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These excerpts taken from the SMG 10-K filed Dec 3, 2008. Other Market
Risks
Our market risk associated with foreign currency rates is not
considered to be material. Through fiscal 2008, we had only
minor amounts of transactions that were denominated in
currencies other than the currency of the country of origin. We
use foreign currency swap contracts to manage the exchange rate
risk associated with intercompany loans with foreign
subsidiaries that are denominated in U.S. dollars. At
September 30, 2008, the notational amount of outstanding
contracts was $86.4 million with a fair value of
Table of Contents
($0.4) million. At September 30, 2007, the notional
amount of outstanding contracts was $101.5 million with a
fair value of ($1.3) million.
We are subject to market risk from fluctuating prices of certain
raw materials, including urea, resins, fuel, grass seed and wild
bird food components. Our objectives surrounding the procurement
of these materials are to ensure continuous supply and to
minimize costs. We seek to achieve these objectives through
negotiation of contracts with favorable terms directly with
vendors. In addition, in 2007 we entered into arrangements to
partially mitigate the effect of fluctuating direct and indirect
fuel costs on our Global Consumer and Scotts
LawnService®
businesses and hedged a portion of our urea needs for fiscal
2008. We had outstanding a strip of collars for approximately
0.5 million gallons of fuel at September 30, 2007.
There were no outstanding derivatives for fuel at
September 30, 2008. We also had hedging arrangements for
48,500 and 45,000 aggregate tons of urea at September 30,
2008 and 2007, respectively. The fair value of the 48,500
aggregate tons at September 30, 2008 was
($8.5) million, while the fair value of the 45,000
aggregate tons at September 30, 2007 was $1.0 million.
The financial statements and other information required by this
Item are contained in the consolidated financial statements,
notes thereto and schedule listed in the “Index to
Consolidated Financial Statements and Financial Statement
Schedule” on page 62 of this Annual Report on
Form 10-K.
None.
Other Market Risks Our market risk associated with foreign currency rates is not considered to be material. Through fiscal 2008, we had only minor amounts of transactions that were denominated in currencies other than the currency of the country of origin. We use foreign currency swap contracts to manage the exchange rate risk associated with intercompany loans with foreign subsidiaries that are denominated in U.S. dollars. At September 30, 2008, the notational amount of outstanding contracts was $86.4 million with a fair value of Table of Contents($0.4) million. At September 30, 2007, the notional amount of outstanding contracts was $101.5 million with a fair value of ($1.3) million. We are subject to market risk from fluctuating prices of certain raw materials, including urea, resins, fuel, grass seed and wild bird food components. Our objectives surrounding the procurement of these materials are to ensure continuous supply and to minimize costs. We seek to achieve these objectives through negotiation of contracts with favorable terms directly with vendors. In addition, in 2007 we entered into arrangements to partially mitigate the effect of fluctuating direct and indirect fuel costs on our Global Consumer and Scotts LawnService® businesses and hedged a portion of our urea needs for fiscal 2008. We had outstanding a strip of collars for approximately 0.5 million gallons of fuel at September 30, 2007. There were no outstanding derivatives for fuel at September 30, 2008. We also had hedging arrangements for 48,500 and 45,000 aggregate tons of urea at September 30, 2008 and 2007, respectively. The fair value of the 48,500 aggregate tons at September 30, 2008 was ($8.5) million, while the fair value of the 45,000 aggregate tons at September 30, 2007 was $1.0 million.
The financial statements and other information required by this Item are contained in the consolidated financial statements, notes thereto and schedule listed in the “Index to Consolidated Financial Statements and Financial Statement Schedule” on page 62 of this Annual Report on Form 10-K.
None.
