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Financial Instruments and Risk Management (Tables)
6 Months Ended
Mar. 27, 2021
Fair Value Disclosures [Abstract]  
Fair value of the Partnership's derivative instruments and their location in the condensed consolidated balance sheets

The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of March 27, 2021 and September 26, 2020, respectively:

 

 

 

As of March 27, 2021

 

 

As of September 26, 2020

 

Asset Derivatives

 

Location

 

Fair Value

 

 

Location

 

Fair Value

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Commodity-related derivatives

 

Other current assets

 

$

11,490

 

 

Other current assets

 

$

1,066

 

 

 

Other assets

 

 

44

 

 

Other assets

 

 

461

 

 

 

 

 

$

11,534

 

 

 

 

$

1,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability Derivatives

 

Location

 

Fair Value

 

 

Location

 

Fair Value

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Commodity-related derivatives

 

Other current liabilities

 

$

4,440

 

 

Other current liabilities

 

$

2,684

 

 

 

Other liabilities

 

 

 

 

Other liabilities

 

 

 

 

 

 

 

$

4,440

 

 

 

 

$

2,684

 

Reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:

 

 

 

Fair Value Measurement Using Significant

Unobservable Inputs (Level 3)

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

March 27, 2021

 

 

March 28, 2020

 

 

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Beginning balance of over-the-counter options

 

$

 

 

$

 

 

$

419

 

 

$

 

Beginning balance realized during the period

 

 

 

 

 

 

 

 

(387

)

 

 

 

Contracts purchased during the period

 

 

750

 

 

 

 

 

 

 

 

 

 

Change in the fair value of outstanding contracts

 

 

 

 

 

 

 

 

(32

)

 

 

 

Ending balance of over-the-counter options

 

$

750

 

 

$

 

 

$

 

 

$

 

Effect of the Partnership's derivative instruments on the condensed consolidated statements of operations

The effect of the Partnership’s derivative instruments on the condensed consolidated statements of operations for the three and six months ended March 27, 2021 and March 28, 2020 are as follows:

 

 

 

Three Months Ended March 27, 2021

 

 

Three Months Ended March 28, 2020

 

Derivatives Not Designated

as Hedging Instruments

 

Unrealized Gains (Losses)

Recognized in Income

 

 

Unrealized Gains (Losses)

Recognized in Income

 

 

 

Location

 

Amount

 

 

Location

 

Amount

 

Commodity-related derivatives

 

Cost of products sold

 

$

1,638

 

 

Cost of products sold

 

$

(4,714

)

 

 

 

Six Months Ended March 27, 2021

 

 

Six Months Ended March 28, 2020

 

Derivatives Not Designated

as Hedging Instruments

 

Unrealized Gains (Losses)

Recognized in Income

 

 

Unrealized Gains (Losses)

Recognized in Income

 

 

 

Location

 

Amount

 

 

Location

 

Amount

 

Commodity-related derivatives

 

Cost of products sold

 

$

6,493

 

 

Cost of products sold

 

$

(1,938

)

 

Fair Value of the Partnership's Senior Notes .  Based upon quoted market prices (a Level 1 input), the fair value of the Senior Notes (also defined below in Note 10) of the Partnership are as follows:

 

 

As of

 

 

 

March 27,

 

 

September 26,

 

 

 

2021

 

 

2020

 

5.5% senior notes due June 1, 2024

 

$

535,500

 

 

$

531,563

 

5.75% senior notes due March 1, 2025

 

 

255,625

 

 

 

255,625

 

5.875% senior notes due March 1, 2027

 

 

364,350

 

 

 

360,063

 

 

 

$

1,155,475

 

 

$

1,147,251