Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 30, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-11593 | |
Entity Registrant Name | Scotts Miracle-Gro Co | |
Entity Central Index Key | 0000825542 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-1414921 | |
Entity Address, Address Line One | 14111 Scottslawn Road, | |
Entity Address, City or Town | Marysville, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43041 | |
City Area Code | 937 | |
Local Phone Number | 644-0011 | |
Title of 12(b) Security | Common Shares, $0.01 stated value | |
Trading Symbol | SMG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,799,090 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,525.4 | $ 1,531.5 | $ 1,935.8 | $ 2,058.1 |
Cost of sales | 986.8 | 1,000.1 | 1,340.8 | 1,420.7 |
Cost of sales—impairment, restructuring and other | 74.9 | 118.7 | 69.1 | 129 |
Gross margin | 463.7 | 412.7 | 525.9 | 508.4 |
Operating expenses: | ||||
Selling, general and administrative | 178.7 | 186.3 | 293.5 | 314.8 |
Impairment, restructuring and other | 2.1 | 21.8 | (5) | 30.2 |
Other (income) expense, net | 10.8 | (1.6) | 12.6 | (1) |
Income from operations | 272.1 | 206.2 | 224.8 | 164.4 |
Equity in loss of unconsolidated affiliates | (7) | (7.3) | (29.5) | (18.7) |
Interest expense | 44.1 | 48.3 | 86.8 | 91 |
Other non-operating (income) expense, net | 1.2 | 0.8 | 2.9 | (0.8) |
Income before income taxes | 219.8 | 149.8 | 105.6 | 55.5 |
Income tax expense | 62.3 | 40.4 | 28.6 | 10.8 |
Net income | $ 157.5 | $ 109.4 | $ 77 | $ 44.7 |
Earnings Per Share, Basic And Diluted EPS [Abstract] | ||||
Basic income (loss) per common share (USD per share) | $ 2.77 | $ 1.95 | $ 1.36 | $ 0.80 |
Diluted income (loss) per common share (USD per share) | $ 2.74 | $ 1.94 | $ 1.34 | $ 0.80 |
Weighted-average common shares outstanding during the period (in shares) | 56.8 | 56 | 56.7 | 55.8 |
Weighted-average common shares outstanding during the period plus dilutive potential common shares (in shares) | 57.4 | 56.5 | 57.3 | 56.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 157.5 | $ 109.4 | $ 77 | $ 44.7 |
Other comprehensive income (loss): | ||||
Net foreign currency translation adjustment | (2.6) | 1.1 | 0.5 | 8.3 |
Net unrealized gain (loss) on derivative instruments, net of tax | 6.1 | (4.8) | (2.1) | (9.6) |
Reclassification of net unrealized gain on derivative instruments to net income, net of tax | (0.9) | (8.2) | (2.4) | (11.9) |
Net unrealized loss on securities, net of tax | (0.6) | (5.6) | (1.5) | (26) |
Pension and other post-retirement benefit adjustments, net of tax | 1 | (0.3) | (0.4) | (3.2) |
Total other comprehensive income (loss) | 3 | (17.8) | (5.9) | (42.4) |
Comprehensive income | $ 160.5 | $ 91.6 | $ 71.1 | $ 2.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
OPERATING ACTIVITIES | ||
Net income | $ 77 | $ 44.7 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Impairment, restructuring and other | 5.6 | 44.4 |
Share-based compensation expense | 44.6 | 58.3 |
Depreciation | 32.3 | 33.6 |
Amortization | 7.9 | 14.1 |
Deferred taxes | 18.8 | 17.5 |
Equity in loss of unconsolidated affiliates | 29.5 | 18.7 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (572.5) | (1,075.6) |
Inventories | 56.6 | 205.3 |
Prepaid and other current assets | (6.7) | (47.5) |
Accounts payable | 190.8 | 7.2 |
Other current liabilities | 84.3 | 123 |
Other non-current items | (8) | (14.1) |
Other, net | 0.8 | 3.5 |
Net cash used in operating activities | (39) | (566.9) |
INVESTING ACTIVITIES | ||
Investments in property, plant and equipment | (54.2) | (51.8) |
Proceeds from loans receivable | 0 | 37 |
Investments in unconsolidated affiliates | (21.4) | 0 |
Other investing, net | 4.5 | (5.8) |
Net cash used in investing activities | (71.1) | (20.6) |
FINANCING ACTIVITIES | ||
Borrowings under revolving and bank lines of credit and term loans | 519.3 | 1,193.2 |
Repayments under revolving and bank lines of credit and term loans | (314.3) | (583.8) |
Dividends paid | (76.2) | (74.9) |
Purchase of Common Shares | (4.9) | (6.4) |
Cash received from exercise of stock options | 1.7 | 1.2 |
Other financing, net | 17.2 | (4) |
Net cash provided by financing activities | 142.8 | 525.3 |
Effect of exchange rate changes on cash | 0.5 | 0.4 |
Net increase (decrease) in cash and cash equivalents | 33.2 | (61.8) |
Cash and cash equivalents at beginning of period | 31.9 | 86.8 |
Cash and cash equivalents at end of period | $ 65.1 | $ 25 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 65.1 | $ 31.9 | $ 25 |
Accounts receivable, less allowances of $18.2, $22.2 and $15.1, respectively | 876.9 | 304.2 | 1,035.7 |
Accounts receivable pledged | 0 | 0 | 422.2 |
Inventories | 824.3 | 880.3 | 1,127.6 |
Prepaid and other current assets | 168.8 | 181.4 | 231.9 |
Total current assets | 1,935.1 | 1,397.8 | 2,842.4 |
Investment in unconsolidated affiliates | 83.8 | 91.9 | 174.2 |
Property, plant and equipment, net of accumulated depreciation of $791.4, $793.5 and $765.4, respectively | 608.2 | 610.3 | 588.9 |
Goodwill | 243.9 | 243.9 | 254.3 |
Intangible assets, net | 428.9 | 436.7 | 565.5 |
Other assets | 624.3 | 633.1 | 562.8 |
Total assets | 3,924.2 | 3,413.7 | 4,988.1 |
Current liabilities: | |||
Current portion of debt | 57.8 | 52.3 | 435.4 |
Accounts payable | 440.4 | 271.2 | 415.5 |
Other current liabilities | 562.1 | 450.2 | 521.6 |
Total current liabilities | 1,060.3 | 773.7 | 1,372.5 |
Long-term debt | 2,760.5 | 2,557.4 | 3,138 |
Other liabilities | 354.3 | 349.9 | 340.1 |
Total liabilities | 4,175.1 | 3,681 | 4,850.6 |
Commitments and contingencies | |||
Equity (deficit): | |||
Common shares and capital in excess of $0.01 stated value per share; shares outstanding of 56.8, 56.0 and 56.5, respectively | 353.7 | 353.1 | 374.3 |
Retained earnings | 491.8 | 490.9 | 990.3 |
Treasury shares, at cost; 11.4, 12.1 and 11.6 shares, respectively | (977.8) | (998.5) | (1,040) |
Accumulated other comprehensive loss | (118.6) | (112.8) | (187.1) |
Total equity (deficit) | (250.9) | (267.3) | 137.5 |
Total liabilities and equity (deficit) | $ 3,924.2 | $ 3,413.7 | $ 4,988.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowances | $ 18.2 | $ 15.1 | $ 22.2 |
Property, plant and equipment, accumulated depreciation | $ 791.4 | $ 765.4 | $ 793.5 |
Common shares stated value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common shares outstanding (shares) | 56.8 | 56.5 | 56 |
Treasury shares, at cost (shares) | 11.4 | 11.6 | 12.1 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Scotts Miracle-Gro Company (“Scotts Miracle-Gro”) and its subsidiaries (collectively, with Scotts Miracle-Gro, the “Company”) are engaged in the manufacturing, marketing and sale of products for lawn and garden care and indoor and hydroponic gardening. The Company’s products are sold in North America, Europe and Asia. The Company’s North America consumer lawn and garden business is highly seasonal, with approximately 75% of its annual net sales occurring in the second and third fiscal quarters. The Company’s Hawthorne segment is also impacted by seasonal sales patterns for certain product categories due to the timing of growing patterns in North America during the second and third fiscal quarters, and the timing of certain controlled agricultural lighting project sales during the third and fourth fiscal quarters. Organization and Basis of Presentation The Company’s unaudited condensed consolidated financial statements for the three and six months ended March 30, 2024 and April 1, 2023 are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements include the accounts of Scotts Miracle-Gro and its subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. The Company’s consolidation criteria are based on majority ownership (as evidenced by a majority voting interest in the entity) and an objective evaluation and determination of effective management control. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the date of each acquisition or up to the date of disposal, respectively. In the opinion of management, interim results reflect all normal and recurring adjustments and are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, this Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2024 (this “Form 10-Q”) should be read in conjunction with Scotts Miracle-Gro’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Annual Report”), which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. The Company’s Condensed Consolidated Balance Sheet at September 30, 2023 has been derived from the Company’s audited Consolidated Balance Sheet at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. Accounts Receivable On October 27, 2023, the Company entered into a Master Receivables Purchase Agreement (the “Master Receivables Purchase Agreement”), under which it may sell up to $600.0 of available and eligible outstanding customer accounts receivable generated by sales to four specified customers. The agreement is uncommitted and has an initial term that expires October 25, 2024, unless earlier terminated by the purchaser. The receivable sales are non-recourse to the Company, other than with respect to (i) repurchase and indemnification obligations for any violations by the Company of its respective representations or obligations as seller or servicer and (ii) certain repurchase and payment obligations arising from any dilution of, or dispute with respect to, any purchased receivables that arise after the sale of such purchased receivables to the purchaser not contemplated in the applicable purchase price of such purchased receivable. The recourse obligations of the Company that may arise from time to time are supported by standby letters of credit of $70.0. Transactions under this agreement are accounted for as sales of accounts receivable, and the receivables sold are removed from the Condensed Consolidated Balance Sheets at the time of the sales transaction. Proceeds received from the sales of accounts receivable are classified as operating cash flows and collections of previously sold accounts receivable not yet submitted to the buyer are classified as financing cash flows in the Condensed Consolidated Statements of Cash Flows. The Company records the discount on sales in the “Other (income) expense, net” line in the Condensed Consolidated Statements of Operations. At March 30, 2024, net receivables of $582.8 were derecognized. During the three and six months ended March 30, 2024, proceeds from the sale of receivables under the Master Receivables Purchase Agreement totaled $758.2 and $955.5, respectively, and the total discount recorded on sales was $10.7 and $12.9, respectively. Supplier Finance Program The Company has an agreement to provide a supplier finance program which facilitates participating suppliers’ ability to finance payment obligations of the Company with a designated third-party financial institution. Participating suppliers may, at their sole discretion, elect to finance payment obligations of the Company prior to their scheduled due dates at a discounted price to the participating financial institution. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to finance amounts under this arrangement. The payment terms that the Company negotiates with its suppliers are consistent, regardless of whether a supplier participates in the program. The Company’s current payment terms with a majority of its suppliers generally range from 30 to 60 days, which is deemed to be commercially reasonable. The Company’s outstanding payment obligations under its supplier finance program were $38.5, $31.0 and $18.3 at March 30, 2024, April 1, 2023 and September 30, 2023, respectively, and are recorded within accounts payable in the Condensed Consolidated Balance Sheets. The associated payments were $153.0 and $110.3 for the six months ended March 30, 2024 and April 1, 2023, respectively, and are classified as operating activities in the Condensed Consolidated Statements of Cash Flows. Long-Lived Assets The Company had non-cash investing activities of $10.1 and $15.3 during the six months ended March 30, 2024 and April 1, 2023, respectively, representing unpaid liabilities to acquire property, plant and equipment. Statements of Cash Flows Supplemental cash flow information was as follows: Six Months Ended March 30, April 1, Interest paid $ 83.6 $ 87.4 Income taxes paid (refunded), net — (21.1) Cash flow from operating activities for the six months ended April 1, 2023 was impacted by extended payment terms with vendors for payments originally due in the final weeks of fiscal 2022 that were paid in the first quarter of fiscal 2023. The Company also received proceeds of $37.0 during the six months ended April 1, 2023 related to the payoff of seller financing that the Company provided in connection with a fiscal 2017 divestiture, which was classified as an investing activity in the Condensed Consolidated Statements of Cash Flows. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, “Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires disclosure of the key terms of outstanding supplier finance programs and a roll-forward of the related obligations. ASU No. 2022-04 is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll-forward information , which is effective for fiscal years beginning after December 15, 2023. The Company adopted the ASU as of October 1, 2023. The adoption relates to disclosures only and does not have any impact on the Company’s consolidated financial position, results of operations or cash flows. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker that are included within each reported measure of segment profit or loss, and also requires all annual disclosures currently required by Topic 280 to be included in interim periods. ASU No. 2023-07 is to be applied retrospectively for all periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU primarily requires enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative and qualitative disclosures regarding income taxes paid. ASU No. 2023-09 is to be applied prospectively, with the option to apply the standard retrospectively, effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. |
INVESTMENT IN UNCONSOLIDATED AF
INVESTMENT IN UNCONSOLIDATED AFFILIATES | 6 Months Ended |
Mar. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENT IN UNCONSOLIDATED AFFILIATES On December 31, 2020, the Company acquired 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. |
IMPAIRMENT, RESTRUCTURING AND O
IMPAIRMENT, RESTRUCTURING AND OTHER | 6 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
