Document and Entity Information (USD $)
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12 Months Ended | ||
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Sep. 30, 2010
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Nov. 18, 2010
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Apr. 02, 2010
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Document and Entity Information [Abstract] | |||
Entity Registrant Name | SCOTTS MIRACLE-GRO CO | ||
Entity Central Index Key | 0000825542 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2010 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2010 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,182,734,513 | ||
Entity Common Stock, Shares Outstanding | 66,596,695 |
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If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements this will be the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type should be limited to the same value as the supporting SEC submission type. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, NCSR, N-Q, and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No definition available.
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- Definition
Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A. No definition available.
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- Details
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- Definition
The aggregate amount provided for restructuring charges, remediation costs, and asset impairment loss during an accounting period. These items specifically relate to cost of sales, such as inventory. No definition available.
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- Definition
The aggregate costs and expenses related to product registration and recall matters, primarily associated with the reworking of certain finished goods inventories and the disposal of certain products. No definition available.
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- Definition
The net amount of other operating income and expense, not previously categorized, from items that are associated with the entity's normal operations. No definition available.
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- Definition
The total amount of operating costs and general and administrative expenses, such as consulting and legal costs, incurred during the reporting period related to product registration and recall matters. No definition available.
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- Definition
The aggregate costs related to goods produced and sold and services rendered by an entity during the reporting period. This excludes costs incurred during the reporting period related to financial services rendered and other revenue generating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity. No definition available.
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- Definition
This element represents the income or loss from continuing operations attributable to the reporting entity which may also be defined as revenue less expenses and taxes from ongoing operations before extraordinary items and cumulative effects of changes in accounting principles, but after deduction of those portions of income or loss from continuing operations that are allocable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of operating profit and nonoperating income (expense) before income (loss) from equity method investments, income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of income (loss) from continuing operations per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of income (loss) from continuing operations available to each share of common stock outstanding during the reporting period and each share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
This element represents the overall income (loss) from a disposal group apportioned to the parent that is classified as a component of the entity, net of income tax, reported as a separate component of income before extraordinary items and the cumulative effect of accounting changes after deduction or consideration of the amount which may be allocable to noncontrolling interests, if any. Includes the following (net of tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of income (loss) from disposition of discontinued operations, net of related tax effect, per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of income (loss) from discontinued operations, net of related tax effect, per each diluted share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cost of borrowed funds accounted for as interest that was charged against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The net result for the period of deducting operating expenses from operating revenues. No definition available.
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- Definition
The aggregate amount provided for estimated restructuring charges, remediation costs, and asset impairment loss during an accounting period. Generally, these items are either unusual or infrequent, but not both (in which case they would be extraordinary items). No definition available.
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- Definition
Total revenue from sale of goods and services rendered during the reporting period, in the normal course of business, reduced by sales returns and allowances, and sales discounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value and other charges necessary to reflect assets at their estimated net realizable value. No definition available.
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- Definition
The excess or deficiency of net proceeds from sale in the period compared to carrying value of long-lived assets as of consummation date of the sale. No definition available.
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- Definition
The net change during the reporting period in the aggregate amount of expenses incurred but not yet paid. No definition available.
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- Definition
The net change during the reporting period in the value of other non-current assets or non-current liabilities used in operating activities, that are not otherwise defined in the taxonomy. No definition available.
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- Definition
The cash inflow from the sale of long-lived assets. No definition available.
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- Definition
The aggregate amount of recurring noncash expense charged against earnings in the period to allocate the cost of intangible assets over their estimated remaining economic lives. No definition available.
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- Details
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change between the beginning and ending balance of cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of expense recognized in the current period that reflects the allocation of the cost of tangible assets over the assets' useful lives. Includes production and non-production related depreciation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change during the reporting period in the aggregate amount of obligations due within one year (or one business cycle). This may include trade payables, amounts due to related parties, royalties payable, and other obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change during the reporting period in the value of this group of assets within the working capital section. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of cash paid during the current period for interest owed on money borrowed, net of interest capitalized. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow from the distribution of an entity's earnings in the form of dividends to common shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow paid to third parties in connection with debt origination, which will be amortized over the remaining maturity period of the associated long-term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow to acquire asset without physical form usually arising from contractual or other legal rights, excluding goodwill. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash inflow from a borrowing with the highest claim on the assets of the entity in case of bankruptcy or liquidation (with maturities initially due after one year or beyond the operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash inflow from a contractual arrangement with the lender, including letter of credit, standby letter of credit and revolving credit arrangements, under which borrowings can be made up to a specific amount at any point in time with maturities due beyond one year or the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash inflow associated with the amount received from holders exercising their stock options. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow for the settlement of obligation drawn from a contractual arrangement with the lender, including letter of credit, standby letter of credit and revolving credit arrangements, under which borrowings can be made up to a specific amount at any point in time with maturities due beyond one year or the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow for a borrowing supported by a written promise to pay an obligation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Net total increase (decrease) in the accrual for restructuring costs during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Consolidated Statements of Cash Flows (Parenthetical)
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12 Months Ended |
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Sep. 30, 2010
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FINANCING ACTIVITIES | |
Senior Notes interest rate stated percentage | 7.25% |
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- Definition
Senior Note Interest Rate Stated Percentage. No definition available.
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- Details
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- Definition
Carrying amount as of the balance sheet date of expenditures made in advance of the timing of recognition of expenses which are expected to be charged against earnings within one year or the normal operating cycle, if longer. Also includes the aggregate carrying amount of current assets not separately presented elsewhere in the balance sheet. These are expected to be realized or consumed within one year (or the normal operating cycle, if longer). No definition available.
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. This caption alerts the reader that one or more notes to the financial statements disclose pertinent information about the entity's commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Aggregate of par value plus amounts in excess of par value or issuance value (in cases of no-par value stock) for common stock held by shareholders. Aggregate value for common stock issued and outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of FAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). No definition available.
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X | ||||||||||
- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No definition available.
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X | ||||||||||
- Definition
Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Details
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X | ||||||||||
- Definition
Sum of the carrying values as of the balance sheet date of all long-term debt, which is debt initially having maturities due after one year from the balance sheet date or beyond the operating cycle, if longer, but excluding the portions thereof scheduled to be repaid within one year or the normal operating cycle, if longer plus capital lease obligations due to be paid more than one year after the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes payable, bonds payable, debentures, mortgage loans, and commercial paper, which are scheduled to be repaid within one year or the normal operating cycle, if longer, and after deducting unamortized discount or premiums, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Aggregate carrying amount, as of the balance sheet date, of current obligations not separately disclosed in the balance sheet due to materiality considerations. Current liabilities are expected to be paid within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The fair value, as of the date of each statement of financial position presented, of finance receivables which are owned but transferred to serve as collateral for the payment of the related debt obligation, and that are reclassified and separately reported in the statement of financial position. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Value of common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Treasury stock is issued but is not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified |
Sep. 30, 2010
|
Sep. 30, 2009
|
---|---|---|
Current assets: | ||
Allowances for accounts receivable | $ 10.4 | $ 11.1 |
Shareholders' equity: | ||
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares issued | 66.8 | 66.2 |
Common shares, shares outstanding | 66.8 | 66.2 |
Treasury shares, at cost, shares | 1.8 | 2.4 |
X | ||||||||||
- Definition
A valuation allowance for trade and other receivables due to an Entity within one year (or the normal operating cycle, whichever is longer) that are expected to be uncollectible. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Excludes common shares repurchased by the entity and held as Treasury shares. Shares outstanding equals shares issued minus shares held in treasury. Does not include common shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
This element represents the amount of recognized share-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Cumulative net-of-tax effect of initial adoption of FIN 48 - Accounting for Uncertainty in Income Taxes on the opening balance of retained earnings. The cumulative-effect adjustment does not include items that would not be recognized in earnings, such as the effect of adopting this Interpretation on tax positions related to business combinations. The amount of that cumulative-effect adjustment is the difference between the net amount of assets and liabilities recognized in the statement of financial position prior to the application of this Interpretation and the net amount of assets and liabilities recognized as a result of applying the provisions of this Interpretation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Common stock cash dividend declared by an entity during the period. This element includes paid and unpaid dividends declared during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Net changes to accumulated comprehensive income during the period related to benefit plans, after tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Number of shares of stock issued as of the balance sheet date, including shares that had been issued and were previously outstanding but which are now held in the treasury. No definition available.
|
X | ||||||||||
- Definition
Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
This element represents movements included in the statement of changes in stockholders' equity which are not separately disclosed or provided for elsewhere in the taxonomy. No definition available.
|
X | ||||||||||
- Definition
Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Number of shares that have been repurchased during the period and are being held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Consolidated Statements of Shareholders Equity (Parenthetical) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2010
|
Sep. 30, 2009
|
Sep. 30, 2008
|
|
Dividends declared/paid per share | $ 0.625 | $ 0.5 | $ 0.5 |
Retained Earnings
|
|||
Dividends declared/paid per share | $ 0.625 | $ 0.5 | $ 0.5 |
X | ||||||||||
- Definition
Aggregate dividends paid during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Summary of Significant Accounting Policies
|
12 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2010
|
|||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nature
of Operations
The Scotts Miracle-Gro Company (“Scotts Miracle-Gro”)
and its subsidiaries (collectively, together with Scotts
Miracle-Gro, the “Company”) are engaged in the
manufacturing, marketing and sale of consumer branded products
for lawn and garden care and professional horticulture products.
The Company’s primary customers include home centers, mass
merchandisers, warehouse clubs, large hardware chains,
independent hardware stores, nurseries, garden centers, food and
drug stores, commercial nurseries and greenhouses and specialty
crop growers. The Company’s products are sold primarily in
North America and the European Union. The Company also operates
the Scotts
LawnService®
business, which provides residential and commercial lawn care,
tree and shrub care and limited pest control services in the
United States.
After its acquisition in fiscal 2005, the Company operated
Smith &
Hawken®1,
an outdoor living and garden lifestyle category brand. As
discussed in “NOTE 2. DISCONTINUED OPERATIONS,”
on July 8, 2009, Scotts Miracle-Gro announced its intention
to close the Smith & Hawken business by the end of
calendar 2009. During the Company’s first quarter of fiscal
2010, all Smith & Hawken stores were closed and
substantially all operational activities of Smith &
Hawken were discontinued.
Due to the nature of the lawn and garden business, the majority
of sales to customers occur in the Company’s second and
third fiscal quarters. On a combined basis, net sales for the
second and third fiscal quarters generally represent 70% to 75%
of annual net sales.
Organization
and Basis of Presentation
The Company’s consolidated financial statements are
presented in accordance with accounting principles generally
accepted in the United States of America (“GAAP”). The
consolidated financial statements include the accounts of Scotts
Miracle-Gro and all wholly-owned and majority-owned
subsidiaries. All intercompany transactions and accounts are
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.
Use
of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that
affect the amounts reported in the consolidated financial
statements and accompanying notes. Although these estimates are
based on management’s best knowledge of current events and
actions the Company may undertake in the future, actual results
ultimately may differ from the estimates.
Revenue
Recognition
Revenue is recognized when title and risk of loss transfer,
which generally occurs when products or services are received by
the customer. Provisions for estimated returns and allowances
are recorded at the time revenue is recognized based on
historical rates and are periodically adjusted for known changes
in return levels. Outbound shipping and handling costs are
included in cost of sales.
1 Smith &
Hawken®
is a registered trademark of Target Brands, Inc. The Company
sold the Smith & Hawken brand and certain intellectual
property rights related thereto to Target Brands, Inc. on
December 30, 2009, and subsequently changed the name of the
subsidiary entity formerly known as Smith & Hawken,
Ltd. to Teak 2, Ltd. References in this Annual Report on
Form 10-K
to Smith & Hawken refer to Scotts Miracle-Gro’s
subsidiary entity, not the brand itself.
Under the terms of the Amended and Restated Exclusive Agency and
Marketing Agreement (the “Marketing Agreement”)
between the Company and Monsanto Company (“Monsanto”),
the Company, in its role as exclusive agent, performs certain
functions, primarily manufacturing conversion, distribution and
logistics, and selling and marketing support on behalf of
Monsanto in the conduct of the consumer
Roundup®2
business. The actual costs incurred by the Company on behalf of
the consumer
Roundup®
business are recovered from Monsanto through the terms of the
Marketing Agreement. The reimbursement of costs for which the
Company is considered the primary obligor is included in net
sales.
