v3.26.1
Fair Value Measurements
 6 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement, as amended (“ASC 820”). We define “fair value” as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for measuring fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This valuation hierarchy is based upon the transparency of inputs used in the valuation of an asset or liability on the measurement date.

The three levels of that hierarchy are defined as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities;

Level 2 - Pricing inputs are other than quoted prices in active markets, included in Level 1, that are either directly or indirectly observable; and

Level 3 - Unobservable pricing inputs in which little or no market activity exists, therefore requiring an entity to develop its own model with estimates and assumptions.

Financial instruments measured at fair value on recurring basis

Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows:

(in thousands)

 

Classification

 

Fair Value Hierarchy Level

 

March 31,
2026

 

 

September 30,
2025

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

 

 

 

 

 

 

 

 

 

Designated cash flow hedges

 

 Other current assets

 

Level 2

 

$

64

 

 

$

87

 

Non-designated cash flow hedges

 

 Other current assets

 

Level 2

 

 

735

 

 

 

570

 

Interest rate swap

 

 Other assets

 

Level 2

 

 

—

 

 

 

59

 

Total assets

 

 

 

 

 

$

799

 

 

$

716

 

.

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

 

 

 

 

 

 

 

 

 

Designated cash flow hedges

 

 Accrued liabilities

 

Level 2

 

$

351

 

 

$

57

 

Non-designated cash flow hedges

 

 Accrued liabilities

 

Level 2

 

 

379

 

 

 

225

 

Interest rate swap

 

 Other Liabilities

 

Level 2

 

 

6

 

 

 

—

 

Total liabilities

 

 

 

 

 

$

736

 

 

$

282

 

The fair value of each asset and liability was determined using widely accepted valuation techniques, including discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates.

Other fair value disclosures

The carrying amounts, if any, of cash equivalents, trade and other accounts receivable, accounts payable, and borrowings under our $500 million asset-based senior secured loan facility (the “ABL Facility”) approximate their respective fair values due to the short-term nature of these financial instruments. The carrying amounts and corresponding estimated fair values of our long-term debt, excluding debt issuance costs and original issue discounts, are as follows:

 

 

Fair Value

 

March 31, 2026

 

 

September 30, 2025

 

(in thousands)

 

Hierarchy Level

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

Long-term debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2032

 

Level 2

 

$

600,000

 

 

$

612,000

 

 

$

600,000

 

 

$

622,500

 

Term loan B due 2030

 

Level 2

 

 

235,000

 

 

 

234,413

 

 

 

275,000

 

 

 

276,375

 

Total long-term debt

 

 

 

$

835,000

 

 

$

846,413

 

 

$

875,000

 

 

$

898,875

 

 

The fair value of our senior notes was determined using unadjusted quoted market prices. The fair value of our Term Loan B agreement was determined using unadjusted quoted market prices for similar debt securities in active markets.