Fair Value Measurements (Tables)

3 Months Ended

Dec. 26, 2015

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 December 26, 2015 (in thousands):

	Level 1		Level 2		Level 3		Total
Liabilities:
Liability for contingent consideration (b)	$	0	$	0	$	5,625	$	5,625
Total liabilities	$	0	$	0	$	5,625	$	5,625

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 December 27, 2014 (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
Short term investments (a)	$	9,992	$	0	$	0	$	9,992
Total assets	$	9,992	$	0	$	0	$	9,992
Liabilities:
Liability for contingent consideration (b)	$	0	$	0	$	4,414	$	4,414
Total liabilities	$	0	$	0	$	4,414	$	4,414

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:

	Level 1		Level 2		Level 3		Total
Liabilities:
Liability for contingent consideration (b)	$	0	$	0	$	3,625	$	3,625
Total liabilities	$	0	$	0	$	3,625	$	3,625

(a) The fair value of short-term investments is based on quoted prices in active markets for identical assets.

(b) 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 our 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 our Level 3 financial instruments for the periods ended December 26, 2015 and December 27, 2014 (in thousands):

	Amount
Balance as of September 26, 2015	$	3,625
Estimated contingent performance-based consideration established at the time of acquisition		2,000
Changes in the fair value of contingent performance-based payments established at the time of acquisition		0
Balance as of December 26, 2015	$	5,625
	Amount
Balance as of September 27, 2014	$	4,414
Changes in the fair value of contingent performance-based payments established at the time of acquisition		0
Balance as of December 27, 2014	$	4,414