FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS | 12 Months Ended |
Sep. 30, 2013 |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS | ' |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS |
The 7.25% and 6.625% Senior Notes (collectively, the “Senior Notes”) issued by Scotts Miracle-Gro on January 14, 2010 and December 16, 2010, respectively, are guaranteed by certain of its domestic subsidiaries and, therefore, the Company has disclosed condensed, consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. The following 100% directly or indirectly owned subsidiaries fully and unconditionally guarantee the Senior Notes on a joint and several basis: EG Systems, Inc., dba Scotts LawnService®; Gutwein & Co., Inc.; Hyponex Corporation; Miracle-Gro Lawn Products, Inc.; OMS Investments, Inc.; Rod McLellan Company; Sanford Scientific, Inc.; Scotts Temecula Operations, LLC; Scotts Manufacturing Company; Scotts Products Co.; Scotts Professional Products Co.; Scotts-Sierra Investments LLC; SMG Growing Media, Inc.; SMGM LLC; Swiss Farms Products, Inc.; and The Scotts Company LLC (collectively, the “Guarantors”). SMGM LLC was added as a Guarantor of the Senior Notes on September 30, 2013. Accordingly, SMGM LLC has been classified as a Guarantor for all periods presented in the condensed, consolidating financial information accompanying this Note 23. SMG Brands, Inc. was merged into OMS Investments., Inc. effective September 27, 2013. |
The following information presents condensed, consolidating Statements of Operations, Statement of Comprehensive Income and Statements of Cash Flows for each of the three years ended September 30, 2013, and condensed, consolidating Balance Sheets as of September 30, 2013 and September 30, 2012. The consolidating financial information presents, in separate columns, financial information for: Scotts Miracle-Gro on a Parent-only basis, carrying its investment in subsidiaries under the equity method; Guarantors on a combined basis, carrying investments in subsidiaries which do not guarantee the debt (collectively, the “Non-Guarantors”) under the equity method; Non-Guarantors on a combined basis; and eliminating entries. The eliminating entries primarily reflect intercompany transactions, such as interest expense, accounts receivable and payable, short and long-term debt, and the elimination of equity investments and income in subsidiaries. Because the Parent is obligated to pay the unpaid principal amount and interest on all amounts borrowed by the Guarantors or Non-Guarantors under the credit facility (and was obligated to pay the unpaid principal amount and interest on all amounts borrowed by the Guarantors and Non-Guarantors under the previous senior secured five-year revolving loan facility), the borrowings and related interest expense for the loans outstanding of the Guarantors and Non-Guarantors are also presented in the accompanying Parent-only financial information, and are then eliminated. |
THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Statement of Operations |
for the fiscal year ended September 30, 2013 |
(in millions) |
|
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| | | | | | | | | | | | | | | | | | | |
| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
Net sales | $ | — | | | $ | 2,317.40 | | | $ | 499.1 | | | $ | — | | | $ | 2,816.50 | |
|
Cost of sales | — | | | 1,480.40 | | | 351.5 | | | — | | | 1,831.90 | |
|
Cost of sales - impairment, restructuring and other | — | | | — | | | 2.2 | | | — | | | 2.2 | |
|
Gross profit | — | | | 837 | | | 145.4 | | | — | | | 982.4 | |
|
Operating expenses: | | | | | | | | | |
Selling, general and administrative | — | | | 516.8 | | | 144.3 | | | — | | | 661.1 | |
|
Impairment, restructuring and other | — | | | 11.2 | | | 6.9 | | | — | | | 18.1 | |
|
Other income, net | — | | | (6.9 | ) | | (3.1 | ) | | — | | | (10.0 | ) |
|
Income from operations | — | | | 315.9 | | | (2.7 | ) | | — | | | 313.2 | |
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Equity income in subsidiaries | (180.9 | ) | | 1.3 | | | — | | | 179.6 | | | — | |
|
Other non-operating income | (20.4 | ) | | — | | | — | | | 20.4 | | | — | |
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Interest expense | 52.4 | | | 25.2 | | | 2 | | | (20.4 | ) | | 59.2 | |
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Income (loss) from continuing operations before income taxes | 148.9 | | | 289.4 | | | (4.7 | ) | | (179.6 | ) | | 254 | |
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Income tax (benefit) expense from continuing operations | (12.2 | ) | | 106.7 | | | (1.7 | ) | | — | | | 92.8 | |
|
Income from continuing operations | 161.1 | | | 182.7 | | | (3.0 | ) | | (179.6 | ) | | 161.2 | |
