v3.26.1
Derivatives and Hedging Activities
 9 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Activities Derivatives and Hedging Activities
The Company operates internationally and utilizes certain derivative financial instruments to manage its foreign currency, debt and interest rate exposures. At June 30, 2026 and September 30, 2025, derivative instruments were reflected on a gross-basis in the Consolidated Balance Sheets as follows:
Derivatives:June 30, 2026September 30, 2025
Interest Rate SwapsCross-Currency SwapsInterest Rate SwapsCross-Currency Swaps
Current assets:
Other current assets$609 $— $15 $— 
Long-term assets:
Other non-current assets528 — 24 — 
Current liabilities:
Other current liabilities(230)(22,608)(973)(45,914)
Long-term liabilities:
Other non-current liabilities(70)(9,721)(1,404)(12,627)
Total derivatives(1)
$837 $(32,329)$(2,338)$(58,541)
(1) Cross-currency swap amounts at June 30, 2026 and September 30, 2025 reflect $22,770 and $40,186 of partial advance payments received from the counterparties to certain swap contracts, respectively (see below).
Note 9.   Derivatives and Hedging Activities (continued)

The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges:
June 30, 2026September 30, 2025
Notional amount$300,000 $225,000 
Weighted-average maturity period (years)1.62.7
Weighted-average received rate3.66 %4.13 %
Weighted-average pay rate3.76 %3.80 %

The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. The interest rate swaps have been designated as cash flow hedges of future variable interest payments which are considered probable of occurring. Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective.

The fair value of the interest rate swaps reflected a net unrealized gain of $837 ($627 after tax) and a net unrealized loss of $2,338 ($1,752 after tax) at June 30, 2026 and September 30, 2025, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Unrecognized gains of $750 ($555 after tax) and $1,605 ($1,199 after tax) related to previously terminated London Interbank Offered Rate ("LIBOR") based swaps were also included in AOCI as of June 30, 2026 and September 30, 2025, respectively. Assuming market rates remain constant with the rates at June 30, 2026, a gain (net of tax) of approximately $845 included in AOCI is expected to be recognized in earnings over the next twelve months.

The Company utilizes certain cross currency swaps as net investment hedges of foreign operations and assesses effectiveness for these contracts based on changes in fair value attributable to changes in spot prices. The following table presents information related to cross currency swaps entered into by the Company and designated as net investment hedges:

Notional AmountUnrealized (Loss) Gain
Recognized in AOCI
Swap CurrenciesMaturity DateJune 30, 2026September 30, 2025June 30, 2026September 30, 2025
USD/EURSeptember 2027$81,392 $81,392 $(7,282)$(9,443)
USD/SEKJune 2026— 20,000 — (2,571)
USD/EURAugust 202625,000 25,000 121 (1,689)
$106,392 $126,392 $(7,161)
(1)
$(13,703)
(1)
(1) Total unrealized net losses are presented net of tax of $2,398 and $4,652 as of June 30, 2026 and September 30, 2025, respectively.

On June 25, 2026, the SEK cross currency swap matured and payment of $21,478 was made on July 1, 2026 by the Company. The swap represented a partial advance payment, as discussed below, and was included in other current liabilities on the Consolidated Balance Sheet.

In connection with certain of these cross currency swaps, the Company received cash from the counterparties, representing partial advance payments of amounts due under the U.S. dollar leg of the swaps. Outstanding advance payment amounts totaled $40,186 at both June 30, 2026 and September 30, 2025, all of which were included in other current liabilities on the Consolidated Balance Sheet.

Refer to Note 13, "Accumulated Other Comprehensive Income" for further details regarding amounts recorded in AOCI and the Consolidated Statements of Income (Loss) related to derivatives.