SCOTTS MIRACLE-GRO COSMG
SCOTTS MIRACLE-GRO CO Segments Disclosure
SEGMENT INFORMATION
The Company has three operating segments and two reportable segments: U.S. Consumer and Hawthorne. Management has chosen to organize the entity around differences in product categories and geographic areas. U.S. Consumer consists of the Company’s consumer lawn and garden business in the United States. Hawthorne consists of the Company’s indoor and hydroponic gardening business. Management has chosen to provide separate reportable segment disclosures for Hawthorne notwithstanding the fact that it does not meet any of the quantitative thresholds requiring such disclosure. The Company’s Other operating segment primarily consists of the Company’s consumer lawn and garden business in Canada and does not meet any of the quantitative thresholds requiring separate reportable segment disclosures. This identification of operating segments is consistent with how the segments are managed by the Chairman of the Board & Chief Executive Officer, who has been determined to be the chief operating decision maker (“CODM”) of the Company. In addition, Corporate consists of general and administrative expenses and certain other income and expense items not allocated to the Company’s operating segments. The accounting policies of the segments are the same as those described in the Company’s summary of significant accounting policies.
The CODM uses Segment Profit (Loss), which is defined as income (loss) before income taxes, amortization, impairment, restructuring and other charges (“Segment Profit (Loss)”), to evaluate segment performance, monitor actual results as compared to plan and inform resource allocation decisions. The Company believes this measure is indicative of performance trends and the overall earnings potential of each segment. Asset information and capital expenditures by segment are not provided to the CODM and they are not utilized for the purposes of assessing performance or allocating resources, and therefore such information has not been presented.
The following table presents net sales by segment and a reconciliation to the Company’s consolidated net sales for the periods indicated:
| Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. Consumer | $ | 2,993.7 | $ | 3,013.7 | $ | 2,843.7 | |||||||||||
| Hawthorne | 165.8 | 294.7 | 467.3 | ||||||||||||||
| Reportable segment total | 3,159.5 | 3,308.4 | 3,311.0 | ||||||||||||||
| Other non-reportable operating segment | 253.6 | 244.3 | 240.3 | ||||||||||||||
| Consolidated | $ | 3,413.1 | $ | 3,552.7 | $ | 3,551.3 | |||||||||||
The following tables present Segment Profit (Loss), including the significant segment expenses provided to the CODM, and a reconciliation to income (loss) before income taxes for the periods indicated:
| Year Ended September 30, 2025 | |||||||||||||||||
| U.S. Consumer | Hawthorne | Total | |||||||||||||||
| Net sales | $ | 2,993.7 | $ | 165.8 | |||||||||||||
Adjusted cost of sales (a) | 2,008.4 | 129.6 | |||||||||||||||
Adjusted selling, general and administrative (b) | 392.1 | 34.0 | |||||||||||||||
Other segment items (c) | 20.6 | (0.6) | |||||||||||||||
| Segment Profit | $ | 572.6 | $ | 2.8 | $ | 575.4 | |||||||||||
| Other non-reportable operating segment profit | 12.7 | ||||||||||||||||
| Corporate | (133.4) | ||||||||||||||||
| Intangible asset amortization | (12.3) | ||||||||||||||||
Total impairment, restructuring and other (d) | (83.8) | ||||||||||||||||
| Equity in loss of unconsolidated affiliates | (2.8) | ||||||||||||||||
| Interest expense | (128.8) | ||||||||||||||||
| Other non-operating expense, net | (5.3) | ||||||||||||||||
| Income before income taxes | $ | 221.7 | |||||||||||||||
| Year Ended September 30, 2024 | |||||||||||||||||
| U.S. Consumer | Hawthorne | Total | |||||||||||||||
| Net sales | $ | 3,013.7 | $ | 294.7 | |||||||||||||
Adjusted cost of sales (a) | 2,147.8 | 258.6 | |||||||||||||||
Adjusted selling, general and administrative (b) | 347.8 | 51.8 | |||||||||||||||
Other segment items (c) | 20.1 | (1.5) | |||||||||||||||
| Segment Profit (Loss) | $ | 498.0 | $ | (14.2) | $ | 483.8 | |||||||||||
| Other non-reportable operating segment profit | 4.7 | ||||||||||||||||
| Corporate | (117.7) | ||||||||||||||||
| Intangible asset amortization | (15.7) | ||||||||||||||||
Total impairment, restructuring and other (d) | (146.3) | ||||||||||||||||
| Equity in loss of unconsolidated affiliates | (68.1) | ||||||||||||||||
| Interest expense | (158.8) | ||||||||||||||||
| Other non-operating expense, net | (5.5) | ||||||||||||||||
| Loss before income taxes | $ | (23.6) | |||||||||||||||
| Year Ended September 30, 2023 | |||||||||||||||||
| U.S. Consumer | Hawthorne | Total | |||||||||||||||
| Net sales | $ | 2,843.7 | $ | 467.3 | |||||||||||||
Adjusted cost of sales (a) | 2,056.6 | 446.7 | |||||||||||||||
Adjusted selling, general and administrative (b) | 334.3 | 67.3 | |||||||||||||||
Other segment items (c) | (1.3) | 1.4 | |||||||||||||||
| Segment Profit (Loss) | $ | 454.1 | $ | (48.1) | $ | 406.0 | |||||||||||
| Other non-reportable operating segment profit | 12.4 | ||||||||||||||||
| Corporate | (101.6) | ||||||||||||||||
| Intangible asset amortization | (25.2) | ||||||||||||||||
Total impairment, restructuring and other (d) | (466.0) | ||||||||||||||||
| Equity in loss of unconsolidated affiliates | (101.1) | ||||||||||||||||
| Interest expense | (178.1) | ||||||||||||||||
| Other non-operating income, net | 0.3 | ||||||||||||||||
| Loss before income taxes | $ | (453.3) | |||||||||||||||
(a)“Adjusted cost of sales” is defined as cost of sales excluding intangible asset amortization, and does not include activity classified as impairment, restructuring and other.
