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Goodwill | 12 Months Ended
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Sep. 27, 2014
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill | 9. Goodwill Changes in the carrying amount of goodwill for the fiscal years ended September 27, 2014, September 28, 2013 and September 29, 2012 (in thousands):
|  | Garden Products Segment |  |  | Pet Products Segment |  |  | Total |
Balance as of September 24, 2011 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 213,583 |  |  | $ | 398,492 |  |  | $ | 612,075 |
Accumulated impairment losses |  |  | (205,874 | ) |  |  | (195,978 | ) |  |  | (401,852 | )
|  |  | 7,709 |  |  |  | 202,514 |  |  |  | 210,223 |
Balance as of September 29, 2012 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 213,583 |  |  |  | 398,492 |  |  |  | 612,075 |
Accumulated impairment losses |  |  | (205,874 | ) |  |  | (195,978 | ) |  |  | (401,852 | )
|  |  | 7,709 |  |  |  | 202,514 |  |  |  | 210,223 |
Additions in fiscal 2013 |  |  | 0 |  |  |  | 3,242 |  |  |  | 3,242 |
Impairment losses in fiscal 2013 |  |  | (7,709 | ) |  |  | 0 |  |  |  | (7,709 | )
Balance as of September 28, 2013 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 213,583 |  |  |  | 401,734 |  |  |  | 615,317 |
Accumulated impairment losses |  |  | (213,583 | ) |  |  | (195,978 | ) |  |  | (409,561 | )
|  |  | 0 |  |  |  | 205,756 |  |  |  | 205,756 |
Additions in fiscal 2014 |  |  | 0 |  |  |  | 2,477 |  |  |  | 2,477 |
Balance as of September 27, 2014 |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 213,583 |  |  |  | 404,211 |  |  |  | 617,794 |
Accumulated impairment losses |  |  | (213,583 | ) |  |  | (195,978 | ) |  |  | (409,561 | )
|  | $ | 0 |  |  | $ | 208,233 |  |  | $ | 208,233 |
Additions or reductions to goodwill include acquisitions, purchase price adjustments and adjustments of amounts upon finalization of purchase accounting. The Company tests goodwill for impairment annually (on the first day of the fourth fiscal quarter), or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, by initially comparing the fair value of the Company’s reporting units to their related carrying values. If the fair value of the reporting unit is less than its carrying value, the Company performs an additional step to determine the implied fair value of goodwill associated with that reporting unit. The implied fair value of goodwill is determined by first allocating the fair value of the reporting unit to all of its assets and liabilities and then computing the excess of the reporting unit’s fair value over the amounts assigned to the assets and liabilities. If the carrying value of goodwill exceeds the implied fair value of goodwill, such excess represents the amount of goodwill impairment, and, accordingly, the Company recognizes such impairment. The Company’s goodwill impairment analysis also includes a comparison of the aggregate estimated fair value of all four reporting units to the Company’s total market capitalization. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. The estimate of fair value of each of the Company’s reporting units is based on the Company’s projection of revenues, gross margin, operating costs and cash flows considering historical and estimated future results, general economic and market conditions as well as the impact of planned business and operational strategies. The Company bases its fair value estimates on assumptions the Company believes to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Assumptions critical to the Company’s fair value estimates were: (i) discount rates used in determining the fair value of the reporting units; (ii) estimated future cash flows; and (iii) projected revenue and operating profit growth rates used in the reporting unit models. Actual results may differ from those estimates. The valuations employ present value techniques to measure fair value and consider market factors. In connection with the Company’s annual goodwill impairment testing performed during fiscal 2014, the first step of such testing indicated that the fair value of the Company’s reporting segments exceeded their carrying value by more than 10%, and accordingly, no further testing of goodwill was required. In connection with the Company’s annual goodwill impairment testing performed during fiscal 2013, the first step of such testing indicated that the fair value of the Company’s Pet segment reporting units exceeded their carrying value, and accordingly, no further testing of goodwill was required for the Pet segment. However, the carrying value of the Company’s Garden segment reporting units exceeded their fair value, indicating potential impairment. Based on further analysis, it was determined that the entire carrying value of the Company’s Garden segment goodwill was impaired, resulting in a non-cash goodwill impairment charge of $7.7 million. In connection with the Company’s annual goodwill impairment testing performed during fiscal 2012, the first step of such testing indicated that the fair value of the Company’s reporting segments exceeded their carrying value by more than 10%, and accordingly, no further testing of goodwill was required. Changes in the judgments and estimates underlying the Company’s analysis of goodwill for possible impairment, including expected future cash flows and discount rate, could result in a significantly different estimate of the fair value of the reporting units in the future and could result in additional impairment of goodwill.

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