derivative Instruments |  | Net Unrealized Gain (Loss) in Pension and Other Post-Retirement Benefits |  | Accumulated Other Comprehensive Income (Loss)
Balance at September 30, 2020 |  | $ | (6.2) |  |  | $ | (15.1) |  |  | $ | (77.8) |  |  | $ | (99.1) |
Other comprehensive income (loss) before reclassifications |  | 8.1 |  |  | 13.4 |  |  | — |  |  | 21.5 |
Amounts reclassified from accumulated other comprehensive net income (loss) |  | — |  |  | 5.3 |  |  | (1.1) |  |  | 4.2 |
Income tax benefit (expense) |  | — |  |  | (4.9) |  |  | 0.3 |  |  | (4.6) |
Net current period other comprehensive income (loss) |  | 8.1 |  |  | 13.8 |  |  | (0.8) |  |  | 21.1 |
Balance at April 3, 2021 |  | $ | 1.9 |  |  | $ | (1.3) |  |  | $ | (78.6) |  |  | $ | (78.0) |
Balance at September 30, 2019 |  | $ | (17.4) |  |  | $ | (8.1) |  |  | $ | (68.4) |  |  | $ | (93.9) |
Other comprehensive income (loss) before reclassifications |  | (5.3) |  |  | (16.8) |  |  | — |  |  | (22.1) |
Amounts reclassified from accumulated other comprehensive net income (loss) |  | — |  |  | 3.6 |  |  | 1.5 |  |  | 5.1 |
Income tax benefit (expense) |  | — |  |  | 3.4 |  |  | (0.4) |  |  | 3.0 |
Net current period other comprehensive income (loss) |  | (5.3) |  |  | (9.8) |  |  | 1.1 |  |  | (14.0) |
Balance at March 28, 2020 |  | $ | (22.7) |  |  | $ | (17.9) |  |  | $ | (67.3) |  |  | $ | (107.9) |
The sum of the components may not equal due to rounding Dividends On July 27, 2020, the Scotts Miracle-Gro Board of Directors approved an increase in the Company’s quarterly cash dividend from $0.58 to $0.62 per Common Share. In addition, on July 27, 2020, the Scotts Miracle-Gro Board of Directors approved a special cash dividend of $5.00 per Common Share, which was paid on September 10, 2020 to all shareholders of record at the close of business on August 27, 2020. Share Repurchases On August 11, 2014, Scotts Miracle-Gro announced that its Board of Directors authorized the repurchase of up to $500.0 of Common Shares over a five-year period (effective November 1, 2014 through September 30, 2019). On August 3, 2016, Scotts Miracle-Gro announced that its Board of Directors authorized a $500.0 increase to the share repurchase authorization ending on September 30, 2019. On August 2, 2019, the Scotts Miracle-Gro Board of Directors authorized an extension of the share repurchase authorization through March 28, 2020. The amended authorization allowed for repurchases of Common Shares of up to an aggregate amount of $1,000.0 through March 28, 2020. During the three and six months ended March 28, 2020, Scotts Miracle-Gro repurchased 0.4 million Common Shares under this share repurchase authorization for $48.2. From the effective date of this share repurchase authorization in the fourth quarter of fiscal 2014 through March 28, 2020, Scotts Miracle-Gro repurchased approximately 8.7 million Common Shares for $762.8. On February 6, 2020, Scotts Miracle-Gro announced that its Board of Directors authorized the repurchase of up to $750.0 of Common Shares from April 30, 2020 through March 25, 2023. The authorization provides the Company with flexibility to purchase Common Shares from time to time in open market purchases or through privately negotiated transactions. All or part of the repurchases may be made under Rule 10b5-1 plans, which the Company may enter into from time to time and which enable the repurchases to occur on a more regular basis, or pursuant to accelerated share repurchases. The share repurchase authorization may be suspended or discontinued by the Board of Directors at any time, and there can be no guarantee as to the timin g or amount of any repurchases. There were no share repurchases under this share repurchase authorization during fiscal 2020. During the three and six months ended April 3, 2021, Scotts Miracle-Gro repurchased approximately 0.1 million and 0.3 million Common Shares under this share repurchase authorization for $12.5 and $50.5, respectively. The “Treasury share purchases” lines in the tables above include cash paid to tax authorities to satisfy statutory income tax withholding obligations related to share-based compensation of $11.3 and $11.7 for the three and six months ended April 3, 2021, respectively, and $4.7 for the three and six months ended March 28, 2020. Share-Based Awards The following is a summary of the share-based awards granted during each of the periods indicated:
| Six Months Ended
| April 3, 2021 |  | March 28, 2020
Employees |  |  |
Options | 183,553 |  |  | — |
Restricted stock units | 61,749 |  |  | 117,266 |
Performance units | 1,903 |  |  | 37,166 |
Non-Employee Directors |  |  |
Restricted and deferred stock units | 8,187 |  |  | 15,483 |
Total share-based awards | 255,392 |  |  | 169,915 |
Aggregate fair value at grant dates | $ | 27.9 |  |  | $ | 20.6 |