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Loss from discontinued operations, net of tax | — | | | (0.1 | ) | | — | | | — | | | (0.1 | ) |
|
Net income (loss) | $ | 161.1 | | | $ | 182.6 | | | $ | (3.0 | ) | | $ | (179.6 | ) | | $ | 161.1 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidated Statement of Comprehensive Income |
for the fiscal year ended September 30, 2013 |
(In millions) |
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| | | | | | | | | | | | | | | | | | | |
| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
Net income | $ | 161.1 | | | $ | 182.6 | | | $ | (3.0 | ) | | $ | (179.6 | ) | | $ | 161.1 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Net foreign currency translation adjustment | — | | | — | | | (5.2 | ) | | — | | | (5.2 | ) |
|
Net change in derivatives | 7.2 | | | (2.1 | ) | | — | | | — | | | 5.1 | |
|
Net change in pension and other post retirement benefits | — | | | 10.6 | | | (1.0 | ) | | — | | | 9.6 | |
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Total other comprehensive income (loss) | 7.2 | | | 8.5 | | | (6.2 | ) | | — | | | 9.5 | |
|
Comprehensive income | $ | 168.3 | | | $ | 191.1 | | | $ | (9.2 | ) | | $ | (179.6 | ) | | $ | 170.6 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Statement of Cash Flows |
for the fiscal year ended September 30, 2013 |
(in millions) |
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| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | (18.0 | ) | | $ | 245.9 | | | $ | 114.1 | | | $ | — | | | $ | 342 | |
|
INVESTING ACTIVITIES | | | | | | | | | |
Proceeds from sale of long-lived assets | — | | | 0.2 | | | 3.4 | | | — | | | 3.6 | |
|
Investments in property, plant and equipment | — | | | (44.6 | ) | | (15.5 | ) | | — | | | (60.1 | ) |
|
Investment in unconsolidated affiliates | — | | | (4.5 | ) | | — | | | — | | | (4.5 | ) |
|
Investments in acquired businesses, net of cash acquired | — | | | (3.2 | ) | | — | | | — | | | (3.2 | ) |
|
Net cash used in investing activities | — | | | (52.1 | ) | | (12.1 | ) | | — | | | (64.2 | ) |
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FINANCING ACTIVITIES | | | | | | | | | |
Borrowings under revolving and bank lines of credit and term loans | — | | | 1,130.40 | | | 344.4 | | | — | | | 1,474.80 | |
|
Repayments under revolving and bank lines of credit and term loans | — | | | (1,078.5 | ) | | (603.6 | ) | | — | | | (1,682.1 | ) |
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Dividends paid | (87.8 | ) | | — | | | — | | | — | | | (87.8 | ) |
|
Payments on seller notes | — | | | (0.8 | ) | | — | | | — | | | (0.8 | ) |
|
Excess tax benefits from share-based payment arrangements | — | | | 2 | | | — | | | — | | | 2 | |
|
Cash received from exercise of stock options | 13.3 | | | — | | | — | | | — | | | 13.3 | |
|
Intercompany financing | 92.5 | | | (246.9 | ) | | 154.4 | | | — | | | — | |
|
Net cash provided by (used in) financing activities | 18 | | | (193.8 | ) | | (104.8 | ) | | — | | | (280.6 | ) |
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Effect of exchange rate changes on cash | — | | | — | | | 0.7 | | | — | | | 0.7 | |
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Net decrease in cash and cash equivalents | — | | | — | | | (2.1 | ) | | — | | | (2.1 | ) |
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Cash and cash equivalents at beginning of year | — | | | 2.6 | | | 129.3 | | | — | | | 131.9 | |
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Cash and cash equivalents at end of year | $ | — | | | $ | 2.6 | | | $ | 127.2 | | | $ | — | | | $ | 129.8 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Balance Sheet |
As of September 30, 2013 |
(in millions) |
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| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
ASSETS |
Current assets: | | | | | | | | | |
Cash and cash equivalents | $ | — | | | $ | 2.6 | | | $ | 127.2 | | | $ | — | | | $ | 129.8 | |
|
Accounts receivable, net | — | | | 119.7 | | | 86.9 | | | — | | | 206.6 | |
|
Accounts receivable pledged | — | | | 106.7 | | | — | | | — | | | 106.7 | |
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Inventories | — | | | 247.2 | | | 77.7 | | | — | | | 324.9 | |
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Prepaid and other current assets | — | | | 76.4 | | | 36.6 | | | — | | | 113 | |
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Total current assets | — | | | 552.6 | | | 328.4 | | | — | | | 881 | |
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Property, plant and equipment, net | — | | | 377.9 | | | 44.4 | | | — | | | 422.3 | |
|
Goodwill | — | | | 314.4 | | | 0.7 | | | — | | | 315.1 | |
