Derivative Financial Instruments

3 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

7. Derivative Financial Instruments

As of December 31, 2023 and September 30, 2023, derivative financial instruments on the condensed consolidated balance sheets consisted of a fixed-to-variable interest rate swap to mitigate exposure to interest rate increases related to our Term Loans (“interest rate swap”). The interest rate swap has been designated as a cash flow hedge. See Note 6 Debt for further information on our financing arrangements. The net fair value of designated hedge derivatives subject to master netting arrangements reported on the condensed consolidated balance sheets was as follows:

	Asset (Liability)
(In thousands)	Gross Recognized Amount			Gross Offset Amount		Net Amount Presented			Cash Collateral Receivable		Net Amount Reported		Balance Sheet Location
December 31, 2023
Interest rate swap	$	(499	)	$	—	$	(499	)	$	520	$	21	Other assets, noncurrent
September 30, 2023
Interest rate swap	$	183		$	—	$	183		$	—	$	183	Other assets, noncurrent

The pretax amounts recognized in accumulated other comprehensive loss (“AOCL”) for designated hedge derivative instruments were as follows:

	Three Months Ended December 31,
(In thousands)	2023			2022
Beginning unrealized net gain in AOCL	$	183		$	—
Net loss recognized in other comprehensive income (loss)		(620	)		(444	)
Net (gain) loss reclassified into interest expense		(62	)		31
Ending unrealized loss in AOCL	$	(499	)	$	(413	)