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FAIR VALUE MEASUREMENTS | 9 Months Ended
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Jun. 29, 2024
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table summarizes the fair value of the Company’s assets and liabilities for which disclosure of fair value is required:
|  | Fair Value Hierarchy Level |  | June 29, 2024 |  | July 1, 2023 |  | September 30, 2023
|  |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | Level 1 |  | $ | 245.0 |  |  | $ | 245.0 |  |  | $ | 2.7 |  |  | $ | 2.7 |  |  | $ | 1.2 |  |  | $ | 1.2 |
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities in non-qualified retirement plan assets |  | Level 1 |  | 32.3 |  |  | 32.3 |  |  | 41.0 |  |  | 41.0 |  |  | 36.3 |  |  | 36.3 |
Convertible debt investments |  | Level 3 |  | 89.7 |  |  | 89.7 |  |  | 86.5 |  |  | 86.5 |  |  | 85.8 |  |  | 85.8 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit facilities – revolving loans |  | Level 2 |  | — |  |  | — |  |  | 145.1 |  |  | 145.1 |  |  | 88.3 |  |  | 88.3 |
Credit facilities – term loans |  | Level 2 |  | 887.5 |  |  | 887.5 |  |  | 937.5 |  |  | 937.5 |  |  | 925.0 |  |  | 925.0 |
Senior Notes due 2031 – 4.000% |  | Level 2 |  | 500.0 |  |  | 431.3 |  |  | 500.0 |  |  | 392.5 |  |  | 500.0 |  |  | 380.0 |
Senior Notes due 2032 – 4.375% |  | Level 2 |  | 400.0 |  |  | 344.5 |  |  | 400.0 |  |  | 316.0 |  |  | 400.0 |  |  | 304.0 |
Senior Notes due 2029 – 4.500% |  | Level 2 |  | 450.0 |  |  | 409.5 |  |  | 450.0 |  |  | 389.3 |  |  | 450.0 |  |  | 366.8 |
Senior Notes due 2026 – 5.250% |  | Level 2 |  | 250.0 |  |  | 243.1 |  |  | 250.0 |  |  | 236.9 |  |  | 250.0 |  |  | 233.1 |
Receivables facility |  | Level 2 |  | — |  |  | — |  |  | 398.0 |  |  | 398.0 |  |  | — |  |  | — |
Other debt |  | Level 2 |  | — |  |  | — |  |  | 0.8 |  |  | 0.8 |  |  | 0.4 |  |  | 0.4 |
Changes in the balance of Level 3 convertible debt investments carried at fair value are presented below. There were no transfers into or out of Level 3.
| Three Months Ended |  | Nine Months Ended
| June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Fair value at beginning of period | $ | 84.5 |  |  | $ | 84.8 |  |  | $ | 85.8 |  |  | $ | 117.0 |
Total realized / unrealized gains included in net earnings | 0.1 |  |  | 1.1 |  |  | 0.3 |  |  | 3.0 |
Total realized / unrealized gains (losses) included in OCI | 5.1 |  |  | 0.6 |  |  | 3.6 |  | (33.5) |
Fair value at end of period | $ | 89.7 |  |  | $ | 86.5 |  |  | $ | 89.7 |  |  | $ | 86.5 |
The amortized cost basis of convertible debt investments was $226.1, $225.0, and $225.8 at June 29, 2024, July 1, 2023, and September 30, 2023, respectively. At June 29, 2024, July 1, 2023, and September 30, 2023, gross unrealized losses on convertible debt investments were $136.3, $138.5, and $140.0 respectively, and there were no gross unrealized gains. These investments have been in a continuous unrealized loss position for greater than 12 months as of June 29, 2024. The allowance for expected credit losses was $101.3, $0.0 and $101.3 at June 29, 2024, July 1, 2023 and September 30, 2023, respectively. At June 29, 2024, the period until scheduled maturity of the Company’s convertible debt investments was between 3.2 years and 5.2 years. Convertible debt investments include, among other minority non-equity investments, a six-year convertible note issued to the Company’s wholly-owned subsidiary, The Hawthorne Collective, Inc. (“THC”), by Toronto-based RIV Capital Inc. (“RIV Capital”) (CSE: RIV) (OTC: CNPOF). On May 30, 2024, RIV Capital and Cansortium Inc. (“Cansortium”) (CSE: TIUM.U) (OTCQB: CNTMF) announced they have entered into a definitive agreement pursuant to which Cansortium will acquire all of the issued and outstanding common shares of RIV Capital in exchange for Cansortium shares (the “Transaction”). The closing of the Transaction is subject to various conditions, including shareholder and court approvals, the receipt of all required regulatory approvals, and the exchange of THC’s existing convertible debt investment in RIV Capital for a new class of non-voting exchangeable shares of Cansortium. These exchangeable shares would be convertible, at THC’s discretion, into approximately 23% of the common shares of Cansortium on a pro forma basis as of the closing of the Transaction. Upon the receipt of required shareholder approvals and the completion of certain conditions to closing of the Transaction, the Company may be required to remeasure its convertible debt investment at the fair value of the Cansortium non-voting exchangeable shares expected to be received, which, based on market conditions as of June 29, 2024, would result in the recognition of a non-cash, pre-tax other-than-temporary impairment charge of approximately $70.0 in the “Impairment, restructuring and other” line in the Condensed Consolidated Statements of Operations.

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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
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