Promotional
Allowances
The Company promotes its branded products through, among other
things, cooperative advertising programs with retailers.
Retailers may also be offered in-store promotional allowances
and rebates based on sales volumes. Certain products are
promoted with direct consumer rebate programs and special
purchasing incentives. Promotion costs (including allowances and
rebates) incurred during the year are expensed to interim
periods in relation to revenues and are recorded as a reduction
of net sales. Accruals for expected payouts under these programs
are included in the “Other current liabilities” line
in the Consolidated Balance Sheets.
Advertising
Advertising costs incurred during the year by our Global
Consumer segment are expensed to interim periods in relation to
revenues. All advertising costs, except for external production
costs, are expensed within the fiscal year in which such costs
are incurred. External production costs for advertising programs
are deferred until the period in which the advertising is first
aired.
Scotts
LawnService®
promotes its service offerings primarily through direct mail
campaigns. External costs associated with these campaigns that
qualify as direct response advertising costs are deferred and
recognized as advertising expense in proportion to revenues over
a period not beyond the end of the subsequent calendar year.
Costs that do not qualify as direct response advertising costs
are expensed within the fiscal year incurred on a monthly basis
in proportion to net sales. The costs deferred at
September 30, 2010 and 2009 were $1.5 million and
$2.1 million, respectively.
Advertising expenses were $142.4 million in fiscal 2010,
$127.2 million in fiscal 2009 and $127.7 million in
fiscal 2008.
Research
and Development
All costs associated with research and development are charged
to expense as incurred. Expenses for fiscal 2010, fiscal 2009
and fiscal 2008 were $51.6 million, $56.3 million and
$44.7 million, respectively, including product registration
costs of $12.9 million, $15.6 million and
$9.8 million, respectively.
Environmental
Costs
The Company recognizes environmental liabilities when conditions
requiring remediation are probable and the amounts can be
reasonably estimated. Expenditures which extend the life of the
related property or mitigate or prevent future environmental
contamination are capitalized. Environmental liabilities are not
discounted or reduced for possible recoveries from insurance
carriers.
2 Roundup®
is a registered trademark of Monsanto Technology LLC, a company
affiliated with Monsanto.
Share-Based
Compensation Awards
The fair value of awards is expensed ratably over the vesting
period, generally three years, except in cases where employees
are eligible for accelerated vesting based on having satisfied
retirement requirements relating to age and years of service.
The Company uses a binomial model to determine the fair value of
its option grants.
Earnings
per Common Share
Basic earnings per common share is computed based on the
weighted-average number of common shares outstanding each
period. Diluted earnings per common share is computed based on
the weighted-average number of common shares and dilutive
potential common shares (dilutive stock options, stock
appreciation rights, performance shares, restricted stock and
restricted stock unit awards) outstanding each period.
Cash
and Cash Equivalents
The Company considers all highly liquid financial instruments
with original maturities of three months or less to be cash
equivalents. The Company maintains cash deposits in banks which
from time to time exceed the amount of deposit insurance
available. Management periodically assesses the financial
condition of the Company’s banks and believes that the risk
of any potential credit loss is minimal.
Accounts
Receivable and Allowances
Trade accounts receivable are recorded at the invoiced amount
and do not bear interest. Allowances reflect the Company’s
best estimate of amounts in its existing accounts receivable
that may not be collected due to customer claims, or customer
inability or unwillingness to pay. The allowance is determined
based on the Company’s risk assessment of its customers and
historical experience. Past due balances over 90 days and
in excess of a specified amount are reviewed individually for
collectability. All other balances are reviewed on a pooled
basis by type of receivable. Account balances are charged off
against the allowance when the Company believes it is probable
the receivable will not be recovered.
Inventories
Inventories are stated at the lower of cost or market,
principally determined by the FIFO method of accounting, using
an average costing approach. Inventories include the cost of raw
materials, labor, manufacturing overhead and freight and
in-bound handling costs incurred to pre-position goods in the
Company’s warehouse network. The Company makes provisions
for obsolete or slow-moving inventories as necessary to properly
reflect inventory at the lower of cost or market value. Reserves
for excess and obsolete inventories were $21.1 million and
$33.0 million at September 30, 2010 and 2009,
respectively.
Long-lived
Assets
Property, plant and equipment are stated at cost. Interest
capitalized on capital projects amounted to $0.8 million,
$0.4 million and $0.3 million during fiscal 2010,
fiscal 2009 and fiscal 2008, respectively. Expenditures for
maintenance and repairs are charged to expense as incurred. When
properties are retired or otherwise disposed of, the cost of the
asset and the related accumulated depreciation are removed from
the accounts with the resulting gain or loss being reflected in
income from operations.
Depreciation of property, plant and equipment is provided on the
straight-line method and is based on the estimated useful
economic lives of the assets as follows:
Intangible assets with finite lives, and therefore subject to
amortization, include technology (e.g., patents),
customer relationships, non-compete agreements and certain
tradenames. These intangible assets are being amortized on the
straight-line method over periods typically ranging from 3 to
25 years. The Company’s fixed assets and intangible
assets subject to amortization are required to be tested for
recoverability whenever events or changes in circumstances
indicate that carrying amounts may not be recoverable. If an
evaluation of recoverability was required, the estimated
undiscounted future cash flows associated with the asset would
be compared to the asset’s carrying amount to determine if
a write-down is required. If the undiscounted cash flows are
less than the carrying amount, an impairment loss is recorded to
the extent that the carrying amount exceeds fair value.
The Company had noncash investing activities of
$11.4 million, representing unpaid liabilities incurred
during fiscal 2010 to acquire property, plant and equipment.
Internal
Use Software
The costs of internal use software are expensed or capitalized
depending on whether they are incurred in the preliminary
project stage, application development stage or the
post-implementation/operation stage. As of September 30,
2010 and 2009, the Company had $32.5 million and
$23.4 million, respectively, in unamortized capitalized
internal use computer software costs. Amortization of these
costs was $8.2 million, $8.2 million and
$7.2 million during fiscal 2010, fiscal 2009 and fiscal
2008, respectively.
Goodwill
and Indefinite-lived Intangible Assets
Goodwill and intangible assets determined to have indefinite
lives are not subject to amortization. Goodwill and
indefinite-lived intangible assets are reviewed for impairment
by applying a fair-value based test on an annual basis, as of
the first day of the Company’s fiscal fourth quarter, or
more frequently if circumstances indicate a potential
impairment. If it is determined that an impairment has occurred,
an impairment loss is recognized for the amount by which the
carrying amount of the asset exceeds its estimated fair value
and classified as “Impairment, restructuring and other
charges” in the Consolidated Statements of Operations.
Accruals
for Self-Insured Losses
The Company maintains insurance for certain risks, including
workers’ compensation, general liability and vehicle
liability, and is self-insured for employee-related health care
benefits up to a specified level for individual claims. The
Company accrues for the expected costs associated with these
risks by considering historical claims experience, demographic
factors, severity factors and other relevant information. Costs
are recognized in the period the claim is incurred, and the
financial statement accruals include an actuarially determined
estimate of claims incurred but not yet reported.
Income
Taxes
The Company uses the asset and liability method to account for
income taxes. Deferred tax assets and liabilities are recognized
for the anticipated future tax consequences attributable to
differences between financial statement amounts and their
respective tax bases. Management reviews the Company’s
deferred tax assets to
determine whether their value can be realized based upon
available evidence. A valuation allowance is established when
management believes that it is more likely than not that some
portion of its deferred tax assets will not be realized. Changes
in valuation allowances from period to period are included in
the Company’s tax provision in the period of change.
The Company establishes a liability for tax return positions in
which there is uncertainty as to whether or not the position
will ultimately be sustained. Amounts for uncertain tax
positions are adjusted in quarters when new information becomes
available or when positions are effectively settled. The Company
recognizes interest expense and penalties related to these
unrecognized tax benefits within income tax expense.
U.S. income tax expense and foreign withholding taxes are
provided on unremitted foreign earnings that are not
indefinitely reinvested at the time the earnings are generated.
Where foreign earnings are indefinitely reinvested, no provision
for U.S. income or foreign withholding taxes is made. When
circumstances change and the Company determines that some or all
of the undistributed earnings will be remitted in the
foreseeable future, the Company accrues an expense in the
current period for U.S. income taxes and foreign
withholding taxes attributable to the anticipated remittance.
Translation
of Foreign Currencies
For all foreign operations, the functional currency is the local
currency. Assets and liabilities of these operations are
translated at the exchange rate in effect at each year-end.
Income and expense accounts are translated at the average rate
of exchange prevailing during the year. Translation gains and
losses arising from the use of differing exchange rates from
period to period are included in other comprehensive income
(loss), a component of shareholders’ equity. Foreign
currency transaction gains and losses are included in the
determination of net income (loss).
Derivative
Instruments
In the normal course of business, the Company is exposed to
fluctuations in interest rates, the value of foreign currencies
and the cost of commodities. A variety of financial instruments,
including forward and swap contracts, are used to manage these
exposures. The Company’s objective in managing these
exposures is to better control these elements of cost and
mitigate the earnings and cash flow volatility associated with
changes in the applicable rates and prices.
The Company has established policies and procedures that
encompass risk-management philosophy and objectives, guidelines
for derivative-instrument usage, counterparty credit approval,
and the monitoring and reporting of derivative activity. The
Company does not enter into derivative instruments for the
purpose of speculation.
Variable
Interest Entities
GAAP provides a framework for identifying variable interest
entities (“VIEs”) and determining when a company
should include the assets, liabilities, noncontrolling interests
and results of operations of a VIE in its consolidated financial
statements. In general, a VIE is a corporation, partnership,
limited liability company, trust or any other legal structure
used to conduct activities or hold assets that either:
(1) has an insufficient amount of equity to carry out its
principal activities without additional subordinated financial
support, (2) has a group of equity owners that are unable
to make significant decisions about its activities or
(3) has a group of equity owners that do not have the
obligation to absorb losses or the right to receive returns
generated by its operations.
GAAP requires a VIE to be consolidated if a party with an
ownership, contractual or other financial interest in the VIE (a
variable interest holder) is obligated to absorb a majority of
the risk of loss from the VIE’s activities, is entitled to
receive a majority of the VIE’s residual returns (if no
party absorbs a majority of the VIE’s losses), or both. A
variable interest holder that consolidates the VIE is called the
primary beneficiary. Upon consolidation, the
primary beneficiary generally must initially record all of the
VIE’s assets, liabilities and noncontrolling interests at
fair value and subsequently account for the VIE as if it were
consolidated based on majority voting interest. GAAP also
requires disclosures about VIEs that the variable interest
holder is not required to consolidate but in which it has a
significant variable interest.
The Company’s Scotts
LawnService®
business sells new franchise territories, primarily in small to
mid-size markets, under arrangements where a portion of the
franchise fee is paid in cash with the balance due under a
promissory note. The Company believes that it may be the primary
beneficiary for certain of its franchisees initially, but ceases
to be the primary beneficiary as the franchisees develop their
businesses and the promissory notes are repaid. At both
September 30, 2010 and 2009, the Company had approximately
$2.4 million in notes receivable from such franchisees. The
effect of consolidating the entities where the Company may be
the primary beneficiary for a limited period of time is not
material to the consolidated financial statements.
RECENT
ACCOUNTING PRONOUNCEMENTS
Business
Combinations
In December 2007, the Financial Accounting Standards Board (the
“FASB”) issued new accounting guidance on business
combinations and noncontrolling interests in consolidated
financial statements. The objective is to improve the relevance,
representational faithfulness and comparability of the
information that a reporting entity provides in its financial
reports about a business combination and its effects. The
guidance applies to all transactions or other events in which an
entity (the “acquirer”) obtains control of one or more
businesses (the “acquiree”), including those sometimes
referred to as “true mergers” or “mergers of
equals” and combinations achieved without the transfer of
consideration. The guidance, among other things, requires
companies to provide disclosures relating to the gross amount of
goodwill and accumulated goodwill impairment losses. In April
2009, the FASB issued additional guidance which addresses
application issues arising from contingencies in a business
combination. The Company adopted the new guidance beginning
October 1, 2009. The Company had no acquisition activity
for fiscal 2010, and the adoption of the new guidance did not
impact the Company’s financial statements. Refer to
“NOTE 5. GOODWILL AND INTANGIBLE ASSETS, NET” for
applicable disclosures regarding the gross amount of goodwill
and accumulated goodwill impairment losses.
