2019 Q2 Form 10-Q Financial Statement

#000154638019000024 Filed on August 07, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2018 Q2 2018 Q1
Revenue $1.170B $994.6M $1.013B
YoY Change 17.67% -8.3%
Cost Of Revenue $747.0M $635.9M $604.1M
YoY Change 17.47% 2.51%
Gross Profit $423.4M $347.6M $409.2M
YoY Change 21.81% -25.13%
Gross Profit Margin 36.18% 34.95% 40.38%
Selling, General & Admin $166.4M $144.5M $166.0M
YoY Change 15.16% -19.18%
% of Gross Profit 39.3% 41.57% 40.57%
Research & Development $10.20M $10.90M $10.50M
YoY Change -6.42% 13.54%
% of Gross Profit 2.41% 3.14% 2.57%
Depreciation & Amortization $22.30M $21.20M $19.80M
YoY Change 5.19% 7.07%
% of Gross Profit 5.27% 6.1% 4.84%
Operating Expenses $166.4M $144.5M $166.0M
YoY Change 15.16% -19.18%
Operating Profit $258.2M $185.7M $232.3M
YoY Change 39.04% -34.91%
Interest Expense $25.90M $23.20M $22.60M
YoY Change 11.64% 7.91%
% of Operating Profit 10.03% 12.49% 9.73%
Other Income/Expense, Net $5.100M $2.600M -$9.200M
YoY Change 96.15%
Pretax Income $237.4M $166.2M $202.0M
YoY Change 42.84% -30.66%
Income Tax $59.40M $40.70M $49.30M
% Of Pretax Income 25.02% 24.49% 24.41%
Net Earnings $201.7M $82.90M $148.9M
YoY Change 143.31% -49.79%
Net Earnings / Revenue 17.23% 8.34% 14.69%
Basic Earnings Per Share $3.63 $1.50 $2.64
Diluted Earnings Per Share $3.56 $1.47 $2.59
COMMON SHARES
Basic Shares Outstanding 55.50M shares 55.40M shares 56.50M shares
Diluted Shares Outstanding 56.60M shares 56.30M shares 57.40M shares

Balance Sheet

Concept 2019 Q2 2018 Q2 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $36.40M $29.60M $33.00M
YoY Change 22.97% -60.16%
Cash & Equivalents $36.40M $29.60M $33.00M
Short-Term Investments
Other Short-Term Assets $72.90M $84.40M $78.10M
YoY Change -13.63% -45.72%
Inventory $533.7M $500.5M $596.9M
Prepaid Expenses
Receivables $395.8M $387.8M $598.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.390B $1.319B $1.639B
YoY Change 5.38% -35.58%
LONG-TERM ASSETS
Property, Plant & Equipment $506.7M $517.6M $463.6M
YoY Change -2.11% 18.42%
Goodwill $541.9M $621.2M $466.8M
YoY Change -12.77% 55.07%
Intangibles $831.1M $879.6M $777.6M
YoY Change -5.51% 21.02%
Long-Term Investments $0.00 $34.40M $33.20M
YoY Change -100.0% -42.57%
Other Assets $197.8M $192.1M $195.0M
YoY Change 2.97% 59.82%
Total Long-Term Assets $2.078B $2.245B $1.936B
YoY Change -7.46% 28.68%
TOTAL ASSETS
Total Short-Term Assets $1.390B $1.319B $1.639B
Total Long-Term Assets $2.078B $2.245B $1.936B
Total Assets $3.467B $3.564B $3.576B
YoY Change -2.71% -6.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $222.6M $195.6M $253.5M
YoY Change 13.8% -27.77%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $363.2M $314.5M $335.8M
YoY Change 15.48% 879.75%
Total Short-Term Liabilities $955.4M $825.3M $906.1M
YoY Change 15.76% 6.39%
LONG-TERM LIABILITIES
Long-Term Debt $1.564B $1.975B $1.938B
YoY Change -20.85% -3.3%
Other Long-Term Liabilities $143.3M $210.0M $213.9M
YoY Change -31.76% -25.53%
Total Long-Term Liabilities $1.707B $2.185B $2.152B
YoY Change -21.9% -6.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $955.4M $825.3M $906.1M
Total Long-Term Liabilities $1.707B $2.185B $2.152B
Total Liabilities $2.662B $3.033B $3.080B
YoY Change -12.21% -2.19%
SHAREHOLDERS EQUITY
Retained Earnings $1.369B $1.098B $1.045B
YoY Change 24.77% 19.16%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $927.3M $927.5M $911.4M
YoY Change -0.02% 75.6%
Treasury Stock Shares 12.70M shares 12.70M shares 12.50M shares
Shareholders Equity $800.4M $526.4M $490.8M
YoY Change
Total Liabilities & Shareholders Equity $3.467B $3.564B $3.576B
YoY Change -2.71% -6.02%

Cashflow Statement

Concept 2019 Q2 2018 Q2 2018 Q1
OPERATING ACTIVITIES
Net Income $201.7M $82.90M $148.9M
YoY Change 143.31% -49.79%
Depreciation, Depletion And Amortization $22.30M $21.20M $19.80M
YoY Change 5.19% 7.07%
Cash From Operating Activities $468.4M $479.4M -$272.3M
YoY Change -2.29% -271.7%
INVESTING ACTIVITIES
Capital Expenditures -$7.900M -$7.600M -$13.70M
YoY Change 3.95% -54.49%
Acquisitions
YoY Change
Other Investing Activities $41.70M -$406.8M $30.60M
YoY Change -110.25% -8943.48%
Cash From Investing Activities $33.80M -$414.4M $16.90M
YoY Change -108.16% 3324.79%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -503.5M -64.90M 232.0M
YoY Change 675.81% -123.53%
NET CHANGE
Cash From Operating Activities 468.4M 479.4M -272.3M
Cash From Investing Activities 33.80M -414.4M 16.90M
Cash From Financing Activities -503.5M -64.90M 232.0M
Net Change In Cash -1.300M 100.0K -23.40M
YoY Change -1400.0% -100.65%
FREE CASH FLOW
Cash From Operating Activities $468.4M $479.4M -$272.3M
Capital Expenditures -$7.900M -$7.600M -$13.70M
Free Cash Flow $476.3M $487.0M -$258.6M
YoY Change -2.2% -285.52%

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CY2019Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
56600000 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
56300000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
56100000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
57400000 shares
CY2019Q2 us-gaap Profit Loss
ProfitLoss
201600000 USD
CY2018Q2 us-gaap Profit Loss
ProfitLoss
82800000 USD
us-gaap Profit Loss
ProfitLoss
518400000 USD
us-gaap Profit Loss
ProfitLoss
210600000 USD
CY2019Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
3100000 USD
CY2018Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-5300000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-1500000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
10300000 USD
