Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.5.0.2
Fair Value Measurements (Tables)
 12 Months Ended
Sep. 24, 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 September 24, 2016 (in thousands):
 
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
Liabilities:

 

 

 

Liability for contingent consideration (a)
$
—

 
$
—

 
$
5,113

 
$
5,113

Total liabilities
$
—

 
$
—

 
$
5,113

 
$
5,113

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 (in thousands):
 
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
Liabilities:
 
 
 
 
 
 
 
Liability for contingent consideration (a)
$
—

 
$
—

 
$
3,625

 
$
3,625

Total liabilities
$
—

 
$
—

 
$
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 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 24, 2016 and September 26, 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
924

     Performance-based payments made
(2,026
)
Balance as of September 24, 2016
$
5,113