Employers’
Disclosures about Postretirement Benefit Plan
Assets
In December 2008, the FASB issued new accounting guidance on
employers’ disclosures about assets of a defined benefit
pension or other postretirement plan. It requires employers to
disclose information about fair value measurements of plan
assets. The objectives of the disclosures are to provide an
understanding of: (a) how investment allocation decisions
are made, including the factors that are pertinent to an
understanding of investment policies and strategies;
(b) the major categories of plan assets; (c) the
inputs and valuation techniques used to measure the fair value
of plan assets; (d) the effect of fair value measurements
using significant unobservable inputs on changes in plan assets
for the period; and (e) significant concentrations of risk
within plan assets. The Company adopted this new guidance at
September 30, 2010, the fair value measurement date of its
defined benefit pension and retiree medical plans. Refer to
“NOTE 9. RETIREMENT PLANS” for the applicable
disclosures.
Variable
Interest Entities
In June 2009, the FASB issued new accounting guidance requiring
an enterprise to perform an analysis to determine whether the
enterprise’s variable interest or interests give it a
controlling financial interest in a variable interest entity.
The new guidance also requires enhanced disclosures that will
provide users of financial statements with more transparent
information about an enterprise’s involvement in a variable
interest entity. The provisions are effective for the
Company’s financial statements for the fiscal year that
began October 1, 2010. The Company is in the process of
evaluating the impact that the guidance may have on its
financial statements and related disclosures.
Revenue
Recognition — Multiple-Element
Arrangements
In October 2009, the FASB issued new accounting guidance
addressing the accounting for multiple-deliverable arrangements
to enable entities to account for products or services
(deliverables) separately rather than as a combined unit. The
provisions establish the accounting and reporting guidance for
arrangements under which the entity will perform multiple
revenue-generating activities. Specifically, this guidance
addresses how to separate deliverables and how to measure and
allocate arrangement consideration to one or more units of
accounting. The provisions are effective for the Company’s
financial statements for the fiscal year that began
October 1, 2010. The Company is in the process of
evaluating the impact that the guidance may have on its
financial statements and related disclosures.
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
This element may be used to describe all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Discontinued Operations
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2010
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Discontinued Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS |
On July 8, 2009, Scotts Miracle-Gro announced that its
wholly-owned subsidiary, Smith & Hawken, Ltd., had
adopted a plan to close the Smith & Hawken business.
During the Company’s first quarter of fiscal 2010, all
Smith & Hawken stores were closed and substantially
all operational activities of Smith & Hawken were
discontinued. As a result, effective in its first quarter of
fiscal 2010, the Company classified Smith & Hawken as
discontinued operations. Accordingly, the Company has
reclassified its results of operations for fiscal 2009 and
fiscal 2008 to reflect Smith & Hawken as discontinued
operations separate from the Company’s results of
continuing operations.
In fiscal 2010, the Company incurred $18.3 million of
charges related to the liquidation of the Smith &
Hawken business primarily associated with the termination of
retail site lease obligations, third-party agency fees and
severance and benefit commitments. These charges, primarily
recorded in the Company’s first quarter of fiscal 2010,
were partially offset by a gain of approximately
$18 million from the sale of the Smith & Hawken
intellectual property on December 30, 2009.
The Company recorded Smith & Hawken-related
impairment, restructuring and other charges of
$14.7 million and $25.7 million in fiscal 2009 and
fiscal 2008, respectively. Other charges in fiscal 2009 related
to the Smith & Hawken closure process. Impairment,
restructuring and other charges in fiscal 2008 for
Smith & Hawken included $15.4 million for
property, plant and equipment and $10.3 million for
intangible assets.
The fiscal 2009 income tax expense for discontinued operations
included the reduction of $18.4 million of valuation
allowances recorded in prior years to fully reserve deferred tax
assets that originated from impairment charges recorded for the
Smith & Hawken business in fiscal 2007 and fiscal
2008. In fiscal 2008, when the Company was attempting to sell
Smith & Hawken, the Company concluded that it would
not receive any future tax benefit from these deferred tax
assets as a stock sale would have resulted in a non-deductible
capital loss. Given the Company’s fourth quarter fiscal
2009 decision to close the Smith & Hawken business,
the Company concluded that the character of the losses generated
would change from capital to ordinary and as an outcome, would
be deductible for tax purposes.
The following table summarizes results of Smith &
Hawken classified as discontinued operations in the
Company’s Consolidated Statements of Operations for fiscal
2010, fiscal 2009 and fiscal 2008 (in millions):
The major classes of assets and liabilities of Smith &
Hawken were as follows (in millions):
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Disclosure includes the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain or loss recognized in the income statement and the income statement caption that includes that gain or loss, amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Product Registration and Recall Matters
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2010
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Product Registration and Recall Matters [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRODUCT REGISTRATION AND RECALL MATTERS |
In April 2008, the Company became aware that a former associate
apparently deliberately circumvented the Company’s policies
and U.S. Environmental Protection Agency
(“U.S. EPA”) regulations under the Federal
Insecticide, Fungicide, and Rodenticide Act of 1947, as amended
(“FIFRA”), by failing to obtain valid registrations
for certain products
and/or
causing certain invalid product registration forms to be
submitted to regulators. Since that time, the Company has been
cooperating with both the U.S. EPA and the
U.S. Department of Justice (the “U.S. DOJ”)
in related civil and criminal investigations into the pesticide
product registration issues as well as a state civil
investigation into related allegations arising under state
pesticide registration laws and regulations.
In late April of 2008, in connection with the
U.S. EPA’s investigation, the Company conducted a
consumer-level recall of certain consumer lawn and garden
products and a Scotts
LawnService®
product. Subsequently, the Company and the U.S. EPA agreed
upon a Compliance Review Plan for conducting a comprehensive,
independent review of the Company’s product registration
records. Pursuant to the Compliance Review Plan, an independent
third-party firm, Quality Associates Incorporated
(“QAI”), reviewed substantially all of the
Company’s U.S. pesticide product registrations and
associated advertisements, some of which were historical in
nature and no longer related to sales of the Company’s
products. The U.S. EPA investigation and the QAI review
process resulted in the temporary suspension of sales and
shipments of certain products. In addition, as the QAI review
process or the Company’s internal review identified
potential FIFRA registration issues (some of which appear
unrelated to the actions of the former associate), the Company
endeavored to stop selling or distributing the affected products
until the issues could be resolved. QAI’s review of the
Company’s U.S. pesticide product registrations and
associated advertisements is now substantially complete. The
results of the QAI review process did not materially affect the
Company’s fiscal 2009 and fiscal 2010 sales, and are not
expected to materially affect the Company’s fiscal 2011
sales.
In fiscal 2008, the Company conducted a voluntary recall of
certain of its wild bird food products due to a formulation
issue. Certain wild bird food products had been treated with
pest control additives to avoid insect infestation, especially
at retail stores. While the pest control additives had been
labeled for use on certain stored grains that can be processed
for human
and/or
animal consumption, they were not labeled for use on wild bird
food products. In October, 2008, the U.S. Food &
Drug Administration concluded that the recall had been completed
and that there had been proper disposition of the recalled
products. The results of the wild bird food recall did not
materially affect the Company’s fiscal 2009 financial
condition, results of operations or cash flows.
In June of 2008, the California Department of Pesticide
Regulation (“CDPR”) issued a request for information
to the Company relating to products that had been the subject of
the April 2008 recall. The Company cooperated with that inquiry
and reached agreement with CDPR that CDPR would place its
investigation on hold pending the completion of the
Company’s internal audit. In furtherance of that agreement,
in May of 2010, the Company and CDPR executed a tolling
agreement that extends CDPR’s rights through April 2012. In
July of 2010, CDPR notified the Company that CDPR planned to
proceed with its investigation independent of the U.S. EPA
and U.S. DOJ. The Company is continuing to cooperate with
CDPR’s investigation.
As a result of these registration and recall matters, the
Company has reversed sales associated with estimated returns of
affected products, recorded charges for affected inventory and
recorded other registration and recall-related costs. The
effects of these adjustments were pre-tax charges of
$8.7 million, $28.6 million and $51.1 million for
the years ended September 30, 2010, 2009 and 2008,
respectively. The Company expects to incur an additional
$8-$10 million in fiscal 2011 on recall and registration
matters, excluding possible fines, penalties, judgments
and/or
litigation costs. The Company expects that these charges will
include costs associated with the rework of certain finished
goods inventories, the potential disposal of certain products
and ongoing third-party professional services related to the
U.S. EPA, U.S. DOJ and state investigations.
The U.S. EPA, U.S. DOJ and CDPR investigations
continue and may result in future state, federal or private
rights of action including fines
and/or
penalties with respect to known or potential additional product
registration issues. Until the U.S. EPA, U.S. DOJ and
related state investigations are complete, the Company cannot
reasonably determine the scope or magnitude of possible
liabilities that could result from known or potential product
registration issues, and no reserves for these potential
liabilities have been established as of September 30, 2010.
However, it is possible that such liabilities, including fines,
penalties, judgments
and/or
litigation costs could be material and have an adverse effect on
the Company’s financial condition, results of operations or
cash flows.
The following tables summarize the impact of the product
registration and recall matters on the results of operations
during fiscal 2010, fiscal 2009 and fiscal 2008 and on accrued
liabilities and inventory reserves as of September 30, 2010
and 2009 (in millions):
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Description of product recalls and product registration matters, as well as summarized financial information related to these matters. No definition available.
|
Impairment, Restructuring and Other Charges
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2010
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Impairment Restructuring and Other Charges [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES |
The Company recorded intangible asset impairment charges of
$18.5 million in fiscal 2010. The Company recorded net
restructuring and other charges of $1.0 million and
property, plant and equipment charges of $0.3 million in
fiscal 2008 related to the Company’s turfgrass
biotechnology program. Goodwill and intangible asset impairment
charges of $109.8 million were also recorded in fiscal
2008. The nature of the impairment charges are discussed further
in “NOTE 5. GOODWILL AND INTANGIBLE ASSETS, NET.”
The following table details impairment, restructuring and other
charges and rolls forward the cash portion of the restructuring
and other charges accrued in fiscal 2010, fiscal 2009 and fiscal
2008 (in millions):
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Description of impairment, restructuring and other charges during the period. For restructuring costs, this includes a rollforward of the accrual balance for all applicable periods. No definition available.
|
Goodwill and Intangible Assets, Net
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2010
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Goodwill and Intangible Assets, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET |
Goodwill and indefinite-lived intangible assets are not subject
to amortization. Goodwill and indefinite-lived intangible assets
are reviewed for impairment by applying a fair-value based test
on an annual basis or more frequently if circumstances indicate
impairment may have occurred. The Company assesses goodwill for
impairment by comparing the carrying value of its reporting
units to their respective fair values and reviewing the
Company’s market value of invested capital. Management
engages an independent valuation firm to assist in its
impairment assessment reviews. The Company determines the fair
value of its reporting units utilizing discounted cash flows and
incorporates assumptions it believes marketplace participants
would utilize. The Company also uses comparative market
multiples and other factors to corroborate the discounted cash
flow results used. As permitted by GAAP, if certain criteria are
met, the Company carries forward the fair value of a reporting
unit from the previous year. The value of all indefinite-lived
tradenames was determined using a royalty savings methodology
similar to that employed when the associated businesses were
acquired but using updated estimates of sales, cash flow and
profitability.
Fiscal
2010
The Company’s fiscal 2010 impairment review resulted in a
non-cash charge of $18.5 million related to certain brands
and
sub-brands
in its Global Consumer segment that have been discontinued or
de-emphasized, consistent with the Company’s business
strategy to increasingly concentrate its advertising and
promotional spending on fewer, more significant brands to more
efficiently drive growth.
Fiscal
2009
The Company completed its impairment analysis as of
June 28, 2009 and determined that no charge for impairment
was required.
Fiscal
2008
The Company’s fiscal 2008 impairment review resulted in a
non-cash charge of $111.1 million to reflect the decline in
the fair value of certain goodwill and other assets as evidenced
by the decline in the price of the Company’s common shares
as of the measurement date. In total, the fiscal 2008 impairment
charges were comprised of $80.8 million for goodwill,
$11.3 million related to indefinite-lived tradenames and
$19.0 million for long-lived assets. Of the
$19.0 million impairment charge recorded for long-lived
assets, $1.3 million was recorded in cost of sales. On a
reportable segment basis, $64.5 million of the impairment
was in Global Consumer, $38.4 million was in Global
Professional, with the remaining $8.2 million in Corporate.