CY2019Q2 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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-3100000 USD
CY2018Q2 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
2200000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
-13400000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
5000000.0 USD
CY2019Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
100000 USD
CY2018Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
1100000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
2100000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
2300000 USD
CY2019Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansNetOfTax
700000 USD
CY2018Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansNetOfTax
400000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansNetOfTax
1300000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansNetOfTax
1200000 USD
CY2019Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
600000 USD
CY2018Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-3800000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
14200000 USD
CY2019Q2 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
202200000 USD
CY2018Q2 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
79000000.0 USD
us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
502700000 USD
us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
224800000 USD
CY2019Q2 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
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CY2018Q2 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
0 USD
us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
-200000 USD
us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
0 USD
CY2019Q2 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
202300000 USD
CY2018Q2 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
79000000.0 USD
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
502900000 USD
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
224800000 USD
us-gaap Profit Loss
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518400000 USD
us-gaap Profit Loss
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210600000 USD
us-gaap Restructuring Costs And Asset Impairment Charges
RestructuringCostsAndAssetImpairmentCharges
500000 USD
us-gaap Restructuring Costs And Asset Impairment Charges
RestructuringCostsAndAssetImpairmentCharges
23400000 USD
us-gaap Share Based Compensation
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28400000 USD
us-gaap Share Based Compensation
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30000000.0 USD
us-gaap Depreciation
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41800000 USD
us-gaap Depreciation
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39200000 USD
us-gaap Adjustment For Amortization
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25200000 USD
us-gaap Adjustment For Amortization
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21600000 USD
us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-31800000 USD
us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-47900000 USD
smg Gain Loss On Sale Of Long Lived Assets
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smg Gain Loss On Sale Of Long Lived Assets
GainLossOnSaleOfLongLivedAssets
400000 USD
us-gaap Equity Method Investment Realized Gain Loss On Disposal
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262600000 USD
us-gaap Equity Method Investment Realized Gain Loss On Disposal
EquityMethodInvestmentRealizedGainLossOnDisposal
-2800000 USD
smg Translation Adjustment Functional To Reporting Currency Write Off
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2500000 USD
smg Translation Adjustment Functional To Reporting Currency Write Off
TranslationAdjustmentFunctionalToReportingCurrencyWriteOff
11700000 USD
us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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3300000 USD
us-gaap Increase Decrease In Accounts Receivable
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436000000.0 USD
us-gaap Increase Decrease In Accounts Receivable
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397800000 USD
us-gaap Increase Decrease In Inventories
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53400000 USD
us-gaap Increase Decrease In Inventories
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5100000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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24400000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
12700000 USD
us-gaap Increase Decrease In Accounts Payable
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79700000 USD
us-gaap Increase Decrease In Accounts Payable
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46300000 USD
us-gaap Increase Decrease In Other Current Liabilities
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130600000 USD
us-gaap Increase Decrease In Other Current Liabilities
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17600000 USD
us-gaap Increase Decrease In Restructuring Reserve
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us-gaap Increase Decrease In Restructuring Reserve
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74300000 USD
us-gaap Increase Decrease In Other Noncurrent Assets And Liabilities Net
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16200000 USD
us-gaap Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
12500000 USD
us-gaap Increase Decrease In Other Operating Capital Net
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us-gaap Increase Decrease In Other Operating Capital Net
