Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.20.2
Fair Value Measurements (Tables)
 9 Months Ended
Jun. 27, 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 June 27, 2020 (in thousands): 
Level 1 Level 2 Level 3 Total
Liabilities:
Liability for contingent consideration (a) $ —    $ —    $ 1,246    $ 1,246   
Total liabilities $ —    $ —    $ 1,246    $ 1,246   

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 29, 2019 (in thousands): 
Level 1 Level 2 Level 3 Total
Assets:
Short term investments (b) $ 119    $ —    $ —    $ 119   
Total assets $ 119    $ —    $ —    $ 119   
Liabilities:
Liability for contingent consideration (a) $ —    $ —    $ 7,824    $ 7,824   
Total liabilities $ —    $ —    $ 7,824    $ 7,824   
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 (in thousands): 
Level 1 Level 2 Level 3 Total
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. In December 2019, performance-based criteria associated with the $6 million contingent consideration liability related to Segrest, Inc. were met and accordingly, the entire amount was released out of an independent escrow account to the former owners as of December 28, 2019. 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 fair value of short-term investments are based on quoted prices in active markets for identical assets.
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 June 27, 2020 and June 29, 2019 (in thousands):
  Amount
Balance 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 established at the time of acquisition 31   
Performance-based payments (6,154)  
Balance June 27, 2020 $ 1,246   
 
  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 (296)  
Performance-based payments (104)  
Balance June 29, 2019 $ 7,824