Segment Information
The Company operates in one operating segment and one reportable segment organized around the sale of pet products and services, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM utilizes gross profit and net income as the measures of segment profit.

The following table presents information about the Company’s measures of segment profit and significant segment expenses regularly provided to the CODM (in millions):

Fiscal Year
202520242023
Net sales$12,601.5 $11,861.3 $11,147.7 
Cost of goods sold8,847.6 8,393.6 7,986.2 
Gross profit3,753.9 3,467.7 3,161.5 
Fulfillment costs1,411.8 1,309.4 1,286.2 
Share-based compensation expense and related taxes311.2 332.1 248.5 
Depreciation and amortization129.3 114.6 109.7 
Other selling, general, and administrative expenses822.4 794.9 798.3 
Advertising and marketing expenses824.9 804.1 742.4 
Income tax provision (benefit)40.5 (241.0)8.7 
Interest and other income, net(9.0)(39.1)(71.9)
Net income$222.8 $392.7 $39.6 
The CODM reviews assets on a consolidated basis as presented on our Consolidated Balance Sheets.

Historical Timeline

Fiscal YearFiled
2026Mar 25, 2026Showing above
2025Mar 26, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.