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Intangible assets, net | — | | | 244.8 | | | 39.6 | | | — | | | 284.4 | |
|
Other assets | 22.4 | | | 19.5 | | | 26.5 | | | (34.0 | ) | | 34.4 | |
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Equity investment in subsidiaries | 317.1 | | | — | | | — | | | (317.1 | ) | | — | |
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Intercompany assets | 725.7 | | | — | | | — | | | (725.7 | ) | | — | |
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Total assets | $ | 1,065.20 | | | $ | 1,509.20 | | | $ | 439.6 | | | $ | (1,076.8 | ) | | $ | 1,937.20 | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
Current liabilities: | | | | | | | | | |
Current portion of debt | $ | — | | | $ | 87.3 | | | $ | 5.1 | | | $ | — | | | $ | 92.4 | |
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Accounts payable | — | | | 83.9 | | | 53.8 | | | — | | | 137.7 | |
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Other current liabilities | 16 | | | 183.4 | | | 80.3 | | | — | | | 279.7 | |
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Total current liabilities | 16 | | | 354.6 | | | 139.2 | | | — | | | 509.8 | |
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Long-term debt | 327 | | | 67.9 | | | 10.2 | | | 73 | | | 478.1 | |
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Other liabilities | 11.7 | | | 213.3 | | | 47.8 | | | (34.0 | ) | | 238.8 | |
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Equity investment in subsidiaries | — | | | 173.3 | | | — | | | (173.3 | ) | | — | |
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Intercompany liabilities | — | | | 652.1 | | | 146.6 | | | (798.7 | ) | | — | |
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Total liabilities | 354.7 | | | 1,461.20 | | | 343.8 | | | (933.0 | ) | | 1,226.70 | |
|
Total shareholders’ equity | 710.5 | | | 48 | | | 95.8 | | | (143.8 | ) | | 710.5 | |
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Total liabilities and shareholders’ equity | $ | 1,065.20 | | | $ | 1,509.20 | | | $ | 439.6 | | | $ | (1,076.8 | ) | | $ | 1,937.20 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Statement of Operations |
for the fiscal year ended September 30, 2012 |
(in millions) |
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| | | | | | | | | | | | | | | | | | | |
| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
Net sales | $ | — | | | $ | 2,320.90 | | | $ | 505.2 | | | $ | — | | | $ | 2,826.10 | |
|
Cost of sales | — | | | 1,511.20 | | | 353.2 | | | — | | | 1,864.40 | |
|
Cost of sales - product registration and recall matters | — | | | 0.4 | | | — | | | — | | | 0.4 | |
|
Gross profit | — | | | 809.3 | | | 152 | | | — | | | 961.3 | |
|
Operating expenses: | | | | | | | | | |
Selling, general and administrative | — | | | 552.9 | | | 152.8 | | | — | | | 705.7 | |
|
Impairment, restructuring and other | — | | | 7.9 | | | (0.8 | ) | | — | | | 7.1 | |
|
Product registration and recall matters | — | | | 7.8 | | | — | | | — | | | 7.8 | |
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Other income, net | — | | | (1.1 | ) | | (1.8 | ) | | — | | | (2.9 | ) |
|
Income from operations | — | | | 241.8 | | | 1.8 | | | — | | | 243.6 | |
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Equity income in subsidiaries | (126.4 | ) | | 1.6 | | | — | | | 124.8 | | | — | |
|
Other non-operating income | (24.5 | ) | | — | | | — | | | 24.5 | | | — | |
|
Interest expense | 56.5 | | | 25.4 | | | 4.4 | | | (24.5 | ) | | 61.8 | |
|
Income (loss) from continuing operations before income taxes | 94.4 | | | 214.8 | | | (2.6 | ) | | (124.8 | ) | | 181.8 | |
|
Income tax (benefit) expense from continuing operations | (12.1 | ) | | 81.7 | | | (1.0 | ) | | — | | | 68.6 | |
|
Income (loss) from continuing operations | 106.5 | | | 133.1 | | | (1.6 | ) | | (124.8 | ) | | 113.2 | |
|
Loss from discontinued operations, net of tax | — | | | (6.7 | ) | | — | | | — | | | (6.7 | ) |
|
Net income (loss) | $ | 106.5 | | | $ | 126.4 | | | $ | (1.6 | ) | | $ | (124.8 | ) | | $ | 106.5 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidated Statement of Comprehensive Income |
for the fiscal year ended September 30, 2012 |
(In millions) |
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| | | | | | | | | | | | | | | | | | | |
| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
Net income (loss) | $ | 106.5 | | | $ | 126.4 | | | $ | (1.6 | ) | | $ | (124.8 | ) | | $ | 106.5 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Net foreign currency translation adjustment | — | | | — | | | 2.3 | | | — | | | 2.3 | |
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Net change in derivatives | 0.1 | | | (1.0 | ) | | — | | | — | | | (0.9 | ) |