The following table presents intangible assets as of
September 30, 2010 and 2009 (dollars in millions).
The total amortization expense for the years ended
September 30, 2010, 2009 and 2008 was $10.9 million,
$12.5 million and $16.4 million, respectively.
Amortization expense is estimated to be as follows for the years
ending September 30 (in millions):
The following table displays a rollforward of the carrying
amount of goodwill by reportable segment (in millions):
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X | ||||||||||
- Details
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X | ||||||||||
- Definition
Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Detail of Certain Financial Statement Accounts
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Detail of Certain Financial Statement Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DETAIL OF CERTAIN FINANCIAL STATEMENT ACCOUNTS |
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- Details
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- Definition
Description and amounts of inventories, prepaid and other assets, property, plant and equipment, other current and non-current liabilities and accumulated other comprehensive income (loss) at the end of the reporting period. No definition available.
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Marketing Agreement
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2010
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Marketing Agreement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETING AGREEMENT |
The Company is Monsanto’s exclusive agent for the marketing
and distribution of consumer
Roundup®
herbicide products (with additional rights to new products
containing glyphosate or other similar non-selective herbicides)
in the consumer lawn and garden market within the United States
and other specified countries, including Australia, Austria,
Belgium, Canada, France, Germany, the Netherlands and the United
Kingdom. Under the terms of the Marketing Agreement, the Company
is entitled to receive an annual commission from Monsanto as
consideration for the performance of the Company’s duties
as agent. The annual gross commission under the Marketing
Agreement is calculated as a percentage of the actual earnings
before interest and income taxes (EBIT) of the consumer
Roundup®
business in the markets covered by the Marketing Agreement and
is based on the achievement of two earnings thresholds, as
defined in the Marketing Agreement. The Marketing Agreement also
requires the Company to make annual payments to Monsanto as a
contribution against the overall expenses of the consumer
Roundup®
business. The annual contribution payment is defined in the
Marketing Agreement as $20 million.
In consideration for the rights granted to the Company under the
Marketing Agreement for North America, the Company was required
to pay a marketing fee of $32 million to Monsanto. The
Company has deferred this amount on the basis that the payment
will provide a future benefit through commissions that will be
earned under the Marketing Agreement. Based on management’s
current assessment of the likely term of the Marketing
Agreement, the useful life over which the marketing fee is being
amortized is 20 years.
Under the terms of the Marketing Agreement, the Company performs
certain functions, primarily manufacturing conversion,
distribution and logistics, and selling and marketing support,
on behalf of Monsanto in the conduct of the consumer
Roundup®
business. The actual costs incurred for these activities are
charged to and reimbursed by Monsanto. The Company records costs
incurred under the Marketing Agreement for which the Company is
the primary obligor on a gross basis, recognizing such costs in
“Cost of sales” and the reimbursement of these costs
in “Net sales,” with no effect on gross profit or net
income. The related net sales and cost of sales were
$65.0 million, $67.8 million and $58.0 million
for fiscal 2010, fiscal 2009 and fiscal 2008, respectively.
The gross commission earned under the Marketing Agreement, the
contribution payments to Monsanto and the amortization of the
initial marketing fee paid to Monsanto are included in the
calculation of net sales in the Company’s Consolidated
Statements of Operations. For fiscal 2010, fiscal 2009 and
fiscal 2008, the net amount earned under the Marketing Agreement
was $70.0 million, $51.4 million and
$44.3 million, respectively. The
elements of the net commission earned under the Marketing
Agreement and included in “Net sales” for each of the
three years in the period ended September 30, 2010 were as
follows (in millions):
The Marketing Agreement has no definite term except as it
relates to the European Union countries (the “EU
term”). The EU term extends through September 30,
2011, with up to two additional automatic renewal periods of two
years each, subject to non-renewal only upon the occurrence of
certain performance defaults. Thereafter, the Marketing
Agreement provides that the parties may agree to renew the EU
term for an additional three years.
The Marketing Agreement provides Monsanto with the right to
terminate the Marketing Agreement upon an event of default (as
defined in the Marketing Agreement) by the Company, a change in
control of Monsanto or the sale of the consumer
Roundup®
business. The Marketing Agreement provides the Company with the
right to terminate the Marketing Agreement in certain
circumstances, including an event of default by Monsanto or the
sale of the consumer
Roundup®
business. Unless Monsanto terminates the Marketing Agreement due
to an event of default by the Company, Monsanto is required to
pay a termination fee to the Company that varies by program
year. The termination fee is calculated as a percentage of the
value of the
Roundup®
business exceeding a certain threshold, but in no event will the
termination fee be less than $16 million. If Monsanto were
to terminate the Marketing Agreement due to an event of default
by the Company, however, the Company would not be entitled to
any termination fee, and the Company would lose all, or a
substantial portion, of the significant source of earnings and
overhead expense absorption the Marketing Agreement provides.
Monsanto may also be able to terminate the Marketing Agreement
within a given region, including North America, without paying a
termination fee if unit volume sales to consumers in that region
decline: (1) over a cumulative three-fiscal-year period; or
(2) by more than 5% for each of two consecutive years.
Monsanto has agreed to provide the Company with notice of any
proposed sale of the consumer
Roundup®
business, allow the Company to participate in the sale process
and negotiate in good faith with the Company with respect to any
such proposed sale. In the event the Company acquires the
consumer
Roundup®
business in such a sale, the Company would receive as a credit
against the purchase price the amount of the termination fee
that would have been paid to the Company if Monsanto had
exercised its right to terminate the Marketing Agreement in
connection with a sale to another party. If Monsanto decides to
sell the consumer
Roundup®
business to another party, the Company must let Monsanto know
whether the Company intends to terminate the Marketing Agreement
and forfeit any right to a termination fee or whether it will
agree to continue to perform under the Marketing Agreement on
behalf of the purchaser.
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- Details
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- Definition
Additional information and disclosure related to the exclusive agency agreement of the entity for certain products. No definition available.
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Acquisitions
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12 Months Ended | ||||
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Sep. 30, 2010
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Acquisitions [Abstract] | |||||
ACQUISITIONS |
Effective October 1, 2008, the Company acquired Humax
Horticulture Limited (“Humax”), a privately-owned
growing media company in the United Kingdom, for a total cost of
$9.3 million. Purchase accounting allocations have been
recorded for Humax, including the allocation of the purchase
price to assets acquired and liabilities assumed, based on
estimated fair values at the date of acquisition. Pro forma net
sales, net income and net income per common share for fiscal
2008 would not have been significantly different had the
acquisition of Humax occurred as of October 1, 2007.
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- Details
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X | ||||||||||
- Definition
Description of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Retirement Plans
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Sep. 30, 2010
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Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS |
The Company sponsors a defined contribution 401(k) plan for
substantially all U.S. associates. The Company provides a
base contribution equal to 2% of compensation up to 50% of the
Social Security taxable wage base plus 4% of remaining
compensation. Associates also may make pretax contributions from
compensation that are matched by the Company at 100% of the
associates’ initial 3% contribution and 50% of their
remaining contribution up to 5%. The Company recorded charges of
$14.5 million, $15.3 million and $11.4 million
under the plan in fiscal 2010, fiscal 2009 and fiscal 2008,
respectively. Beginning January 1, 2011, the Company will
no longer provide base contributions and will match 150% of the
associates’ initial 4% contribution and 50% of their
remaining contribution up to 6%.
The Company sponsors two defined benefit plans for certain
U.S. associates. Benefits under these plans have been
frozen and closed to new associates since 1997. The benefits
under the primary plan are based on years of service and the
associates’ average final compensation or stated amounts.
The Company’s funding policy, consistent with statutory
requirements and tax considerations, is based on actuarial
computations using the Projected Unit Credit method. The second
frozen plan is a non-qualified supplemental pension plan. This
plan provides for incremental pension payments so that total
pension payments equal amounts that would have been payable from
the Company’s pension plan if it were not for limitations
imposed by the income tax regulations.
The Company sponsors defined benefit pension plans associated
with its international businesses in the United Kingdom,
the Netherlands, Germany and France. These plans generally cover
all associates of the respective businesses, with retirement
benefits primarily based on years of service and compensation
levels.
On July 1, 2010, the Company froze its two U.K. defined
benefit pension plans and transferred participants to an amended
defined contribution plan. Under the frozen plans, participants
are no longer credited for future service; however, future
salary increases will continue to be factored into each
participant’s final pension benefit. As a result of the
freeze, the Company measured the unfunded status of the U.K.
defined benefit pension plans as of July 3, 2010. The
results of the freeze and remeasurement did not affect the
Company’s results of operations or cash flows, and did not
significantly affect the Company’s financial position.
The following tables present information about benefit
obligations, plan assets, annual expense, assumptions and other
information about the Company’s defined benefit pension
plans (in millions). The defined benefit plans are valued using
a September 30 measurement date.
Other
information
The following table sets forth the fair value of the
Company’s pension plan assets as of September 30, 2010
(in millions), segregated by level within the fair value
hierarchy (refer to “NOTE 16. FAIR VALUE
MEASUREMENTS” for further discussion of the fair value
hierarchy and fair value principles):
The table below sets forth a summary of changes in the fair
value of the Company’s level 3 pension plan assets for
the year ended September 30, 2010 (in millions):
Investment
Strategy
Target allocation percentages among various asset classes are
maintained based on an individual investment policy established
for each of the various pension plans. Asset allocations are
designed to achieve long-term objectives of return, while
mitigating against downside risk and considering expected cash
requirements necessary to fund benefit payments. However, we
cannot predict future investment returns, and therefore cannot
determine whether future pension plan funding requirements could
materially and adversely affect our financial condition, results
of operations or cash flows.
Basis
for Long-Term Rate of Return on Asset
Assumptions
The Company’s expected long-term rate of return on asset
assumptions are derived from studies conducted by third parties.
The studies include a review of anticipated future long-term
performance of individual asset classes and consideration of the
appropriate asset allocation strategy given the anticipated
requirements of the plans to determine the average rate of
earnings expected. While the studies give appropriate
consideration to recent fund performance and historical returns,
the assumptions primarily represent expectations about future
rates of return over the long term.
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X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Description containing the entire pension and other postretirement benefits disclosure as a single block of text. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Associate Medical Benefits
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Sep. 30, 2010
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Associate Medical Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSOCIATE MEDICAL BENEFITS |
The Company provides comprehensive major medical benefits to
certain of its retired associates and their dependents.
Substantially all of the Company’s domestic associates who
were hired before January 1, 1998 become eligible for these
benefits if they retire at age 55 or older with more than
ten years of service. The retiree medical plan requires certain
minimum contributions from retired associates and includes
provisions to limit the overall cost increases the Company is
required to cover. The Company funds its portion of retiree
medical benefits on a pay-as-you-go basis.
The following table sets forth information about the retiree
medical plan for domestic associates (in millions). The retiree
medical plan is valued using a September 30 measurement date.
On December 8, 2003, the Medicare Prescription Drug,
Improvement and Modernization Act (the “Act”) became
law. The Act provides for a federal subsidy to sponsors of
retiree health care benefit plans that provide a prescription
drug benefit that is at least actuarially equivalent to the
benefit established by the Act. The APBO at September 30,
2010, has been reduced by a deferred actuarial gain in the
amount of $0.8 million to reflect the effect of the subsidy
related to benefits attributed to past service. The amortization
of the actuarial gain and reduction of service and interest
costs served to reduce net periodic post retirement benefit cost
for fiscal 2010, fiscal 2009 and fiscal 2008 by
$0.5 million, $0.6 million and $0.5 million,
respectively.
The Company has historically received a federal retiree drug
subsidy as it offers retiree prescription drug coverage that is
at a minimum as valuable as Medicare Part D coverage. The
Patient Protection and Affordable Care Act (“PPACA”),
which was enacted on March 23, 2010, repealed the existing
rule that permitted a tax deduction for the portion of the drug
coverage expense that was offset by the Medicare Part D
subsidy received by the Company. This provision of PPACA was to
be effective beginning with the Company’s fiscal 2012 tax
year. On March 30, 2010, a companion bill, the Health Care
and Education Reconciliation Act of 2010 (“HCERA”),
was enacted. HCERA delayed the effective date of the reduction
under PPACA until the Company’s fiscal 2014 tax year. As a
result of this new legislation, the Company recorded a
$1.9 million charge to tax expense during its second
quarter of fiscal 2010 to reduce its deferred tax asset for the
portion of the subsidy that will no longer be deductible when
paid after fiscal 2013.
