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SEGMENT INFORMATION | 6 Months Ended
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Apr. 03, 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 is 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 to 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 |  | Six Months Ended
| April 3, 2021 |  | March 28, 2020 |  | April 3, 2021 |  | March 28, 2020
Net Sales: |  |  |  |  |  |  |
U.S. Consumer | $ | 1,374.0 |  |  | $ | 1,113.2 |  |  | $ | 1,782.2 |  |  | $ | 1,278.6 |
Hawthorne | 363.8 |  |  | 219.5 |  |  | 673.2 |  |  | 400.3 |
Other | 91.0 |  |  | 50.1 |  |  | 122.0 |  |  | 69.7 |
Consolidated | $ | 1,828.8 |  |  | $ | 1,382.8 |  |  | $ | 2,577.4 |  |  | $ | 1,748.6 |
Segment Profit: |  |  |  |  |  |  |
U.S. Consumer | $ | 435.9 |  |  | $ | 374.6 |  |  | $ | 481.2 |  |  | $ | 334.6 |
Hawthorne | 41.4 |  |  | 23.8 |  |  | 81.8 |  |  | 36.3 |
Other | 17.6 |  |  | 4.0 |  |  | 17.6 |  |  | 0.4 |
Total Segment Profit | 494.9 |  |  | 402.4 |  |  | 580.6 |  |  | 371.3 |
Corporate | (48.1) |  |  | (36.9) |  |  | (82.7) |  |  | (63.0) |
Intangible asset amortization | (7.8) |  |  | (8.1) |  |  | (15.2) |  |  | (15.8) |
Impairment, restructuring and other | (14.9) |  |  | (3.7) |  |  | (24.6) |  |  | (1.4) |
Equity in loss of unconsolidated affiliates | (1.5) |  |  | — |  |  | (1.5) |  |  | — |
Costs related to refinancing | — |  |  | — |  |  | — |  |  | (15.1) |
Interest expense | (19.3) |  |  | (22.7) |  |  | (35.4) |  |  | (42.7) |
Other non-operating income, net | 0.9 |  |  | 2.8 |  |  | 16.1 |  |  | 5.4 |
Income from continuing operations before income taxes | $ | 404.2 |  |  | $ | 333.8 |  |  | $ | 437.3 |  |  | $ | 238.7 |
The following table presents net sales by product category for the periods indicated:
| Three Months Ended |  | Six Months Ended
| April 3, 2021 |  | March 28, 2020 |  | April 3, 2021 |  | March 28, 2020
U.S. Consumer: |  |  |  |  |  |  |
Growing media and mulch | $ | 532.4 |  |  | $ | 416.8 |  |  | $ | 622.4 |  |  | $ | 461.6 |
Lawn care | 530.3 |  |  | 451.2 |  |  | 696.3 |  |  | 502.0 |
Controls | 142.2 |  |  | 115.0 |  |  | 204.7 |  |  | 143.8 |
Roundup® marketing agreement | 63.8 |  |  | 54.1 |  |  | 81.1 |  |  | 63.0 |
Other, primarily gardening | 105.3 |  |  | 76.1 |  |  | 177.7 |  |  | 108.2 |
Hawthorne: |  |  |  |  |  |  |
Lighting | 108.5 |  |  | 59.9 |  |  | 223.8 |  |  | 120.7 |
Nutrients | 76.0 |  |  | 54.3 |  |  | 132.9 |  |  | 91.9 |
Growing media | 58.4 |  |  | 39.8 |  |  | 94.0 |  |  | 65.3 |
Other, primarily hardware and growing environments | 120.9 |  |  | 65.5 |  |  | 222.5 |  |  | 122.4 |
Other: |  |  |  |  |  |  |
Growing media | 27.9 |  |  | 13.5 |  |  | 44.7 |  |  | 24.7 |
Lawn care | 34.4 |  |  | 20.9 |  |  | 39.2 |  |  | 24.3 |
Other, primarily gardening and controls | 28.7 |  |  | 15.7 |  |  | 38.1 |  |  | 20.7 |
Total net sales | $ | 1,828.8 |  |  | $ | 1,382.8 |  |  | $ | 2,577.4 |  |  | $ | 1,748.6 |
The following table presents net sales by geographic area for the periods indicated:
| Three Months Ended |  | Six Months Ended
| April 3, 2021 |  | March 28, 2020 |  | April 3, 2021 |  | March 28, 2020
Net sales: |  |  |  |  |  |  |
United States | $ | 1,711.2 |  |  | $ | 1,318.8 |  |  | $ | 2,391.7 |  |  | $ | 1,639.2 |
International | 117.6 |  |  | 64.0 |  |  | 185.7 |  |  | 109.4 |
| $ | 1,828.8 |  |  | $ | 1,382.8 |  |  | $ | 2,577.4 |  |  | $ | 1,748.6 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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