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INVESTMENT IN UNCONSOLIDATED AFFILIATES
9 Months Ended
Jun. 28, 2025
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS IN UNCONSOLIDATED AFFILIATES
NOTE 2. 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.
During the three and nine months ended June 28, 2025, the Company recorded equity in (income) loss of unconsolidated affiliates associated with Bonnie Plants, LLC of $(27.2) and $(11.4), respectively, compared to $(23.0) and $6.5 during the three and nine months ended June 29, 2024, respectively. The Company recorded a pre-tax impairment charge of $0.0 and $10.4 during the three and nine months ended June 29, 2024, respectively, associated with its investment in Bonnie Plants, LLC in the “Equity in (income) loss of unconsolidated affiliates” line in the Condensed Consolidated Statements of Operations.
Fluent
On December 19, 2024, Fluent acquired all of the issued and outstanding common shares of RIV Capital Inc. (“RIV Capital”) in exchange for Fluent shares (the “Transaction”). In connection with the Transaction, Fluent and THC 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 Fluent. On July 18, 2025, THC, which was acquired by BDH in March 2025, converted its non-voting exchangeable shares into 153.1 million common shares of Fluent, which represents approximately 25% of Fluent’s total outstanding common shares. THC and Fluent are also parties to an investor rights agreement which allows THC to nominate up to two members to the Fluent board of directors, and provides THC with certain participation rights in order to maintain its pro rata investment position in Fluent in connection with any offering of Fluent shares.
THC’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 Fluent, 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 during the three months ended December 28, 2024.
THC’s interest in Fluent 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 Fluent was determined based upon the quoted market price of Fluent common shares as of the date of the exchange and represents a Level 2 nonrecurring fair value measurement. This investment is accounted for using the equity method of accounting, with THC’s proportionate share of Fluent earnings subsequent to December 18, 2024 reflected in the Condensed Consolidated Statements of Operations on a one quarter lag. During the three and nine months ended June 28, 2025, the Company recorded equity in (income) loss of unconsolidated affiliates associated with Fluent of $1.9.
Refer to “NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” for further details related to the Company’s sale of THC to BDH on March 14, 2025. BDH is a variable interest entity that is consolidated by the Company.