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Net change in pension and other post retirement benefits | — | | | (1.2 | ) | | (9.5 | ) | | — | | | (10.7 | ) |
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Total other comprehensive income (loss) | 0.1 | | | (2.2 | ) | | (7.2 | ) | | — | | | (9.3 | ) |
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Comprehensive income (loss) | $ | 106.6 | | | $ | 124.2 | | | $ | (8.8 | ) | | $ | (124.8 | ) | | $ | 97.2 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Statement of Cash Flows |
for the fiscal year ended September 30, 2012 |
(in millions) |
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| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | (20.0 | ) | | $ | 163.6 | | | $ | 9.8 | | | $ | — | | | $ | 153.4 | |
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INVESTING ACTIVITIES | | | | | | | | | |
Proceeds from sale of long-lived assets | — | | | 0.7 | | | — | | | — | | | 0.7 | |
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Investments in property, plant and equipment | — | | | (61.2 | ) | | (8.2 | ) | | — | | | (69.4 | ) |
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Investments in acquired businesses, net of cash acquired | — | | | (6.7 | ) | | (0.3 | ) | | — | | | (7.0 | ) |
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Net cash used in investing activities | — | | | (67.2 | ) | | (8.5 | ) | | — | | | (75.7 | ) |
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FINANCING ACTIVITIES | | | | | | | | | |
Borrowings under revolving and bank lines of credit and term loans | — | | | 853.4 | | | 830.6 | | | — | | | 1,684.00 | |
|
Repayments under revolving and bank lines of credit and term loans | — | | | (1,016.2 | ) | | (678.4 | ) | | — | | | (1,694.6 | ) |
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Dividends paid | (75.4 | ) | | — | | | — | | | — | | | (75.4 | ) |
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Purchase of common shares | (17.5 | ) | | — | | | — | | | — | | | (17.5 | ) |
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Excess tax benefits from share-based payment arrangements | — | | | 6.6 | | | — | | | — | | | 6.6 | |
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Cash received from exercise of stock options | 17.6 | | | — | | | — | | | — | | | 17.6 | |
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Intercompany financing | 95.3 | | | 58.1 | | | (153.4 | ) | | — | | | — | |
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Net cash provided by (used in) financing activities | 20 | | | (98.1 | ) | | (1.2 | ) | | — | | | (79.3 | ) |
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Effect of exchange rate changes on cash | — | | | — | | | 2.6 | | | — | | | 2.6 | |
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Net increase (decrease) in cash and cash equivalents | — | | | (1.7 | ) | | 2.7 | | | — | | | 1 | |
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Cash and cash equivalents at beginning of year | — | | | 4.3 | | | 126.6 | | | — | | | 130.9 | |
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Cash and cash equivalents at end of year | $ | — | | | $ | 2.6 | | | $ | 129.3 | | | $ | — | | | $ | 131.9 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Balance Sheet |
As of September 30, 2012 |
(in millions) |
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| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
ASSETS |
Current assets: | | | | | | | | | |
Cash and cash equivalents | $ | — | | | $ | 2.6 | | | $ | 129.3 | | | $ | — | | | $ | 131.9 | |
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Accounts receivable, net | — | | | 248.4 | | | 82.5 | | | — | | | 330.9 | |
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Inventories | — | | | 332.1 | | | 82.8 | | | — | | | 414.9 | |
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Prepaid and other current assets | — | | | 88.5 | | | 33.8 | | | — | | | 122.3 | |
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Total current assets | — | | | 671.6 | | | 328.4 | | | — | | | 1,000.00 | |
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Property, plant and equipment, net | — | | | 380.6 | | | 46.8 | | | — | | | 427.4 | |
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Goodwill | — | | | 308.7 | | | 0.7 | | | — | | | 309.4 | |
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Intangible assets, net | — | | | 264.2 | | | 42.9 | | | — | | | 307.1 | |
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Other assets | 29.8 | | | 11.2 | | | 32.8 | | | (43.3 | ) | | 30.5 | |
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Equity investment in subsidiaries | 828.5 | | | — | | | — | | | (828.5 | ) | | — | |