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1200000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
200000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
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1200000 USD
smg Post Closing Working Capital Payment Related To Divestiture
PostClosingWorkingCapitalPaymentRelatedToDivestiture
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smg Post Closing Working Capital Payment Related To Divestiture
PostClosingWorkingCapitalPaymentRelatedToDivestiture
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us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
28800000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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40700000 USD
us-gaap Payments For Proceeds From Loans Receivable
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us-gaap Payments For Proceeds From Loans Receivable
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5300000 USD
us-gaap Proceeds From Divestiture Of Businesses And Interests In Affiliates
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274300000 USD
us-gaap Proceeds From Divestiture Of Businesses And Interests In Affiliates
ProceedsFromDivestitureOfBusinessesAndInterestsInAffiliates
0 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
6600000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
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us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
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us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
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us-gaap Net Cash Provided By Used In Investing Activities
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263500000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Proceeds From Long Term Lines Of Credit
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us-gaap Proceeds From Long Term Lines Of Credit
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us-gaap Repayments Of Long Term Lines Of Credit
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us-gaap Repayments Of Long Term Lines Of Credit
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us-gaap Payments Of Dividends Common Stock
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us-gaap Payments Of Dividends Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Repayments Of Notes Payable
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us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
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us-gaap Proceeds From Stock Options Exercised
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3200000 USD
us-gaap Proceeds From Stock Options Exercised
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us-gaap Payments For Repurchase Of Redeemable Noncontrolling Interest
PaymentsForRepurchaseOfRedeemableNoncontrollingInterest
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us-gaap Payments For Repurchase Of Redeemable Noncontrolling Interest
PaymentsForRepurchaseOfRedeemableNoncontrollingInterest
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us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2018Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
33900000 USD
CY2017Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
120500000 USD
CY2019Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
36400000 USD
CY2018Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
29600000 USD
CY2019Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
36400000 USD
CY2018Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2018Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2019Q2 us-gaap Accounts Receivable Net Current
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CY2018Q2 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
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CY2018Q3 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
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CY2019Q2 us-gaap Pledged Assets Separately Reported Finance Receivables Pledged As Collateral At Fair Value
PledgedAssetsSeparatelyReportedFinanceReceivablesPledgedAsCollateralAtFairValue
351100000 USD
CY2018Q2 us-gaap Pledged Assets Separately Reported Finance Receivables Pledged As Collateral At Fair Value
PledgedAssetsSeparatelyReportedFinanceReceivablesPledgedAsCollateralAtFairValue
316700000 USD
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PledgedAssetsSeparatelyReportedFinanceReceivablesPledgedAsCollateralAtFairValue
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CY2019Q2 us-gaap Inventory Net
InventoryNet
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CY2018Q2 us-gaap Inventory Net
InventoryNet
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CY2018Q3 us-gaap Inventory Net
InventoryNet
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CY2019Q2 us-gaap Prepaid Expense And Other Assets Current
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CY2018Q2 us-gaap Prepaid Expense And Other Assets Current
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CY2018Q2 us-gaap Assets Current
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CY2019Q2 us-gaap Equity Method Investments
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CY2018Q2 us-gaap Equity Method Investments
EquityMethodInvestments
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CY2018Q3 us-gaap Equity Method Investments
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CY2019Q2 us-gaap Property Plant And Equipment Net
