Derivatives and Hedging Activities

6 Months Ended

Mar. 31, 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 March 31, 2026 and September 30, 2025, derivative instruments were reflected on a gross-basis in the Consolidated Balance Sheets as follows:

Derivatives:	March 31, 2026				September 30, 2025
	Interest Rate Swaps		Cross-Currency Swaps		Interest Rate Swaps		Cross-Currency Swaps
Current assets:
Other current assets	$	197	$	—	$	15	$	—
Long-term assets:
Other non-current assets	148		—		24		—
Current liabilities:
Other current liabilities	(684)		(43,061)		(973)		(45,914)
Long-term liabilities:
Other non-current liabilities	(481)		(10,584)		(1,404)		(12,627)
Total derivatives(1)	$	(820)	$	(53,645)	$	(2,338)	$	(58,541)

(1) Cross-currency swap amounts at both March 31, 2026 and September 30, 2025 reflect $40,186 of partial advanced payments received from the counterparties to certain swap contracts (see below).

The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges:

	March 31, 2026			September 30, 2025
Notional amount	$	300,000		$	225,000
Weighted-average maturity period (years)	1.9			2.7
Weighted-average received rate	3.66		%	4.13		%
Weighted-average pay rate	3.76		%	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 loss of $820 ($621 after tax) and $2,338 ($1,752 after tax) at March 31, 2026 and September 30, 2025, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Unrecognized gains of $1,011 ($757 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 March 31, 2026 and September 30, 2025, respectively. Assuming market rates remain constant with the rates at March 31, 2026, a gain (net of tax) of approximately $392 included in AOCI is expected to be recognized in earnings over the next twelve months.

Note 9.   Derivatives and Hedging Activities (continued)

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 Amount				Unrealized Losses Recognized in AOCI
Swap Currencies	Maturity Date	March 31, 2026		September 30, 2025		March 31, 2026			September 30, 2025
USD/EUR	September 2027	$	81,392	$	81,392	$	(7,929)		$	(9,443)
USD/SEK	June 2026	20,000		20,000		(1,730)			(2,571)
USD/EUR	August 2026	25,000		25,000		(424)			(1,689)
		$	126,392	$	126,392	$	(10,083)	(1)	$	(13,703)	(1)

(1) Total unrealized gains (losses) are presented net of tax of $3,376 and $4,652 as of March 31, 2026 and September 30, 2025, respectively.

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 March 31, 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.