For measurement as of September 30, 2010, management has
assumed that health care costs will increase at an annual rate
of 7.5% in fiscal 2010, decreasing 0.50% per year to an ultimate
trend of 5.00% in 2015. A 1% increase in health cost trend rate
assumptions would increase the APBO by $0.9 million both as
of September 30, 2010 and 2009. A 1% decrease in health
cost trend rate assumptions would decrease the APBO by
$1.0 million both as of September 30, 2010 and 2009. A
1% increase or decrease in the same rate would not have a
material effect on service or interest costs.
Estimated
Future Benefit Payments
The following benefit payments under the plan are expected to be
paid by the Company and the retirees for the fiscal years
indicated (in millions):
The Company also provides comprehensive major medical benefits
to its associates. The Company is self-insured for certain
health benefits up to $0.3 million per occurrence per
individual. The cost of such benefits is recognized as expense
in the period the claim is incurred. This cost was
$27.6 million, $27.8 million and $24.1 million in
fiscal 2010, fiscal 2009 and fiscal 2008, respectively.
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- Definition
Description of postretirement medical plans that contain prescription drug coverage and the existence of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the "Act"). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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Debt
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DEBT |
The Company’s debt matures as follows for each of the next
five fiscal years and thereafter (in millions):
In February 2007, Scotts Miracle-Gro and certain of its
subsidiaries entered into the following senior secured credit
facilities totaling up to $2.15 billion in the aggregate:
(a) a senior secured five-year term loan facility in the
principal amount of $560 million and (b) a senior
secured five-year revolving loan facility in the aggregate
principal amount of up to $1.59 billion. Under the terms of
these senior secured credit facilities, the Company may request
an additional $200 million in revolving credit
and/or term
credit commitments, subject to approval from the lenders.
Borrowings may be made in various currencies including
U.S. dollars, Euros, British pounds, Australian dollars and
Canadian dollars. Amortization payments on the term loan portion
of the senior secured credit facilities began on
September 30, 2007 and are due quarterly through 2012. As
of September 30, 2010, the cumulative total amortization
payments on the term loan were $257.6 million, reducing the
balance of the Company’s term loans and effectively
reducing the amount outstanding under the senior secured credit
facilities.
The terms of these senior secured credit facilities provide for
customary representations and warranties and affirmative
covenants. The senior secured credit facilities also contain
customary negative covenants setting forth limitations, subject
to negotiated carve-outs on liens; contingent obligations;
fundamental changes; acquisitions, investments, loans and
advances; indebtedness; restrictions on subsidiary
distributions; transactions with affiliates and officers; sales
of assets; sale and leaseback transactions; changing the
Company’s fiscal year end; modifications of certain debt
instruments; negative pledge clauses; entering into new lines of
business; and restricted payments (including restricting
dividend payments to $75 million annually based on the
current leverage ratio (as defined) of the Company). The senior
secured credit facilities are secured by collateral that
includes the capital stock of specified subsidiaries of Scotts
Miracle-Gro, substantially all domestic accounts receivable
(exclusive of any “sold” receivables), inventory and
equipment. The senior secured credit facilities also require the
maintenance of a
specified leverage ratio and interest coverage ratio (both as
defined), and are guaranteed by substantially all of Scotts
Miracle-Gro’s domestic subsidiaries.
The senior secured credit facilities have several borrowing
options, including interest rates that are based on (i) a
LIBOR rate plus a margin based on a leverage ratio (as defined)
or (ii) the greater of the prime rate or the Federal Funds
Effective Rate (as defined) plus
1/2
of 1% plus a margin based on a leverage ratio (as defined).
Commitment fees are paid quarterly and are calculated as an
amount equal to the product of a rate based on a leverage ratio
(as defined) and the average daily unused portion of both the
revolving and term credit facilities. Amounts outstanding under
the senior secured credit facilities at September 30, 2010
were at interest rates based on LIBOR applicable to the borrowed
currencies plus 87.5 basis points. The weighted average
interest rates on average debt were 4.7% for fiscal 2010 and
fiscal 2009. As of September 30, 2010, there was
$1.5 billion of availability under the senior secured
credit facilities. Under the senior secured credit facilities,
the Company has the ability to issue letter of credit
commitments up to $65.0 million. At September 30,
2010, the Company had letters of credit in the amount of
$26.7 million outstanding.
On January 14, 2010, Scotts Miracle-Gro issued
$200 million aggregate principal amount of
7.25% Senior Notes due 2018 (the “Senior Notes”).
The proceeds of the offering were used to reduce outstanding
borrowings under the Company’s senior secured revolving
credit facility. The Senior Notes represent general unsecured
senior obligations of Scotts Miracle-Gro, and were sold to the
public at 99.254% of the principal amount thereof, to yield
7.375% to maturity. The Senior Notes have interest payment dates
of January 15 and July 15, which began on July 15,
2010, and may be redeemed prior to maturity at applicable
redemption premiums. The Senior Notes contain usual and
customary incurrence-based covenants, which include, but are not
limited to, restrictions on the incurrence of additional
indebtedness, the incurrence of liens and the issuance of
certain preferred shares, and the making of certain
distributions, investments and other restricted payments, as
well as other usual and customary covenants, which include, but
are not limited to, restrictions on sale and leaseback
transactions, restrictions on purchases for or redemptions of
Scotts Miracle-Gro stock and prepayments of subordinated debt,
limitations on asset sales and restrictions on transactions with
affiliates. The Senior Notes mature on January 15, 2018.
Certain of Scotts Miracle-Gro’s domestic subsidiaries serve
as guarantors of the Senior Notes. Refer to “NOTE 24.
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND
NON-GUARANTORS” for more information regarding the
guarantor entities.
The Company was in compliance with the terms of all debt
covenants at September 30, 2010. The senior secured credit
facilities contain, among other obligations, an affirmative
covenant regarding the Company’s leverage ratio, calculated
as average total indebtedness, as described in the
Company’s senior secured credit facilities, relative to the
Company’s EBITDA, as adjusted pursuant to the terms of
senior secured credit facilities (“Adjusted EBITDA”).
Under the terms of the senior secured credit facilities, the
maximum leverage ratio was 3.50 as of September 30, 2010,
which is scheduled to decrease to 3.25 on September 30,
2011. The Company’s leverage ratio was 2.0 at
September 30, 2010. The Company’s senior secured
credit facilities also include an affirmative covenant regarding
its interest coverage ratio. Interest coverage ratio is
calculated as Adjusted EBITDA divided by interest expense, as
described in the senior secured credit facilities, and excludes
costs related to refinancings. Under the terms of the senior
secured credit facilities, the minimum interest coverage ratio
was 3.50 for the year ended September 30, 2010. The
Company’s interest coverage ratio was 9.4 for the year
ended September 30, 2010.
At September 30, 2010, the Company had outstanding interest
rate swap agreements with major financial institutions that
effectively converted a portion of variable-rate debt
denominated in U.S. dollars to a fixed rate. The swap
agreements had a total U.S. dollar notional amount of
$450 million at September 30, 2010. Interest payments
made between the effective date and expiration date are hedged
by the swap agreement, except as noted below. The notional
amount, effective date, expiration date and rate of each of
these swap agreements are shown in the table below.
In November 2010, the Company entered into additional interest
rate swap agreements to convert a portion of variable-rate debt
denominated in U.S. dollars to a fixed rate for an aggregate
notional amount of $300 million. The effective dates of the
agreements are in 2011 or 2012 and expiration dates are in 2016
or 2017. The swap agreements hedge interest payments for
three-month or six-month periods each year between the effective
date and expiration date. The fixed rates range from 2.34% to
2.96%.
Master
Accounts Receivable Purchase Agreement
On April 9, 2008, the Company entered into a Master
Accounts Receivable Purchase Agreement (the “2008 MARP
Agreement”). The 2008 MARP Agreement provided for the
discounted sale, on a revolving basis, of accounts receivable
generated by specified account debtors, with seasonally adjusted
monthly aggregate limits ranging from $10 million to
$300 million. The 2008 MARP Agreement also provided for
specified account debtor sublimit amounts, which provided limits
on the amount of receivables owed by individual account debtors
that could be sold to the banks. The 2008 MARP Agreement
provided an interest rate that approximated the
7-day LIBOR
rate plus 85 basis points. The 2008 MARP Agreement expired
by its terms on April 8, 2009.
On May 1, 2009, the Company entered into a Master Accounts
Receivable Purchase Agreement (the “2009 MARP
Agreement”), with an initial stated termination date of
May 1, 2010, or such later date as may be mutually agreed
by the Company and its lender. The 2009 MARP Agreement provided
for the discounted sale, on an uncommitted, revolving basis, of
accounts receivable generated by a specified account debtor,
with aggregate limits not to exceed $80 million. The 2009
MARP Agreement provided an interest rate that approximated the
7-day LIBOR
rate plus 225 basis points.
On May 13, 2010, the Company and its lender entered into a
First Amendment to the 2009 MARP Agreement (the “First
Amendment”). The First Amendment, which was effective
May 1, 2010, extended the stated termination date of the
2009 MARP Agreement through May 12, 2011, or such later
date as may be mutually agreed by the Company and its lender.
The 2009 MARP Agreement, as amended by the First Amendment,
provides an interest rate that approximates the
7-day LIBOR
rate plus 125 basis points; the First Amendment did not
otherwise modify any substantive provisions of the 2009 MARP
Agreement.
The Company accounts for the sale of receivables under the 2009
MARP Agreement, as amended, as short-term debt and continues to
carry the receivables on its Consolidated Balance Sheet,
primarily as a result of the Company’s right to repurchase
receivables sold. The caption “Accounts receivable
pledged” on the accompanying
Consolidated Balance Sheets in the amount of $17.0 million
as of September 30, 2009, represents the pool of
receivables that have been designated as “sold” under
the 2009 MARP Agreement and serve as collateral for short-term
debt thereunder in the amount of $4.2 million as
September 30, 2009. There were no short-term borrowings
under the amended 2009 MARP Agreement as of September 30,
2010.
Contingent
Consideration
In May 2006, the Company acquired certain brands and assets of
Turf-Seed, Inc., a leading producer of quality commercial
turfgrasses, for cash of $10.0 million, assumed liabilities
of $4.5 million and contingent consideration due in the
second half of fiscal 2012. The final determination of the
contingent consideration is largely based on the performance of
the Company’s consumer and professional seed business for
the twelve-month period ending in May 2012.
Estimated
Fair Values
A description of the methods and assumptions used to estimate
the fair values of the Company’s debt instruments is as
follows:
Long-Term
Debt
The interest rate currently available to the Company fluctuates
with the applicable LIBOR rate, prime rate or Federal Funds
Effective Rate, and thus the carrying value is a reasonable
estimate of fair value.
Senior
Notes — 7.25%
The fair value of the Senior Notes can be determined based on
the trading of the Senior Notes in the open market. The
difference between the carrying value and the fair value of the
Senior Notes represents the premium or discount on that date.
Based on the trading value on or around September 30, 2010,
the fair value of the Senior Notes was approximately
$211.0 million.
Accounts
Receivable Pledged
The interest rate on the short-term debt associated with
accounts receivable pledged under the 2009 MARP Agreement
fluctuates with the one-week LIBOR rate, and thus the carrying
value is a reasonable estimate of fair value.
The estimated fair values of the Company’s debt instruments
are as follows for the fiscal years ended September 30 (in
millions):
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- Details
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- Definition
Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Shareholders' Equity
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Sep. 30, 2010
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Shareholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY |
In fiscal 1995, The Scotts Company merged with Stern’s
Miracle-Gro Products, Inc. (“Miracle-Gro”). At
September 30, 2010, the former shareholders of Miracle-Gro,
including Hagedorn Partnership L.P., owned approximately 30% of
Scotts Miracle-Gro’s outstanding common shares and, thus,
have the ability to significantly influence the election of
directors and other actions requiring the approval of Scotts
Miracle-Gro’s shareholders.