IMPAIRMENT, RESTRUCTURING AND OTHER | IMPAIRMENT, RESTRUCTURING AND OTHER Activity described herein is classified within the “Cost of sales—impairment, restructuring and other” and “Impairment, restructuring and other” lines in the Condensed Consolidated Statements of Operations. The following table details impairment, restructuring and other charges (recoveries) for each of the periods presented: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Cost of sales—impairment, restructuring and other: Restructuring and other charges, net $ 70.1 $ 99.9 $ 64.0 $ 105.6 Right-of-use asset impairments 0.7 14.1 0.9 15.4 Property, plant and equipment impairments 4.1 4.7 4.2 8.0 Operating expenses—impairment, restructuring and other: Restructuring and other charges (recoveries), net 2.1 21.8 (5.0) 30.2 Total impairment, restructuring and other charges, net $ 77.0 $ 140.5 $ 64.1 $ 159.2 The following table summarizes the activity related to liabilities associated with restructuring activities during the six months ended March 30, 2024: Amounts accrued at September 30, 2023 $ 40.5 Restructuring charges 7.0 Payments (16.3) Amounts accrued at March 30, 2024 $ 31.2 As of March 30, 2024, restructuring accruals include $9.2 that is classified as long-term. During fiscal 2022, the Company began implementing a series of Company-wide organizational changes and initiatives intended to create operational and management-level efficiencies. These changes and initiatives include reducing the size of the supply chain network, reducing staffing levels and implementing other cost-reduction initiatives. During the second quarter of fiscal 2024, the Company commenced plans to close additional Hawthorne distribution centers. The Company has also accelerated the reduction of certain Hawthorne inventory, primarily lighting, growing environments and hardware products, to reduce its on hand inventory to align with the reduced network capacity. During the three and six months ended March 30, 2024, the Company recorded costs of $77.0 and $73.2, respectively, associated with this restructuring initiative primarily related to inventory write-down charges, employee termination benefits, facility closure costs and impairment of right-of-use assets and property, plant and equipment. The Company recorded recoveries of $0.5 and incurred costs of $1.4 in its U.S. Consumer segment and incurred costs of $75.4 and $67.8 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended March 30, 2024, respectively. The Company recorded recoveries of $0.1 and $0.9 in its U.S. Consumer segment and incurred costs of $1.9 and $2.3 in its Hawthorne segment, $0.2 and $0.3 in its Other segment and $0.0 and $2.4 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended March 30, 2024, respectively. Costs incurred from the inception of this restructuring initiative through March 30, 2024 were $294.4 for the Hawthorne segment, $46.0 for the U.S. Consumer segment, $1.8 for the Other segment and $25.1 for Corporate. During the three and six months ended April 1, 2023, the Company incurred costs of $136.8 and $151.4, respectively, associated with this restructuring initiative primarily related to inventory write-down charges, employee termination benefits, facility closure costs and impairment of right-of-use assets and property, plant and equipment. The Company incurred costs of $0.2 and $1.2 in its U.S. Consumer segment and $118.5 and $127.0 in its Hawthorne segment in the “Cost of sales—impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended April 1, 2023, respectively. The Company incurred costs of $0.1 and $0.3 in its U.S. Consumer segment, $17.1 and $18.2 in its Hawthorne segment and $0.8 and $4.5 at Corporate in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations during the three and six months ended April 1, 2023, respectively. During the three and six months ended March 30, 2024, the Company recorded a gain of $0.0 and $12.1, respectively, in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations associated with a payment received in resolution of a dispute with the former ownership group of a business that was acquired in fiscal 2022. This payment was classified as an operating activity in the Condensed Consolidated Statements of Cash Flows. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following for each of the periods presented: March 30, April 1, September 30, Finished goods $ 480.9 $ 759.0 $ 506.2 Raw materials 261.3 279.0 272.5 Work-in-process 82.1 89.6 101.6 Total inventories, net $ 824.3 $ 1,127.6 $ 880.3 |
MARKETING AGREEMENT
MARKETING AGREEMENT | 6 Months Ended |
Mar. 30, 2024 | |
Marketing Agreement [Abstract] | |
MARKETING AGREEMENT | MARKETING AGREEMENT The Scotts Company LLC (“Scotts LLC”) is the exclusive agent of Monsanto Company, a subsidiary of Bayer AG (“Monsanto”), for the marketing and distribution of certain of Monsanto’s consumer Roundup ® branded products in the United States and certain other specified countries. The annual commission payable under the Third Amended and Restated Exclusive Agency and Marketing Agreement (the “Third Restated Agreement”) is equal to 50% of the actual earnings before interest and income taxes of Monsanto’s consumer Roundup ® business for each program year in the markets covered by the Third Restated Agreement (“Program EBIT”). The Third Restated Agreement also requires the Company to make annual payments of $18.0 to Monsanto as a contribution against the overall expenses of its consumer Roundup ® business, subject to reduction pursuant to the Third Restated Agreement for any program year in which the Program EBIT does not equal or exceed $36.0. Unless Monsanto terminates the Third Restated Agreement due to an event of default by the Company, termination rights under the Third Restated Agreement include the following: • The Company may terminate the Third Restated Agreement upon the insolvency or bankruptcy of Monsanto; • Monsanto may terminate the Third Restated Agreement in the event that Monsanto decides to decommission the permits, licenses and registrations needed for, and the trademarks, trade names, packages, copyrights and designs used in, the sale of the Roundup ® products in the lawn and garden market (a “Brand Decommissioning Termination”); and • Each party may terminate the Third Restated Agreement if Program EBIT falls below $50.0 and, in such case, no termination fee would be payable to either party. The termination fee structure requires Monsanto to pay a termination fee to the Company in an amount equal to (i) $375.0 upon a Brand Decommissioning Termination, and (ii) the greater of $175.0 or four times an amount equal to the average of the Program EBIT for the three program years before the year of termination, minus $186.4, if Monsanto or its successor terminates the Third Restated Agreement as a result of a Roundup Sale or Change of Control of Monsanto (each, as defined in the Third Restated Agreement). The elements of the net commission and reimbursements earned under the Third Restated Agreement and included in the “Net sales” line in the Condensed Consolidated Statements of Operations are as follows: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Gross commission $ 40.6 $ 48.9 $ 49.5 $ 58.5 Contribution expenses (4.5) (4.5) (9.0) (9.0) Net commission 36.1 44.4 40.5 49.5 Reimbursements associated with Roundup ® marketing agreement 29.0 27.2 48.1 42.4 Total net sales associated with Roundup ® marketing agreement $ 65.1 $ 71.6 $ 88.6 $ 91.9 |
DEBT
DEBT | 6 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The components of debt are as follows: March 30, April 1, September 30, Credit Facilities: Revolving loans $ 314.2 $ 642.5 $ 88.3 Term loans 900.0 950.0 925.0 Senior Notes due 2031 – 4.000% 500.0 500.0 500.0 Senior Notes due 2032 – 4.375% 400.0 400.0 400.0 Senior Notes due 2029 – 4.500% 450.0 450.0 450.0 Senior Notes due 2026 – 5.250% 250.0 250.0 250.0 Receivables facility — 380.0 — Finance lease obligations 17.5 17.9 16.9 Other 5.5 3.1 0.4 Total debt 2,837.2 3,593.5 2,630.6 Less current portions 57.8 435.4 52.3 Less unamortized debt issuance costs 18.9 20.1 20.9 Long-term debt $ 2,760.5 $ 3,138.0 $ 2,557.4 Credit Facilities On April 8, 2022, the Company entered into a sixth amended and restated credit agreement (the “Sixth A&R Credit Agreement”), providing the Company and certain of its subsidiaries with five-year senior secured loan facilities in the aggregate principal amount of $2,500.0, comprised of a revolving credit facility of $1,500.0 and a term loan in the original principal amount of $1,000.0 (the “Sixth A&R Credit Facilities”). The Sixth A&R Credit Agreement will terminate on April 8, 2027. The Sixth A&R Credit Facilities are available for the issuance of letters of credit up to $100.0. The terms of the Sixth A&R Credit Agreement include customary representations and warranties, affirmative and negative covenants, financial covenants, and events of default. Under the terms of the Sixth A&R Credit Agreement, loans bear interest, at the Company’s election, at a rate per annum equal to either (i) the Alternate Base Rate plus the Applicable Spread (each, as defined in the Sixth A&R Credit Agreement) or (ii) the Adjusted Term SOFR Rate for the Interest Period in effect for such borrowing plus the Applicable Spread (all as defined in the Sixth A&R Credit Agreement). Swingline Loans bear interest at the applicable Swingline Rate set forth in the Sixth A&R Credit Agreement. Interest rates for other select non-U.S. dollar borrowings, including borrowings denominated in euro, Pounds Sterling and Canadian dollars, are based on separate interest rate indices, as set forth in the Sixth A&R Credit Agreement. On June 8, 2022, the Company entered into Amendment No. 1 to the Sixth A&R Credit Agreement (“Amendment No. 1”). Amendment No. 1 increased the maximum permitted leverage ratio for the quarterly leverage covenant until April 1, 2024. Amendment No. 1 also increased the interest rate applicable to borrowings under the revolving credit facility by 35 bps and the term loan facility by 50 bps, and increased the annual facility fee rate on the revolving credit facility by 15 bps, in each case, when the Company’s quarterly-tested leverage ratio exceeded 4.75. On July 31, 2023, the Company entered into Amendment No. 2 to the Sixth A&R Credit Agreement (“Amendment No. 2”). Amendment No. 2 (i) reduces the revolving loan commitments by $250.0; (ii) increases the maximum permitted leverage ratio for the quarterly leverage covenant until the earlier of (a) October 1, 2025 and (b) subject to certain conditions specified in Amendment No. 2, the termination by the Company of such adjustment (such period, the “Leverage Adjustment Period”); (iii) replaces the interest coverage covenant with a fixed charge coverage covenant; (iv) increases the interest rate applicable to borrowings under the revolving credit facility and the term loan facility by 25 bps for each existing pricing tier and adds a pricing tier applicable to periods when the leverage ratio exceeds 6.00; (v) limits the amount of certain incremental investments, loans and advances to $25.0 during the Leverage Adjustment Period; and (vi) adds the Company’s intellectual property (subject to certain exceptions) as collateral to secure its obligations under the Sixth A&R Credit Agreement. Additionally, Amendment No. 2 limits the Company’s ability to declare or pay any discretionary dividends, distributions or other restricted payments during the Leverage Adjustment Period to only the payment of (i) regularly scheduled cash dividends to holders of its Common Shares in an aggregate amount not to exceed $225.0 per fiscal year and (ii) other dividends, distributions or other restricted payments in an aggregate amount not to exceed $25.0. Amendment No. 2 also subjects the Company’s ability to make certain investments to pro forma compliance with certain leverage levels specified in Amendment No. 2. Pursuant to Amendment No. 2, the Sixth A&R Credit Agreement is secured by (i) a perfected first priority security interest in all of the accounts receivable, inventory, equipment and intellectual property (subject to certain exceptions) of Scotts Miracle-Gro and certain of its domestic subsidiaries and (ii) the pledge of all of the capital stock of certain of Scotts Miracle-Gro’s domestic subsidiaries and a portion of the capital stock of certain of its foreign subsidiaries. At March 30, 2024, the Company had letters of credit outstanding in the aggregate principal amount of $78.0, and had $857.8 of borrowing availability under the Sixth A&R Credit Agreement. The weighted average interest rates on average borrowings under the credit facilities, excluding the impact of interest rate swaps, were 8.9% and 7.0% for the six months ended March 30, 2024 and April 1, 2023, respectively. The Sixth A&R Credit Agreement contains, among other obligations, an affirmative covenant regarding the Company’s leverage ratio determined as of the end of each of its fiscal quarters, calculated as average total indebtedness, divided by the Company’s earnings before interest, taxes, depreciation and amortization, as adjusted pursuant to the terms of Amendment No. 2 (“Adjusted EBITDA”). Pursuant to Amendment No. 2, the maximum permitted leverage ratio is (i) 7.75 for the second quarter of fiscal 2024, (ii) 6.50 for the third quarter of fiscal 2024, (iii) 6.00 for the fourth quarter of fiscal 2024, (iv) 5.50 for the first quarter of fiscal 2025, (v) 5.25 for the second quarter of fiscal 2025, (vi) 5.00 for the third quarter of fiscal 2025, (vii) 4.75 for the fourth quarter of fiscal 2025 and (viii) 4.50 for the first quarter of fiscal 2026 and thereafter. The Company’s leverage ratio was 6.95 at March 30, 2024. Pursuant to Amendment No. 2, the Sixth A&R Credit Agreement also contains an affirmative covenant regarding the Company’s fixed charge coverage ratio determined as of the end of each of its fiscal quarters, calculated as Adjusted EBITDA minus capital expenditures and expense for taxes paid in cash, divided by the sum of interest expense plus restricted payments, as described in Amendment No. 2. The minimum required fixed charge coverage ratio is (i) 0.75 for the second and third quarters of fiscal 2024 and (ii) 1.00 for the fourth quarter of fiscal 2024 and thereafter. The Company’s fixed charge coverage ratio was 0.95 for the twelve months ended March 30, 2024. As of March 30, 2024, the Company was in compliance with all applicable covenants in the agreements governing its debt. Based on the Company’s projections of its financial performance for the twelve-month period subsequent to the date of the filing of this Form 10-Q, the Company expects to remain in compliance with the financial covenants under the Sixth A&R Credit Agreement. However, the Company’s assessment of its ability to meet its future obligations is inherently subjective, judgment-based, and susceptible to change based on future events. A covenant violation may result in an event of default. Such a default would allow the lenders under the Sixth A&R Credit Agreement to accelerate the maturity of the indebtedness thereunder and would also implicate cross-default provisions under the Senior Notes, as defined below, and cause the Senior Notes to become due and payable at that time. As of March 30, 2024, the Company’s indebtedness under the Sixth A&R Credit Agreement and Senior Notes was $2,814.2. The Company does not have sufficient cash on hand or available liquidity that can be utilized to repay these outstanding amounts in the event of default. As part of its contingency planning to address potential future circumstances that could result in noncompliance, the Company has contemplated alternative plans including additional restructuring activities to reduce operating expenses and certain cash management strategies that are within the Company’s control. Additionally, the Company has contemplated alternative plans that are subject to market conditions and not in the Company’s control, including, among others, discussions with its lenders to amend the terms of its financial covenants under the Sixth A&R Credit Agreement and generating cash by completing other financing transactions, which may include issuing equity. There is no assurance that the Company will be successful in implementing these alternative plans. Senior Notes On December 15, 2016, Scotts Miracle-Gro issued $250.0 aggregate principal amount of 5.250% Senior Notes due 2026 (the “5.250% Senior Notes”). The 5.250% Senior Notes represent general unsecured senior obligations and rank equal in right of payment with the Company’s existing and future unsecured senior debt. The 5.250% Senior Notes have interest payment dates of June 15 and December 15 of each year. On October 22, 2019, Scotts Miracle-Gro issued $450.0 aggregate principal amount of 4.500% Senior Notes due 2029 (the “4.500% Senior Notes”). The 4.500% Senior Notes represent general unsecured senior obligations and rank equal in right of payment with the Company’s existing and future unsecured senior debt. The 4.500% Senior Notes have interest payment dates of April 15 and October 15 of each year. On March 17, 2021, Scotts Miracle-Gro issued $500.0 aggregate principal amount of 4.000% Senior Notes due 2031 (the “4.000% Senior Notes”). The 4.000% Senior Notes represent general unsecured senior obligations and rank equal in right of payment with the Company’s existing and future unsecured senior debt. The 4.000% Senior Notes have interest payment dates of April 1 and October 1 of each year. On August 13, 2021, Scotts Miracle-Gro issued $400.0 aggregate principal amount of 4.375% Senior Notes due 2032 (the “4.375% Senior Notes”). The 4.375% Senior Notes represent general unsecured senior obligations and rank equal in right of payment with the Company’s existing and future unsecured senior debt. The 4.375% Senior Notes have interest payment dates of February 1 and August 1 of each year. Substantially all of Scotts Miracle-Gro’s directly and indirectly owned domestic subsidiaries serve as guarantors of the 5.250% Senior Notes, the 4.500% Senior Notes, the 4.000% Senior Notes and the 4.375% Senior Notes. The Senior Notes contain an affirmative covenant regarding the Company’s interest coverage ratio determined as of the end of each of its fiscal quarters, calculated as Adjusted EBITDA divided by interest expense excluding costs related to refinancings. The minimum required interest coverage ratio is 2.00. The Company’s interest coverage ratio was 2.48 for the twelve months ended March 30, 2024. Receivables Facility On April 7, 2017, the Company entered into a Master Repurchase Agreement (including the annexes thereto, the “Repurchase Agreement”) and a Master Framework Agreement, as amended (the “Framework Agreement” and, together with the Repurchase Agreement, the “Receivables Facility”), under which the Company could sell a portfolio of available and eligible outstanding customer accounts receivable to the purchasers subject to agreeing to repurchase the receivables on a weekly basis. The eligible accounts receivable consisted of accounts receivable generated by sales to three specified customers. The eligible amount of customer accounts receivables which could be sold under the Receivables Facility was $400.0 and the commitment amount during the seasonal commitment period that began on February 24, 2023 and ended on June 16, 2023 was $160.0. The Receivables Facility expired on August 18, 2023. The sale of receivables under the Receivables Facility was accounted for as short-term debt and the Company continued to carry the receivables on its Condensed Consolidated Balance Sheets, primarily as a result of its requirement to repurchase receivables sold. As of April 1, 2023, there were $380.0 in borrowings on receivables pledged as collateral under the Receivables Facility, and the carrying value of the receivables pledged as collateral was $422.2. Interest Rate Swap Agreements The Company enters into interest rate swap agreements with major financial institutions that effectively convert a portion of the Company’s variable-rate debt to a fixed rate. Interest payments made between the effective date and expiration date are hedged by the swap agreements. Swap agreements that were hedging interest payments as of March 30, 2024, April 1, 2023 and September 30, 2023 had a maximum total U.S. dollar equivalent notional amount of $700.0, $800.0 and $600.0, respectively. The notional amount, effective date, expiration date and rate of each of the swap agreements outstanding at March 30, 2024 are shown in the table below: Notional Effective Expiration Fixed 200 (b) 1/20/2022 6/20/2024 0.49 % 200 6/7/2023 6/8/2026 0.80 % 150 6/7/2023 4/7/2027 3.37 % 50 6/7/2023 4/7/2027 3.34 % 100 (b) 11/20/2023 3/22/2027 4.74 % (a) The effective date refers to the date on which interest payments are first hedged by the applicable swap agreement. (b) Notional amount adjusts in accordance with a specified seasonal schedule. This represents the maximum notional amount at any point in time. Weighted Average Interest Rate |
EQUITY
EQUITY | 6 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
EQUITY (DEFICIT) | EQUITY (DEFICIT) The following tables provide a summary of the changes in equity (deficit) for each of the periods indicated: Common Shares Retained Treasury Accumulated Other Total Balance at September 30, 2023 $ 353.1 $ 490.9 $ (998.5) $ (112.8) $ (267.3) Net income (loss) — (80.5) — — (80.5) Other comprehensive income (loss) — — — (8.9) (8.9) Share-based compensation 11.7 — — — 11.7 Dividends declared ($0.66 per share) — (38.0) — — (38.0) Treasury share purchases — — (3.1) — (3.1) Treasury share issuances (15.2) — 15.9 — 0.7 Balance at December 30, 2023 349.6 372.4 (985.7) (121.7) (385.4) Net income (loss) — 157.5 — — 157.5 Other comprehensive income (loss) — — — 3.0 3.0 Share-based compensation 12.4 — — — 12.4 Dividends declared ($0.66 per share) — (38.1) — — (38.1) Treasury share purchases — — (1.7) — (1.7) Treasury share issuances (8.3) — 9.6 — 1.3 Balance at March 30, 2024 $ 353.7 $ 491.8 $ (977.8) $ (118.6) $ (250.9) The sum of the components may not equal due to rounding. Common Shares Retained Treasury Accumulated Other Total Balance at September 30, 2022 $ 364.0 $ 1,020.1 $ (1,091.8) $ (144.6) $ 147.7 Net income (loss) — (64.7) — — (64.7) Other comprehensive income (loss) — — — (24.6) (24.6) Share-based compensation 20.8 — — — 20.8 Dividends declared ($0.66 per share) — (37.5) — — (37.5) Treasury share purchases — — (0.8) — (0.8) Treasury share issuances (17.2) — 35.9 — 18.7 Balance at December 31, 2022 367.6 917.9 (1,056.7) (169.3) 59.5 Net income (loss) — 109.4 — — 109.4 Other comprehensive income (loss) — — — (17.8) (17.8) Share-based compensation 37.2 — — — 37.2 Dividends declared ($0.66 per share) — (37.0) — — (37.0) Treasury share purchases — — (5.6) — (5.6) Treasury share issuances (30.4) — 22.3 — (8.1) Balance at April 1, 2023 $ 374.3 $ 990.3 $ (1,040.0) $ (187.1) $ 137.5 The sum of the components may not equal due to rounding. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss (“AOCL”) by component were as follows for each of the periods indicated: Three Months Ended Foreign Currency Net Unrealized Gain (Loss) Net Unrealized Gain (Loss) Pension and Other Post-Retirement Accumulated Other Balance at December 30, 2023 $ (18.8) $ 10.4 $ (39.5) $ (73.8) $ (121.7) Other comprehensive income (loss) before reclassifications (2.6) 8.2 (0.6) — 5.0 Amounts reclassified from accumulated other comprehensive net income (loss) — (1.2) — 1.6 0.4 Income tax benefit (expense) — (1.8) — (0.6) (2.4) Net current period other comprehensive income (loss) (2.6) 5.2 (0.6) 1.0 3.0 Balance at March 30, 2024 $ (21.4) $ 15.7 $ (40.1) $ (72.9) $ (118.6) Balance at December 31, 2022 $ (21.7) $ 24.8 $ (100.2) $ (72.2) $ (169.3) Other comprehensive income (loss) before reclassifications 1.1 (6.4) (7.3) — (12.6) Amounts reclassified from accumulated other comprehensive net income (loss) — (11.0) — (0.4) (11.4) Income tax benefit (expense) — 4.4 1.7 0.1 6.2 Net current period other comprehensive income (loss) 1.1 (13.0) (5.6) (0.3) (17.8) Balance at April 1, 2023 $ (20.7) $ 11.8 $ (105.7) $ (72.6) $ (187.1) The sum of the components may not equal due to rounding. Six Months Ended Foreign Currency Net Unrealized Gain (Loss) Net Unrealized Gain (Loss) Pension and Other Post-Retirement Accumulated Other Balance at September 30, 2023 $ (21.9) $ 20.1 $ (38.6) $ (72.4) $ (112.8) Other comprehensive income (loss) before reclassifications 0.5 (2.8) (1.5) — (3.8) Amounts reclassified from accumulated other comprehensive net income (loss) — (3.2) — (0.5) (3.7) Income tax benefit (expense) — 1.5 — 0.1 1.6 Net current period other comprehensive income (loss) 0.5 (4.5) (1.5) (0.4) (5.9) Balance at March 30, 2024 $ (21.4) $ 15.7 $ (40.1) $ (72.9) $ (118.6) Balance at September 30, 2022 $ (28.9) $ 33.3 $ (79.7) $ (69.3) $ (144.6) Other comprehensive income (loss) before reclassifications 8.3 (12.9) (34.1) — (38.7) Amounts reclassified from accumulated other comprehensive net income (loss) — (16.0) — (4.3) (20.3) Income tax benefit (expense) — 7.4 8.1 1.1 16.6 Net current period other comprehensive income (loss) 8.3 (21.5) (26.0) (3.2) (42.4) Balance at April 1, 2023 $ (20.7) $ 11.8 $ (105.7) $ (72.6) $ (187.1) The sum of the components may not equal due to rounding. Share-Based Awards Total share-based compensation was as follows for each of the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Share-based compensation $ 28.1 $ 37.2 $ 44.1 $ 57.9 Related tax benefit recognized 4.6 6.1 7.2 10.8 Performance-based awards Performance-based award activity was as follows (based on target award amounts): No. of Wtd. Avg. Grant Date Awards outstanding at September 30, 2023 544,790 $ 76.85 Granted 232,801 74.95 Vested (a) (181,791) 59.88 Forfeited (185,740) 64.66 Awards outstanding at March 30, 2024 410,060 87.03 (a) Vested at a weighted average of 100% of the target performance share units granted. The weighted-average grant-date fair value of performance-based awards granted during the six months ended March 30, 2024 and April 1, 2023 was $74.95 and $65.97 per share, respectively. As of March 30, 2024, there was $8.6 of total unrecognized pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance-based awards that is expected to be recognized over a weighted-average period of 2.6 years. The total fair value of performance-based units vested during the six months ended March 30, 2024 and April 1, 2023 was $10.6 and $17.5, respectively. During the three months ended March 30, 2024, the Company granted performance-based award units with a three year vesting period that include a performance target based on the Company’s total shareholder return relative to a Company selected peer group, among other financial targets. Based on the extent to which the targets are achieved, vested shares may range from 0% to 325% of the award units granted. The grant date fair value of award units based on a total shareholder return performance target was estimated using a Monte Carlo simulation model. Expected market price volatility was based on historical volatility specific to the Common Shares. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant. Details of the assumptions used in the Monte Carlo simulation model are as follows: Expected volatility 36.6 % Risk-free interest rate 4.5 % |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents information necessary to calculate basic and diluted net income per Common Share for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Net income $ 157.5 $ 109.4 $ 77.0 $ 44.7 Basic net income per common share Weighted-average common shares outstanding during the period 56.8 56.0 56.7 55.8 Basic net income per common share $ 2.77 $ 1.95 $ 1.36 $ 0.80 Diluted net income per common share Weighted-average common shares outstanding during the period 56.8 56.0 56.7 55.8 Dilutive potential common shares 0.6 0.5 0.6 0.3 Weighted-average common shares outstanding during the period plus dilutive potential common shares 57.4 56.5 57.3 56.1 Diluted net income per common share $ 2.74 $ 1.94 $ 1.34 $ 0.80 Antidilutive stock options outstanding 0.4 0.2 0.6 0.3 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rates for the six months ended March 30, 2024 and April 1, 2023 were 27.1% and 19.5%, respectively. The increase in the effective tax rate was driven by favorable discrete items recorded during the six months ended April 1, 2023 which did not reoccur in the six months ended March 30, 2024. The effective tax rate used for interim reporting purposes is based on management’s best estimate of factors impacting the effective tax rate for the full fiscal year and includes the impact of discrete items recognized in the quarter. There can be no assurance that the effective tax rate estimated for interim financial reporting purposes will approximate the effective tax rate determined at fiscal year-end. Scotts Miracle-Gro or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. Subject to the following exceptions, the Company is no longer subject to examination by these tax authorities for fiscal years prior to 2020. There are currently no ongoing audits with respect to the U.S. federal jurisdiction. With respect to the foreign jurisdictions, a Canadian audit covering fiscal years 2020 through 2021 is in process. The Company is currently under examination by certain U.S. state and local tax authorities covering various periods from fiscal years 2018 through 2022. In addition to the aforementioned audits, certain other tax deficiency notices and refund claims for previous years remain unresolved. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Management regularly evaluates the Company’s contingencies, including various judicial and administrative proceedings and claims arising in the ordinary course of business, including product and general liabilities, workers’ compensation, property losses and other liabilities for which the Company is self-insured or retains a high exposure limit. Self-insurance accruals are established based on actuarial loss estimates for specific individual claims plus actuarially estimated amounts for incurred but not reported claims and adverse development factors applied to existing claims. Legal costs incurred in connection with the resolution of claims, lawsuits and other contingencies generally are expensed as incurred. In the opinion of management, the assessment of contingencies is reasonable and related accruals are adequate, both individually and in the aggregate; however, there can be no assurance that final resolution of these matters will not have a material effect on the Company’s financial condition, results of operations or cash flows. Regulatory Matters At March 30, 2024, the Company had recorded liabilities of $2.9 for environmental actions, the majority of which are for site remediation. The Company believes that the amounts accrued are adequate to cover such known environmental exposures based on current facts and estimates of likely outcomes. Although it is reasonably possible that the costs to resolve such known environmental exposures will exceed the amounts accrued, any variation from accrued amounts is not expected to be material. Other The Company has been named as a defendant in a number of cases alleging injuries that the lawsuits claim resulted from exposure to asbestos-containing products, apparently based on the Company’s historic use of vermiculite in certain of its products. In many of these cases, the complaints are not specific about the plaintiffs’ contacts with the Company or its products. The cases vary, but complaints in these cases generally seek unspecified monetary damages (actual, compensatory, consequential and punitive) from multiple defendants. The Company believes that the claims against it are without merit and is vigorously defending against them. No accruals have been recorded in the Company’s condensed consolidated financial statements as the likelihood of a loss is not probable at this time; and the Company does not believe a reasonably possible loss would be material to, nor does it expect the ultimate resolution of these cases will have a material adverse effect on, the Company’s financial condition, results of operations or cash flows. There can be no assurance that future developments related to pending claims or claims filed in the future, whether as a result of adverse outcomes or as a result of significant defense costs, will not have a material effect on the Company’s financial condition, results of operations or cash flows. The Company is involved in other lawsuits and claims which arise in the normal course of business. These claims individually and in the aggregate are not expected to result in a material effect on the Company’s financial condition, results of operations or cash flows. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Mar. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. To manage a portion of the volatility related to these exposures, the Company enters into various financial transactions. The utilization of these financial transactions is governed by policies covering acceptable counterparty exposure, instrument types and other hedging practices. The Company does not hold or issue derivative financial instruments for speculative trading purposes. Exchange Rate Risk Management The Company uses currency forward contracts to manage the exchange rate risk associated with intercompany loans and certain other balances denominated in foreign currencies. Currency forward contracts are valued using observable forward rates in commonly quoted intervals for the full term of the contracts. The notional amount of outstanding currency forward contracts was $114.2, $119.1 and $123.1 at March 30, 2024, April 1, 2023 and September 30, 2023, respectively. Contracts outstanding at March 30, 2024 will mature over the next fiscal quarter. Interest Rate Risk Management The Company enters into interest rate swap agreements as a means to hedge its variable interest rate risk on debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. The Company has outstanding interest rate swap agreements with major financial institutions that effectively convert a portion of the Company’s variable-rate debt to a fixed rate. Interest rate swap agreements are valued based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. Swap agreements that were hedging interest payments as of March 30, 2024, April 1, 2023 and September 30, 2023 had a maximum total U.S. dollar equivalent notional amount of $700.0, $800.0 and $600.0, respectively. Refer to “NOTE 6. DEBT” for the terms of the swap agreements outstanding at March 30, 2024. Included in the AOCL balance at March 30, 2024 was a gain of $9.7 related to interest rate swap agreements that is expected to be reclassified to earnings during the next twelve months, consistent with the timing of the underlying hedged transactions. Commodity Price Risk Management The Company enters into hedging arrangements designed to fix the price of a portion of its projected future urea and diesel requirements. Commodity contracts are valued using observable commodity exchange prices in active markets. Included in the AOCL balance at March 30, 2024 was a gain of $0.2 related to commodity hedges that is expected to be reclassified to earnings during the next twelve months, consistent with the timing of the underlying hedged transactions. The Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases: Commodity March 30, April 1, September 30, Urea — 19,500 tons 52,500 tons Diesel 1,428,000 gallons 2,394,000 gallons 1,974,000 gallons Heating Oil 756,000 gallons 1,260,000 gallons 966,000 gallons Fair Values of Derivative Instruments The fair values of the Company’s derivative instruments, which represent Level 2 fair value measurements, were as follows: Assets / (Liabilities) Derivatives Designated as Hedging Instruments Balance Sheet Location March 30, April 1, September 30, Interest rate swap agreements Prepaid and other current assets $ 13.6 $ 12.7 $ 16.7 Other assets 9.3 11.5 14.7 Other liabilities (0.8) — — Commodity hedging instruments Prepaid and other current assets — — 2.3 Other current liabilities — (0.4) — Total derivatives designated as hedging instruments $ 22.1 $ 23.8 $ 33.7 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Currency forward contracts Prepaid and other current assets $ 0.4 $ — $ 5.6 Other current liabilities — (2.3) — Commodity hedging instruments Prepaid and other current assets — — 0.9 Other current liabilities — (0.4) — Total derivatives not designated as hedging instruments 0.4 (2.7) 6.5 Total derivatives $ 22.5 $ 21.1 $ 40.2 The effect of derivative instruments on AOCL, net of tax, and the Condensed Consolidated Statements of Operations for each of the periods presented was as follows: Derivatives in Cash Flow Hedging Relationships Amount of Gain / (Loss) Recognized in AOCL Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Interest rate swap agreements $ 5.8 $ (1.2) $ (0.6) $ (0.7) Commodity hedging instruments 0.3 (3.6) (1.5) (8.9) Total $ 6.1 $ (4.8) $ (2.1) $ (9.6) Derivatives in Cash Flow Hedging Relationships Reclassified from Amount of Gain / (Loss) Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Interest rate swap agreements Interest expense $ 4.1 $ 3.7 $ 6.7 $ 5.1 Commodity hedging instruments Cost of sales (3.2) 4.5 (4.3) 6.8 Total $ 0.9 $ 8.2 $ 2.4 $ 11.9 Derivatives Not Designated as Hedging Instruments Recognized in Amount of Gain / (Loss) Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Currency forward contracts Other income / expense, net $ 1.3 $ (5.3) $ (3.5) $ (16.6) Commodity hedging instruments Cost of sales (0.1) (0.6) (1.4) 0.9 Total $ 1.2 $ (5.9) $ (4.9) $ (15.7) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table summarizes the fair value of the Company’s assets and liabilities for which disclosure of fair value is required: Fair Value March 30, April 1, September 30, Carrying Estimated Carrying Estimated Carrying Estimated Assets Cash equivalents Level 1 $ 28.1 $ 28.1 $ 2.9 $ 2.9 $ 1.2 $ 1.2 Other Investment securities in non-qualified retirement plan assets Level 1 42.3 42.3 39.0 39.0 36.3 36.3 Convertible debt investments Level 3 84.5 84.5 84.8 84.8 85.8 85.8 Liabilities Debt instruments Credit facilities – revolving loans Level 2 314.2 314.2 642.5 642.5 88.3 88.3 Credit facilities – term loans Level 2 900.0 900.0 950.0 950.0 925.0 925.0 Senior Notes due 2031 – 4.000% Level 2 500.0 427.5 500.0 398.8 500.0 380.0 Senior Notes due 2032 – 4.375% Level 2 400.0 344.0 400.0 320.5 400.0 304.0 Senior Notes due 2029 – 4.500% Level 2 450.0 405.0 450.0 388.1 450.0 366.8 Senior Notes due 2026 – 5.250% Level 2 250.0 245.6 250.0 238.8 250.0 233.1 Receivables facility Level 2 — — 380.0 380.0 — — Other debt Level 2 5.5 5.5 3.1 3.1 0.4 0.4 Changes in the balance of Level 3 convertible debt investments carried at fair value are presented below. There were no transfers into or out of Level 3. Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Fair value at beginning of period $ 85.0 $ 91.2 $ 85.8 $ 117.0 Total realized / unrealized gains included in net earnings 0.1 0.9 0.2 1.9 Total realized / unrealized losses included in OCI (0.6) (7.3) (1.5) (34.1) Fair value at end of period $ 84.5 $ 84.8 $ 84.5 $ 84.8 The amortized cost basis of convertible debt investments was $226.0, $224.0, and $225.8 at March 30, 2024, April 1, 2023, and September 30, 2023, respectively. At March 30, 2024, April 1, 2023, and September 30, 2023, gross unrealized losses on convertible debt investments were $141.4, $139.2, and $140.0 respectively, and there were no gross unrealized gains. These investments have been in a continuous unrealized loss position for greater than 12 months as of March 30, 2024. The allowance for expected credit losses was $101.3, $0.0 and $101.3 at March 30, 2024, April 1, 2023 and September 30, 2023, respectively. At March 30, 2024, the period until scheduled maturity of the Company’s convertible debt investments was between 3.4 years and 5.5 years. |
LEASES
LEASES | 6 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain property and equipment from third parties under various non-cancelable lease agreements, including industrial, commercial and office properties and equipment that support the management, manufacturing, distribution and research and development of products marketed and sold by the Company. The lease agreements generally require that the Company pay taxes, insurance and maintenance expenses related to the leased assets. At March 30, 2024, the Company had entered into operating leases that were yet to commence with a combined total expected lease liability of $23.3. From time to time, the Company will sublease portions of its facilities, resulting in sublease income. Sublease income and the related cash flows were not material to the condensed consolidated financial statements for the three and six months ended March 30, 2024 and April 1, 2023. The Company leases certain vehicles (primarily cars and light trucks) under agreements that are cancellable after the first year, but typically continue on a month-to-month basis until canceled by the Company. The vehicle leases and certain other non-cancelable operating leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. If all such vehicle leases had been canceled as of March 30, 2024, the Company’s residual value guarantee would have approximated $5.2. Supplemental balance sheet information related to the Company’s leases was as follows: Balance Sheet Location March 30, April 1, September 30, Operating leases: Right-of-use assets Other assets $ 273.1 $ 255.9 $ 262.6 Current lease liabilities Other current liabilities 75.9 77.4 76.4 Non-current lease liabilities Other liabilities 223.7 203.2 220.1 Total operating lease liabilities $ 299.6 $ 280.6 $ 296.5 Finance leases: Right-of-use assets Property, plant and equipment, net $ 15.0 $ 15.7 $ 14.5 Current lease liabilities Current portion of debt 2.3 1.9 1.9 Non-current lease liabilities Long-term debt 15.2 16.0 15.0 Total finance lease liabilities $ 17.5 $ 17.9 $ 16.9 Components of lease cost were as follows: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Operating lease cost (a) $ 20.3 $ 23.9 $ 42.3 $ 46.1 Variable lease cost 9.2 7.1 15.8 13.6 Finance lease cost Amortization of right-of-use assets 0.6 0.6 1.2 2.0 Interest on lease liabilities 0.2 0.1 0.4 0.4 Total finance lease cost $ 0.8 $ 0.7 $ 1.6 $ 2.4 (a) Operating lease cost includes amortization of right-of-use assets of $16.5 and $34.7 for the three and six months ended March 30, 2024, respectively, and $23.8 and $42.8 for the three and six months ended April 1, 2023, respectively. Short-term lease expense is excluded from operating lease cost and is not material. Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows: Six Months Ended March 30, April 1, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases, net $ 49.3 $ 46.3 Operating cash flows from finance leases 0.4 0.4 Financing cash flows from finance leases 1.0 1.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 41.6 $ 32.5 Finance leases 1.7 — Weighted-average remaining lease term and discount rate for the Company’s leases were as follows: March 30, April 1, September 30, Weighted-average remaining lease term (in years): Operating leases 5.4 4.8 5.4 Finance leases 8.7 9.8 9.5 Weighted-average discount rate: Operating leases 5.6 % 4.0 % 5.2 % Finance leases 4.6 % 4.4 % 4.4 % Maturities of lease liabilities by fiscal year for the Company’s leases as of March 30, 2024 were as follows: Year Operating Leases Finance Leases 2024 (remainder of the year) $ 47.8 $ 1.5 2025 82.8 3.0 2026 64.8 2.6 2027 40.8 2.2 2028 31.2 1.9 Thereafter 82.1 10.2 Total lease payments 349.5 21.4 Less: Imputed interest (49.9) (3.9) Total lease liabilities $ 299.6 $ 17.5 |
LEASES | LEASES The Company leases certain property and equipment from third parties under various non-cancelable lease agreements, including industrial, commercial and office properties and equipment that support the management, manufacturing, distribution and research and development of products marketed and sold by the Company. The lease agreements generally require that the Company pay taxes, insurance and maintenance expenses related to the leased assets. At March 30, 2024, the Company had entered into operating leases that were yet to commence with a combined total expected lease liability of $23.3. From time to time, the Company will sublease portions of its facilities, resulting in sublease income. Sublease income and the related cash flows were not material to the condensed consolidated financial statements for the three and six months ended March 30, 2024 and April 1, 2023. The Company leases certain vehicles (primarily cars and light trucks) under agreements that are cancellable after the first year, but typically continue on a month-to-month basis until canceled by the Company. The vehicle leases and certain other non-cancelable operating leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. If all such vehicle leases had been canceled as of March 30, 2024, the Company’s residual value guarantee would have approximated $5.2. Supplemental balance sheet information related to the Company’s leases was as follows: Balance Sheet Location March 30, April 1, September 30, Operating leases: Right-of-use assets Other assets $ 273.1 $ 255.9 $ 262.6 Current lease liabilities Other current liabilities 75.9 77.4 76.4 Non-current lease liabilities Other liabilities 223.7 203.2 220.1 Total operating lease liabilities $ 299.6 $ 280.6 $ 296.5 Finance leases: Right-of-use assets Property, plant and equipment, net $ 15.0 $ 15.7 $ 14.5 Current lease liabilities Current portion of debt 2.3 1.9 1.9 Non-current lease liabilities Long-term debt 15.2 16.0 15.0 Total finance lease liabilities $ 17.5 $ 17.9 $ 16.9 Components of lease cost were as follows: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Operating lease cost (a) $ 20.3 $ 23.9 $ 42.3 $ 46.1 Variable lease cost 9.2 7.1 15.8 13.6 Finance lease cost Amortization of right-of-use assets 0.6 0.6 1.2 2.0 Interest on lease liabilities 0.2 0.1 0.4 0.4 Total finance lease cost $ 0.8 $ 0.7 $ 1.6 $ 2.4 (a) Operating lease cost includes amortization of right-of-use assets of $16.5 and $34.7 for the three and six months ended March 30, 2024, respectively, and $23.8 and $42.8 for the three and six months ended April 1, 2023, respectively. Short-term lease expense is excluded from operating lease cost and is not material. Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows: Six Months Ended March 30, April 1, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases, net $ 49.3 $ 46.3 Operating cash flows from finance leases 0.4 0.4 Financing cash flows from finance leases 1.0 1.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 41.6 $ 32.5 Finance leases 1.7 — Weighted-average remaining lease term and discount rate for the Company’s leases were as follows: March 30, April 1, September 30, Weighted-average remaining lease term (in years): Operating leases 5.4 4.8 5.4 Finance leases 8.7 9.8 9.5 Weighted-average discount rate: Operating leases 5.6 % 4.0 % 5.2 % Finance leases 4.6 % 4.4 % 4.4 % Maturities of lease liabilities by fiscal year for the Company’s leases as of March 30, 2024 were as follows: Year Operating Leases Finance Leases 2024 (remainder of the year) $ 47.8 $ 1.5 2025 82.8 3.0 2026 64.8 2.6 2027 40.8 2.2 2028 31.2 1.9 Thereafter 82.1 10.2 Total lease payments 349.5 21.4 Less: Imputed interest (49.9) (3.9) Total lease liabilities $ 299.6 $ 17.5 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company divides its operations into three reportable segments: U.S. Consumer, Hawthorne and Other. 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. Other primarily consists of the Company’s consumer lawn and garden business in Canada. This identification of reportable segments is consistent with how the segments report to and are managed by the chief operating decision maker of the Company. In addition, Corporate consists of general and administrative expenses and certain other income and expense items not allocated to the business segments. The performance of each reportable segment is evaluated based on several factors, including income (loss) before income taxes, amortization, impairment, restructuring and other charges (“Segment Profit (Loss)”). Senior management uses Segment Profit (Loss) to evaluate segment performance because the Company believes this measure is indicative of performance trends and the overall earnings potential of each segment. The following tables present financial information for the Company’s reportable segments for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Net Sales: U.S. Consumer $ 1,379.8 $ 1,357.4 $ 1,686.5 $ 1,726.3 Hawthorne 66.4 92.7 146.6 224.2 Other 79.2 81.4 102.7 107.6 Consolidated $ 1,525.4 $ 1,531.5 $ 1,935.8 $ 2,058.1 Segment Profit (Loss): U.S. Consumer $ 385.7 $ 397.4 $ 370.3 $ 428.7 Hawthorne (3.4) (16.8) (13.0) (33.0) Other 6.4 14.6 1.2 16.0 Total Segment Profit 388.7 395.2 358.5 411.7 Corporate (35.7) (42.1) (61.7) (74.0) Intangible asset amortization (3.9) (6.4) (7.9) (14.1) Impairment, restructuring and other (77.0) (140.5) (64.1) (159.2) Equity in loss of unconsolidated affiliates (7.0) (7.3) (29.5) (18.7) Interest expense (44.1) (48.3) (86.8) (91.0) Other non-operating income (expense), net (1.2) (0.8) (2.9) 0.8 Income before income taxes $ 219.8 $ 149.8 $ 105.6 $ 55.5 The following table presents net sales by product category for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, U.S. Consumer: Growing media and mulch $ 591.5 $ 517.2 $ 663.5 $ 614.3 Lawn care 509.8 534.3 628.6 679.7 Controls 137.1 134.6 190.5 192.8 Roundup ® marketing agreement 64.6 70.7 88.0 91.0 Other, primarily gardening 76.8 100.6 115.9 148.5 Hawthorne: Lighting 16.1 18.1 48.0 68.4 Nutrients 24.6 24.4 41.2 47.2 Growing media 10.2 18.5 21.4 36.3 Growing environments 6.3 16.0 17.8 41.5 Other, primarily hardware 9.2 15.7 18.2 30.8 Other: Growing media 23.3 24.9 36.5 40.3 Lawn care 31.5 29.7 33.8 32.3 Other, primarily gardening and controls 24.4 26.8 32.4 35.0 Total net sales $ 1,525.4 $ 1,531.5 $ 1,935.8 $ 2,058.1 The following table presents net sales by geographic area for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Net sales: United States $ 1,441.7 $ 1,447.2 $ 1,807.5 $ 1,912.2 International 83.7 84.3 128.3 145.9 $ 1,525.4 $ 1,531.5 $ 1,935.8 $ 2,058.1 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Mar. 30, 2024 shares | Mar. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Katherine Littlefield [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On March 15, 2024, the Hagedorn Partnership, L.P., on behalf of Katherine Littlefield, a member of our board of directors, adopted a Rule 10b5-1 plan providing for the sale of up to 250,000 Common Shares. Pursuant to this plan, if certain price targets are met, the Hagedorn Partnership, L.P. may sell Common Shares beginning on the later of (i) June 14, 2024 or (ii) the natural expiration of the trading plan entered into on September 5, 2023 by the Hagedorn Partnership, L.P., on behalf of Ms. Littlefield, and ending December 5, 2025. The trading arrangement is intended to satisfy the affirmative defense of Rule 10b5-1(c). | |
