Fair Values

6 Months Ended

Apr. 03, 2021

FAIR VALUES

We have not changed our valuation techniques in measuring the fair value of any financial assets and liabilities during the period. We recognize transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. As of April 3, 2021 and October 3, 2020, we had one investment carried on a cost basis. If we were to fair value this investment, it would be based upon Level 3 inputs. This investment is not considered material to our condensed consolidated financial statements.

We measure the fair value of outstanding debt obligations for disclosure purposes on a recurring basis. As of April 3, 2021, the current and long-term portion of long-term obligations of $6.9 million and $409.6 million, respectively, are reported at amortized cost. As of October 3, 2020, the current and long-term portion of long-term obligations of $6.8 million and $411.1 million, respectively, are reported at amortized cost. These outstanding obligations are classified as Level 2 as they are not actively traded and are valued using a discounted cash flow model that uses observable market inputs. Based on the discounted cash flow model, the fair value of the outstanding debt approximates amortized cost.

Financial assets and liabilities measured at fair value as of April 3, 2021 and October 3, 2020 are summarized below (in thousands):


	Aggregate Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Aggregate Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs
	April 3, 2021						October 3, 2020
			(Level 1)		(Level 2)				(Level 1)		(Level 2)
Assets:
Cash equivalents:
Money market fund deposits	$	22,651	$	22,651	$	—	$	36,646	$	36,646	$	—
Certificates of deposit	44,688		44,688		—		56,191		56,191		—


Short-term investments:
U.S. Treasury and agency obligations (1)	15,128		—		15,128		35,346		—		35,346


Prepaid and other assets:
Foreign currency contracts (2)	978		—		978		812		—		812
Money market fund deposits — Deferred comp and supplemental plan (3)	499		499		—		203		203		—
Mutual funds — Deferred comp and supplemental plan (3)	12,871		12,871		—		22,778		22,778		—
Total	$	96,815	$	80,709	$	16,106	$	151,976	$	115,818	$	36,158

Liabilities:
Other current liabilities:
Foreign currency contracts (2)	(2,213)		—		(2,213)		(2,811)		—		(2,811)

Total	$	94,602	$	80,709	$	13,893	$	149,165	$	115,818	$	33,347

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(1) Valuations are based upon quoted market prices in active markets involving similar assets. The market inputs used to value these instruments generally consist of market yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Pricing sources include industry standard data providers, security master files from large financial institutions, and other third party sources which are input into a distribution-curve-based algorithm to determine a daily market value. This creates a "consensus price" or a weighted average price for each security.

(2) The principal market in which we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. Our foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. See Note 7, "Derivative Instruments and Hedging Activities."

(3) The fair value of mutual funds is determined based on quoted market prices. Securities traded on a national exchange are stated at the last reported sales price on the day of valuation; other securities traded in over-the-counter markets and listed securities for which no sale was reported on that date are stated as the last quoted bid price.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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