v3.26.1
SEGMENT INFORMATION
9 Months Ended
Jun. 27, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION
As a result of the classification of the Hawthorne business as a discontinued operation, the Company’s reportable segments for the three and nine months ended June 27, 2026 differ from prior periods. The prior period amounts have been reclassified to reflect the removal of Hawthorne as a reportable segment and from results of continuing operations. The Company has two operating segments: U.S. Consumer and Other; and one reportable segment: U.S. Consumer. Management has chosen to organize the entity primarily around differences in geographic areas. U.S. Consumer consists of the Company’s consumer lawn and garden business in the United States. Other primarily consists of the Company’s consumer lawn and garden business in Canada and does not meet any of the quantitative thresholds requiring separate reportable segment disclosures. This identification of operating segments is consistent with how the segments are managed by the Chief Executive Officer, who has been determined to be the chief operating decision maker (“CODM”) of the Company. The Company is not managed on a consolidated basis. In addition, Corporate consists of general and administrative expenses and certain other income and expense items not allocated to the Company’s operating segments. The accounting policies of the segments are the same as those described in the Company’s summary of significant accounting policies.
The CODM uses Segment Profit (Loss), which is defined as income (loss) from continuing operations before income taxes, amortization, impairment, restructuring and other charges (“Segment Profit (Loss)”), to evaluate segment performance, monitor actual results as compared to plan and inform resource allocation decisions. The Company believes this measure is indicative of performance trends and the overall earnings potential of each segment. Asset information and capital expenditures by segment are not provided to the CODM and they are not utilized for the purposes of assessing performance or allocating resources, and therefore such information has not been presented.
The following table presents net sales by segment and a reconciliation to the Company’s consolidated net sales for the periods indicated:
Three Months EndedNine Months Ended
June 27,
2026
June 28,
2025
June 27,
2026
June 28,
2025
U.S. Consumer reportable segment$1,032.9 $1,030.2 $2,738.4 $2,682.6 
Other non-reportable operating segment139.2 129.1 247.7 233.1 
Consolidated$1,172.1 $1,159.3 $2,986.1 $2,915.7 
The following table presents Segment Profit (Loss), including the significant segment expenses provided to the CODM, and a reconciliation to income from continuing operations before income taxes for the periods indicated:
Three Months EndedNine Months Ended
June 27,
2026
June 28,
2025
June 27,
2026
June 28,
2025
U.S. Consumer reportable segment
Net sales$1,032.9 $1,030.2 $2,738.4 $2,682.6 
Adjusted cost of sales (a)
694.7 682.3 1,722.9 1,716.9 
Adjusted selling, general and administrative (b)
104.0 105.0 324.6 311.5 
Other segment items (c)
4.4 7.6 14.8 17.0 
Segment Profit229.8 235.2 676.1 637.2 
Other non-reportable operating segment profit18.6 16.9 29.0 22.8 
Corporate (d)
(29.9)(28.7)(99.9)(97.7)
Intangible asset amortization(0.7)(0.7)(2.0)(2.0)
Total impairment, restructuring and other (e)
(48.2)(0.9)(53.5)(34.6)
Equity in income of unconsolidated affiliates29.2 25.3 11.6 9.5 
Interest expense(28.0)(31.8)(86.5)(102.2)
Other non-operating expense, net(15.6)(1.3)(17.9)(3.9)
Income from continuing operations before income taxes$155.2 $214.0 $456.9 $429.1 
(a)“Adjusted cost of sales” is defined as cost of sales excluding intangible asset amortization, and does not include activity classified as impairment, restructuring and other.
(b)“Adjusted selling, general and administrative” is defined as selling, general and administrative expenses excluding intangible asset amortization, and does not include activity classified as impairment, restructuring and other.
(c)Other segment items consist of activities such as the discount on sales of accounts receivable under the Master Receivables Purchase Agreement, royalty income from the licensing of certain of the Company’s brand names and foreign exchange transaction gains and losses.
(d)The Company incurs costs attributable to corporate functions such as corporate finance, human resources, legal, communications, corporate affairs, corporate travel and corporate executive costs which are considered corporate costs of the Company and not allocated to the segments.
(e)Total impairment, restructuring and other is comprised of the activity classified within the “Cost of sales—impairment, restructuring and other” and “Impairment, restructuring and other” lines in the Condensed Consolidated Statements of Operations. Refer to “NOTE 4. IMPAIRMENT, RESTRUCTURING AND OTHER” for further details.
The following table presents certain other segment disclosures for the periods indicated:
Three Months EndedNine Months Ended
June 27,
2026
June 28,
2025
June 27,
2026
June 28,
2025
Depreciation and amortization:
U.S. Consumer$14.8 $13.5 $43.2 $40.7 
Share-based compensation:
U.S. Consumer (a)
$4.3 $11.3 $13.1 $31.0 
(a)    Includes certain advertising expenses paid for in Common Shares for the three and nine months ended June 28, 2025.
The following table presents net sales by product category for the periods indicated:
Three Months EndedNine Months Ended
June 27,
2026
June 28,
2025
June 27,
2026
June 28,
2025
U.S. Consumer:
Growing media and mulch$589.5 $601.2 $1,262.3 $1,290.7 
Lawn care216.6 227.6 831.6 804.3 
Controls136.0 113.1 345.9 305.4 
Roundup® marketing agreement
43.1 42.1 151.8 132.9 
Other, primarily gardening47.7 46.2 146.8 149.3 
Other:
Growing media56.3 51.2 92.4 87.0 
Lawn care48.6 42.0 84.4 72.7 
Other, primarily gardening and controls34.3 35.9 70.9 73.4 
Total net sales$1,172.1 $1,159.3 $2,986.1 $2,915.7