Under the terms of the merger agreement with Miracle-Gro, the
former shareholders of Miracle-Gro may not collectively acquire,
directly or indirectly, beneficial ownership of Voting Stock (as
that term is defined in the Miracle-Gro merger agreement)
representing more than 49% of the total voting power of the
outstanding Voting Stock, except pursuant to a tender offer for
100% of that total voting power, which tender offer is made at a
price per share which is not less than the market price per
share on the last trading day before the announcement of the
tender offer and is conditioned upon the receipt of at least 50%
of the Voting Stock beneficially owned by shareholders of Scotts
Miracle-Gro other than the former shareholders of Miracle-Gro
and their affiliates and associates.
On August 10, 2010, Scotts Miracle-Gro announced that its
Board of Directors had authorized the repurchase of up to
$500 million of Scotts Miracle-Gro’s common shares
over the next four years. The authorization provides the Company
with flexibility to purchase the common shares from time to time
in open market purchases or through privately negotiated
transactions. All or part of the repurchases may be made under
Rule 10b5-1
plans, which the Company may enter from time to time and which
enable the repurchases to occur on a more regular basis, or
pursuant to accelerated share repurchases. The share repurchase
authorization, which expires September 30, 2014, may be
suspended or discontinued at any time, and there can be no
guarantee as to the timing or amount of any repurchases. Scotts
Miracle-Gro reacquired 0.5 million common shares during
fiscal 2010 to be held in treasury. Scotts Miracle-Gro did not
reacquire any common shares in fiscal 2009. Common shares held
in treasury totaling 1.1 million and 1.0 million were
reissued in support of share-based compensation awards and
employee purchases under the employee stock purchase plan during
fiscal 2010 and fiscal 2009, respectively.
Share-Based
Awards
Scotts Miracle-Gro grants share-based awards annually to
officers, other key employees of the Company and non-employee
directors of Scotts Miracle-Gro. The share-based awards
typically consist of stock options, restricted stock, restricted
stock units and deferred stock units, although performance share
awards have been made. Stock appreciation rights
(“SARs”) also have been granted, though not in recent
years. SARs result in less dilution than stock options as the
SAR holder receives a net share settlement upon exercise. All of
these share-based awards have been made under plans approved by
the shareholders. Generally, employee share-based awards provide
for three-year cliff vesting. Vesting for non-employee director
awards varies based on the length of service and age of each
director at the time of the award. Share-based awards are
forfeited if a holder terminates employment or service with the
Company prior to the vesting date. The Company estimates that
10-15% of
its share-based awards will be forfeited based on an analysis of
historical trends. This assumption is re-evaluated on an annual
basis and adjusted as appropriate. Stock options and SAR awards
have exercise prices equal to the market price of the underlying
common shares on the date of grant with a term of 10 years.
If available, Scotts Miracle-Gro will typically use treasury
shares, or if not available, newly-issued common shares, in
satisfaction of its share-based awards.
A maximum of 18 million common shares are available for
issuance under share-based award plans. At September 30,
2010, approximately 1.1 million common shares were not
subject to outstanding awards and were available to underlie the
grant of new share-based awards.
The following is a recap of the share-based awards granted
during the periods indicated:
Total share-based compensation was as follows for the periods
indicated (in millions):
Stock
Options/SARs
Aggregate stock option and SARs activity consisted of the
following for the year ended September 30, 2010
(options/SARs in millions):
The following summarizes certain information pertaining to stock
option and SAR awards outstanding and exercisable at
September 30, 2010 (options/SARs in millions):
The intrinsic value of the stock option and SAR awards
outstanding and exercisable at September 30 were as follows (in
millions):
The grant date fair value of stock option awards are estimated
using a binomial model and the assumptions in the following
table. Expected market price volatility is based on implied
volatilities from traded options on Scotts Miracle-Gro’s
common shares and historical volatility specific to the common
shares. Historical data, including demographic factors impacting
historical exercise behavior, is used to estimate stock option
exercises and employee terminations within the valuation model.
The risk-free rate for periods within the contractual life
(normally ten years) of the stock option is based on the
U.S. Treasury yield curve in effect at the time of grant.
The expected life of stock options is based on historical
experience and expectations for grants outstanding. The weighted
average assumptions for awards granted are as follows for the
periods indicated:
Restricted
Stock and Performance Shares
Restricted stock and performance share award activity was as
follows:
Restricted
Stock Units and Deferred Stock Units
Restricted and deferred stock unit award activity was as follows:
As of September 30, 2010, total unrecognized compensation
cost related to non-vested share-based awards amounted to
$11.6 million. This cost is expected to be recognized over
a weighted-average period of 1.0 years. Unearned
compensation cost is amortized by grant on the straight-line
method over the vesting period, with the
amortization expense classified as a component of “Selling,
general and administrative” expense within the Consolidated
Statements of Operations.
The total intrinsic value of stock options exercised was
$25.9 million, $16.1 million and $11.4 million
during fiscal 2010, fiscal 2009 and fiscal 2008, respectively.
The total fair value of restricted stock vested was
$5.2 million, $4.4 million and $1.1 million
during fiscal 2010, fiscal 2009 and fiscal 2008, respectively.
The total fair value of restricted stock units vested was
$0.4 million and $0.2 million during fiscal 2010 and
fiscal 2009, respectively.
Cash received from the exercise of stock options for fiscal 2010
was $22.5 million. The tax benefit realized from the tax
deductions associated with the exercise of share-based awards
and the vesting of restricted stock totaled $11.0 million
for fiscal 2010.
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Disclosures related to balances of common stock, preferred stock and components of a stock option or other award plan under which share-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from share-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from share-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. No definition available.
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Earnings (Loss) Per Common Share
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Sep. 30, 2010
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Earnings (Loss) Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE |
The following table (in millions, except per share data)
presents information necessary to calculate basic and diluted
earnings (loss) per common share. Basic earnings (loss) per
common share are computed by dividing income from continuing
operations, loss from discontinued operations or net income
(loss) by the weighted average number of common shares
outstanding. Diluted earnings (loss) per common share are
computed by dividing income from continuing operations, loss
from discontinued operations or net income (loss) by the
weighted average number of common shares outstanding plus all
potentially dilutive securities. Stock options with exercise
prices greater than the average market price of the underlying
common shares are excluded from the computation of diluted
earnings (loss) per common share because they are
out-of-the-money
and the effect of their inclusion would be anti-dilutive. The
number of common shares covered by
out-of-the-money
stock options was 0.2 million, 2.3 million and
4.0 million for the years ended September 30, 2010,
2009 and 2008, respectively.
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This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Income Taxes
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Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
The provision (benefit) for income taxes allocated to continuing
operations consisted of the following (in millions):
The domestic and foreign components of income from continuing
operations before income taxes were as follows (in millions):
A reconciliation of the federal corporate income tax rate and
the effective tax rate on income from continuing operations
before income taxes is summarized below:
Deferred income taxes arise from temporary differences between
financial reporting and tax reporting bases of assets and
liabilities, and operating loss and tax credit carryforwards for
tax purposes. The components of the deferred income tax assets
and liabilities as of September 30, 2010 and 2009 were as
follows (in millions):
The net current and non-current components of deferred income
taxes recognized in the Consolidated Balance Sheets were (in
millions):
Foreign net operating losses of controlled foreign corporations
were $5.0 million as of September 30, 2010, the
majority of which have indefinite carryforward periods. State
net operating losses were $57.3 million as of
September 30, 2010, with carryforward periods ranging from
5 to 20 years. Any losses not utilized within a specific
state’s carryforward period will expire. State net
operating loss carryforwards included $1.4 million of tax
benefits relating to Smith & Hawken. As these losses
may only be used against income of Smith & Hawken, and
cannot be used to offset income of the consolidated group, a
full valuation allowance has been recorded against this tax
asset. Tax benefits associated with state tax credits will
expire if not utilized and amounted to $0.5 million and
$0.4 million at September 30, 2010 and 2009,
respectively.
Deferred taxes have not been provided on unremitted earnings
approximating $128.0 million of certain foreign
subsidiaries and foreign corporate joint ventures as such
earnings have been permanently reinvested. The Company has also
elected to treat certain foreign entities as disregarded
entities for U.S. tax purposes, which results in their net
income or loss being recognized currently in the Company’s
U.S. tax return. As such, the tax benefit of net operating
losses available for foreign statutory tax purposes has already
been recognized for U.S. purposes. Accordingly, a full
valuation allowance is required on the tax benefit of these net
operating losses on global
consolidation. The foreign net operating losses of these foreign
disregarded entities were $138.8 million at
September 30, 2010, the majority of which have indefinite
carryforward periods. The statutory tax benefit of these net
operating loss carryovers amounted to $39.6 million and
$40.5 million for the fiscal years ended September 30,
2010 and 2009, respectively.
GAAP provides that a tax benefit from an uncertain tax position
may be recognized when it is more likely than not that the
position will be sustained upon examination, including
resolutions of any related appeals or litigation processes,
based on the technical merits of the position. The amount
recognized is measured as the largest amount of tax benefit that
is greater than 50% likely of being realized upon settlement.
The Company had $7.8 million, $6.2 million and
$7.2 million of gross unrecognized tax benefits related to
uncertain tax positions at September 30, 2010, 2009 and
2008, respectively. Included in the September 30, 2010,
2009 and 2008 balances were $6.4 million, $6.4 million
and $6.5 million, respectively, of unrecognized tax
benefits that, if recognized, would have an impact on the
effective tax rate.
A reconciliation of the unrecognized tax benefits for fiscal
2010, fiscal 2009 and fiscal 2008 is as follows (in millions):
The Company continues to recognize accrued interest and
penalties related to unrecognized tax benefits as a component of
the provision for income taxes. As of September 30, 2010,
2009 and 2008, respectively, the Company had $1.3 million,
$1.2 million and $1.2 million accrued for the payment
of interest that, if recognized, would impact the effective tax
rate. As of September 30, 2010, 2009 and 2008,
respectively, the Company had $0.7 million,
$0.6 million and $0.6 million accrued for the payment
of penalties that, if recognized, would impact the effective tax
rate. For the year ended September 30, 2010, the Company
recognized a $0.4 million detriment related to tax interest
and tax penalties in its statement of operations.
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. With few exceptions, the
Company is no longer subject to examinations by these tax
authorities for fiscal years prior to 2007. The Company is
currently under examination by the Internal Revenue Service (the
“IRS”) and certain foreign and U.S. state and
local tax authorities. The IRS is currently reviewing the fiscal
2008 tax period only. In regard to the local German audit, the
tax periods under investigation are limited to fiscal years 2004
through 2008. In regard to the U.S. state and local audits,
the tax periods under investigation are limited to fiscal years
2000 through 2008. In addition to these aforementioned audits,
certain other tax deficiency notices and refund claims for
previous years remain unresolved.
The Company currently anticipates that few of its open and
active audits will be resolved in the next 12 months. The
Company is unable to make a reasonably reliable estimate as to
when or if cash settlements with taxing authorities may occur.
Although audit outcomes and the timing of audit payments are
subject to significant uncertainty, the Company does not
anticipate that the resolution of these tax matters or any
events related thereto will result in a material change to its
consolidated financial position, results of operations or cash
flows.
Management judgment is required in determining tax provisions
and evaluating tax positions. Management believes its tax
positions and related provisions reflected in the consolidated
financial statements are fully supportable and appropriate. The
Company established reserves for additional income taxes that
may become due if the tax positions are challenged and not
sustained, and as such, the Company’s tax provision
includes the impact of recording reserves and changes thereto.
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- Definition
Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Derivative Instruments and Hedging Activities
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Sep. 30, 2010
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Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
Derivatives
and Hedging
The Company is exposed to market risks, such as changes in
interest rates, currency exchange rates and commodity prices. To
manage 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.
The Company formally designates and documents qualifying
instruments as hedges of underlying exposures at inception. The
Company formally assesses, both at inception and at least
quarterly, whether the financial instruments used in hedging
transactions are effective at offsetting changes in either the
fair value or cash flows of the related underlying exposure.