Name | Katherine Littlefield | |
Title | board of directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 15, 2024 | |
Arrangement Duration | 539 days | |
Aggregate Available | 250,000 | 250,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Scotts Miracle-Gro Company (“Scotts Miracle-Gro”) and its subsidiaries (collectively, with Scotts Miracle-Gro, the “Company”) are engaged in the manufacturing, marketing and sale of products for lawn and garden care and indoor and hydroponic gardening. The Company’s products are sold in North America, Europe and Asia. The Company’s North America consumer lawn and garden business is highly seasonal, with approximately 75% of its annual net sales occurring in the second and third fiscal quarters. The Company’s Hawthorne segment is also impacted by seasonal sales patterns for certain product categories due to the timing of growing patterns in North America during the second and third fiscal quarters, and the timing of certain controlled agricultural lighting project sales during the third and fourth fiscal quarters. |
Organization and Basis of Presentation | Organization and Basis of Presentation The Company’s unaudited condensed consolidated financial statements for the three and six months ended March 30, 2024 and April 1, 2023 are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements include the accounts of Scotts Miracle-Gro and its subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. The Company’s consolidation criteria are based on majority ownership (as evidenced by a majority voting interest in the entity) and an objective evaluation and determination of effective management control. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the date of each acquisition or up to the date of disposal, respectively. In the opinion of management, interim results reflect all normal and recurring adjustments and are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, this Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2024 (this “Form 10-Q”) should be read in conjunction with Scotts Miracle-Gro’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Annual Report”), which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. |
Supplier Finance Program | Supplier Finance Program |
Recently Adopted & Issued Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, “Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires disclosure of the key terms of outstanding supplier finance programs and a roll-forward of the related obligations. ASU No. 2022-04 is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll-forward information , which is effective for fiscal years beginning after December 15, 2023. The Company adopted the ASU as of October 1, 2023. The adoption relates to disclosures only and does not have any impact on the Company’s consolidated financial position, results of operations or cash flows. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker that are included within each reported measure of segment profit or loss, and also requires all annual disclosures currently required by Topic 280 to be included in interim periods. ASU No. 2023-07 is to be applied retrospectively for all periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU primarily requires enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative and qualitative disclosures regarding income taxes paid. ASU No. 2023-09 is to be applied prospectively, with the option to apply the standard retrospectively, effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information was as follows: Six Months Ended March 30, April 1, Interest paid $ 83.6 $ 87.4 Income taxes paid (refunded), net — (21.1) |
IMPAIRMENT, RESTRUCTURING AND_2
IMPAIRMENT, RESTRUCTURING AND OTHER (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedules of Impairment, Restructuring and Other Charges, and Activity Related to Liabilities | The following table details impairment, restructuring and other charges (recoveries) for each of the periods presented: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Cost of sales—impairment, restructuring and other: Restructuring and other charges, net $ 70.1 $ 99.9 $ 64.0 $ 105.6 Right-of-use asset impairments 0.7 14.1 0.9 15.4 Property, plant and equipment impairments 4.1 4.7 4.2 8.0 Operating expenses—impairment, restructuring and other: Restructuring and other charges (recoveries), net 2.1 21.8 (5.0) 30.2 Total impairment, restructuring and other charges, net $ 77.0 $ 140.5 $ 64.1 $ 159.2 The following table summarizes the activity related to liabilities associated with restructuring activities during the six months ended March 30, 2024: Amounts accrued at September 30, 2023 $ 40.5 Restructuring charges 7.0 Payments (16.3) Amounts accrued at March 30, 2024 $ 31.2 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following for each of the periods presented: March 30, April 1, September 30, Finished goods $ 480.9 $ 759.0 $ 506.2 Raw materials 261.3 279.0 272.5 Work-in-process 82.1 89.6 101.6 Total inventories, net $ 824.3 $ 1,127.6 $ 880.3 |
MARKETING AGREEMENT (Tables)
MARKETING AGREEMENT (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Marketing Agreement [Abstract] | |
Schedule of Net Commission and Reimbursements Earned Under Marketing Agreement | The elements of the net commission and reimbursements earned under the Third Restated Agreement and included in the “Net sales” line in the Condensed Consolidated Statements of Operations are as follows: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Gross commission $ 40.6 $ 48.9 $ 49.5 $ 58.5 Contribution expenses (4.5) (4.5) (9.0) (9.0) Net commission 36.1 44.4 40.5 49.5 Reimbursements associated with Roundup ® marketing agreement 29.0 27.2 48.1 42.4 Total net sales associated with Roundup ® marketing agreement $ 65.1 $ 71.6 $ 88.6 $ 91.9 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | The components of debt are as follows: March 30, April 1, September 30, Credit Facilities: Revolving loans $ 314.2 $ 642.5 $ 88.3 Term loans 900.0 950.0 925.0 Senior Notes due 2031 – 4.000% 500.0 500.0 500.0 Senior Notes due 2032 – 4.375% 400.0 400.0 400.0 Senior Notes due 2029 – 4.500% 450.0 450.0 450.0 Senior Notes due 2026 – 5.250% 250.0 250.0 250.0 Receivables facility — 380.0 — Finance lease obligations 17.5 17.9 16.9 Other 5.5 3.1 0.4 Total debt 2,837.2 3,593.5 2,630.6 Less current portions 57.8 435.4 52.3 Less unamortized debt issuance costs 18.9 20.1 20.9 Long-term debt $ 2,760.5 $ 3,138.0 $ 2,557.4 |
Schedule of Interest Rate Swap Agreements | The notional amount, effective date, expiration date and rate of each of the swap agreements outstanding at March 30, 2024 are shown in the table below: Notional Effective Expiration Fixed 200 (b) 1/20/2022 6/20/2024 0.49 % 200 6/7/2023 6/8/2026 0.80 % 150 6/7/2023 4/7/2027 3.37 % 50 6/7/2023 4/7/2027 3.34 % 100 (b) 11/20/2023 3/22/2027 4.74 % (a) The effective date refers to the date on which interest payments are first hedged by the applicable swap agreement. (b) Notional amount adjusts in accordance with a specified seasonal schedule. This represents the maximum notional amount at any point in time. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
Summary of Changes in Equity (Deficit) | The following tables provide a summary of the changes in equity (deficit) for each of the periods indicated: Common Shares Retained Treasury Accumulated Other Total Balance at September 30, 2023 $ 353.1 $ 490.9 $ (998.5) $ (112.8) $ (267.3) Net income (loss) — (80.5) — — (80.5) Other comprehensive income (loss) — — — (8.9) (8.9) Share-based compensation 11.7 — — — 11.7 Dividends declared ($0.66 per share) — (38.0) — — (38.0) Treasury share purchases — — (3.1) — (3.1) Treasury share issuances (15.2) — 15.9 — 0.7 Balance at December 30, 2023 349.6 372.4 (985.7) (121.7) (385.4) Net income (loss) — 157.5 — — 157.5 Other comprehensive income (loss) — — — 3.0 3.0 Share-based compensation 12.4 — — — 12.4 Dividends declared ($0.66 per share) — (38.1) — — (38.1) Treasury share purchases — — (1.7) — (1.7) Treasury share issuances (8.3) — 9.6 — 1.3 Balance at March 30, 2024 $ 353.7 $ 491.8 $ (977.8) $ (118.6) $ (250.9) The sum of the components may not equal due to rounding. Common Shares Retained Treasury Accumulated Other Total Balance at September 30, 2022 $ 364.0 $ 1,020.1 $ (1,091.8) $ (144.6) $ 147.7 Net income (loss) — (64.7) — — (64.7) Other comprehensive income (loss) — — — (24.6) (24.6) Share-based compensation 20.8 — — — 20.8 Dividends declared ($0.66 per share) — (37.5) — — (37.5) Treasury share purchases — — (0.8) — (0.8) Treasury share issuances (17.2) — 35.9 — 18.7 Balance at December 31, 2022 367.6 917.9 (1,056.7) (169.3) 59.5 Net income (loss) — 109.4 — — 109.4 Other comprehensive income (loss) — — — (17.8) (17.8) Share-based compensation 37.2 — — — 37.2 Dividends declared ($0.66 per share) — (37.0) — — (37.0) Treasury share purchases — — (5.6) — (5.6) Treasury share issuances (30.4) — 22.3 — (8.1) Balance at April 1, 2023 $ 374.3 $ 990.3 $ (1,040.0) $ (187.1) $ 137.5 The sum of the components may not equal due to rounding. |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss (“AOCL”) by component were as follows for each of the periods indicated: Three Months Ended Foreign Currency Net Unrealized Gain (Loss) Net Unrealized Gain (Loss) Pension and Other Post-Retirement Accumulated Other Balance at December 30, 2023 $ (18.8) $ 10.4 $ (39.5) $ (73.8) $ (121.7) Other comprehensive income (loss) before reclassifications (2.6) 8.2 (0.6) — 5.0 Amounts reclassified from accumulated other comprehensive net income (loss) — (1.2) — 1.6 0.4 Income tax benefit (expense) — (1.8) — (0.6) (2.4) Net current period other comprehensive income (loss) (2.6) 5.2 (0.6) 1.0 3.0 Balance at March 30, 2024 $ (21.4) $ 15.7 $ (40.1) $ (72.9) $ (118.6) Balance at December 31, 2022 $ (21.7) $ 24.8 $ (100.2) $ (72.2) $ (169.3) Other comprehensive income (loss) before reclassifications 1.1 (6.4) (7.3) — (12.6) Amounts reclassified from accumulated other comprehensive net income (loss) — (11.0) — (0.4) (11.4) Income tax benefit (expense) — 4.4 1.7 0.1 6.2 Net current period other comprehensive income (loss) 1.1 (13.0) (5.6) (0.3) (17.8) Balance at April 1, 2023 $ (20.7) $ 11.8 $ (105.7) $ (72.6) $ (187.1) The sum of the components may not equal due to rounding. Six Months Ended Foreign Currency Net Unrealized Gain (Loss) Net Unrealized Gain (Loss) Pension and Other Post-Retirement Accumulated Other Balance at September 30, 2023 $ (21.9) $ 20.1 $ (38.6) $ (72.4) $ (112.8) Other comprehensive income (loss) before reclassifications 0.5 (2.8) (1.5) — (3.8) Amounts reclassified from accumulated other comprehensive net income (loss) — (3.2) — (0.5) (3.7) Income tax benefit (expense) — 1.5 — 0.1 1.6 Net current period other comprehensive income (loss) 0.5 (4.5) (1.5) (0.4) (5.9) Balance at March 30, 2024 $ (21.4) $ 15.7 $ (40.1) $ (72.9) $ (118.6) Balance at September 30, 2022 $ (28.9) $ 33.3 $ (79.7) $ (69.3) $ (144.6) Other comprehensive income (loss) before reclassifications 8.3 (12.9) (34.1) — (38.7) Amounts reclassified from accumulated other comprehensive net income (loss) — (16.0) — (4.3) (20.3) Income tax benefit (expense) — 7.4 8.1 1.1 16.6 Net current period other comprehensive income (loss) 8.3 (21.5) (26.0) (3.2) (42.4) Balance at April 1, 2023 $ (20.7) $ 11.8 $ (105.7) $ (72.6) $ (187.1) The sum of the components may not equal due to rounding. |
Schedule of Share-Based Compensation | Total share-based compensation was as follows for each of the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Share-based compensation $ 28.1 $ 37.2 $ 44.1 $ 57.9 Related tax benefit recognized 4.6 6.1 7.2 10.8 |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award | The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant. Details of the assumptions used in the Monte Carlo simulation model are as follows: Expected volatility 36.6 % Risk-free interest rate 4.5 % |
Schedule of Performance-based Award Activity | Performance-based award activity was as follows (based on target award amounts): No. of Wtd. Avg. Grant Date Awards outstanding at September 30, 2023 544,790 $ 76.85 Granted 232,801 74.95 Vested (a) (181,791) 59.88 Forfeited (185,740) 64.66 Awards outstanding at March 30, 2024 410,060 87.03 (a) Vested at a weighted average of 100% of the target performance share units granted. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Information to Calculate Basic and Diluted Earnings (Loss) Per Common Share | The following table presents information necessary to calculate basic and diluted net income per Common Share for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Net income $ 157.5 $ 109.4 $ 77.0 $ 44.7 Basic net income per common share Weighted-average common shares outstanding during the period 56.8 56.0 56.7 55.8 Basic net income per common share $ 2.77 $ 1.95 $ 1.36 $ 0.80 Diluted net income per common share Weighted-average common shares outstanding during the period 56.8 56.0 56.7 55.8 Dilutive potential common shares 0.6 0.5 0.6 0.3 Weighted-average common shares outstanding during the period plus dilutive potential common shares 57.4 56.5 57.3 56.1 Diluted net income per common share $ 2.74 $ 1.94 $ 1.34 $ 0.80 Antidilutive stock options outstanding 0.4 0.2 0.6 0.3 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Contracts | The Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases: Commodity March 30, April 1, September 30, Urea — 19,500 tons 52,500 tons Diesel 1,428,000 gallons 2,394,000 gallons 1,974,000 gallons Heating Oil 756,000 gallons 1,260,000 gallons 966,000 gallons |
Schedule of the Fair Values of Derivative Instruments | The fair values of the Company’s derivative instruments, which represent Level 2 fair value measurements, were as follows: Assets / (Liabilities) Derivatives Designated as Hedging Instruments Balance Sheet Location March 30, April 1, September 30, Interest rate swap agreements Prepaid and other current assets $ 13.6 $ 12.7 $ 16.7 Other assets 9.3 11.5 14.7 Other liabilities (0.8) — — Commodity hedging instruments Prepaid and other current assets — — 2.3 Other current liabilities — (0.4) — Total derivatives designated as hedging instruments $ 22.1 $ 23.8 $ 33.7 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Currency forward contracts Prepaid and other current assets $ 0.4 $ — $ 5.6 Other current liabilities — (2.3) — Commodity hedging instruments Prepaid and other current assets — — 0.9 Other current liabilities — (0.4) — Total derivatives not designated as hedging instruments 0.4 (2.7) 6.5 Total derivatives $ 22.5 $ 21.1 $ 40.2 |
Schedule of the Effect of Derivative Instruments on AOCL and Statements of Operations | The effect of derivative instruments on AOCL, net of tax, and the Condensed Consolidated Statements of Operations for each of the periods presented was as follows: Derivatives in Cash Flow Hedging Relationships Amount of Gain / (Loss) Recognized in AOCL Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Interest rate swap agreements $ 5.8 $ (1.2) $ (0.6) $ (0.7) Commodity hedging instruments 0.3 (3.6) (1.5) (8.9) Total $ 6.1 $ (4.8) $ (2.1) $ (9.6) Derivatives in Cash Flow Hedging Relationships Reclassified from Amount of Gain / (Loss) Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Interest rate swap agreements Interest expense $ 4.1 $ 3.7 $ 6.7 $ 5.1 Commodity hedging instruments Cost of sales (3.2) 4.5 (4.3) 6.8 Total $ 0.9 $ 8.2 $ 2.4 $ 11.9 Derivatives Not Designated as Hedging Instruments Recognized in Amount of Gain / (Loss) Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Currency forward contracts Other income / expense, net $ 1.3 $ (5.3) $ (3.5) $ (16.6) Commodity hedging instruments Cost of sales (0.1) (0.6) (1.4) 0.9 Total $ 1.2 $ (5.9) $ (4.9) $ (15.7) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring Basis | The following table summarizes the fair value of the Company’s assets and liabilities for which disclosure of fair value is required: Fair Value March 30, April 1, September 30, Carrying Estimated Carrying Estimated Carrying Estimated Assets Cash equivalents Level 1 $ 28.1 $ 28.1 $ 2.9 $ 2.9 $ 1.2 $ 1.2 Other Investment securities in non-qualified retirement plan assets Level 1 42.3 42.3 39.0 39.0 36.3 36.3 Convertible debt investments Level 3 84.5 84.5 84.8 84.8 85.8 85.8 Liabilities Debt instruments Credit facilities – revolving loans Level 2 314.2 314.2 642.5 642.5 88.3 88.3 Credit facilities – term loans Level 2 900.0 900.0 950.0 950.0 925.0 925.0 Senior Notes due 2031 – 4.000% Level 2 500.0 427.5 500.0 398.8 500.0 380.0 Senior Notes due 2032 – 4.375% Level 2 400.0 344.0 400.0 320.5 400.0 304.0 Senior Notes due 2029 – 4.500% Level 2 450.0 405.0 450.0 388.1 450.0 366.8 Senior Notes due 2026 – 5.250% Level 2 250.0 245.6 250.0 238.8 250.0 233.1 Receivables facility Level 2 — — 380.0 380.0 — — Other debt Level 2 5.5 5.5 3.1 3.1 0.4 0.4 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the balance of Level 3 convertible debt investments carried at fair value are presented below. There were no transfers into or out of Level 3. Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Fair value at beginning of period $ 85.0 $ 91.2 $ 85.8 $ 117.0 Total realized / unrealized gains included in net earnings 0.1 0.9 0.2 1.9 Total realized / unrealized losses included in OCI (0.6) (7.3) (1.5) (34.1) Fair value at end of period $ 84.5 $ 84.8 $ 84.5 $ 84.8 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
Weighted-Average Remaining Lease Term and Discount Rate and Supplemental Balance Sheet Information Schedule | Supplemental balance sheet information related to the Company’s leases was as follows: Balance Sheet Location March 30, April 1, September 30, Operating leases: Right-of-use assets Other assets $ 273.1 $ 255.9 $ 262.6 Current lease liabilities Other current liabilities 75.9 77.4 76.4 Non-current lease liabilities Other liabilities 223.7 203.2 220.1 Total operating lease liabilities $ 299.6 $ 280.6 $ 296.5 Finance leases: Right-of-use assets Property, plant and equipment, net $ 15.0 $ 15.7 $ 14.5 Current lease liabilities Current portion of debt 2.3 1.9 1.9 Non-current lease liabilities Long-term debt 15.2 16.0 15.0 Total finance lease liabilities $ 17.5 $ 17.9 $ 16.9 Weighted-average remaining lease term and discount rate for the Company’s leases were as follows: March 30, April 1, September 30, Weighted-average remaining lease term (in years): Operating leases 5.4 4.8 5.4 Finance leases 8.7 9.8 9.5 Weighted-average discount rate: Operating leases 5.6 % 4.0 % 5.2 % Finance leases 4.6 % 4.4 % 4.4 % |
Lease Cost Components and Supplemental Cash Flow Information and Non-Cash Activity For Company's Leases Schedules | Components of lease cost were as follows: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Operating lease cost (a) $ 20.3 $ 23.9 $ 42.3 $ 46.1 Variable lease cost 9.2 7.1 15.8 13.6 Finance lease cost Amortization of right-of-use assets 0.6 0.6 1.2 2.0 Interest on lease liabilities 0.2 0.1 0.4 0.4 Total finance lease cost $ 0.8 $ 0.7 $ 1.6 $ 2.4 (a) Operating lease cost includes amortization of right-of-use assets of $16.5 and $34.7 for the three and six months ended March 30, 2024, respectively, and $23.8 and $42.8 for the three and six months ended April 1, 2023, respectively. Short-term lease expense is excluded from operating lease cost and is not material. Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows: Six Months Ended March 30, April 1, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases, net $ 49.3 $ 46.3 Operating cash flows from finance leases 0.4 0.4 Financing cash flows from finance leases 1.0 1.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 41.6 $ 32.5 Finance leases 1.7 — |
Maturities of Operating Lease Liabilities by Fiscal Year Schedule | Maturities of lease liabilities by fiscal year for the Company’s leases as of March 30, 2024 were as follows: Year Operating Leases Finance Leases 2024 (remainder of the year) $ 47.8 $ 1.5 2025 82.8 3.0 2026 64.8 2.6 2027 40.8 2.2 2028 31.2 1.9 Thereafter 82.1 10.2 Total lease payments 349.5 21.4 Less: Imputed interest (49.9) (3.9) Total lease liabilities $ 299.6 $ 17.5 |
Maturities of Finance Lease Liabilities by Fiscal Year Schedule | Maturities of lease liabilities by fiscal year for the Company’s leases as of March 30, 2024 were as follows: Year Operating Leases Finance Leases 2024 (remainder of the year) $ 47.8 $ 1.5 2025 82.8 3.0 2026 64.8 2.6 2027 40.8 2.2 2028 31.2 1.9 Thereafter 82.1 10.2 Total lease payments 349.5 21.4 Less: Imputed interest (49.9) (3.9) Total lease liabilities $ 299.6 $ 17.5 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Information | The following tables present financial information for the Company’s reportable segments for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Net Sales: U.S. Consumer $ 1,379.8 $ 1,357.4 $ 1,686.5 $ 1,726.3 Hawthorne 66.4 92.7 146.6 224.2 Other 79.2 81.4 102.7 107.6 Consolidated $ 1,525.4 $ 1,531.5 $ 1,935.8 $ 2,058.1 Segment Profit (Loss): U.S. Consumer $ 385.7 $ 397.4 $ 370.3 $ 428.7 Hawthorne (3.4) (16.8) (13.0) (33.0) Other 6.4 14.6 1.2 16.0 Total Segment Profit 388.7 395.2 358.5 411.7 Corporate (35.7) (42.1) (61.7) (74.0) Intangible asset amortization (3.9) (6.4) (7.9) (14.1) Impairment, restructuring and other (77.0) (140.5) (64.1) (159.2) Equity in loss of unconsolidated affiliates (7.0) (7.3) (29.5) (18.7) Interest expense (44.1) (48.3) (86.8) (91.0) Other non-operating income (expense), net (1.2) (0.8) (2.9) 0.8 Income before income taxes $ 219.8 $ 149.8 $ 105.6 $ 55.5 The following table presents net sales by product category for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, U.S. Consumer: Growing media and mulch $ 591.5 $ 517.2 $ 663.5 $ 614.3 Lawn care 509.8 534.3 628.6 679.7 Controls 137.1 134.6 190.5 192.8 Roundup ® marketing agreement 64.6 70.7 88.0 91.0 Other, primarily gardening 76.8 100.6 115.9 148.5 Hawthorne: Lighting 16.1 18.1 48.0 68.4 Nutrients 24.6 24.4 41.2 47.2 Growing media 10.2 18.5 21.4 36.3 Growing environments 6.3 16.0 17.8 41.5 Other, primarily hardware 9.2 15.7 18.2 30.8 Other: Growing media 23.3 24.9 36.5 40.3 Lawn care 31.5 29.7 33.8 32.3 Other, primarily gardening and controls 24.4 26.8 32.4 35.0 Total net sales $ 1,525.4 $ 1,531.5 $ 1,935.8 $ 2,058.1 The following table presents net sales by geographic area for the periods indicated: Three Months Ended Six Months Ended March 30, April 1, March 30, April 1, Net sales: United States $ 1,441.7 $ 1,447.2 $ 1,807.5 $ 1,912.2 International 83.7 84.3 128.3 145.9 $ 1,525.4 $ 1,531.5 $ 1,935.8 $ 2,058.1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | Oct. 27, 2023 | Sep. 30, 2023 | |
Line of Credit Facility [Line Items] | |||||
Percentage of annual net sales | 75% | ||||
Noncash investing activities for unpaid liabilities incurred | $ 10.1 | $ 15.3 | |||
Proceeds from loans receivable | 0 | 37 | |||
Accounts Receivable, Held-for-Sale | $ 600 | ||||
Increase (Decrease) in Receivables | 582.8 | ||||
Proceeds from Sale of Other Receivables | $ 758.2 | 955.5 | |||
Discount On Sale Of Other Receivables | 10.7 | 12.9 | |||
Supplier Finance Program, Obligation | $ 38.5 | 38.5 | 31 | $ 18.3 | |
Supplier Finance Program, Obligation, Settlement | $ 153 | $ 110.3 | |||
Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Supplier Finance Program, Payment Timing, Period | 30 days | 30 days | |||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Supplier Finance Program, Payment Timing, Period | 60 days | 60 days | |||
Standby Letters of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured credit facilities, maximum borrowing capacity | $ 70 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Accounting Policies [Abstract] | ||
Interest paid | $ 83.6 | $ 87.4 |
Income taxes paid (refunded), net | $ 0 | $ (21.1) |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Nov. 07, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | |
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity in loss of unconsolidated affiliates | $ 7 | $ 7.3 | $ 29.5 | $ 18.7 | |||
Bonnie Plants | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity ownership percentage | 50% | 45% | 50% | ||||
Equity Method Investment, Ownership Percentage Increase (Decrease) | 5% | ||||||
Payments to acquire equity interest | $ 21.4 | ||||||
Equity Method Investment, Non-Cash Impairment, Before Tax | $ 0 | $ 10.4 |
IMPAIRMENT, RESTRUCTURING AND_3
IMPAIRMENT, RESTRUCTURING AND OTHER - Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (recoveries), net | $ 2.1 | $ 21.8 | $ (5) | $ 30.2 |
Total impairment, restructuring and other charges, net | 77 | 140.5 | 64.1 | 159.2 |
Restructuring and other charges, net | Cost of sales—impairment, restructuring and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (recoveries), net | 70.1 | 99.9 | 64 | 105.6 |
Restructuring and other charges, net | Operating expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (recoveries), net | 2.1 | 21.8 | (5) | 30.2 |
Right-of-use asset impairments | Cost of sales—impairment, restructuring and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (recoveries), net | 0.7 | 14.1 | 0.9 | 15.4 |
Property, plant and equipment impairments | Cost of sales—impairment, restructuring and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (recoveries), net | $ 4.1 | $ 4.7 | $ 4.2 | $ 8 |
IMPAIRMENT, RESTRUCTURING AND_4
IMPAIRMENT, RESTRUCTURING AND OTHER - Activity Related to Liabilities Associated with Restructuring (Details) $ in Millions | 6 Months Ended |
Mar. 30, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Amounts accrued for restructuring and other, beginning balance | $ 40.5 |
Restructuring charges | 7 |
Payments | (16.3) |
Amounts accrued for restructuring and other, ending balance | $ 31.2 |
IMPAIRMENT, RESTRUCTURING AND_5
IMPAIRMENT, RESTRUCTURING AND OTHER - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, long-term | $ 9.2 | $ 9.2 | ||
Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | $ 136.8 | $ 151.4 | ||
Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 77 | 73.2 | ||
U.S. Consumer | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 46 | |||
Hawthorne | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 294.4 | |||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 1.8 | |||
Corporate Segment | Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 25.1 | |||
Cost of sales—impairment, restructuring and other | U.S. Consumer | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | (0.5) | 0.2 | 1.4 | 1.2 |
Cost of sales—impairment, restructuring and other | Hawthorne | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 75.4 | 118.5 | 67.8 | 127 |
Impairment, Restructuring, And Other | U.S. Consumer | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | (0.1) | 0.1 | (0.9) | 0.3 |
Impairment, Restructuring, And Other | Hawthorne | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 1.9 | 17.1 | 2.3 | 18.2 |
Impairment, Restructuring, And Other | Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 0.2 | 0.3 | ||
Impairment, Restructuring, And Other | Corporate Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and adjustments | 0 | $ 0.8 | 2.4 | $ 4.5 |
Restructuring, Settlement And Impairment Provisions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
(Gain) Loss on Disposition of Property Plant Equipment | $ 0 | $ (12.1) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 480.9 | $ 506.2 | $ 759 |
Raw materials | 261.3 | 272.5 | 279 |
Work-in-process | 82.1 | 101.6 | 89.6 |
Total inventories, net | $ 824.3 | $ 880.3 | $ 1,127.6 |
MARKETING AGREEMENT - Additiona
MARKETING AGREEMENT - Additional Information (Details) $ in Millions | Aug. 01, 2019 USD ($) |
Restated Marketing Agreement | |
Marketing Agreement [Line Items] | |
Percentage of program earnings | 50% |
Annual payments | $ 18 |
Third Restated Agreement | |
Marketing Agreement [Line Items] | |
Minimum annual EBIT required to avoid reduction of contribution payment | 36 |
Minimum EBIT | 50 |
Brand decommissioning event payable | 375 |
Termination fee payable | $ 175 |
Minimum termination fee payable multiple | 4 |
Minimum termination fee payable threshold | $ 186.4 |
MARKETING AGREEMENT - Net Commi
MARKETING AGREEMENT - Net Commission Earned Under Marketing Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Marketing Agreement [Line Items] | ||||
Contribution expenses | $ (986.8) | $ (1,000.1) | $ (1,340.8) | $ (1,420.7) |
Restated Marketing Agreement | ||||
Marketing Agreement [Line Items] | ||||
Gross commission | 40.6 | 48.9 | 49.5 | 58.5 |
Contribution expenses | (4.5) | (4.5) | (9) | (9) |
Net commission | 36.1 | 44.4 | 40.5 | 49.5 |
Reimbursements associated with Roundup® marketing agreement | 29 | 27.2 | 48.1 | 42.4 |
Total net sales associated with Roundup® marketing agreement | $ 65.1 | $ 71.6 | $ 88.6 | $ 91.9 |
DEBT - Components of Long-Term
DEBT - Components of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 | Aug. 13, 2021 | Mar. 17, 2021 | Oct. 22, 2019 | Dec. 15, 2016 |
Debt Instrument [Line Items] | |||||||
Total debt | $ 2,837.2 | $ 2,630.6 | $ 3,593.5 | ||||
Less current portions | 57.8 | 52.3 | 435.4 | ||||
Long-term debt | 2,760.5 | 2,557.4 | 3,138 | ||||
Credit Facilities | Revolving loans | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 314.2 | 88.3 | 642.5 | ||||
Credit Facilities | Term loans | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 900 | $ 925 | $ 950 | ||||
Senior Notes | 4.000% Senior Notes Due 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 4% | 4% | 4% | 4% | |||
Total debt | $ 500 | $ 500 | $ 500 | ||||
Senior Notes | 4.375% Senior Notes Due 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 4.375% | 4.375% | 4.375% | 4.375% | |||
Total debt | $ 400 | $ 400 | $ 400 | ||||
Senior Notes | 4.500% Senior Notes Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 4.50% | 4.50% | 4.50% | 4.50% | |||
Total debt | $ 450 | $ 450 | $ 450 | ||||
Senior Notes | 5.250% Senior Notes Due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 5.25% | 5.25% | 5.25% | 5.25% | |||
Total debt | $ 250 | $ 250 | $ 250 | ||||
Receivables facility | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 0 | 0 | 380 | ||||
Finance lease obligations | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 17.5 | 16.9 | 17.9 | ||||
Other | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 5.5 | 0.4 | 3.1 | ||||
Long-term debt | |||||||
Debt Instrument [Line Items] | |||||||
Less unamortized debt issuance costs | $ 18.9 | $ 20.9 | $ 20.1 |
DEBT - Credit Facilities (Detai
DEBT - Credit Facilities (Details) $ in Millions | Jul. 31, 2023 USD ($) | Apr. 08, 2022 USD ($) | Mar. 30, 2024 USD ($) | Apr. 01, 2023 | Jun. 08, 2022 |
Debt Instrument [Line Items] | |||||
Weighted average interest rate (percentage) | 5.90% | 5.30% | |||
Leverage ratio | 6.95 | ||||
