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Fair Value Measurements | 12 Months Ended
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Sep. 27, 2014
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 2. Fair Value Measurements Generally accepted accounting principles require financial assets and liabilities to be categorized based on the inputs used to calculate their fair values as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The Company’s financial instruments include cash and equivalents, restricted cash and equivalents, short term investments, accounts receivable and payable, derivative instruments, short-term borrowings, and accrued liabilities. The carrying amount of these instruments approximates fair value because of their short-term nature. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 27, 2014 (in thousands):
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments (a) |  | $ | 9,990 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 9,990 |
Total assets |  | $ | 9,990 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 9,990 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liability for contingent consideration (b) |  | $ | 0 |  |  | $ | 0 |  |  | $ | 4,414 |  |  | $ | 4,414 |
Total liabilities |  | $ | 0 |  |  | $ | 0 |  |  | $ | 4,414 |  |  | $ | 4,414 |
The following table presents our financial assets and liabilities at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 28, 2013 (in thousands):
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit (c) |  | $ | 0 |  |  | $ | 17,820 |  |  | $ | 0 |  |  | $ | 17,820 |
Total assets |  | $ | 0 |  |  | $ | 17,820 |  |  | $ | 0 |  |  | $ | 17,820 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liability for contingent consideration (b) |  | $ | 0 |  |  | $ | 0 |  |  | $ | 4,165 |  |  | $ | 4,165 |
Total liabilities |  | $ | 0 |  |  | $ | 0 |  |  | $ | 4,165 |  |  | $ | 4,165 |
(a) | The fair value of short-term investments are based on quoted prices in active markets for identical assets.
(b) | The liability for contingent consideration relates to an earn-out for B2E, acquired in December 2012 – See Note 4. The fair value of the contingent consideration arrangement is determined based on the Company’s evaluation as to the probability and amount of any earn-out that will be achieved based on expected future performance by the acquired entity. This is presented as part of long-term liabilities in our consolidated balance sheets.
(c) | The fair value of the Company’s time deposits is based on the most recent observable inputs for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable. These are presented as short term investments in the Company’s consolidated balance sheets.
The following table provides a summary of changes in fair value of our Level 3 financial instruments for the years ended September 27, 2014 and September 28, 2013 (in thousands):
|  | Amount |
Balance as of September 28, 2013 |  | $ | 4,165 |
Changes in the fair value of contingent performance-based payments established at the time of acquisition |  |  | 249 |
Balance as of September 27, 2014 |  | $ | 4,414 |
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company measures certain non-financial assets and liabilities, including long-lived assets, goodwill and intangible assets, at fair value on a non-recurring basis. Fair value measurements of non-financial assets and non-financial liabilities are used primarily in the impairment analyses of long-lived assets, goodwill and other intangible assets. During the fiscal year ended September 28, 2013, the Company recognized a non-cash charge of $7.7 million, as the carrying value of its Garden segment goodwill exceeded the implied fair value of the goodwill. The fair market value of these non-financial assets was determined using an income approach and Level 3 inputs, which required management to make significant estimates about future cash flows. See Note 9 – Goodwill. Fair Value of Other Financial Instruments The estimated fair value of the Company’s $450.0 million 8.25% senior subordinated notes due 2018 as of September 27, 2014 was $459.5 million, compared to a carrying value of $449.5 million. The estimated fair value is based on quoted market prices for these notes, which are Level 1 inputs within the fair value hierarchy.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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