Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.20.2
Fair Value Measurements (Tables)
 12 Months Ended
Sep. 26, 2020
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 September 26, 2020: 
Level 1     Level 2     Level 3     Total    
(in thousands)
Liabilities:
Liability for contingent consideration (a) $ —  $ —  $ 1,369  $ 1,369 
Total liabilities $ —  $ —  $ 1,369  $ 1,369 

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, 2019:
Level 1     Level 2     Level 3     Total    
(in thousands)
Liabilities:
Liability for contingent consideration (a) $ —  $ —  $ 7,369  $ 7,369 
Total liabilities $ —  $ —  $ 7,369  $ 7,369 

(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 payments 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.
Summary of Changes in Fair Value of Level 3 Financial Instruments
The following table provides a summary of changes in fair value of the Company's Level 3 financial instruments for the years ended September 26, 2020 and September 28, 2019:
  Amount
(in thousands)
Balance as of September 28, 2019 $ 7,369 
Estimated contingent performance-based consideration established at the time of acquisition — 
Changes in the fair value of contingent performance-based payments 227 
Performance-based payments made (6,227)
Balance as of September 26, 2020 $ 1,369