XML 25 R9.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Fair Value Measurements | 12 Months Ended
--- | ---
Sep. 24, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 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 24, 2022:
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (in thousands)
Liabilities: |  |  |  |  |  |  |
Liability for contingent consideration (a) | $ | — |  |  | $ | — |  |  | $ | 543 |  |  | $ | 543 |
Total liabilities | $ | — |  |  | $ | — |  |  | $ | 543 |  |  | $ | 543 |
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 25, 2021:
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (in thousands)
Liabilities: |  |  |  |  |  |  |
Liability for contingent consideration (a) | $ | — |  |  | $ | — |  |  | $ | 1,606 |  |  | $ | 1,606 |
Total liabilities | $ | — |  |  | $ | — |  |  | $ | 1,606 |  |  | $ | 1,606 |
(a)The fair values of the Company's contingent consideration liabilities from previous business acquisitions are considered "Level 3" measurements because the Company uses various estimates in the valuation models to project timing and amount of future contingent payments. The liability for contingent consideration relates to future performance-based contingent payments for Hydro-Organics Wholesale, Inc., acquired in October 2015. The performance period related to Hydro-Organics Wholesale extends through fiscal year 2025. The fair value of the estimated 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 the Company's consolidated balance sheets. The following table provides a summary of changes in fair value of the Company's Level 3 financial instruments for the years ended September 24, 2022 and September 25, 2021:
| Amount
| (in thousands)
Balance as of September 25, 2021 | $ | 1,606 |
Changes in the fair value of contingent performance-based payments | (847) |
Performance-based payments made | (216) |
Balance as of September 24, 2022 | $ | 543 |
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. There were no impairment losses recorded in fiscal 2022 or fiscal 2021. Fair Value of Other Financial Instruments In April 2021, the Company issued $400 million aggregate principal amount of 4.125% senior notes due April 2031 (the "2031 Notes"). The estimated fair value of the Company's 2031 Notes as of September 24, 2022 and September 25, 2021 was $327.6 million and $408.5 million compared to a carrying value of $394.8 million and $394.2 million, respectively. In October 2020, the Company issued $500 million aggregate principal amount of 4.125% senior notes due October 2030 (the "2030 Notes"). The estimated fair value of the Company's 2030 Notes as of September 24, 2022 and September 25, 2021 was $407.6 million and $517.2 million compared to a carrying value of $493.6 million and $492.8 million, respectively. In December 2017, the Company issued $300 million aggregate principal amount of 5.125% senior notes due February 2028 (the "2028 Notes"). The estimated fair value of the Company's 2028 Notes as of September 24, 2022 and September 25, 2021 was $272.2 million and $318.6 million, respectively, compared to a carrying value of $297.5 million and $297.0 million, respectively. In November 2020, the Company redeemed $400 million aggregate principal amount of 6.125% senior notes due November 2023 (the “2023 Notes”) at a price of 101.531%. The estimated fair value is based on quoted market prices for these notes, which are Level 1 inputs within the fair value hierarchy.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI https://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration