Fair Value Measurements
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and 2024 under Topic 820 (in thousands):

Fair Value Measurement at Reporting Date Using
September 30, 2025Level 1Level 2Level 3
Assets:
Interest rate swaps$— $7,916 $— 
Corporate debt securities— 5,671 — 
U.S. government securities— 13,971 — 
Municipal government securities— 1,157 — 
Other debt securities— 2,377 — 
Total Assets$— $31,092 $— 


Fair Value Measurement at Reporting Date Using
September 30, 2024Level 1Level 2Level 3
Assets:
Interest rate swaps$— $11,646 $— 
Corporate debt securities— 6,872 — 
U.S. government securities— 8,338 — 
Municipal government securities— 1,598 — 
Other debt securities— 1,212 — 
Total Assets$— $29,666 $— 

The fair value of interest rate swap contracts is based on a model-driven valuation using the observable components (e.g., interest rates), which are observable at commonly quoted intervals for the full term of the contracts. The fair value of the Company’s commodity swap contracts is based on an analysis of the expected cash flow of the contract in combination with observable forward price inputs obtained from a third-party pricing source. The calculations are adjusted for credit risk. Therefore, the Company’s derivative assets and liabilities are classified within Level 2 of the fair value hierarchy. Derivative assets are included within “Prepaid expenses and other current assets” and “Other assets” on the Company’s Consolidated Balance Sheets. Derivative liabilities are included within “Accrued expense and other current liabilities” and “Other long-term liabilities” on the Company’s Consolidated Balance Sheets. Debt securities primarily consist of corporate bonds and U.S. Government and agency obligations. The fair value of these investments is determined based on market quotes. These investments are included within “Restricted Investments” on the Company’s Consolidated Balance Sheets.
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Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2024Nov 25, 2024
2023Nov 29, 2023
2022Nov 22, 2022
2021Nov 29, 2021
2020Dec 11, 2020

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.