These excerpts taken from the SMG 10-K filed Nov 25, 2008. Other Market
Risks
Our market risk associated with foreign currency rates is not
considered to be material. Through fiscal 2008, we had only
minor amounts of transactions that were denominated in
currencies other than the currency of the country of origin. We
use foreign currency swap contracts to manage the exchange rate
risk associated with intercompany loans with foreign
subsidiaries that are denominated in U.S. dollars. At
September 30, 2008, the notational amount of outstanding
contracts was $86.4 million with a fair value of
($0.4) million. At September 30, 2007, the notional
amount of outstanding contracts was $101.5 million with a
fair value of ($1.3) million.
We are subject to market risk from fluctuating prices of certain
raw materials, including urea, resins, fuel, grass seed and wild
bird food components. Our objectives surrounding the procurement
of these materials are to ensure continuous supply and to
minimize costs. We seek to achieve these objectives through
negotiation of contracts with favorable terms directly with
vendors. In addition, in 2007 we entered into arrangements to
partially mitigate the effect of fluctuating direct and indirect
fuel costs on our Global Consumer and Scotts
LawnService®
businesses and hedged a portion of our urea needs for fiscal
2008. We had outstanding a strip of collars for approximately
0.5 million gallons of fuel at September 30, 2007.
There were no outstanding derivatives for fuel at
September 30, 2008. We also had
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hedging arrangements for 48,500 and 45,000 aggregate tons of
urea at September 30, 2008 and 2007, respectively. The fair
value of the 48,500 aggregate tons at September 30, 2008
was ($8.5) million, while the fair value of the 45,000
aggregate tons at September 30, 2007 was $1.0 million.
The financial statements and other information required by this
Item are contained in the consolidated financial statements,
notes thereto and schedule listed in the “Index to
Consolidated Financial Statements and Financial Statement
Schedule” on page 60 of this Annual Report on
Form 10-K.
None.
Other Market Risks Our market risk associated with foreign currency rates is not considered to be material. Through fiscal 2008, we had only minor amounts of transactions that were denominated in currencies other than the currency of the country of origin. We use foreign currency swap contracts to manage the exchange rate risk associated with intercompany loans with foreign subsidiaries that are denominated in U.S. dollars. At September 30, 2008, the notational amount of outstanding contracts was $86.4 million with a fair value of ($0.4) million. At September 30, 2007, the notional amount of outstanding contracts was $101.5 million with a fair value of ($1.3) million. We are subject to market risk from fluctuating prices of certain raw materials, including urea, resins, fuel, grass seed and wild bird food components. Our objectives surrounding the procurement of these materials are to ensure continuous supply and to minimize costs. We seek to achieve these objectives through negotiation of contracts with favorable terms directly with vendors. In addition, in 2007 we entered into arrangements to partially mitigate the effect of fluctuating direct and indirect fuel costs on our Global Consumer and Scotts LawnService® businesses and hedged a portion of our urea needs for fiscal 2008. We had outstanding a strip of collars for approximately 0.5 million gallons of fuel at September 30, 2007. There were no outstanding derivatives for fuel at September 30, 2008. We also had Table of Contentshedging arrangements for 48,500 and 45,000 aggregate tons of urea at September 30, 2008 and 2007, respectively. The fair value of the 48,500 aggregate tons at September 30, 2008 was ($8.5) million, while the fair value of the 45,000 aggregate tons at September 30, 2007 was $1.0 million.
The financial statements and other information required by this Item are contained in the consolidated financial statements, notes thereto and schedule listed in the “Index to Consolidated Financial Statements and Financial Statement Schedule” on page 60 of this Annual Report on Form 10-K.
None.
This excerpt taken from the SMG 10-K filed Nov 29, 2007. Other Market
Risks
Our market risk associated with foreign currency rates is not
considered to be material. Through fiscal 2007, we had only
minor amounts of transactions that were denominated in
currencies other than the currency of the country of origin. We
use foreign currency swap contracts to manage the exchange rate
risk associated with intercompany loans with foreign
subsidiaries that are denominated in U.S. dollars. At
September 30, 2007, the notional amount of outstanding
contracts was $101.5 million with a fair value of
$(1.3) million. At September 30, 2006, the notional
amount of outstanding contracts was $66.7 million with a
fair value of $0.4 million. We are subject to market risk
from fluctuating market prices of certain raw materials,
including urea, resins, grass seed, and wild bird food
components. Our objectives surrounding the procurement of these
materials are to ensure continuous supply and to minimize costs.
