Financial Instruments and Risk Management (Tables)
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9 Months Ended |
Jun. 28, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Fair Value of the Partnership's Derivative Instruments and their Location in the Condensed Consolidated Balance Sheets |
The following summarizes the fair value of the Partnership’s derivative instruments and their location in the condensed consolidated balance sheets as of June 28, 2025 and September 28, 2024, respectively:
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As of June 28, 2025 |
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As of September 28, 2024 |
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Asset Derivatives |
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Location |
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Fair Value |
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Location |
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Fair Value |
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Derivatives not designated as
hedging instruments: |
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Commodity-related derivatives |
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Other current assets |
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$ |
3,137 |
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Other current assets |
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$ |
4,122 |
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Other assets |
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190 |
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Other assets |
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769 |
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$ |
3,327 |
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$ |
4,891 |
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Liability Derivatives |
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Location |
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Fair Value |
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Location |
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Fair Value |
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Derivatives not designated as
hedging instruments: |
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Commodity-related derivatives |
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Other current liabilities |
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$ |
3,796 |
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Other current liabilities |
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$ |
5,744 |
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Other liabilities |
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— |
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Other liabilities |
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— |
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$ |
3,796 |
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$ |
5,744 |
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| Reconciliation of the Beginning and Ending Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs |
The following summarizes the reconciliation of the beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs:
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Fair Value Measurement Using Significant
Unobservable Inputs (Level 3) |
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Nine Months Ended |
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Nine Months Ended |
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June 28, 2025 |
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June 29, 2024 |
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Assets |
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Liabilities |
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Assets |
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Liabilities |
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Beginning balance of over-the-counter options |
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$ |
1,475 |
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$ |
193 |
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$ |
— |
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$ |
806 |
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Beginning balance realized during the period |
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(1,475 |
) |
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(193 |
) |
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— |
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(806 |
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Contracts purchased during the period |
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888 |
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409 |
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1,781 |
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543 |
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Change in the fair value of outstanding contracts |
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— |
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— |
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— |
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— |
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Ending balance of over-the-counter options |
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$ |
888 |
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$ |
409 |
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$ |
1,781 |
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$ |
543 |
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| Effect of the Partnership's Derivative Instruments on the Condensed Consolidated Statements of Operations |
The effect of the Partnership’s derivative instruments on the condensed consolidated statements of operations for the three and nine months ended June 28, 2025 and June 29, 2024 are as follows:
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Three Months Ended June 28, 2025 |
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Three Months Ended June 29, 2024 |
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Derivatives Not Designated
as Hedging Instruments |
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Unrealized Gains (Losses)
Recognized in Income |
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Unrealized Gains (Losses)
Recognized in Income |
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Location |
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Amount |
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Location |
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Amount |
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Commodity-related derivatives |
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Cost of products sold |
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$ |
(2,919 |
) |
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Cost of products sold |
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$ |
(3,161 |
) |
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Nine Months Ended June 28, 2025 |
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Nine Months Ended June 29, 2024 |
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Derivatives Not Designated
as Hedging Instruments |
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Unrealized Gains (Losses)
Recognized in Income |
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Unrealized Gains (Losses)
Recognized in Income |
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Location |
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Amount |
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Location |
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Amount |
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Commodity-related derivatives |
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Cost of products sold |
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$ |
1,459 |
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Cost of products sold |
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$ |
(8,079 |
) |
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| Fair Value of Partnership's Recognized Derivative Assets and Liabilities on a Gross Basis and Amounts Offset on Condensed Consolidated Balance Sheets |
The following table presents the fair value of the Partnership’s recognized derivative assets and liabilities on a gross basis and amounts offset on the condensed consolidated balance sheets subject to enforceable master netting arrangements or similar agreements:
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As of June 28, 2025 |
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As of September 28, 2024 |
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Net amounts |
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Net amounts |
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presented in the |
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presented in the |
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Gross amounts |
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Effects of netting |
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balance sheet |
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Gross amounts |
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Effects of netting |
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balance sheet |
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Asset Derivatives |
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Commodity-related derivatives |
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$ |
7,741 |
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$ |
(4,414 |
) |
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$ |
3,327 |
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$ |
13,649 |
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$ |
(8,758 |
) |
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$ |
4,891 |
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Liability Derivatives |
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Commodity-related derivatives |
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$ |
8,210 |
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$ |
(4,414 |
) |
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$ |
3,796 |
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$ |
14,502 |
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$ |
(8,758 |
) |
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$ |
5,744 |
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| Fair Value of the Partnership's Senior Notes |
The fair values of the Senior Notes are based upon quoted market prices (a Level 1 input) and the fair value of the Green Bonds is based upon a valuation model (a Level 3 input). Senior Notes, Revolving Credit Facility and Green Bonds are defined below in Note 10, “Long-Term Borrowings” and the fair values of the Senior Notes and Green Bonds are as follows:
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As of |
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June 28, |
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September 28, |
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2025 |
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2024 |
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5.875% Senior Notes due March 1, 2027 |
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$ |
349,899 |
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$ |
350,056 |
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5.00% Senior Notes due June 1, 2031 |
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608,562 |
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606,099 |
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5.50% Green Bonds due October 1, 2028 through October 1, 2033 |
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70,502 |
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72,264 |
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$ |
1,028,963 |
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$ |
1,028,419 |
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