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INVESTMENT IN UNCONSOLIDATED AFFILIATES | 3 Months Ended
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Dec. 28, 2024
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENT IN UNCONSOLIDATED AFFILIATES Bonnie Plants The Company holds a 50% equity interest in Bonnie Plants, LLC, a joint venture with Alabama Farmers Cooperative, Inc. (“AFC”) focused on planting, growing, developing, distributing, marketing and selling live plants. During the three months ended December 31, 2022, the Company and AFC amended the joint venture agreement to allow AFC to make an additional equity contribution to Bonnie Plants, LLC, and, as a result of this contribution by AFC, the Company’s equity interest in Bonnie Plants, LLC was reduced to 45%. On November 7, 2023, the Company purchased an additional 5% equity interest in Bonnie Plants, LLC from AFC for $21.4, which restored its total equity interest back to 50%. The Company’s interest is accounted for using the equity method of accounting, with the Company’s proportionate share of Bonnie Plants, LLC earnings reflected in the Condensed Consolidated Statements of Operations. The Company recorded equity in loss of unconsolidated affiliates associated with Bonnie Plants, LLC of $9.9 and $22.5 during the three months ended December 28, 2024 and December 30, 2023, respectively. The Company recorded a pre-tax impairment charge associated with its investment in Bonnie Plants, LLC of $10.4 in the “Equity in loss of unconsolidated affiliates” line in the Condensed Consolidated Statements of Operations during the three months ended December 30, 2023. Cansortium On December 19, 2024, Cansortium Inc. (“Cansortium”) (CSE: TIUM.U) (OTCQB: CNTMF), a vertically-integrated, multi-state cannabis company operating under the FLUENT™ brand, acquired all of the issued and outstanding common shares of RIV Capital Inc. (“RIV Capital”) in exchange for Cansortium shares (the “Transaction”). In connection with the Transaction, Cansortium and The Hawthorne Collective, Inc. (“THC”), a wholly-owned subsidiary of the Company, entered into an exchange and protection agreement on December 18, 2024, pursuant to which THC exchanged its existing convertible debt investment in RIV Capital for 153.1 million non-voting exchangeable shares of Cansortium. These exchangeable shares are convertible, at THC’s discretion, into approximately 23% of the common shares of Cansortium on a pro forma basis as of the closing of the Transaction. The exchange and protection agreement prohibits THC from converting the exchangeable shares into common shares above a defined 19.99% threshold unless and until Cansortium has received the shareholder approval required by the Canadian Stock Exchange. THC and Cansortium also entered into an investor rights agreement which allows THC to nominate up to two members to the Cansortium board of directors, and provides THC with certain participation rights in order to maintain its pro rata investment position in Cansortium in connection with any offering of Cansortium shares. The Company’s convertible debt investment in RIV Capital, which was previously recorded in the “Other assets” line in the Condensed Consolidated Balance Sheets, had a carrying value of $17.7 on December 18, 2024. The exchange of the RIV Capital convertible debt investment for non-voting exchangeable shares of Cansortium, a non-cash investing and financing activity, resulted in a loss of $7.0 that was recorded in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations. The Company’s interest in Cansortium had an initial fair value of $10.7 and is recorded in the “Investment in unconsolidated affiliates” line in the Condensed Consolidated Balance Sheets. The estimated fair value of the non-voting exchangeable shares of Cansortium was determined based upon the quoted market price of Cansortium common shares as of the date of the exchange and represents a Level 2 nonrecurring fair value measurement. The Company’s interest is accounted for using the equity method of accounting, with the Company’s proportionate share of Cansortium earnings subsequent to December 18, 2024 reflected in the Condensed Consolidated Statements of Operations on a one quarter lag.

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column A)(Footnote 1)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 + Details
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