Derivative Financial Instruments (Notes) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative financial instruments and hedging | DERIVATIVE FINANCIAL INSTRUMENTS In the ordinary course of business, the Company is exposed to commodity price risks relating to the purchases of raw materials and supplies. The Company utilizes derivative instruments, such as futures and option contracts to manage certain of these exposures by hedging when it is practical to do so. The Company does not hold or issue financial instruments for speculative or trading purposes. At March 31, 2025, the Company’s derivative instruments, none of which were designated as hedging instruments under Accounting Standards Codification (“ASC”) Topic 815, “Derivatives and Hedging,” consisted of commodity futures and option contracts which relate to inputs that generally will be utilized within the next twelve months. The notional amounts of the commodity contracts were $160.8 and $53.5 at March 31, 2025 and September 30, 2024, respectively. The following table presents the balance sheet location and fair value of the Company’s commodity contracts. The Company does not offset derivative assets and liabilities within the Condensed Consolidated Balance Sheets.
The Company recognized a loss on derivatives of $10.4 and $9.6 during the three and six months ended March 31, 2025, respectively, and $4.5 and $6.1 during the three and six months ended March 31, 2024, respectively, which were recorded in “Cost of goods sold” in the Condensed Consolidated Statements of Operations. At March 31, 2025 and September 30, 2024, the Company had cash deposits which served as pledged collateral for certain of its commodity contracts of $16.1 and $0.3, respectively, which were classified as “Restricted cash” on the Condensed Consolidated Balance Sheets.
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