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CY2018Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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CY2018Q3 us-gaap Property Plant And Equipment Net
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CY2019Q2 us-gaap Goodwill
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CY2018Q2 us-gaap Goodwill
Goodwill
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CY2018Q3 us-gaap Goodwill
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CY2019Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
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CY2018Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
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IntangibleAssetsNetExcludingGoodwill
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CY2019Q2 us-gaap Other Assets Noncurrent
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CY2018Q2 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
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CY2018Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
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CY2019Q2 us-gaap Assets
Assets
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CY2018Q2 us-gaap Assets
Assets
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CY2018Q3 us-gaap Assets
Assets
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CY2019Q2 us-gaap Long Term Debt Current
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CY2018Q2 us-gaap Accounts Payable Current
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CY2018Q2 us-gaap Other Liabilities Current
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CY2018Q3 us-gaap Other Liabilities Current
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CY2019Q2 us-gaap Liabilities Current
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CY2018Q2 us-gaap Liabilities Current
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CY2018Q3 us-gaap Liabilities Current
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CY2019Q2 us-gaap Long Term Debt Noncurrent
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CY2018Q2 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
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CY2018Q3 us-gaap Long Term Debt Noncurrent
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CY2019Q2 us-gaap Due To Affiliate Noncurrent
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CY2018Q2 us-gaap Due To Affiliate Noncurrent
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CY2018Q3 us-gaap Due To Affiliate Noncurrent
DueToAffiliateNoncurrent
21900000 USD
CY2019Q2 us-gaap Other Liabilities Noncurrent
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CY2018Q2 us-gaap Other Liabilities Noncurrent
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CY2018Q3 us-gaap Other Liabilities Noncurrent
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CY2019Q2 us-gaap Liabilities
Liabilities
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CY2018Q2 us-gaap Liabilities
Liabilities
3032600000 USD
CY2018Q3 us-gaap Liabilities
Liabilities
2694900000 USD
CY2019Q2 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
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CY2018Q2 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
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CY2018Q3 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
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CY2019Q2 us-gaap Common Stocks Including Additional Paid In Capital
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us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
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us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
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CY2019Q2 us-gaap Treasury Stock Value
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CY2018Q2 us-gaap Treasury Stock Value
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CY2018Q2 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
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CY2018Q2 us-gaap Stockholders Equity
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CY2018Q3 us-gaap Stockholders Equity
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CY2018Q2 us-gaap Minority Interest
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CY2018Q3 us-gaap Minority Interest
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CY2018Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2018Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2019Q2 us-gaap Liabilities And Stockholders Equity
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CY2018Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
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us-gaap Capital Expenditures Incurred But Not Yet Paid
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us-gaap Capital Expenditures Incurred But Not Yet Paid
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us-gaap Interest Paid Net
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us-gaap Income Taxes Paid Net
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us-gaap Income Taxes Paid Net
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CY2019Q2 us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
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CY2018Q2 us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
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us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
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CY2019Q2 smg Restructuring And Other Related Charges Discontinued Operations
