Central Garden & Pet Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Dec. 28, 2013

Summary of Financial Assets and Liabilities Measured at Fair Value on 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 December 28, 2013 (in thousands):


	Level 1		Level 2		Level 3		Total
Assets:
Certificates of deposit (a)	$	0	$	14,220	$	0	$	14,220

Total assets	$	0	$	14,220	$	0	$	14,220

Liabilities:
Liability for contingent consideration (c)	$	0	$	0	$	4,165	$	4,165

Total liabilities	$	0	$	0	$	4,165	$	4,165


	Level 1		Level 2		Level 3		Total
Assets:
Certificates of deposit (a)	$	0	$	17,820	$	0	$	17,820
Derivative assets (b)		0		18		0		18

Total assets	$	0	$	17,838	$	0	$	17,838

Liabilities:
Derivative liabilities (b)	$	0	$	548	$	0	$	548

Total liabilities	$	0	$	548	$	0	$	548

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:


	Level 1		Level 2		Level 3		Total
Assets:
Certificates of deposit (a)	$	0	$	17,820	$	0	$	17,820

Total assets	$	0	$	17,820	$	0	$	17,820

Liabilities:
Liability for contingent consideration (c)	$	0	$	0	$	4,165	$	4,165

Total liabilities	$	0	$	0	$	4,165	$	4,165

(a)

The fair value of our 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 our condensed consolidated balance sheets.

(b)	Derivative assets and liabilities were valued using quoted forward pricing from bank counterparties and are presented as other current assets and liabilities in our condensed consolidated balance sheets.

(c)

The liability for contingent consideration relates to an earn-out for B2E, acquired in December 2012. The fair value of the contingent consideration arrangement is determined based on the Company’s evaluation as to the probability and discounted 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 condensed consolidated balance sheets.

Summary of Changes in Fair Value of Level 3 Financial Instruments

The following table provides a summary of changes in fair value of our Level 3 financial instruments for the period ended September 28, 2013 and December 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		0

Balance as of December 28, 2013	$	4,165

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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