Fair Value

3 Months Ended

Dec. 28, 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	December 28, 2024		September 28, 2024
Foreign currency contracts	Other current assets	$	260	$	648
Foreign currency contracts	Other assets	141		—
	Total assets	$	401	$	648
Foreign currency contracts	Accrued liabilities and other	$	1,184	$	28
Foreign currency contracts	Other long-term liabilities	137		—
Acquisition contingent consideration	Accrued liabilities and other	2,239		2,839
	Total liabilities	$	3,560	$	2,867

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

	Three Months Ended
	December 28, 2024		December 30, 2023
Balance at beginning of period	$	2,839	$	3,089
Increase in discounted future cash flows recorded as interest expense	—		83
Settlements paid in cash	(600)		—
Balance at end of period	$	2,239	$	3,172

Our only financial instrument for which the carrying value differs from its fair value is long-term debt. At December 28, 2024, the fair value of long-term debt was $1,079,465 compared to its carrying value of $1,106,000. 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.