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CY2018Q2 smg Restructuring And Other Related Charges Discontinued Operations
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smg Restructuring And Other Related Charges Discontinued Operations
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smg Restructuring And Other Related Charges Discontinued Operations
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66600000 USD
CY2019Q2 us-gaap Gain Loss On Sale Of Business
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CY2018Q2 us-gaap Gain Loss On Sale Of Business
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us-gaap Gain Loss On Sale Of Business
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us-gaap Gain Loss On Sale Of Business
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CY2019Q2 us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
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CY2018Q2 us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
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us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
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us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
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CONTINGENCIES<div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">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 liabilities for which the Company is self-insured or retains a high exposure limit. Self-insurance accruals are established based on actuarial loss estimates for specific individual claims plus actuarially estimated amounts for incurred but not reported claims and adverse development factors applied to existing claims. Legal costs incurred in connection with the resolution of claims, lawsuits and other contingencies generally are expensed as incurred. In the opinion of management, the assessment of contingencies is reasonable and related accruals, in the aggregate, are adequate; however, there can be no assurance that final resolution of these matters will not have a material effect on the Company’s financial condition, results of operations or cash flows. </span></div><div style="line-height:120%;padding-top:10px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:underline;">Regulatory Matters</span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">At </span><span style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">June 29, 2019</span><span style="font-family:inherit;font-size:10pt;">, </span><span style="font-family:inherit;font-size:10pt;"><span>$4.1 million</span></span><span style="font-family:inherit;font-size:10pt;"> was accrued in the “Other liabilities” line in the Condensed Consolidated Balance Sheets for environmental actions, the majority of which are for site remediation. The Company believes that the amounts accrued are adequate to cover such known environmental exposures based on current facts and estimates of likely outcomes. Although it is reasonably possible that the costs to resolve such known environmental exposures will exceed the amounts accrued, any variation from accrued amounts is not expected to be material.</span></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:underline;">Other</span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company has been named as a defendant in a number of cases alleging injuries that the lawsuits claim resulted from exposure to asbestos-containing products, apparently based on the Company’s historic use of vermiculite in certain of its products. In many of these cases, the complaints are not specific about the plaintiffs’ contacts with the Company or its products. The cases vary, but complaints in these cases generally seek unspecified monetary damages (actual, compensatory, consequential and punitive) from multiple defendants. The Company believes that the claims against it are without merit and is vigorously defending against them. No accruals have been recorded in the Company’s consolidated financial statements as the likelihood of a loss is not probable at this time; and the Company does not believe a reasonably possible loss would be material to, nor the ultimate resolution of these cases will have a material adverse effect on, the Company’s financial condition, results of operations or cash flows. There can be no assurance that future developments related to pending claims or claims filed in the future, whether as a result of adverse outcomes or as a result of significant defense costs, will not have a material effect on the Company’s financial condition, results of operations or cash flows. </span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In connection with the sale of wild bird food products that were the subject of a voluntary recall in 2008, the Company, along with its Chief Executive Officer, have been named as defendants in four actions filed on and after June 27, 2012, which have been consolidated, and, on March 31, 2017, certified as a class action in the United States District Court for the Southern District of California as </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">In re Morning Song Bird Food Litigation</span><span style="font-family:inherit;font-size:10pt;">, Lead Case No. 3:12-cv-01592-JAH-AGS. The plaintiffs allege various statutory and common law claims associated with the Company’s sale of wild bird food products and a plea agreement entered into in previously pending government proceedings associated with such sales. The plaintiffs allege, among other things, a