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DERIVATIVE INSTRUMENTS
9 Months Ended
Jun. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS:
Prior to the Separation, Aramark entered into contractual derivative arrangements to manage changes in market conditions related to exposure to fluctuating gasoline, diesel and natural gas fuel prices at the Company. These derivative arrangements transferred in-kind to the Company upon the execution of the Separation and Distribution Agreement between the Company and Aramark, which was effective upon the Separation on September 30, 2023. Derivative instruments utilized during the period include pay fixed/receive floating gasoline and diesel fuel agreements based on the Department of Energy weekly retail on-highway index, and pay fixed/receive floating natural gas fuel agreements based on the Henry Hub New York Mercantile Exchange index in order to limit the Company's exposure to price fluctuations for gasoline, diesel, and natural gas fuel mainly for the Company’s operations. All derivative instruments are recognized as either assets or liabilities on the Consolidated Balance Sheet as of June 28, 2024. The counterparties to the contractual derivative agreements are all major international financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company continually monitors its positions and the credit ratings of its counterparties, and does not anticipate nonperformance by the counterparties. The Company did not enter into any new derivative arrangements for the three and nine months ended June 28, 2024.
The corresponding impact on earnings related to the contractual derivative arrangements have been recorded within the Consolidated Statement of Income for the three and nine months ended June 28, 2024. Additionally, prior to the Separation the impact on earnings related to the contractual derivative arrangements were allocated to the Company and recorded within the Combined Statement of Income for the three and nine months ended June 30, 2023.
Derivatives not Designated in Hedging Relationships
As of June 28, 2024, the Company had gasoline contracts for approximately 0.1 million gallons through June of fiscal 2024. The Company does not record its gasoline, diesel and natural gas fuel agreements as hedges for accounting purposes. The impact on earnings related to the change in fair value of these unsettled contracts was a gain of $0.1 million for the three months ended June 28, 2024 and a gain of $1.8 million for the three months ended June 30, 2023. The impact on earnings related to the change in fair value of these unsettled contracts was a gain of $0.1 million for the nine months ended June 28, 2024 and a gain of $0.5 million for the nine months ended June 30, 2023. As of June 28, 2024, the Company had $0.1 million of gasoline fuel agreements recorded within "Accrued expenses and other current liabilities" in the Consolidated Balance Sheet.
The following table summarizes the location of realized and unrealized loss (gain) for the Company’s derivatives not designated as hedging instruments in the Consolidated and Combined Statements of Income (in thousands):
Three months ended
Income Statement LocationJune 28,
2024
June 30,
2023
Gasoline, diesel and natural fuel agreements Cost of services provided (exclusive of depreciation and amortization)$315 $758 
Nine months ended
Income Statement LocationJune 28,
2024
June 30,
2023
Gasoline, diesel and natural fuel agreements Cost of services provided (exclusive of depreciation and amortization)$2,588 $4,001