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 0.95 | ||||
Period One | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 7.75 | ||||
Interest coverage ratio | 0.75 | ||||
Period Two | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 6.50 | ||||
Interest coverage ratio | 1 | ||||
Period Three | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 6 | ||||
Period Four | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 5.50 | ||||
Period Five | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 5.25 | ||||
Period six | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 5 | ||||
Period seven | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 4.75 | ||||
Period eight | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, leverage ratio | 4.50 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate (percentage) | 8.90% | 7% | |||
Sixth Amended And Restated Senior Secured Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facilities, maximum borrowing capacity | $ 2,500 | ||||
Long-Term Debt | $ 2,814.2 | ||||
Sixth Amended And Restated Senior Secured Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facilities, maximum borrowing capacity | 1,500 | ||||
Letters of credit | 100 | ||||
Sixth Amended And Restated Senior Secured Credit Agreement | Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facilities, maximum borrowing capacity | $ 1,000 | ||||
Sixth Amended And Restated Senior Secured Credit Agreement, Amendment One | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Increase in interest rate, bps | 35 | ||||
Increase in annual facility fee rate, bps | 15 | ||||
Debt instrument, leverage ratio | 4.75 | ||||
Sixth Amended And Restated Senior Secured Credit Agreement, Amendment One | Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Increase in interest rate, bps | 50 | ||||
Sixth Amended And Restated Senior Secured Credit Agreement, Amendment Two | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Reduction of commitments | $ 250 | ||||
Interest rate increase (decrease) | 0.25% | ||||
Incremental investments, loans, and advances, maximum | $ 25 | ||||
Common stock cash dividends, maximum per fiscal year | 225 | ||||
Other dividends and distributions, maximum | $ 25 | ||||
Debt Instrument, Covenant, Leverage Ratio, Minimum Threshold For Additional Pricing Tier | 6 | ||||
Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Available borrowing capacity | 857.8 | ||||
Credit Facilities | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 78 | ||||
Credit Facilities | Sixth Amended And Restated Senior Secured Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt, maturity period (years) | 5 years |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - Senior notes - USD ($) $ in Millions | Mar. 17, 2021 | Oct. 22, 2019 | Dec. 15, 2016 | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 | Aug. 13, 2021 |
Debt Instrument [Line Items] | |||||||
Interest coverage ratio | 2 | ||||||
Debt Instrument, Covenant, Interest Coverage Ratio | 2.48 | ||||||
5.250% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 5.25% | 5.25% | 5.25% | 5.25% | |||
Proceeds from issuance of unsecured debt | $ 250 | ||||||
4.500% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 4.50% | 4.50% | 4.50% | 4.50% | |||
Proceeds from issuance of unsecured debt | $ 450 | ||||||
4.000% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 4% | 4% | 4% | 4% | |||
Proceeds from issuance of unsecured debt | $ 500 | ||||||
4.375% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt (percentage) | 4.375% | 4.375% | 4.375% | 4.375% | |||
Principal amount of debt | $ 400 |
DEBT - Receivables Facility (De
DEBT - Receivables Facility (Details) $ in Millions | 4 Months Ended | ||
Jun. 16, 2023 USD ($) | Apr. 01, 2023 USD ($) | Apr. 07, 2017 USD ($) customer | |
Master Repurchase And Framework Agreements, The Amendments | |||
Debt Instrument [Line Items] | |||
Number of customers | customer | 3 | ||
Financing receivable, before allowance for credit loss | $ 400 | ||
Line of credit facility, maximum amount outstanding during period | $ 160 | ||
Receivables Facility | |||
Debt Instrument [Line Items] | |||
Receivables facility borrowings | $ 380 | ||
Receivables facility | Asset Pledged as Collateral | |||
Debt Instrument [Line Items] | |||
Financing receivable pledged as collateral | $ 422.2 |
DEBT - Interest Rate Swap Agree
DEBT - Interest Rate Swap Agreements (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Instrument 1 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 200 | ||
Fixed Rate | 0.49% | ||
Instrument 2 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 200 | ||
Fixed Rate | 0.80% | ||
Instrument 3 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 150 | ||
Fixed Rate | 3.37% | ||
Instrument 4 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 50 | ||
Fixed Rate | 3.34% | ||
Instrument 5 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 100 | ||
Fixed Rate | 4.74% | ||
Derivatives designated as hedging instruments | Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 700 | $ 600 | $ 800 |
DEBT - Weighted Average Interes
DEBT - Weighted Average Interest Rate (Details) | Mar. 30, 2024 | Apr. 01, 2023 |
Debt Disclosure [Abstract] | ||
Weighted average interest rate (percentage) | 5.90% | 5.30% |
EQUITY - Summary of the Changes
EQUITY - Summary of the Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 30, 2024 | Dec. 30, 2023 | Sep. 30, 2023 | Apr. 01, 2023 | Jan. 01, 2022 | Mar. 30, 2024 | Apr. 01, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Dividends declared (USD per share) | $ 0.66 | $ 0.66 | $ 0.66 | $ 0.66 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total equity, beginning balance | $ (385.4) | $ (267.3) | $ 59.5 | $ (267.3) | $ 147.7 | ||
Net income (loss) | 157.5 | (80.5) | 109.4 | $ (64.7) | 77 | 44.7 | |
Other comprehensive income (loss) | 3 | (8.9) | (17.8) | (24.6) | (5.9) | (42.4) | |
Other comprehensive income (loss) | 3 | (17.8) | (5.9) | (42.4) | |||
Share-based compensation | 12.4 | 11.7 | 37.2 | 20.8 | |||
Dividends declared | (38.1) | (38) | (37) | (37.5) | |||
Treasury share purchases | (1.7) | (3.1) | (5.6) | (0.8) | |||
Treasury share issuances | 1.3 | 0.7 | (8.1) | 18.7 | |||
Total equity, ending balance | (250.9) | (385.4) | $ (267.3) | 137.5 | (250.9) | 137.5 | |
Common Shares and Capital in Excess of Stated Value | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity beginning balance | 349.6 | 353.1 | 367.6 | 353.1 | 364 | ||
Share-based compensation | 12.4 | 11.7 | 37.2 | 20.8 | |||
Treasury share issuances | (8.3) | (15.2) | (30.4) | (17.2) | |||
Equity ending balance | 353.7 | 349.6 | 353.1 | 374.3 | 353.7 | 374.3 | |
Retained Earnings | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity beginning balance | 372.4 | 490.9 | 917.9 | 490.9 | 1,020.1 | ||
Net income (loss) | 157.5 | (80.5) | 109.4 | (64.7) | |||
Dividends declared | (38.1) | (38) | (37) | (37.5) | |||
Equity ending balance | 491.8 | 372.4 | 490.9 | 990.3 | 491.8 | 990.3 | |
Treasury Stock, Common | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity beginning balance | (985.7) | (998.5) | (1,056.7) | (998.5) | (1,091.8) | ||
Treasury share purchases | (1.7) | (3.1) | (5.6) | (0.8) | |||
Treasury share issuances | 9.6 | 15.9 | 22.3 | 35.9 | |||
Equity ending balance | (977.8) | (985.7) | (998.5) | (1,040) | (977.8) | (1,040) | |
Accumulated Other Comprehensive Loss | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity beginning balance | (121.7) | (112.8) | (169.3) | (112.8) | (144.6) | ||
Other comprehensive income (loss) | 3 | (8.9) | (17.8) | $ (24.6) | |||
Equity ending balance | $ (118.6) | $ (121.7) | $ (112.8) | $ (187.1) | $ (118.6) | $ (187.1) |
EQUITY - Accumulated Other Comp
EQUITY - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | $ 5 | $ (12.6) | $ (3.8) | $ (38.7) |
Amounts reclassified from accumulated other comprehensive net income (loss) | 0.4 | (11.4) | (3.7) | (20.3) |
Income tax benefit (expense) | (2.4) | 6.2 | 1.6 | 16.6 |
Total other comprehensive income (loss) | 3 | (17.8) | (5.9) | (42.4) |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity beginning balance | (121.7) | (169.3) | (112.8) | (144.6) |
Equity ending balance | (118.6) | (187.1) | (118.6) | (187.1) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity beginning balance | (18.8) | (21.7) | (21.9) | (28.9) |
Other comprehensive income (loss) before reclassifications | (2.6) | 1.1 | 0.5 | 8.3 |
Amounts reclassified from accumulated other comprehensive net income (loss) | 0 | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | (2.6) | 1.1 | 0.5 | 8.3 |
Equity ending balance | (21.4) | (20.7) | (21.4) | (20.7) |
Net Unrealized Gain (Loss) On Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity beginning balance | 10.4 | 24.8 | 20.1 | 33.3 |
Other comprehensive income (loss) before reclassifications | 8.2 | (6.4) | (2.8) | (12.9) |
Amounts reclassified from accumulated other comprehensive net income (loss) | (1.2) | (11) | (3.2) | (16) |
Income tax benefit (expense) | (1.8) | 4.4 | 1.5 | 7.4 |
Total other comprehensive income (loss) | 5.2 | (13) | (4.5) | (21.5) |
Equity ending balance | 15.7 | 11.8 | 15.7 | 11.8 |
Net Unrealized Gain (Loss) On Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity beginning balance | (39.5) | (100.2) | (38.6) | (79.7) |
Other comprehensive income (loss) before reclassifications | (0.6) | (7.3) | (1.5) | (34.1) |
Amounts reclassified from accumulated other comprehensive net income (loss) | 0 | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 1.7 | 0 | 8.1 |
Total other comprehensive income (loss) | (0.6) | (5.6) | (1.5) | (26) |
Equity ending balance | (40.1) | (105.7) | (40.1) | (105.7) |
Pension and Other Post-Retirement Benefit Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity beginning balance | (73.8) | (72.2) | (72.4) | (69.3) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive net income (loss) | 1.6 | (0.4) | (0.5) | (4.3) |
Income tax benefit (expense) | (0.6) | 0.1 | 0.1 | 1.1 |
Total other comprehensive income (loss) | 1 | (0.3) | (0.4) | (3.2) |
Equity ending balance | $ (72.9) | $ (72.6) | $ (72.9) | $ (72.6) |
EQUITY - Dividends (Details)
EQUITY - Dividends (Details) - $ / shares | 3 Months Ended | |||
Dec. 30, 2023 | Sep. 30, 2023 | Apr. 01, 2023 | Jan. 01, 2022 | |
Equity [Abstract] | ||||
Dividends declared (USD per share) | $ 0.66 | $ 0.66 | $ 0.66 | $ 0.66 |
EQUITY - Total Share-based Comp
EQUITY - Total Share-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Equity [Abstract] | ||||
Share-based compensation | $ 28.1 | $ 37.2 | $ 44.1 | $ 57.9 |
Related tax benefit recognized | $ 4.6 | $ 6.1 | $ 7.2 | $ 10.8 |
EQUITY - Performance Share-base
EQUITY - Performance Share-based Award Activity (Details) - Performance-based awards - $ / shares | 6 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
No. of Units | ||
Awards outstanding at beginning of period (shares) | 544,790 | |
Granted (shares) | 232,801 | |
Vested (shares) | (181,791) | |
Forfeited (shares) | (185,740) | |
Awards outstanding at end of period (shares) | 410,060 | |
Wtd. Avg. Grant Date Fair Value per Unit | ||
Awards outstanding at beginning of period (USD per share) | $ 76.85 | |
Granted (USD per share) | 74.95 | $ 65.97 |
Vested (USD per share) | 59.88 | |
Forfeited (USD per share) | 64.66 | |
Awards outstanding at end of period (USD per share) | $ 87.03 | |
Vested average percentage of target performance of shares granted | 100% |
EQUITY - Performance-Based Awar
EQUITY - Performance-Based Awards, Additional Information (Details) - Performance-based awards - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 30, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (USD per share) | $ 74.95 | $ 65.97 | |
Cost not yet recognized | $ 8.6 | $ 8.6 | |
Cost not yet recognized, period (years) | 2 years 7 months 6 days | ||
Units vested, value | $ 10.6 | $ 17.5 | |
Compensation cost related to nonvested stock options | 12 | 12 | |
Deferred Compensation Liability, Current | $ 8.2 | $ 8.2 | |
Award vesting period | 3 years | ||
Vested average percentage of target performance of shares granted | 100% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested average percentage of target performance of shares granted | 0% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested average percentage of target performance of shares granted | 325% |
EQUITY - Performance Share Assu
EQUITY - Performance Share Assumptions (Details) - Performance-based awards | 6 Months Ended |
Mar. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected market price volatility (percent) | 36.60% |
Risk-free interest rate (percent) | 4.50% |
EARNINGS PER COMMON SHARE - Cal
EARNINGS PER COMMON SHARE - Calculation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income | $ 157.5 | $ 109.4 | $ 77 | $ 44.7 |
Basic net loss per common share: | ||||
Weighted-average common shares outstanding during the period (in shares) | 56,800,000 | 56,000,000 | 56,700,000 | 55,800,000 |
Income (loss) from continuing operations (USD per share) | $ 2.77 | $ 1.95 | $ 1.36 | $ 0.80 |
Diluted net income per common share | ||||
Weighted-average common shares outstanding during the period (in shares) | 56,800,000 | 56,000,000 | 56,700,000 | 55,800,000 |
Dilutive potential Common Shares (in shares) | 600,000 | 500,000 | 600,000 | 300,000 |
Weighted-average common shares outstanding during the period plus dilutive potential common shares (in shares) | 57,400,000 | 56,500,000 | 57,300,000 | 56,100,000 |
Diluted income (loss) per common share (USD per share) | $ 2.74 | $ 1.94 | $ 1.34 | $ 0.80 |
Options | ||||
Diluted net income per common share | ||||
Number of anti-dilutive potential common shares excluded from the calculation (in shares) | 400,000 | 200,000 | 600,000 | 300,000 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding during the period plus dilutive potential common shares (in shares) | 57.4 | 56.5 | 57.3 | 56.1 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Tax Examination [Line Items] | ||
Effective tax rate related to continuing operations | 27.10% | 19.50% |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Millions | Mar. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for environmental actions | $ (2.9) |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Not Designated as Hedging Instrument | Currency forward contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | $ 114.2 | $ 123.1 | $ 119.1 |
Designated as Hedging Instruments | Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | 700 | $ 600 | $ 800 |
(Gain) loss related to interest rate swap agreements expected to be reclassified | (9.7) | ||
Designated as Hedging Instruments | Commodity hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) related to commodity hedges expected to be reclassified | $ 0.2 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Commodity Contracts (Details) | 6 Months Ended | 12 Months Ended | |
Mar. 30, 2024 T gal | Apr. 01, 2023 T gal | Sep. 30, 2023 T gal | |
Urea (in tons) | |||
Derivative [Line Items] | |||
Outstanding commodity contracts, mass | T | 0 | 19,500 | 52,500 |
Diesel (in gallons) | |||
Derivative [Line Items] | |||
Outstanding commodity contracts, volume | 1,428,000 | 2,394,000 | 1,974,000 |
Heating Oil (in gallons) | |||
Derivative [Line Items] | |||
Outstanding commodity contracts, volume | 756,000 | 1,260,000 | 966,000 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Fair value, inputs, level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Total derivatives | $ 22.5 | $ 40.2 | $ 21.1 |
Designated as Hedging Instruments | Interest rate swap agreements | Other assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset | 9.3 | 14.7 | 11.5 |
Designated as Hedging Instruments | Interest rate swap agreements | Prepaid and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset | 13.6 | 16.7 | 12.7 |
Designated as Hedging Instruments | Fair value, inputs, level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Total derivatives | 22.1 | 33.7 | 23.8 |
Designated as Hedging Instruments | Fair value, inputs, level 2 | Interest rate swap agreements | Other liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | (0.8) | 0 | 0 |