Fluctuations in the value of these instruments generally are
offset by changes in the fair value or cash flows of the
underlying exposures being hedged. This offset is driven by the
high degree of effectiveness between the exposure being hedged
and the hedging instrument. GAAP requires all derivative
instruments to be recognized as either assets or liabilities at
fair value in the Consolidated Balance Sheets. The Company
designates commodity hedges as cash flow hedges of forecasted
purchases of commodities and interest rate swap agreements as
cash flow hedges of interest payments on variable rate
borrowings. Any ineffective portion of a change in the fair
value of a qualifying instrument is immediately recognized in
earnings. The amounts recorded in earnings related to
ineffectiveness of derivative hedges for the years ended
September 30, 2010, 2009 and 2008 were not significant.
Foreign
Currency Swap Contracts
The Company periodically uses foreign currency swap contracts to
manage the exchange rate risk associated with intercompany loans
with foreign subsidiaries that are denominated in local
currencies. At September 30, 2010, the notional amount of
outstanding foreign currency swap contracts was
$209.9 million, with a liability position based on a
negative fair value of $6.6 million. The fair value of
foreign currency swap contracts is determined based on changes
in spot rates. The unrealized loss on the foreign currency swap
contracts approximates the unrealized gain on the intercompany
loans recognized by the Company’s lending subsidiaries.
Interest
Rate Swap Agreements
The Company enters into interest rate swap agreements as a means
to hedge its variable interest rate exposure on debt
instruments. The fair values are reflected in the Company’s
Consolidated Balance Sheets. Net amounts to be received or paid
under the swap agreements are reflected as adjustments to
interest expense. Since the interest rate swap agreements have
been designated as hedging instruments, unrealized gains or
losses resulting from adjusting these swaps to fair value are
recorded as elements of accumulated other comprehensive loss
(“AOCI”) within the Consolidated Balance Sheets. The
fair value of the swap agreements is determined 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.
At September 30, 2010 and 2009, the Company had outstanding
interest rate swap agreements with major financial institutions
that effectively converted a portion of the Company’s
variable-rate debt to a fixed rate. The swap agreements had a
total U.S. dollar equivalent notional amount of
$450.0 million and $650.0 million at
September 30, 2010 and 2009, respectively. Refer to
“NOTE 11. DEBT” for the terms of the swap
agreements outstanding at September 30, 2010. Included in
the AOCI balance at September 30, 2010 is a pre-tax loss of
$12.2 million related to interest rate swap agreements that
is expected to be reclassified to earnings during the next
12 months, consistent with the timing of the underlying
hedged transactions.
Commodity
Hedges
The Company had outstanding hedging arrangements at
September 30, 2010 designed to fix the price of a portion
of its urea needs. The contracts are designated as hedges of the
Company’s exposure to future cash flow fluctuations
associated with the cost of urea. The objective of the hedges is
to mitigate the earnings and cash flow volatility attributable
to the risk of changing prices. Unrealized gains or losses in
the fair value of these contracts are recorded to the AOCI
component of shareholders’ equity. Realized gains or losses
remain as a component of AOCI until the related inventory is
sold. Upon sale of the underlying inventory, the gain or loss is
reclassified to cost of sales. Included in the AOCI balance at
September 30, 2010 was a pre-tax gain of $1.4 million
related to urea derivatives that is expected to be reclassified
to earnings during the next 12 months, consistent with the
timing of the underlying hedged transactions.
Periodically, the Company also uses fuel derivatives to
partially mitigate the effect of fluctuating diesel and gasoline
costs on operating results. Fuel derivatives used by the Company
that do not qualify for hedge accounting treatment in accordance
with GAAP are
marked-to-market,
with unrealized gains and losses on open contracts and realized
gains or losses on settled contracts recorded as an element of
cost of sales.
Beginning in fiscal 2009, the Company entered into fuel
derivatives for its Scotts
LawnService®
business that qualify for hedge accounting treatment. Unrealized
gains or losses in the fair value of these contracts are
recorded to the AOCI component of shareholders’ equity
except for any ineffective portion of the change in fair value,
which is immediately recorded in earnings. For the effective
portion of the change in fair value, realized gains or losses
remain as a component of AOCI until the related fuel is consumed
by the Scotts
LawnService®
service vehicles. Upon consumption of the fuel, the gain or loss
is reclassified to cost of sales. Included in the AOCI balance
at September 30, 2010 was a pre-tax gain of
$0.1 million related to fuel derivatives that is expected
to be reclassified to earnings during the next 12 months,
consistent with the timing of the underlying hedged transactions.
As of September 30, 2010, the Company had the following
outstanding commodity contracts that were entered into to hedge
forecasted purchases:
Fair
Values of Derivative Instruments
The fair values of the Company’s derivative instruments
were as follows for the fiscal years ended September 30,
(in millions):
Refer to “NOTE 16. FAIR VALUE MEASUREMENTS” for
the Company’s fair value measurements of derivative
instruments as they relate to the valuation hierarchy.
The effect of derivative instruments on AOCI and the
Consolidated Statements of Operations for the years ended
September 30, 2010 and 2009 was as follows (in millions):
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X | ||||||||||
- Definition
This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Fair Value Measurements
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Sep. 30, 2010
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
The Company adopted new accounting guidance for all financial
assets and liabilities accounted for at fair value on a
recurring basis effective October 1, 2008. The Company
adopted new accounting guidance for all non-financial assets and
liabilities accounted for at fair value on a non-recurring basis
effective October 1, 2009. The guidance defines fair value,
establishes a framework for measuring fair value, and expands
disclosures about fair value measurements. It defines fair value
as the exchange price that would be received for an asset or
paid to transfer a liability (an exit price) in the principal or
the most advantageous market for the asset or liability in an
orderly transaction between market participants at the
measurement date. GAAP establishes a three-level fair value
hierarchy that prioritizes the inputs used to measure fair
value. The hierarchy requires entities to maximize the use of
observable inputs and minimize the use of unobservable inputs.
The three levels of inputs used to measure fair value are as
follows:
Level 1 — Quoted prices in active markets
for identical assets or liabilities.
Level 2 — Observable inputs other than
quoted prices included in Level 1, such as quoted prices
for similar assets and liabilities in active markets; quoted
prices for similar assets and liabilities in markets that are
not active; or other inputs that are observable or can be
corroborated by observable market data.
Level 3 — Unobservable inputs that are
supported by little or no market activity and that are
significant to the fair value of the assets or liabilities. This
includes pricing models, discounted cash flow methodologies and
similar techniques that use significant unobservable inputs.
The following describes the valuation methodologies used for
financial assets and liabilities measured at fair value, as well
as the general classification within the valuation hierarchy.
Derivatives
Derivatives consist of foreign currency, interest rate and
commodity derivative instruments. The Company uses foreign
currency swap contracts to manage the exchange rate risk
associated with intercompany loans with foreign subsidiaries
that are denominated in U.S. dollars. These contracts are
valued using observable forward rates in commonly quoted
intervals for the full term of the contracts.
Interest rate derivatives consist of interest rate swap
agreements. The Company enters into interest rate swap
agreements as a means to hedge its variable interest rate
exposure on debt instruments. The fair value of the swap
agreements is determined 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.
The Company has hedging arrangements designed to fix the price
of a portion of its urea and fuel needs. The objective of the
hedges is to mitigate the earnings and cash flow volatility
attributable to the risk of changing prices. These contracts are
measured using observable commodity exchange prices in active
markets.
These derivative instruments are classified within Level 2
of the valuation hierarchy and are included within other assets
and other liabilities in our Consolidated Balance Sheets, except
for derivative instruments expected to be settled within the
next 12 months, which are included within prepaid and other
assets and other current liabilities.
For further information on the Company’s derivative
instruments, refer to “NOTE 15. DERIVATIVE INSTRUMENTS
AND HEDGING ACTIVITIES.”
Other
Other financial assets consist of investment securities in
non-qualified retirement plan assets. These securities are
valued using observable market prices in active markets. These
investment securities are classified within Level 1 of the
valuation hierarchy and are included within other assets in our
Consolidated Balance Sheets.
The following table presents the Company’s financial assets
and liabilities measured at fair value on a recurring basis at
September 30, 2010 (in millions):
The following presents the Company’s non-financial assets
and liabilities measured at fair value on a non-recurring basis
at September 30, 2010 (in millions) and describes the
valuation methodologies used for non-financial assets and
liabilities measured at fair value, as well as the general
classification within the valuation hierarchy:
Certain intangible assets held and used were written down to
their fair value, resulting in an impairment charge of
$18.5 million, which was included in earnings for the
period. The value of the indefinite-lived tradenames was
determined using a royalty savings methodology similar to that
employed when the associated businesses were acquired but using
updated estimates of sales, cash flow and profitability. For
further information on the Company’s intangible assets,
refer to “NOTE 4. IMPAIRMENT, RESTRUCTURING AND OTHER
CHARGES” and “NOTE 5. GOODWILL AND INTANGIBLE
ASSETS, NET.”
The following table presents the Company’s financial assets
and liabilities measured at fair value on a recurring basis at
September 30, 2009 (in millions):
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This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Operating Leases
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Operating Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING LEASES |
The Company leases certain property and equipment from third
parties under various non-cancelable operating lease agreements.
Certain lease agreements contain renewal and purchase options.
The lease agreements generally require that the Company pay
taxes, insurance and maintenance expenses related to the leased
assets. Future minimum lease payments for non-cancelable
operating leases at September 30, 2010, were as follows (in
millions):
The Company also leases certain vehicles (primarily cars and
light trucks) under agreements that are cancelable 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 September 30, 2010, the
Company’s residual value guarantee would have approximated
$5.1 million.
Other residual value guarantee amounts that apply at the
conclusion of non-cancelable lease terms are as follows:
Rent expense for fiscal 2010, fiscal 2009 and fiscal 2008
totaled $68.1 million, $65.2 million and
$67.5 million, respectively.
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General description of lessee's leasing arrangements including: (1) The basis on which contingent rental payments are determined, (2) The existence and terms of renewal or purchase options and escalation clauses, (3) Restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) Rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Commitments
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Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS |
The Company has the following unconditional purchase obligations
due during each of the next five fiscal years that have not been
recognized on the Consolidated Balance Sheet at
September 30, 2010 (in millions):
Purchase obligations primarily represent commitments for
materials used in the Company’s manufacturing processes, as
well as commitments for warehouse services, grass seed and
out-sourced information services.
In addition, the Company leases certain property and equipment
from third parties under various non-cancelable operating lease
agreements. Future minimum lease payments for non-cancelable
operating leases not included above are included in
“NOTE 17. OPERATING LEASES.”
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Description of significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Contingencies
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CONTINGENCIES |
Management regularly evaluates the Company’s contingencies,
including various lawsuits and claims which arise in the normal
course of business, product and general liabilities,
workers’ compensation, property losses and other fiduciary
liabilities for which the Company is self-insured or retains a
high exposure limit. Self-insurance reserves 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 for 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, its assessment of
contingencies is reasonable and related reserves, in the
aggregate, are adequate; however, there can be no assurance that
final resolution of these matters will not have a material
adverse effect on the Company’s financial condition,
results of operations or cash flows. The following are the more
significant of the Company’s identified contingencies:
FIFRA
Compliance and the Corresponding Governmental
Investigations
For a description of the Company’s ongoing FIFRA compliance
efforts and the corresponding governmental investigations, see
“NOTE 3. PRODUCT REGISTRATION AND RECALL MATTERS.”
Other
Regulatory Matters
At September 30, 2010, $2.6 million was accrued for
other regulatory matters in the “Other liabilities”
line in the Consolidated Balance Sheet. The amounts accrued are
believed to be adequate to cover such known
environmental exposures based on current facts and estimates of
likely outcomes. However, if facts and circumstances change
significantly, they could result in a material adverse effect on
the Company’s financial condition, results of operations or
cash flows.
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. The complaints in these cases are not specific about
the plaintiffs’ contacts with the Company or its products.
The Company in each case is one of numerous defendants and none
of the claims seek damages from the Company alone. The Company
believes that the claims against it are without merit and is
vigorously defending against them. It is not currently possible
to reasonably estimate a probable loss, if any, associated with
these cases and, accordingly, no accrual or reserves have been
recorded in the Company’s consolidated financial
statements. The Company is reviewing agreements and policies
that may provide insurance coverage or indemnity as to these
claims and is pursuing coverage under some of these agreements
and policies, although there can be no assurance of the results
of these efforts. There can be no assurance that these cases,
whether as a result of adverse outcomes or as a result of
significant defense costs, will not have a material adverse
effect on the Company’s financial condition, results of
operations or cash flows.
