Derivative Financial Instruments

9 Months Ended

Jun. 30, 2021

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 three years. At June 30, 2021, the total notional amount of forward contracts was $61.8 million. At June 30, 2021, the weighted-average remaining maturity of these instruments was approximately 11.9 months.

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments as of June 30, 2021 and September 30, 2020 (dollars in thousands):

		Fair Value
Derivatives not designated as hedges	Classification	June 30, 2021		September 30, 2020
Foreign currency forward contracts	Prepaid expenses and other current assets	$	1,300	$	-
Foreign currency forward contracts	Other assets		428		-
Foreign currency forward contracts	Accrued expenses and other current liabilities		32		-
Foreign currency forward contracts	Other liabilities	$	56	$	-

The following tables display a summary of the income (loss) related to foreign currency forward contracts for the three and nine months ended June 30, 2021 and 2020 (dollars in thousand):

		Gain recognized in earnings
		Three Months Ended				Nine Months Ended
Derivatives not designated as hedges	Classification	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Foreign currency forward contracts	Other income (expense), net	$	649	$	-	$	2,419	$	-