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 March 30, 2019 (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Liabilities: |
|
|
|
|
|
|
|
|
Liability for contingent consideration (a) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,729 |
|
|
$ |
7,729 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,729 |
|
|
$ |
7,729 |
|
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 March 31, 2018 (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Liabilities: |
|
|
|
|
|
|
|
|
Liability for contingent consideration (a) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,148 |
|
|
$ |
9,148 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,148 |
|
|
$ |
9,148 |
|
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 29, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Liabilities: |
|
|
|
|
|
|
|
|
Liability for contingent consideration (b) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,224 |
|
|
$ |
8,224 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,224 |
|
|
$ |
8,224 |
|
|
|
(a) |
The liability for contingent consideration relates to an earn-out for B2E, acquired in December 2012, future performance-based contingent payments for Hydro-Organics Wholesale, Inc., acquired in October 2015 and future performance-based contingent payment for Segrest, Inc., acquired in October 2016. 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. |
|
|
(b) |
The liability for contingent consideration relates to an earn-out for B2E, acquired in December 2012, future performance-based contingent payments for Hydro-Organics Wholesale, Inc., acquired in October 2015, future performance-based contingent payment for Segrest, Inc., acquired in October 2016, and future performance-based contingent payments for Bell Nursery, acquired in March 2018. The contingent period for Bell Nursery expired in December 2018. Performance thresholds that would have necessitated payment were not met, and accordingly, no payment was made. 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. |
|
Summary of Changes in Fair Value of Level 3 Financial Instruments |
The following table provides a summary of the changes in fair value of the Company's Level 3 financial instruments for the periods ended March 30, 2019 and March 31, 2018 (in thousands):
|
|
|
|
|
|
Amount |
Balance September 29, 2018 |
$ |
8,224 |
|
Estimated contingent performance-based consideration established at the time of acquisition |
— |
|
Changes in the fair value of contingent performance-based payments established at the time of acquisition |
(429 |
) |
Performance-based payments |
(66 |
) |
Balance March 30, 2019 |
$ |
7,729 |
|
|
|
|
Amount |
Balance September 30, 2017 |
$ |
9,343 |
|
Estimated contingent performance-based consideration established at the time of acquisition |
— |
|
Changes in the fair value of contingent performance-based payments established at the time of acquisition |
(72 |
) |
Performance-based payments |
(123 |
) |
Balance March 31, 2018 |
$ |
9,148 |
|
|