class action on behalf of all persons and entities in the United States who purchased certain bird food products. The plaintiffs assert: (i) hundreds of millions of dollars in monetary damages (actual, compensatory, consequential, and restitution); (ii) punitive and treble damages; (iii) injunctive and declaratory relief; (iv) pre-judgment and post-judgment interest; and (v) costs and attorneys’ fees. The Company and its Chief Executive Officer dispute the plaintiffs’ assertions and have vigorously defended the consolidated action. The parties reached an agreement to settle this matter, which the parties memorialized in a settlement agreement submitted to the Court for approval on December 7, 2018. On January 31, 2019, the Court preliminarily approved the settlement, and on June 11, 2019, the Court granted final approval of the settlement.  The settlement became effective on July 12, 2019. During the second quarter of fiscal 2019, the Company paid </span><span style="font-family:inherit;font-size:10pt;"><span>$42.5 million</span></span><span style="font-family:inherit;font-size:10pt;"> to the settlement fund in accordance with the settlement agreement and will make the final payment of </span><span style="font-family:inherit;font-size:10pt;"><span>$20.0 million</span></span><span style="font-family:inherit;font-size:10pt;"> during the fourth quarter of fiscal 2019. At </span><span style="font-family:inherit;font-size:10pt;">June 29, 2019</span><span style="font-family:inherit;font-size:10pt;">, </span><span style="font-family:inherit;font-size:10pt;">June 30, 2018</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">September 30, 2018</span><span style="font-family:inherit;font-size:10pt;">, </span><span style="font-family:inherit;font-size:10pt;"><span>$20.0 million</span></span><span style="font-family:inherit;font-size:10pt;">, </span><span style="font-family:inherit;font-size:10pt;"><span>$65.0 million</span></span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;"><span>$85.0 million</span></span><span style="font-family:inherit;font-size:10pt;">, respectively, was accrued for a probable loss related to this matter in the “Other current liabilities” line in the Condensed Consolidated Balance Sheets. During the three and </span><span style="font-family:inherit;font-size:10pt;">nine</span><span style="font-family:inherit;font-size:10pt;"> months ended </span><span style="font-family:inherit;font-size:10pt;">June 29, 2019</span><span style="font-family:inherit;font-size:10pt;">, the Company recognized a favorable adjustment of </span><span style="font-family:inherit;font-size:10pt;"><span>$22.5 million</span></span><span style="font-family:inherit;font-size:10pt;"> in the “Income (loss) from discontinued operations, net of tax” line in the Condensed Consolidated Statements of Operations as a result of the final resolution of the previously disclosed settlement agreement. In addition, during the three and </span><span style="font-family:inherit;font-size:10pt;">nine</span><span style="font-family:inherit;font-size:10pt;"> months ended </span><span style="font-family:inherit;font-size:10pt;">June 29, 2019</span><span style="font-family:inherit;font-size:10pt;">, the Company recognized insurance recoveries of </span><span style="font-family:inherit;font-size:10pt;"><span>$8.4 million</span></span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;"><span>$13.4 million</span></span><span style="font-family:inherit;font-size:10pt;">, respectively, related to this matter in the “Income (loss) from discontinued operations, net of tax” line in the Condensed Consolidated Statements of Operations. </span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company was named as a defendant in </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">In re Scotts EZ Seed Litigation</span><span style="font-family:inherit;font-size:10pt;">, Case No. 12-cv-4727 (VB), a New York and California class action lawsuit filed August 9, 2012 in the United States District Court for the Southern District of New York that </span></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">asserted claims under false advertising and other legal theories based on a marketing statement on the Company’s EZ Seed grass seed product from 2009 to 2012. The plaintiffs sought, on behalf of themselves and purported class members, various forms of monetary and non-monetary relief, including statutory damages that they contend could amount to hundreds of millions of dollars. The Company defended the action vigorously, and disputed the plaintiffs’ claims and theories, including the recoverability of statutory damages. In 2017, the Court eliminated certain claims, narrowed the case in certain respects, and permitted the case to continue proceeding as a class action. On August 7, 2017, the Court requested briefs on the Company’s request for interlocutory review of issues relating to the recoverability of statutory damages in a class action by the United States Court of Appeals for the Second Circuit and, on August 31, 2017, approved that request. On January 8, 2018, however, the Second Circuit denied the interlocutory appeal request. The parties engaged in mediation on April 9, 2018 and agreed in principle to a preliminary settlement of the outstanding claims on April 10, 2018. The preliminary settlement required the Company to pay certain attorneys’ and administrative fees and provide certain payments to the class members. The preliminary settlement was approved by the court on December 19, 2018. This case is now settled and the Company