Derivative Financial Instruments

6 Months Ended

Mar. 31, 2022

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 March 31, 2022, the total notional amount of forward contracts was $70.9 million. At March 31, 2022, the weighted-average remaining maturity of these instruments was approximately 12.0 months.

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments as of March 31, 2022 and September 30, 2021 (dollars in thousands):

		Fair Value
Derivatives not designated as hedges	Classification	March 31, 2022		September 30, 2021
Foreign currency forward contracts	Prepaid expenses and other current assets	$	1,993	$	1,235
Foreign currency forward contracts	Other assets		636		365
Foreign currency forward contracts	Accrued expenses and other current liabilities		93		131
Foreign currency forward contracts	Other liabilities	$	96	$	148

The following tables display a summary of the income (loss) related to foreign currency forward contracts for the three and six months ended March 31, 2022 and 2021 (dollars in thousand):

		Gain recognized in earnings
		Three Months Ended March 31,				Six Months Ended March 31,
Derivatives not designated as hedges	Classification		2022		2021		2022		2021
Foreign currency forward contracts	Other income (expense), net	$	1,347	$	1,384	$	2,464	$	1,770