On April 27, 2007, the Company received a proposed Order On
Consent from the New York State Department of Environmental
Conservation (the “Proposed Order”) alleging that,
during calendar year 2003, the Company and James Hagedorn,
individually and as Chairman of the Board and Chief Executive
Officer of the Company, unlawfully donated to a Port Washington,
New York youth sports organization forty bags of
Scotts®
LawnPro Annual Program Step 3 Insect Control Plus Fertilizer
which, while federally registered, was allegedly not registered
in the state of New York. The Proposed Order requests penalties
totaling $695,000. The Company has responded in writing to the
New York State Department of Environmental Conservation with
respect to the Proposed Order and is awaiting a response.
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
adverse effect on the Company’s financial condition,
results of operations or cash flows.
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Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made. No definition available.
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Concentrations of Credit Risk
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CONCENTRATIONS OF CREDIT RISK |
Financial instruments which potentially subject the Company to
concentration of credit risk consist principally of trade
accounts receivable. The Company sells its consumer products to
a wide variety of retailers, including home centers, mass
merchandisers, warehouse clubs, large hardware chains,
independent hardware stores, nurseries, garden centers, food and
drug stores, commercial nurseries and greenhouses and specialty
crop growers. Concentrations of accounts receivable at
September 30, net of accounts receivable pledged
($17.0 million for 2009) under the terms of the 2009
MARP Agreement whereby the purchaser has assumed the risk
associated with the debtor’s financial inability to pay,
were as follows:
The remainder of the Company’s accounts receivable at
September 30, 2010 and 2009 were generated from customers
located outside of North America, primarily retailers,
distributors, nurseries and growers in Europe. No concentrations
of customers or individual customers within this group accounted
for more than 10% of the Company’s accounts receivable at
either balance sheet date.
The Company’s three largest customers are reported within
the Global Consumer segment and are the only customers that
individually represent more than 10% of reported consolidated
net sales for each of the last three fiscal years. These three
customers accounted for the following percentages of
consolidated net sales for the fiscal years ended September 30:
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Description of any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. The entity should inform financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. Disclosure of any financial instrument credit risk concentration also should indicate the maximum amount of loss that would be incurred upon complete failure of the counterparty to perform and the entity's collateral policies or other policies that limit the loss exposure. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Other (Income) Expenses
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OTHER (INCOME) EXPENSE |
Other (income) expense consisted of the following for the fiscal
years ended September 30 (in millions):
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Discloses other income or other expense items (both operating and nonoperating). Sources of nonoperating income or nonoperating expense that should be disclosed in this note, or in the income statement, include amounts earned from dividends, interest on securities, profits (losses) on securities, net and miscellaneous other income or income deductions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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SEGMENT INFORMATION |
The Company divides its business into the following
segments — Global Consumer, Global Professional and
Scotts
LawnService®.
For the first three quarters of fiscal 2010, the Company
included Corporate & Other as a separate reportable
segment. That segment included the Smith & Hawken
business until the first quarter of fiscal 2010, at which time
substantially all operational activities of Smith &
Hawken were discontinued and the Company classified
Smith & Hawken as discontinued operations. As a
result, Corporate activity is no longer presented as part of a
segment. This division of reportable segments is consistent with
how the segments report to and are managed by senior management
of the Company.
Certain reclassifications were made to the Global Consumer and
Global Professional prior period amounts to reflect changes in
the structure of the Company’s organization effective in
fiscal 2010. For fiscal 2010, the Company’s consumer
businesses in Australia, Latin America and Italy were reported
as part of its Global Consumer segment. Previously, these
businesses were reported as part of the Company’s Global
Professional segment.
The Global Consumer segment consists of the U.S. Consumer
and International Consumer business groups. The business groups
comprising this segment manufacture, market and sell dry,
granular slow-release lawn fertilizers, combination lawn
fertilizer and control products, grass seed, spreaders,
water-soluble, liquid and continuous release garden and indoor
plant foods, plant care products, potting, garden and lawn
soils, mulches and other growing media products, wild bird food,
pesticide and rodenticide products. Products are marketed to
mass merchandisers, home centers, large hardware chains,
warehouse clubs, distributors, garden centers and grocers in the
United States, Canada, Europe, Latin America, and Australia.
The Global Professional segment is focused on a full line of
horticultural products including controlled-release and
water-soluble fertilizers and plant protection products, wetting
agents, grass seed products, spreaders and customer application
services. Products are sold to commercial nurseries and
greenhouses and specialty crop growers, primarily in North
America and Europe. On August 10, 2010, the Company indicated it
is actively exploring strategic alternatives for its Global
Professional business segment. These strategic alternatives
include the potential divestiture of that segment, consistent
with the Company’s previously stated intent to focus on its
core Global Consumer business segment.
The Scotts
LawnService®
segment provides residential and commercial lawn fertilization,
disease and insect control and other related services such as
tree and shrub fertilization and limited pest control services
through Company-owned branches and franchises in the United
States.
The accounting policies of the segments are the same as those
described in the “NOTE 1. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES.” The Company evaluates segment
performance based on several factors, including income from
operations before amortization, product registration and recall
costs, and impairment, restructuring and other charges.
Management uses this measure of operating profit to gauge
segment performance because the Company believes this metric is
the most indicative of performance trends and the overall
earnings potential of each segment. Total assets reported for
the Company’s operating segments include the intangible
assets for the acquired businesses within those segments.
Corporate consists primarily of unallocated corporate general
and administrative expenses and certain other income/expense
items not allocated to the business segments. Corporate assets
primarily include deferred financing and debt issuance costs and
corporate intangible assets, as well as deferred tax assets.
For capital expenditures and total assets, Corporate also
includes Smith & Hawken, which is classified as
discontinued operations on the Consolidated Statements of
Operations.
The following table presents summarized financial information
concerning the Company’s reportable segments for fiscal
years ended September 30 (in millions):
The following table presents net sales and long-lived assets
(property, plant and equipment and finite-lived intangibles) by
geographic area for fiscal 2010, fiscal 2009 and fiscal 2008 (in
millions):
|
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- Details
|
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- Definition
This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Quarterly Consolidated Financial Information (Unaudited)
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Sep. 30, 2010
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Quarterly Consolidated Financial Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) |
The following is a summary of the unaudited quarterly results of
operations for fiscal 2010 and fiscal 2009 (in millions, except
per share data).
Common share equivalents, such as share-based awards, are
excluded from the diluted loss per common share calculation in
periods where there is a loss from continuing operations because
the effect of their inclusion would be anti-dilutive.
The Company’s business is highly seasonal, with 70% to 75%
of net sales occurring in the second and third fiscal quarters.
Unusual items during fiscal 2010 consisted of impairment and
product registration and recall charges. These items are
reflected in the quarterly financial information as follows:
first quarter product registration and recall charges of
$2.6 million; second quarter product registration and
recall charges of $1.7 million; third quarter product
registration and recall charges of $1.5 million; and fourth
quarter impairment charges of $18.5 million and product
registration and recall charges of $2.9 million. Unusual
items in discontinued operations consisted of Smith &
Hawken restructuring and other charges of $17.1 million in
the first quarter, offset by a gain of approximately
$18 million from the sale of Smith & Hawken
intellectual property; restructuring and other charges of
$1.9 million in the second quarter; restructuring and other
charges of $0.3 million in the third quarter; and
restructuring and other charges of $(1.0) million in the
fourth quarter.
Unusual items during fiscal 2009 consisted of product
registration and recall charges. These items are reflected in
the quarterly financial information as follows: first quarter
product registration and recall charges of $7.6 million;
second quarter product registration and recall charges of
$8.0 million; third quarter product registration and recall
charges of $6.4 million; and fourth quarter product
registration and recall charges of $6.6 million. Unusual
items in discontinued operations consisted of Smith &
Hawken restructuring and other charges of $2.7 million in
the third quarter and $12.0 million in the fourth quarter,
as well as an $18.4 million reduction in deferred tax asset
valuation allowances for Smith & Hawken in the fourth
quarter.
|
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- Details
|
X | ||||||||||
- Definition
This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Financial Information for Subsidiary Guarantors and Non-Guarantors
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2010
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Financial Information for Subsidiary Guarantors and Non-Guarantors [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTORS |
The Senior Notes issued by Scotts Miracle-Gro on
January 14, 2010 are guaranteed by certain of its domestic
subsidiaries and, therefore, the Company has disclosed
condensed, consolidating financial information in accordance
with SEC
Regulation S-X
Rule 3-10,
Financial Statements of Guarantors and Issuers of Guaranteed
Securities Registered or Being Registered. The following
100% directly or indirectly owned subsidiaries fully and
unconditionally guarantee the Senior Notes on a joint and
several basis: EG Systems, Inc., dba Scotts
LawnService®;
Gutwein & Co., Inc.; Hyponex Corporation; Miracle-Gro
Lawn Products, Inc.; OMS Investments, Inc.; Rod McLellan
Company; Sanford Scientific, Inc.; Scotts Temecula Operations,
LLC; Scotts Manufacturing Company; Scotts Products Co.; Scotts
Professional Products Co.; Scotts-Sierra Crop Protection
Company; Scotts-Sierra Horticultural Products Company;
Scotts-Sierra Investments, Inc.; SMG Growing Media, Inc.; Swiss
Farms Products, Inc.; and The Scotts Company LLC (collectively,
the “Guarantors”). Teak 2, Ltd., f/k/a
Smith & Hawken, Ltd., was released from its guarantee
under the Senior Notes on March 18, 2010. Accordingly, Teak
2, Ltd. has been classified as a Non-Guarantor for all periods
presented in the condensed, consolidating financial information
accompanying this Note 24.
The following information presents condensed, consolidating
Statements of Operations and Statements of Cash Flows for each
of the three years in the period ended September 30, 2010,
and condensed, consolidating Balance Sheets as of
September 30, 2010 and 2009. The condensed, consolidating
financial information presents, in separate columns, financial
information for: Scotts Miracle-Gro on a Parent-only basis,
carrying its investment in subsidiaries under the equity method;
Guarantors on a combined basis, carrying investments in
subsidiaries which do not guarantee the debt (collectively, the
“Non-Guarantors”) under the equity method;
Non-Guarantors on a combined basis; and eliminating entries. The
eliminating entries primarily reflect intercompany transactions,
such as interest expense, accounts receivable and payable, short
and long-term debt, and the elimination of equity investments
and income in subsidiaries. Because the Parent is obligated to
pay the unpaid principal amount and interest on all amounts
borrowed by the Guarantors or Non-Guarantors under the senior
secured five-year revolving
loan facility, the borrowings and related interest expense for
the revolving loans outstanding of the Guarantors and
Non-Guarantors are also presented in the accompanying
Parent-only financial information, and are then eliminated.
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Statement of Operations
for the
fiscal year ended September 30, 2010
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Statement of Cash Flows
for the
fiscal year ended September 30, 2010
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Balance Sheet
As of
September 30, 2010
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Statement of Operations
for the
fiscal year ended September 30, 2009
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Statement of Cash Flows
for the
fiscal year ended September 30, 2009
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Balance Sheet
As of
September 30, 2009
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Statement of Operations
for the
fiscal year ended September 30, 2008
The
Scotts Miracle-Gro Company
Condensed,
Consolidating Statement of Cash Flows
for the
fiscal year ended September 30, 2008
|
X | ||||||||||
- Definition
Condensed financial information disclosure presented in accordance with SEC Regulation S-X Rule 3-10, including the financial position, cash flows, and the results of operations of the parent company, subsidiary guarantors and subsidiary non-guarantors as of the same dates or for the same periods for which consolidated financial statements are being presented. No definition available.
|
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- Details
|
Schedule II-Valuation and Qualifying Accounts
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Sep. 30, 2010
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Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts |
Schedule Of Valuation And Qualifying Accounts Disclosure
The
Scotts Miracle-Gro Company
Schedule II —
Valuation and Qualifying Accounts
for the
fiscal year ended September 30, 2010
Schedule II —
Valuation and Qualifying Accounts
for the fiscal year ended September 30, 2009
Schedule II —
Valuation and Qualifying Accounts
for the fiscal year ended September 30, 2008
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X | ||||||||||
- Details
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X | ||||||||||
- Definition
An element designated to encapsulate the entire schedule of any allowance and reserve accounts (their beginning and ending balances, as well as a reconciliation by type of activity during the period). Alternatively, disclosure of the required information may be within the footnotes to the financial statements or a supplemental schedule to the financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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