Derivative Financial Instruments

12 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

6. Derivative Financial Instruments

We operate internationally and, in the normal course of business, are exposed to fluctuations in foreign currency exchange rates related to third-party vendor and intercompany payments for goods and services within our non-U.S. subsidiaries. We use foreign exchange forward contracts that are not designated as hedges to manage currency risk. The contracts can have maturities up to three years. As of September 30, 2023 and 2022, the total notional amount of forward contracts was $98.0 million and $63.3 million, respectively. As of September 30, 2023 and 2022, the weighted-average remaining maturity of these instruments was approximately 11.6 and 10.5 months, respectively.

The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of September 30, 2023 and 2022 (dollars in thousands):


		Fair Value
Derivatives not designated as hedges	Classification	September 30, 2023		September 30, 2022
Foreign currency forward contracts	Prepaid expenses and other current assets	$	477	$	1,627
Foreign currency forward contracts	Other assets		256		660
Foreign currency forward contracts	Accrued expenses and other current liabilities		1,613		1,812
Foreign currency forward contracts	Other liabilities		460		711

The following tables display a summary of the (loss) income related to foreign currency forward contracts within the Consolidated Statements of Operations for the fiscal years ended September 30, 2023, 2022 and 2021 (dollars in thousand):


		(Loss) income recognized in earnings
		Year Ended September 30,
Derivatives not designated as hedges	Classification	2023			2022		2021
Foreign currency forward contracts	Other income (expense), net	$	(2,492	)	$	860	$	2,512