made final payment of the claims made by class members during the second quarter of fiscal 2019. At </span><span style="font-family:inherit;font-size:10pt;">June 29, 2019</span><span style="font-family:inherit;font-size:10pt;">, </span><span style="font-family:inherit;font-size:10pt;">June 30, 2018</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">September 30, 2018</span><span style="font-family:inherit;font-size:10pt;">, </span><span style="font-family:inherit;font-size:10pt;"><span>zero</span></span><span style="font-family:inherit;font-size:10pt;">, </span><span style="font-family:inherit;font-size:10pt;"><span>$10.2 million</span></span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;"><span>$11.7 million</span></span><span style="font-family:inherit;font-size:10pt;">, respectively, was accrued for a probable loss related to this matter in the “Other current liabilities” line in the Condensed Consolidated Balance Sheets. During the three and </span><span style="font-family:inherit;font-size:10pt;">nine</span><span style="font-family:inherit;font-size:10pt;"> months ended </span><span style="font-family:inherit;font-size:10pt;">June 29, 2019</span><span style="font-family:inherit;font-size:10pt;">, the Company recognized favorable adjustments of </span><span style="font-family:inherit;font-size:10pt;"><span>zero</span></span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;"><span>$0.4 million</span></span><span style="font-family:inherit;font-size:10pt;">, respectively, related to this matter in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations as a result of the final payment of the claims made by class members. </span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company is involved in other lawsuits and claims which arise in the normal course of business. These claims individually and in the aggregate are not expected to result in a material effect on the Company’s financial condition, results of operations or cash flows.</span></div>
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InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures
0 USD
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0 USD
CY2018Q2 us-gaap Assets
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CY2018Q2 us-gaap Long Term Debt Noncurrent
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CY2018Q2 us-gaap Due To Affiliate Noncurrent
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21900000 USD
CY2018Q2 us-gaap Other Liabilities Noncurrent
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210000000.0 USD
CY2018Q2 us-gaap Equity Method Investment Underlying Equity In Net Assets
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0 USD
CY2018Q2 us-gaap Liabilities
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3032600000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
526400000 USD
CY2018Q2 us-gaap Minority Interest
MinorityInterest
4900000 USD
CY2018Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
531300000 USD
CY2018Q2 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
3563900000 USD
CY2018Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
33900000 USD
CY2018Q3 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
226000000.0 USD
CY2018Q3 us-gaap Pledged Assets Separately Reported Finance Receivables Pledged As Collateral At Fair Value
PledgedAssetsSeparatelyReportedFinanceReceivablesPledgedAsCollateralAtFairValue
84500000 USD
CY2018Q3 us-gaap Inventory Net
InventoryNet
481400000 USD
CY2018Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
59900000 USD
CY2018Q3 us-gaap Assets Current
AssetsCurrent
885700000 USD
CY2018Q3 us-gaap Equity Method Investments
EquityMethodInvestments
36100000 USD
CY2018Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
530800000 USD
CY2018Q3 us-gaap Goodwill
Goodwill
543000000.0 USD
CY2018Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
857300000 USD
CY2018Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
201600000 USD
CY2018Q3 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures
0 USD
CY2018Q3 smg Intercompany Assets
IntercompanyAssets
0 USD
CY2018Q3 us-gaap Assets
Assets
3054500000 USD
CY2018Q3 us-gaap Long Term Debt Current
LongTermDebtCurrent
132600000 USD
CY2018Q3 us-gaap Accounts Payable Current
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150500000 USD
CY2018Q3 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
329600000 USD
CY2018Q3 us-gaap Liabilities Current
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612700000 USD
CY2018Q3 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
1883800000 USD
CY2018Q3 us-gaap Due To Affiliate Noncurrent
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21900000 USD
CY2018Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
176500000 USD
CY2018Q3 us-gaap Equity Method Investment Underlying Equity In Net Assets
EquityMethodInvestmentUnderlyingEquityInNetAssets
0 USD
CY2018Q3 smg Intercompany Liabilities
IntercompanyLiabilities
0 USD
CY2018Q3 us-gaap Liabilities
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2694900000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
354600000 USD
CY2018Q3 us-gaap Minority Interest
MinorityInterest
5000000.0 USD
CY2018Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
359600000 USD
CY2018Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
3054500000 USD

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0001546380-19-000024.txt Edgar Link pending
0001546380-19-000024-xbrl.zip Edgar Link pending
exhibit21smg6292019q3f.htm Edgar Link pending
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