Total share-based compensation was as follows for each of the periods indicated:
| Three Months Ended |  | Six Months Ended
| April 3, 2021 |  | March 28, 2020 |  | April 3, 2021 |  | March 28, 2020
Share-based compensation | $ | 17.7 |  |  | $ | 12.0 |  |  | $ | 25.8 |  |  | $ | 19.0 |
Related tax benefit recognized | 1.9 |  |  | 2.1 |  |  | 3.9 |  |  | 3.8 |
Stock Options Stock option activity during the six months ended April 3, 2021 was as follows:
| No. of Options |  | Wtd. Avg. Exercise Price
Awards outstanding at September 30, 2020 | 619,225 |  |  | $ | 57.90 |
Granted | 183,553 |  |  | 236.53 |
Exercised | (99,902) |  |  | 61.45 |
Awards outstanding at April 3, 2021 | 702,876 |  |  | 104.04 |
Exercisable | 519,323 |  |  | 57.21 |
At April 3, 2021, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested stock options not yet recognized was $4.1, which is expected to be recognized over a weighted-average period of 2.7 years. The total intrinsic value of stock options exercised was $17.1 for the six months ended April 3, 2021. Cash received from the exercise of stock options, including amounts received from employee purchases under the employee stock purchase plan, was $7.5 and $2.1 for the six months ended April 3, 2021 and March 28, 2020, respectively. The following summarizes certain information pertaining to stock option awards outstanding and exercisable at April 3, 2021:
|  | Awards Outstanding |  | Awards Exercisable
Range of Exercise Price |  | No of Options |  | Wtd. Avg. Remaining Life |  | Wtd. Avg. Exercise Price |  | No. of Options |  | Wtd. Avg. Remaining Life |  | Wtd. Avg. Exercise Price
$42.60 - $42.60 |  | 0.1 |  |  | 0.80 |  | $ | 42.60 |  |  | 0.1 |  |  | 0.80 |  | $ | 42.60 |
$59.62 - $64.55 |  | 0.4 |  |  | 4.34 |  | 62.18 |  |  | 0.4 |  |  | 4.34 |  | 62.18 |
$236.53 - $236.53 |  | 0.2 |  |  | 9.84 |  | 236.53 |  |  | — |  |  | 0 |  | — |
|  | 0.7 |  |  | 5.11 |  | 104.04 |  |  | 0.5 |  |  | 3.44 |  | 57.21 |
The intrinsic values of the stock option awards outstanding and exercisable at April 3, 2021 were as follows:
Outstanding | $ | 102.6 |
Exercisable | 100.1 |
The grant date fair value of stock option awards is estimated using a binomial model. Expected market price volatility is based on implied volatilities from traded options on Common Shares and historical volatility specific to the Common Shares. Historical data, including demographic factors impacting historical exercise behavior, is used to estimate stock option exercises and employee terminations within the valuation model. The risk-free rate for periods within the contractual life of the stock option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life of stock options is based on historical experience and expectations for grants outstanding. The weighted average assumptions for awards granted in fiscal 2021 are as follows:
Expected market price volatility | 31.9 | %
Risk-free interest rate | 0.7 | %
Expected dividend yield | 1.8 | %
Expected life of stock options in years | 6.06
Estimated weighted-average fair value per stock option | $ | 61.15 |
Restricted share-based awards Restricted share-based award activity (including restricted stock units and deferred stock units) during the six months ended April 3, 2021 was as follows:
| No. of Units |  | Wtd. Avg. Grant Date Fair Value per Unit
Awards outstanding at September 30, 2020 | 500,237 |  |  | $ | 94.53 |
Granted | 69,936 |  |  | 232.70 |
Vested | (132,105) |  |  | 97.00 |
Forfeited | (5,630) |  |  | 98.67 |
Awards outstanding at April 3, 2021 | 432,438 |  |  | 116.07 |
At April 3, 2021, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted stock units not yet recognized was $13.8, which is expected to be recognized over a weighted-average period of 2.0 years. The total fair value of restricted stock units and deferred stock units vested was $29.5 for the six months ended April 3, 2021. Performance-based awards Performance-based award activity during the six months ended April 3, 2021 was as follows (based on target award amounts):
| No. of Units |  | Wtd. Avg. Grant Date Fair Value per Unit
Awards outstanding at September 30, 2020 | 666,128 |  |  | $ | 92.85 |
Granted | 1,903 |  |  | 236.53 |
Vested (1) | (26,729) |  |  | 87.99 |
Forfeited | (63,959) |  |  | 90.91 |
Awards outstanding at April 3, 2021 | 577,343 |  |  | 96.75 |
(1) Vested at an average of 196 percent of the target performance share units granted. At April 3, 2021, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance-based units not yet recognized was $16.9, which is expected to be recognized over a weighted-average period of 1.3 years. The total fair value of performance-based units vested was $11.9 for the six months ended April 3, 2021.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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