Supplemental Financial Information
 3 Months Ended
Jan. 04, 2020
Condensed Financial Information [Abstract]  
Supplemental Financial Information
3. Supplemental Financial Information

Inventories

The following table presents the components of inventories at the dates indicated:
(in thousands of dollars)
January 4, 2020
 
September 28, 2019
Raw materials
$
113,186

 
$
60,033

Work in process
23,614

 
16,663

Finished goods
1,827

 
2,134

Total inventories
$
138,627

 
$
78,830



Product Warranties

The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented:
 
Three Months Ended
(in thousands of dollars)
January 4, 2020
 
December 29, 2018
Balance at beginning of period
$
22,343

 
$
22,646

Add current period accruals
1,501

 
1,590

Current period reductions of accrual
(2,113
)
 
(2,378
)
Balance at end of period
$
21,731

 
$
21,858


Extended Warranties
The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years, for the periods presented:
 
Three Months Ended
(in thousands of dollars)
January 4, 2020
 
December 29, 2018
Balance at beginning of period
$
24,045

 
$
23,191

Add current period deferred income
951

 
1,366

Current period recognition of income
(2,252
)
 
(2,025
)
Balance at end of period
$
22,744

 
$
22,532



The outstanding balance of deferred warranty income in the table above is considered a "contract liability", and represents a performance obligation of the Company that we satisfy over the term of the arrangement but for which we have been paid in full at the time the warranty was sold. We expect to recognize $6.4 million of the outstanding contract liability during the remainder of fiscal 2020, $6.9 million in fiscal 2021, and the remaining balance thereafter.

Self-Insurance

The following table reflects our total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, at the dates indicated:
(in thousands of dollars)
January 4, 2020
 
September 28, 2019
Current portion
$
3,061

 
$
2,933

Long-term portion
1,844

 
1,775

Total accrued self-insurance
$
4,905

 
$
4,708



The current and long-term portions of the accrued self-insurance liability are reflected in accrued expenses and other liabilities, respectively, on the Condensed Consolidated Balance Sheets.

Shipping and Handling Revenues

Shipping and handling revenues were $3.5 million and $3.3 million for the three months ended January 4, 2020 and December 29, 2018, respectively. The related cost of goods sold was $3.1 million and $3.0 million for the three months ended January 4, 2020 and December 29, 2018, respectively.

Pension Expense

Components of net periodic pension benefit cost were as follows for the periods presented:
 
Three Months Ended
(in thousands of dollars)
January 4, 2020
 
December 29, 2018
Interest cost
$
1,237

 
$
1,512

Expected return on plan assets
(1,846
)
 
(1,905
)
Amortization of prior loss
430

 
689

Net periodic benefit cost
$
(179
)
 
$
296

Amortization of prior loss, recognized in other comprehensive income
430

 
689

Total recognized in net periodic pension benefit cost and other comprehensive income
$
(609
)
 
$
(393
)


Warrants

At January 4, 2020, there were a total of 683,674 warrants outstanding to purchase 341,837 shares of our Common Stock. The warrants expire on February 24, 2020.

Derivative Instruments

We are charged variable rates of interest on our indebtedness outstanding under the Amended Credit Agreement (defined below) which exposes us to fluctuations in interest rates. On October 24, 2018, the Company entered into a four-year interest rate collar with a $150.0 million notional value with an effective date of November 30, 2018. The collar was entered into in order to partially mitigate our exposure to interest rate fluctuations on our variable rate debt. The collar establishes a range where we will pay the counterparty if the three-month LIBOR rate falls below the established floor rate of 1.5%, and the counterparty will pay us if the three-month LIBOR rate exceeds the ceiling rate of 3.3%. The collar settles quarterly through the termination date of September 30, 2022. No payments or receipts are exchanged on the interest rate collar contracts unless interest rates rise above or fall below the contracted ceiling or floor rates.

Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting. At January 4, 2020, the fair value of the interest rate collar contract was $(0.8) million and is included in "other current liabilities" on the Condensed Consolidated Balance Sheets. The fair value of the interest rate collar is a Level 2 fair value measurement, based on quoted prices of similar items in active markets.