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Intercompany assets | 556.6 | | | — | | | — | | | (556.6 | ) | | — | |
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Total assets | $ | 1,414.90 | | | $ | 1,636.30 | | | $ | 451.6 | | | $ | (1,428.4 | ) | | $ | 2,074.40 | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
Current liabilities: | | | | | | | | | |
Current portion of debt | $ | — | | | $ | 1.2 | | | $ | 0.3 | | | $ | — | | | $ | 1.5 | |
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Accounts payable | — | | | 105.4 | | | 46.9 | | | — | | | 152.3 | |
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Other current liabilities | 15.9 | | | 177.4 | | | 86.5 | | | — | | | 279.8 | |
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Total current liabilities | 15.9 | | | 284 | | | 133.7 | | | — | | | 433.6 | |
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Long-term debt | 777.1 | | | 99.8 | | | 281.3 | | | (377.1 | ) | | 781.1 | |
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Other liabilities | 20 | | | 227.2 | | | 54 | | | (43.4 | ) | | 257.8 | |
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Equity investment in subsidiaries | — | | | 304.4 | | | — | | | (304.4 | ) | | — | |
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Intercompany liabilities | — | | | 62.6 | | | 116.8 | | | (179.4 | ) | | — | |
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Total liabilities | 813 | | | 978 | | | 585.8 | | | (904.3 | ) | | 1,472.50 | |
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Total shareholders’ equity | 601.9 | | | 658.3 | | | (134.2 | ) | | (524.1 | ) | | 601.9 | |
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Total liabilities and shareholders’ equity | $ | 1,414.90 | | | $ | 1,636.30 | | | $ | 451.6 | | | $ | (1,428.4 | ) | | $ | 2,074.40 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Statement of Operations |
for the fiscal year ended September 30, 2011 |
(in millions) |
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| | | | | | | | | | | | | | | | | | | |
| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
Net sales | $ | — | | | $ | 2,276.60 | | | $ | 523.1 | | | $ | — | | | $ | 2,799.70 | |
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Cost of sales | — | | | 1,422.90 | | | 346.1 | | | — | | | 1,769.00 | |
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Cost of sales — impairment, restructuring and other | — | | | 17.3 | | | 1 | | | | | | 18.3 | |
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Cost of sales — product registration and recall matters | — | | | 3.2 | | | — | | | — | | | 3.2 | |
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Gross profit | — | | | 833.2 | | | 176 | | | — | | | 1,009.20 | |
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Operating expenses: | | | | | | | | | |
Selling, general and administrative | — | | | 523.3 | | | 163 | | | — | | | 686.3 | |
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Impairment, restructuring and other | — | | | 34.1 | | | 3.5 | | | — | | | 37.6 | |
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Product registration and recall matters | — | | | 11.4 | | | — | | | — | | | 11.4 | |
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Other income, net | — | | | (0.5 | ) | | (0.4 | ) | | — | | | (0.9 | ) |
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Income from operations | — | | | 264.9 | | | 9.9 | | | — | | | 274.8 | |
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Equity income in subsidiaries | (186.8 | ) | | (41.3 | ) | | — | | | 228.1 | | | — | |
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Other non-operating income | (19.4 | ) | | — | | | — | | | 19.4 | | | — | |
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Costs related to refinancing | 1.2 | | | — | | | — | | | — | | | 1.2 | |
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Interest expense | 48.1 | | | 20 | | | 2.3 | | | (19.4 | ) | | 51 | |
|
Income from continuing operations before income taxes | 156.9 | | | 286.2 | | | 7.6 | | | (228.1 | ) | | 222.6 | |
|
Income tax (benefit) expense from continuing operations | (11.0 | ) | | 90.9 | | | 2.8 | | | — | | | 82.7 | |
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Income from continuing operations | 167.9 | | | 195.3 | | | 4.8 | | | (228.1 | ) | | 139.9 | |
|
Income (loss) from discontinued operations, net of tax | — | | | (8.5 | ) | | 36.5 | | | — | | | 28 | |
|
Net income | $ | 167.9 | | | $ | 186.8 | | | $ | 41.3 | | | $ | (228.1 | ) | | $ | 167.9 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidated Statement of Comprehensive Income |
for the fiscal year ended September 30, 2011 |
(In millions) |