(b)“Adjusted selling, general and administrative” is defined as selling, general and administrative expenses excluding intangible asset amortization, and does not include activity classified as impairment, restructuring and other.
(c)Other segment items is comprised of activities such as the discount on sales of accounts receivable under the Master Receivables Purchase Agreement, royalty income from the licensing of certain of the Company’s brand names and foreign exchange transaction gains and losses.
(d)Total impairment, restructuring and other is comprised of the activity classified within the “Cost of sales—impairment, restructuring and other” and “Impairment, restructuring and other” lines in the Consolidated Statements of Operations. Refer to “NOTE 3. IMPAIRMENT, RESTRUCTURING AND OTHER” for further details.
The following tables present certain other segment disclosures for the periods indicated:
| Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Depreciation and amortization: | |||||||||||||||||
| U.S. Consumer | $ | 54.5 | $ | 56.2 | $ | 58.2 | |||||||||||
Hawthorne | 13.0 | 16.7 | 25.8 | ||||||||||||||
| Reportable segment total | $ | 67.5 | $ | 72.9 | $ | 84.0 | |||||||||||
| Share-based compensation: | |||||||||||||||||
U.S. Consumer (a) | $ | 38.1 | $ | 37.1 | $ | 35.3 | |||||||||||
| Hawthorne | 2.6 | 5.3 | 6.2 | ||||||||||||||
| Reportable segment total | $ | 40.7 | $ | 42.4 | $ | 41.5 | |||||||||||
(a)Includes certain advertising expenses paid for in Common Shares.
The following table presents net sales by product category for the periods indicated:
| Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. Consumer: | |||||||||||||||||
| Growing media and mulch | $ | 1,364.6 | $ | 1,310.6 | $ | 1,223.7 | |||||||||||
| Lawn care | 909.5 | 929.6 | 897.4 | ||||||||||||||
| Controls | 392.5 | 414.6 | 362.9 | ||||||||||||||
Roundup® marketing agreement | 159.0 | 162.4 | 138.7 | ||||||||||||||
| Other, primarily gardening | 168.1 | 196.5 | 221.0 | ||||||||||||||
| Hawthorne: | |||||||||||||||||
| Nutrients | 66.4 | 87.2 | 105.3 | ||||||||||||||
| Lighting | 55.9 | 108.2 | 165.9 | ||||||||||||||
| Growing media | 19.4 | 37.3 | 67.5 | ||||||||||||||
| Other, primarily hardware and growing environment | 24.1 | 62.0 | 128.6 | ||||||||||||||
| Other: | |||||||||||||||||
| Growing media | 96.9 | 91.3 | 93.0 | ||||||||||||||
| Lawn care | 79.1 | 80.2 | 75.8 | ||||||||||||||
| Other, primarily gardening and controls | 77.6 | 72.8 | 71.5 | ||||||||||||||
| Total net sales | $ | 3,413.1 | $ | 3,552.7 | $ | 3,551.3 | |||||||||||
The Company’s two largest customers accounted for the following percentages of net sales for the fiscal years ended September 30:
| Percentage of Net Sales | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| The Home Depot | 34 | % | 30 | % | 29 | % | |||||||||||
| Lowe’s | 18 | % | 18 | % | 18 | % | |||||||||||
Accounts receivable for these two largest customers as a percentage of consolidated accounts receivable were 25% and 18% as of September 30, 2025 and 2024, respectively.
The following table presents net sales by geographic area for the periods indicated:
| Year Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net sales: | |||||||||||||||||
| United States | $ | 3,134.5 | $ | 3,247.8 | $ | 3,209.5 | |||||||||||
| International | 278.6 | 304.9 | 341.8 | ||||||||||||||
| $ | 3,413.1 | $ | 3,552.7 | $ | 3,551.3 | ||||||||||||
Other than the United States, no other country accounted for more than 10% of the Company’s net sales for any period presented above.
The following table presents property, plant and equipment by geographic area:
| September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Property, plant and equipment: | |||||||||||
| United States | $ | 572.5 | $ | 549.4 | |||||||
| International | 59.1 | 60.1 | |||||||||
| $ | 631.6 | $ | 609.5 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 25, 2025 | Showing above |
| 2024 | Nov 26, 2024 | |
| 2023 | Nov 22, 2023 | |
| 2022 | Nov 28, 2022 | |
| 2021 | Nov 23, 2021 | |
| 2020 | Nov 24, 2020 | |
| 2019 | Nov 27, 2019 | |
| 2018 | Nov 29, 2018 | |
| 2017 | Nov 28, 2017 | |
| 2016 | Nov 28, 2016 | |
| 2015 | Nov 24, 2015 | |
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.