Bank Credit Arrangements

6 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Bank Credit Arrangements

12. Bank Credit Arrangements

The Company maintains a revolving credit facility with a commercial bank in an aggregate principal amount not to exceed $200,000, which expires in October 2026. Outstanding principal amounts bear interest at a fluctuating rate tied to, at the Company’s option, either the federal funds rate or LIBOR, resulting in an effective interest rate of 2.47% and 2.60% on the revolving credit facility during the three months ended March 31, 2022 and 2021, respectively, and 2.33% and 2.57% during the six months ended March 31, 2022 and 2021, respectively. In light of the interest being determined on a variable rate basis, the fair value of the borrowings under the revolving credit facility at both March 31, 2022 and September 30, 2021, approximates the current carrying value reflected in the Condensed Consolidated Balance Sheets of $25,000 and $60,000, respectively, which is consistent with a level 2 fair value measurement.

The revolving credit facility is collateralized by the business assets of the Company’s U.S. subsidiaries and requires compliance with financial covenants that limit the amount of debt obligations and require a minimum level of coverage of fixed charges, as defined in the revolving credit facility agreement. As of March 31, 2022, the Company was in compliance with all covenants.