We seek to achieve these objectives through negotiation of
contracts with favorable terms directly with vendors. In
addition, we have entered into arrangements to partially
mitigate the effect of fluctuating direct and indirect fuel
costs on our North America and Scotts
LawnService®
businesses and hedged a portion of our urea needs for fiscal
2008. We had outstanding a strip of collars for approximately
0.5 million and 3.2 million gallons of fuel with fair
values of $0 and $0.2 million at September 30, 2007
and 2006, respectively. We also had hedging arrangements for
45,000 and 69,000 aggregate tons of urea at September 30,
2007 and 2006, respectively. The fair value of the 45,000
aggregate tons at September 30, 2007 was $1.0 million,
while the fair value of the 69,000 aggregate tons at
September 30, 2006 was $o.
The financial statements and other information required by this
Item are contained in the consolidated financial statements,
notes thereto and schedule listed in the “Index to
Consolidated Financial Statements and Financial Statement
Schedule” on page 53 of this Annual Report on
Form 10-K
herein.
None
This excerpt taken from the SMG 10-K filed Dec 14, 2006. Other Market
Risks
Our market risk associated with foreign currency rates is not
considered to be material. Through fiscal 2006, we had only
minor amounts of transactions that were denominated in
currencies other than the currency of the country of origin. We
are subject to market risk from fluctuating market prices of
certain raw materials, including urea and other chemicals and
paper and plastic products. Our objectives surrounding the
procurement of these materials are to ensure continuous supply
and to minimize costs. We seek to achieve these objectives
through negotiation of contracts with favorable terms directly
with vendors. We have entered into arrangements to partially
mitigate the effect of fluctuating fuel costs on our Scotts
LawnService®
business and hedged a portion of our urea needs for fiscal 2007.
The financial statements and other information required by this
Item are contained in the consolidated financial statements,
notes thereto and schedule listed in the “Index to
Consolidated Financial Statements and Financial Statement
Schedule” on page 51 herein.
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As previously reported in the Current Report on
Form 8-K/A
filed by The Scotts Company, the public company predecessor to
The Scotts Miracle-Gro Company, on December 17, 2004, at a
meeting held on December 2, 2004, the Audit Committee of
the Board of Directors of The Scotts Company dismissed
PricewaterhouseCoopers LLP as the Company’s independent
registered public accounting firm and approved the engagement of
Deloitte & Touche LLP as the Company’s independent
registered public accounting firm. Deloitte & Touche
LLP accepted the engagement as the Company’s independent
registered public accounting firm effective as of
December 17, 2004.
As of the date of PricewaterhouseCoopers LLP’s dismissal as
the Company’s independent registered public accounting
firm, PricewaterhouseCoopers LLP and the Company had an open
consultation regarding the appropriate accounting treatment for
an approximately $3.0 million liability resulting from a
bonus pool related to an acquisition made during the first
quarter of the Company’s 2005 fiscal year. At the time of
their dismissal, PricewaterhouseCoopers LLP did not have
sufficient information to reach a conclusion on the appropriate
accounting for this matter. Since this matter was not resolved
prior to PricewaterhouseCoopers LLP’s dismissal, this
matter was considered a reportable event under
Item 304(a)(1)(v)(D) of SEC
Regulation S-K.
Based on a thorough review of the facts and circumstances, and
relevant accounting literature regarding this matter, the
Company determined that this liability should be recorded on the
opening balance sheet of Smith &
Hawken®.
This liability was based on an incentive agreement between the
prior owners of Smith &
Hawken®
and their employees, whereby a portion of the purchase price was
to be paid to the employees upon the sale of the business. No
post-sale service was required in order for the employees to
earn this bonus; therefore, this was considered a liability
assumed by the Company as of the purchase date and not an
expense related to post-acquisition service.
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