Designated as Hedging Instruments | Fair value, inputs, level 2 | Commodity hedging instruments | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 0 | 0 | (0.4) |
Designated as Hedging Instruments | Fair value, inputs, level 2 | Commodity hedging instruments | Prepaid and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset | 0 | 2.3 | 0 |
Not Designated as Hedging Instrument | Fair value, inputs, level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Total derivatives | 0.4 | 6.5 | (2.7) |
Not Designated as Hedging Instrument | Fair value, inputs, level 2 | Currency forward contracts | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 0 | 0 | (2.3) |
Not Designated as Hedging Instrument | Fair value, inputs, level 2 | Currency forward contracts | Prepaid and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset | 0.4 | 5.6 | 0 |
Not Designated as Hedging Instrument | Fair value, inputs, level 2 | Commodity hedging instruments | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 0 | 0 | (0.4) |
Not Designated as Hedging Instrument | Fair value, inputs, level 2 | Commodity hedging instruments | Prepaid and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset | $ 0 | $ 0.9 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on AOCI and Statements of Operations (Details) - Fair value, inputs, level 2 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) Recognized in Earnings | $ 1.2 | $ (5.9) | $ (4.9) | $ (15.7) |
Not Designated as Hedging Instrument | Commodity hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) Recognized in Earnings | $ (0.1) | $ (0.6) | $ (1.4) | $ 0.9 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | Cost of sales | Cost of sales | Cost of sales |
Not Designated as Hedging Instrument | Currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) Recognized in Earnings | $ 1.3 | $ (5.3) | $ (3.5) | $ (16.6) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net |
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCL | $ 6.1 | $ (4.8) | $ (2.1) | $ (9.6) |
Amount of Gain / (Loss) Reclassified From AOCI Into Earnings | 0.9 | 8.2 | 2.4 | 11.9 |
Cash Flow Hedging | Interest rate swap agreements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCL | 5.8 | (1.2) | (0.6) | (0.7) |
Amount of Gain / (Loss) Reclassified From AOCI Into Earnings | $ 4.1 | $ 3.7 | $ 6.7 | $ 5.1 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense | Interest expense |
Cash Flow Hedging | Commodity hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCL | $ 0.3 | $ (3.6) | $ (1.5) | $ (8.9) |
Amount of Gain / (Loss) Reclassified From AOCI Into Earnings | $ (3.2) | $ 4.5 | $ (4.3) | $ 6.8 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | Cost of sales | Cost of sales | Cost of sales |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 | Aug. 13, 2021 | Mar. 17, 2021 | Oct. 22, 2019 | Dec. 15, 2016 |
Senior notes | 4.000% Senior Notes | |||||||
Liabilities | |||||||
Interest rate of debt (percentage) | 4% | 4% | 4% | 4% | |||
Senior notes | 4.375% Senior Notes | |||||||
Liabilities | |||||||
Interest rate of debt (percentage) | 4.375% | 4.375% | 4.375% | 4.375% | |||
Senior notes | 4.500% Senior Notes | |||||||
Liabilities | |||||||
Interest rate of debt (percentage) | 4.50% | 4.50% | 4.50% | 4.50% | |||
Senior notes | 5.250% Senior Notes | |||||||
Liabilities | |||||||
Interest rate of debt (percentage) | 5.25% | 5.25% | 5.25% | 5.25% | |||
Carrying Amount | Fair value, inputs, level 1 | Fair Value, Measurements, Recurring | |||||||
Assets | |||||||
Cash equivalents | $ 28.1 | $ 1.2 | $ 2.9 | ||||
Carrying Amount | Fair value, inputs, level 1 | Fair Value, Measurements, Recurring | Investment securities in non-qualified retirement plan assets | |||||||
Assets | |||||||
Other | 42.3 | 36.3 | 39 | ||||
Carrying Amount | Fair value, inputs, level 3 | Fair Value, Measurements, Recurring | Convertible debt investments | |||||||
Assets | |||||||
Other | 84.5 | 85.8 | 84.8 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Credit facilities | Revolving loans | |||||||
Liabilities | |||||||
Debt instruments | 314.2 | 88.3 | 642.5 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Credit facilities | Term loans | |||||||
Liabilities | |||||||
Debt instruments | 900 | 925 | 950 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 4.000% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 500 | 500 | 500 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 4.375% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 400 | 400 | 400 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 4.500% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 450 | 450 | 450 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 5.250% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 250 | 250 | 250 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Receivables facility | |||||||
Liabilities | |||||||
Debt instruments | 0 | 0 | 380 | ||||
Carrying Amount | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Other debt | |||||||
Liabilities | |||||||
Debt instruments | 5.5 | 0.4 | 3.1 | ||||
Estimated Fair Value | Fair value, inputs, level 1 | Fair Value, Measurements, Recurring | |||||||
Assets | |||||||
Cash equivalents | 28.1 | 1.2 | 2.9 | ||||
Estimated Fair Value | Fair value, inputs, level 1 | Fair Value, Measurements, Recurring | Investment securities in non-qualified retirement plan assets | |||||||
Assets | |||||||
Other | 42.3 | 36.3 | 39 | ||||
Estimated Fair Value | Fair value, inputs, level 3 | Fair Value, Measurements, Recurring | Convertible debt investments | |||||||
Assets | |||||||
Other | 84.5 | 85.8 | 84.8 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Credit facilities | Revolving loans | |||||||
Liabilities | |||||||
Debt instruments | 314.2 | 88.3 | 642.5 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Credit facilities | Term loans | |||||||
Liabilities | |||||||
Debt instruments | 900 | 925 | 950 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 4.000% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 427.5 | 380 | 398.8 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 4.375% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 344 | 304 | 320.5 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 4.500% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 405 | 366.8 | 388.1 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Senior notes | 5.250% Senior Notes | |||||||
Liabilities | |||||||
Debt instruments | 245.6 | 233.1 | 238.8 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Receivables facility | |||||||
Liabilities | |||||||
Debt instruments | 0 | 0 | 380 | ||||
Estimated Fair Value | Fair value, inputs, level 2 | Fair Value, Measurements, Recurring | Other debt | |||||||
Liabilities | |||||||
Debt instruments | $ 5.5 | $ 0.4 | $ 3.1 |
FAIR VALUE MEASUREMENTS - Rollf
FAIR VALUE MEASUREMENTS - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total realized / unrealized losses included in OCI | $ 5 | $ (12.6) | $ (3.8) | $ (38.7) |
Net Unrealized Gain (Loss) On Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total realized / unrealized losses included in OCI | (0.6) | (7.3) | (1.5) | (34.1) |
Fair value, inputs, level 3 | Fair Value, Measurements, Recurring | Convertible debt investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total realized / unrealized gains included in net earnings | 0.1 | 0.9 | 0.2 | 1.9 |
Fair value, inputs, level 3 | Fair Value, Measurements, Recurring | Convertible debt investments | Net Unrealized Gain (Loss) On Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total realized / unrealized losses included in OCI | (0.6) | (7.3) | (1.5) | (34.1) |
Fair value, inputs, level 3 | Estimated Fair Value | Fair Value, Measurements, Recurring | Convertible debt investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | 85 | 91.2 | 85.8 | 117 |
Fair value at end of period | $ 84.5 | $ 84.8 | $ 84.5 | $ 84.8 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - Convertible debt investments - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | Sep. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost basis of investment | $ 226 | $ 224 | $ 225.8 |
Unrealized gain (loss) on investment | (141.4) | (139.2) | (140) |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | $ 101.3 | $ 0 | $ 101.3 |
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt term | 3 years 4 months 24 days | ||
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt term | 5 years 6 months |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Lessee, Lease, Description [Line Items] | |||
Expected lease liability | $ 299.6 | $ 296.5 | $ 280.6 |
Residual value of leased asset | 5.2 | ||
Not Yet Commenced | |||
Lessee, Lease, Description [Line Items] | |||
Expected lease liability | $ 23.3 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information Schedule (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Leases [Abstract] | |||
Operating lease right-of-use-assets | $ 273.1 | $ 262.6 | $ 255.9 |
Operating lease current lease liabilities | 75.9 | 76.4 | 77.4 |
Operating lease non-current lease liabilities | 223.7 | 220.1 | 203.2 |
Total operating lease liabilities | 299.6 | 296.5 | 280.6 |
Finance lease right-of-use assets | 15 | 14.5 | 15.7 |
Finance lease current lease liabilities | 2.3 | 1.9 | 1.9 |
Finance lease non-current lease liabilities | 15.2 | 15 | 16 |
Total finance lease liabilities | $ 17.5 | $ 16.9 | $ 17.9 |
LEASES - Components of Lease Co
LEASES - Components of Lease Cost Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 20.3 | $ 23.9 | $ 42.3 | $ 46.1 |
Variable lease cost | 9.2 | 7.1 | 15.8 | 13.6 |
Amortization of right-of-use assets | 0.6 | 0.6 | 1.2 | 2 |
Interest on lease liabilities | 0.2 | 0.1 | 0.4 | 0.4 |
Total finance lease cost | 0.8 | 0.7 | 1.6 | 2.4 |
Operating lease amortization of ROU assets | $ 16.5 | $ 23.8 | $ 34.7 | $ 42.8 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information and Non-Cash Activity Schedule (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Lease, Cost [Abstract] | ||
Operating cash flows from operating leases, net | $ 49.3 | $ 46.3 |
Operating cash flows from finance leases | 0.4 | 0.4 |
Financing cash flows from finance leases | 1 | 1.8 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | 41.6 | 32.5 |
Right-of-use assets obtained in exchange for lease obligations, finance leases | $ 1.7 | $ 0 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Lease Term and Discount Rate Schedule (Details) | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Leases [Abstract] | |||
Operating leases, weighted average remaining term (in years) | 5 years 4 months 24 days | 5 years 4 months 24 days | 4 years 9 months 18 days |
Finance leases, weighted average remaining term (in years) | 8 years 8 months 12 days | 9 years 6 months | 9 years 9 months 18 days |
Operating leases, weighted average discount rate (percent) | 5.60% | 5.20% | 4% |
Finance leases, weighted average discount rate (percent) | 4.60% | 4.40% | 4.40% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities by Fiscal Year Schedule (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 | Apr. 01, 2023 |
Operating Leases | |||
2024 (remainder of the year) | $ 47.8 | ||
2025 | 82.8 | ||
2026 | 64.8 | ||
2027 | 40.8 | ||
2028 | 31.2 | ||
Thereafter | 82.1 | ||
Total lease payments | 349.5 | ||
Less: Imputed interest | (49.9) | ||
Total lease liabilities | 299.6 | $ 296.5 | $ 280.6 |
Finance Leases | |||
2024 (remainder of the year) | 1.5 | ||
2025 | 3 | ||
2026 | 2.6 | ||
2027 | 2.2 | ||
2028 | 1.9 | ||
Thereafter | 10.2 | ||
Total lease payments | 21.4 | ||
Less: Imputed interest | (3.9) | ||
Total lease liabilities | $ 17.5 | $ 16.9 | $ 17.9 |
SEGMENT INFORMATION - Net Sales
SEGMENT INFORMATION - Net Sales, Profit (Loss), and Assets by Segment (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 USD ($) | Apr. 01, 2023 USD ($) | Mar. 30, 2024 USD ($) segment | Apr. 01, 2023 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,525.4 | $ 1,531.5 | $ 1,935.8 | $ 2,058.1 |
Impairment, restructuring and other | (2.1) | (21.8) | 5 | (30.2) |
Equity in loss of unconsolidated affiliates | (7) | (7.3) | (29.5) | (18.7) |
Interest expense | (44.1) | (48.3) | (86.8) | (91) |
Other non-operating income (expense), net | (1.2) | (0.8) | (2.9) | 0.8 |
Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | 219.8 | 149.8 | 105.6 | 55.5 |
Intangible asset amortization | (3.9) | (6.4) | (7.9) | (14.1) |
Impairment, restructuring and other | (77) | (140.5) | (64.1) | (159.2) |
Equity in loss of unconsolidated affiliates | (7) | (7.3) | (29.5) | (18.7) |
Interest expense | (44.1) | (48.3) | (86.8) | (91) |
Other non-operating income (expense), net | (1.2) | (0.8) | (2.9) | 0.8 |
Continuing Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | 388.7 | 395.2 | 358.5 | 411.7 |
Continuing Operations | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | (35.7) | (42.1) | (61.7) | (74) |
U.S. Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,379.8 | 1,357.4 | 1,686.5 | 1,726.3 |
U.S. Consumer | Growing media and mulch | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 591.5 | 517.2 | 663.5 | 614.3 |
U.S. Consumer | Continuing Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | 385.7 | 397.4 | 370.3 | 428.7 |
Hawthorne | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 66.4 | 92.7 | 146.6 | 224.2 |
Hawthorne | Growing environments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 6.3 | 16 | 17.8 | 41.5 |
Hawthorne | Continuing Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | (3.4) | (16.8) | (13) | (33) |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 79.2 | 81.4 | 102.7 | 107.6 |
Other | Continuing Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | $ 6.4 | $ 14.6 | $ 1.2 | $ 16 |
SEGMENT INFORMATION - Net Sal_2
SEGMENT INFORMATION - Net Sales by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 1,525.4 | $ 1,531.5 | $ 1,935.8 | $ 2,058.1 |
U.S. Consumer | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,379.8 | 1,357.4 | 1,686.5 | 1,726.3 |
U.S. Consumer | Lawn care | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 509.8 | 534.3 | 628.6 | 679.7 |
U.S. Consumer | Growing media and mulch | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 591.5 | 517.2 | 663.5 | 614.3 |
U.S. Consumer | Controls | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 137.1 | 134.6 | 190.5 | 192.8 |
U.S. Consumer | Roundup® marketing agreement | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 64.6 | 70.7 | 88 | 91 |
U.S. Consumer | Other, primarily gardening | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 76.8 | 100.6 | 115.9 | 148.5 |
Hawthorne | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 66.4 | 92.7 | 146.6 | 224.2 |
Hawthorne | Lighting | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 16.1 | 18.1 | 48 | 68.4 |
Hawthorne | Nutrients | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 24.6 | 24.4 | 41.2 | 47.2 |
Hawthorne | Growing environments | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 6.3 | 16 | 17.8 | 41.5 |
Hawthorne | Growing media | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 10.2 | 18.5 | 21.4 | 36.3 |
Hawthorne | Other, primarily hardware | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 9.2 | 15.7 | 18.2 | 30.8 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 79.2 | 81.4 | 102.7 | 107.6 |
Other | Lawn care | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 31.5 | 29.7 | 33.8 | 32.3 |
Other | Growing media | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 23.3 | 24.9 | 36.5 | 40.3 |
Other | Other, primarily gardening and controls | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 24.4 | $ 26.8 | $ 32.4 | $ 35 |
SEGMENT INFORMATION - Net Sal_3
SEGMENT INFORMATION - Net Sales by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,525.4 | $ 1,531.5 | $ 1,935.8 | $ 2,058.1 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,441.7 | 1,447.2 | 1,807.5 | 1,912.2 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 83.7 | $ 84.3 | $ 128.3 | $ 145.9 |