Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.5.0.2
Fair Value Measurements (Tables)
 9 Months Ended
Jun. 25, 2016
Fair Value Disclosures [Abstract]  
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 June 25, 2016 (in thousands):
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Liabilities:
 
 
 
 
 
 
 
 
Liability for contingent consideration (a)
 
$
0

 
$
0

 
$
6,355

 
$
6,355

Total liabilities
 
$
0

 
$
0

 
$
6,355

 
$
6,355

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 June 27, 2015 (in thousands):
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Liabilities:
 
 
 
 
 
 
 
 
Liability for contingent consideration (a)
 
$
0

 
$
0

 
$
4,343

 
$
4,343

Total liabilities
 
$
0

 
$
0

 
$
4,343

 
$
4,343

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 26, 2015:
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Liabilities:
 
 
 
 
 
 
 
 
Liability for contingent consideration (a)
 
$
0

 
$
0

 
$
3,625

 
$
3,625

Total liabilities
 
$
0

 
$
0

 
$
3,625

 
$
3,625

 

(a)
The liability for contingent consideration relates to an earn-out for B2E, acquired in December 2012 and future performance-based contingent payments for Hydro-Organics Wholesale, Inc., acquired in October 2015. 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 our condensed consolidated balance sheets.
Summary of Changes in Fair Value of Level 3 Financial Instruments
The following table provides a summary of the changes in fair value of our Level 3 financial instruments for the periods ended June 25, 2016 and June 27, 2015 (in thousands):
 
 
Amount
Balance as of September 26, 2015
$
3,625

Estimated contingent performance-based consideration established at the time of acquisition
2,590

Changes in the fair value of contingent performance-based payments established at the time of acquisition
140

Balance as of June 25, 2016
$
6,355

 
 
 
Amount
Balance as of September 27, 2014
$
4,414

Changes in the fair value of contingent performance-based payments established at the time of acquisition
(71
)
Balance as of June 27, 2015
$
4,343