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SEGMENT INFORMATION
 12 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company has three operating segments and two reportable segments: U.S. Consumer and Hawthorne. Management has chosen to organize the entity around differences in product categories and geographic areas. U.S. Consumer consists of the Company’s consumer lawn and garden business in the United States. Hawthorne consists of the Company’s indoor and hydroponic gardening business. Management has chosen to provide separate reportable segment disclosures for Hawthorne notwithstanding the fact that it does not meet any of the quantitative thresholds requiring such disclosure. The Company’s Other operating segment primarily consists of the Company’s consumer lawn and garden business in Canada and does not meet any of the quantitative thresholds requiring separate reportable segment disclosures. This identification of operating segments is consistent with how the segments are managed by the Chairman of the Board & Chief Executive Officer, who has been determined to be the chief operating decision maker (“CODM”) of the Company. In addition, Corporate consists of general and administrative expenses and certain other income and expense items not allocated to the Company’s operating segments. The accounting policies of the segments are the same as those described in the Company’s summary of significant accounting policies.
The CODM uses Segment Profit (Loss), which is defined as income (loss) before income taxes, amortization, impairment, restructuring and other charges (“Segment Profit (Loss)”), to evaluate segment performance, monitor actual results as compared to plan and inform resource allocation decisions. The Company believes this measure is indicative of performance trends and the overall earnings potential of each segment. Asset information and capital expenditures by segment are not provided to the CODM and they are not utilized for the purposes of assessing performance or allocating resources, and therefore such information has not been presented.
The following table presents net sales by segment and a reconciliation to the Company’s consolidated net sales for the periods indicated:
Year Ended September 30,
202520242023
U.S. Consumer$2,993.7 $3,013.7 $2,843.7 
Hawthorne165.8 294.7 467.3 
Reportable segment total3,159.5 3,308.4 3,311.0 
Other non-reportable operating segment253.6 244.3 240.3 
Consolidated$3,413.1 $3,552.7 $3,551.3 
The following tables present Segment Profit (Loss), including the significant segment expenses provided to the CODM, and a reconciliation to income (loss) before income taxes for the periods indicated:
Year Ended September 30, 2025
U.S. ConsumerHawthorneTotal
Net sales$2,993.7 $165.8 
Adjusted cost of sales (a)
2,008.4 129.6 
Adjusted selling, general and administrative (b)
392.1 34.0 
Other segment items (c)
20.6 (0.6)
Segment Profit$572.6 $2.8 $575.4 
Other non-reportable operating segment profit12.7 
Corporate(133.4)
Intangible asset amortization(12.3)
Total impairment, restructuring and other (d)
(83.8)
Equity in loss of unconsolidated affiliates(2.8)
Interest expense(128.8)
Other non-operating expense, net(5.3)
Income before income taxes$221.7 
Year Ended September 30, 2024
U.S. ConsumerHawthorneTotal
Net sales$3,013.7 $294.7 
Adjusted cost of sales (a)
2,147.8 258.6 
Adjusted selling, general and administrative (b)
347.8 51.8 
Other segment items (c)
20.1 (1.5)
Segment Profit (Loss)$498.0 $(14.2)$483.8 
Other non-reportable operating segment profit4.7 
Corporate(117.7)
Intangible asset amortization(15.7)
Total impairment, restructuring and other (d)
(146.3)
Equity in loss of unconsolidated affiliates(68.1)
Interest expense(158.8)
Other non-operating expense, net(5.5)
Loss before income taxes$(23.6)
Year Ended September 30, 2023
U.S. ConsumerHawthorneTotal
Net sales$2,843.7 $467.3 
Adjusted cost of sales (a)
2,056.6 446.7 
Adjusted selling, general and administrative (b)
334.3 67.3 
Other segment items (c)
(1.3)1.4 
Segment Profit (Loss)$454.1 $(48.1)$406.0 
Other non-reportable operating segment profit12.4 
Corporate(101.6)
Intangible asset amortization(25.2)
Total impairment, restructuring and other (d)
(466.0)
Equity in loss of unconsolidated affiliates(101.1)
Interest expense(178.1)
Other non-operating income, net0.3 
Loss before income taxes$(453.3)
(a)“Adjusted cost of sales” is defined as cost of sales excluding intangible asset amortization, and does not include activity classified as impairment, restructuring and other.
(b)“Adjusted selling, general and administrative” is defined as selling, general and administrative expenses excluding intangible asset amortization, and does not include activity classified as impairment, restructuring and other.
(c)Other segment items is comprised of activities such as the discount on sales of accounts receivable under the Master Receivables Purchase Agreement, royalty income from the licensing of certain of the Company’s brand names and foreign exchange transaction gains and losses.
(d)Total impairment, restructuring and other is comprised of the activity classified within the “Cost of sales—impairment, restructuring and other” and “Impairment, restructuring and other” lines in the Consolidated Statements of Operations. Refer to “NOTE 3. IMPAIRMENT, RESTRUCTURING AND OTHER” for further details.
The following tables present certain other segment disclosures for the periods indicated:
Year Ended September 30,
202520242023
Depreciation and amortization:
U.S. Consumer$54.5 $56.2 $58.2 
Hawthorne
13.0 16.7 25.8 
Reportable segment total$67.5 $72.9 $84.0 
Share-based compensation:
U.S. Consumer (a)
$38.1 $37.1 $35.3 
Hawthorne2.6 5.3 6.2 
Reportable segment total$40.7 $42.4 $41.5 
(a)Includes certain advertising expenses paid for in Common Shares.
The following table presents net sales by product category for the periods indicated:
Year Ended September 30,
202520242023
U.S. Consumer:
Growing media and mulch$1,364.6 $1,310.6 $1,223.7 
Lawn care909.5 929.6 897.4 
Controls392.5 414.6 362.9 
Roundup® marketing agreement
159.0 162.4 138.7 
Other, primarily gardening168.1 196.5 221.0 
Hawthorne:
Nutrients66.4 87.2 105.3 
Lighting55.9 108.2 165.9 
Growing media19.4 37.3 67.5 
Other, primarily hardware and growing environment24.1 62.0 128.6 
Other:
Growing media96.9 91.3 93.0 
Lawn care79.1 80.2 75.8 
Other, primarily gardening and controls77.6 72.8 71.5 
Total net sales$3,413.1 $3,552.7 $3,551.3 
The Company’s two largest customers accounted for the following percentages of net sales for the fiscal years ended September 30: 
Percentage of Net Sales
202520242023
The Home Depot34 %30 %29 %
Lowe’s18 %18 %18 %
Accounts receivable for these two largest customers as a percentage of consolidated accounts receivable were 25% and 18% as of September 30, 2025 and 2024, respectively.
The following table presents net sales by geographic area for the periods indicated:
Year Ended September 30,
202520242023
Net sales:
United States$3,134.5 $3,247.8 $3,209.5 
International278.6 304.9 341.8 
$3,413.1 $3,552.7 $3,551.3 
Other than the United States, no other country accounted for more than 10% of the Company’s net sales for any period presented above.
The following table presents property, plant and equipment by geographic area: 
September 30,
20252024
Property, plant and equipment:
United States$572.5 $549.4 
International59.1 60.1 
$631.6 $609.5