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| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
Net income | $ | 167.9 | | | $ | 186.8 | | | $ | 41.3 | | | $ | (228.1 | ) | | $ | 167.9 | |
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Other comprehensive income (loss), net of tax: | | | | | | | | | |
Net foreign currency translation adjustment | — | | | — | | | (10.1 | ) | | — | | | (10.1 | ) |
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Net change in derivatives | (4.3 | ) | | 1.3 | | | — | | | — | | | (3.0 | ) |
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Net change in pension and other post retirement benefits | — | | | (1.6 | ) | | 13.8 | | | — | | | 12.2 | |
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Total other comprehensive income (loss) | (4.3 | ) | | (0.3 | ) | | 3.7 | | | — | | | (0.9 | ) |
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Comprehensive income | $ | 163.6 | | | $ | 186.5 | | | $ | 45 | | | $ | (228.1 | ) | | $ | 167 | |
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THE SCOTTS MIRACLE-GRO COMPANY |
Condensed, Consolidating Statement of Cash Flows |
for the fiscal year ended September 30, 2011 |
(in millions) |
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| Parent | | Subsidiary | | Non- | | Eliminations | | Consolidated |
Guarantors | Guarantors |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | (10.5 | ) | | $ | 85.2 | | | $ | 47.4 | | | $ | — | | | $ | 122.1 | |
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INVESTING ACTIVITIES | | | | | | | | | |
Proceeds from sale of long-lived assets | — | | | 0.2 | | | — | | | — | | | 0.2 | |
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Proceeds from sale of business, net of transaction costs | — | | | 158.7 | | | 94.9 | | | — | | | 253.6 | |
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Investments in property, plant and equipment | — | | | (64.5 | ) | | (8.2 | ) | | — | | | (72.7 | ) |
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Contingent consideration and related payments | — | | | (20.0 | ) | | — | | | — | | | (20.0 | ) |
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Investment in acquired businesses, net of cash acquired | — | | | (7.6 | ) | | — | | | — | | | (7.6 | ) |
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Net cash provided by investing activities | — | | | 66.8 | | | 86.7 | | | — | | | 153.5 | |
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FINANCING ACTIVITIES | | | | | | | | | |
Borrowings under revolving and bank lines of credit and term loans | — | | | 908.2 | | | 701.9 | | | — | | | 1,610.10 | |
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Repayments under revolving and bank lines of credit and term loans | (302.4 | ) | | (660.8 | ) | | (668.9 | ) | | — | | | (1,632.1 | ) |
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Proceeds from issuance of Senior Notes, net of discount | 200 | | | — | | | — | | | — | | | 200 | |
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Financing and issuance fees | (18.9 | ) | | — | | | — | | | — | | | (18.9 | ) |
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Dividends paid | (67.9 | ) | | — | | | — | | | — | | | (67.9 | ) |
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Purchase of common shares | (358.7 | ) | | — | | | — | | | — | | | (358.7 | ) |
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Payments on seller notes | — | | | (0.3 | ) | | — | | | — | | | (0.3 | ) |
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Excess tax benefits from share-based payment arrangements | — | | | 5.6 | | | — | | | — | | | 5.6 | |
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Cash received from exercise of stock options | 31.5 | | | — | | | — | | | — | | | 31.5 | |
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Intercompany financing | 526.9 | | | (405.3 | ) | | (121.6 | ) | | — | | | — | |
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Net cash provided by (used in) financing activities | 10.5 | | | (152.6 | ) | | (88.6 | ) | | — | | | (230.7 | ) |
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Effect of exchange rate changes on cash | — | | | — | | | (2.1 | ) | | — | | | (2.1 | ) |
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Net (decrease) increase in cash and cash equivalents | — | | | (0.6 | ) | | 43.4 | | | — | | | 42.8 | |
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Cash and cash equivalents at beginning of year | — | | | 5.1 | | | 83 | | | — | | | 88.1 | |
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Cash and cash equivalents at end of year | $ | — | | | $ | 4.5 | | | $ | 126.4 | | | $ | — | | | $ | 130.9 | |
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