Derivative Financial Instruments

9 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

7. Derivative Financial Instruments

As of June 30, 2024 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
June 30, 2024
Interest rate swap	$	(47	)	$	—	$	(47	)	$	—	$	(47	)	Other long-term liabilities
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 June 30,						Nine Months Ended June 30,
(In thousands)	2024			2023			2024			2023
Beginning unrealized net (loss) gain in AOCL	$	(135	)	$	—		$	183		$	—
Net gain (loss) recognized in other comprehensive (loss) income		149			607			(45	)		(141	)
Net gain reclassified into interest expense		(61	)		(39	)		(185	)		(19	)
Ending unrealized (loss) gain in AOCL	$	(47	)	$	568		$	(47	)	$	(160	)