Derivative Financial Instruments

3 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 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 two years. As of December 31, 2024 and September 30, 2024, the total notional amount of forward contracts was $43.2 million and $59.1 million, respectively. As of December 31, 2024 and September 30, 2024, the weighted-average remaining maturity of these instruments was approximately 9.0 and 9.9 months, respectively.

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments as of December 31, 2024 and September 30, 2024 (dollars in thousands):


		Fair Value
Derivatives not designated as hedges	Classification	December 31, 2024		September 30, 2024
Foreign currency forward contracts	Prepaid expenses and other current assets	$	551	$	65
Foreign currency forward contracts	Other assets		225		68
Foreign currency forward contracts	Accrued expenses and other current liabilities		1,097		691
Foreign currency forward contracts	Other liabilities		138		163

The following tables display a summary of the loss related to foreign currency forward contracts for the three months ended December 31, 2024 and 2023 (dollars in thousands):


		Loss recognized in earnings
		Three Months Ended December 31,
Derivatives not designated as hedges	Classification	2024			2023
Foreign currency forward contracts	Other income, net	$	(104	)	$	(329	)