Fair Value

6 Months Ended

Mar. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate fair value. The definition of the fair value hierarchy is as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Observable inputs other than quoted prices in active markets for similar assets and liabilities.

Level 3 – Inputs for which significant valuation assumptions are unobservable in a market and therefore value is based on the best available data, some of which is internally developed and considers risk premiums that a market participant would require.

Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation hierarchy.

The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2, except for the acquisition contingent consideration, which is classified as Level 3:

	Balance Sheets location	March 30, 2024		September 30, 2023
Foreign currency contracts	Other current assets	$	41	$	388
	Total assets	$	41	$	388
Foreign currency contracts	Accrued liabilities and other	$	445	$	905
Acquisition contingent consideration	Accrued liabilities and other	3,256		—
Acquisition contingent consideration	Other long-term liabilities	—		3,089
	Total liabilities	$	3,701	$	3,994

The changes in financial liabilities classified as Level 3 within the fair value hierarchy are as follows:

	Three Months Ended				Six Months Ended
	March 30, 2024		April 1, 2023		March 30, 2024		April 1, 2023
Balance at beginning of period	$	3,172	$	3,365	$	3,089	$	3,272
Acquisition adjustment	—		(491)		—		(491)
Increase in discounted future cash flows recorded as interest expense	84		80		167		173
Balance at end of period	$	3,256	$	2,954	$	3,256	$	2,954

Our only financial instrument for which the carrying value differs from its fair value is long-term debt. At March 30, 2024, the fair value of long-term debt was $915,743 compared to its carrying value of $952,000. The fair value of long-term debt is classified as Level 2 within the fair value hierarchy and was estimated based on quoted market prices.

Certain property, plant and equipment and other assets have been measured at fair values on a nonrecurring basis using future discounted cash flows and other observable inputs (Level 3) and are not included in the fair value tables above.