XML 25 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Derivative Financial Instruments | 3 Months Ended
--- | ---
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | 8. Derivative Financial Instruments We enter into foreign currency forward contracts to manage our exposure to foreign currency exchange risk to reduce earnings volatility. We do not enter into derivative transactions for trading or speculative purposes. The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:
(in thousands) |  | Fair Value of Derivatives Designated As Hedging Instruments |  |  | Fair Value of Derivatives Not Designated As Hedging Instruments |
|  | December 31, 2024 |  |  | September 30, 2024 |  |  | December 31, 2024 |  |  | September 30, 2024 |
Derivative assets(1): |  |  |  |  |  |  |  |  |  |  |  |
Forward contracts |  | $ | 5,765 |  |  | $ | 181 |  |  | $ | 4,833 |  |  | $ | 1,021 |
Derivative liabilities(2): |  |  |  |  |  |  |  |  |  |  |  |
Forward contracts |  | $ | — |  |  | $ | 630 |  |  | $ | 6,415 |  |  | $ | 3,536 |
(1) As of December 31, 2024 and September 30, 2024, current derivative assets are recorded in Other current assets in the Consolidated Balance Sheets. (2) As of December 31, 2024 and September 30, 2024, current derivative liabilities are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. Non-Designated Hedges We hedge our net foreign currency monetary assets and liabilities primarily resulting from foreign currency denominated receivables and payables with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These contracts have maturities of up to approximately three months. Generally, we do not designate these foreign currency forward contracts as hedges for accounting purposes and changes in the fair value of these instruments are recognized immediately in earnings. Because we enter into forward contracts only as an economic hedge, gains or losses on the underlying foreign-denominated balance are generally offset by the losses or gains on the forward contract. Gains and losses on forward contracts and foreign denominated receivables and payables are included in Other income (expense), net. As of December 31, 2024 and September 30, 2024, we had outstanding forward contracts not designated as hedging instruments with notional amounts equivalent to the following:
Currency Hedged (in thousands) |  | December 31, 2024 |  |  | September 30, 2024 |
Euro / U.S. Dollar |  | $ | 717,212 |  |  | $ | 781,398 |
British Pound / U.S. Dollar |  |  | 4,567 |  |  |  | 24,810 |
Israeli Shekel / U.S. Dollar |  |  | 12,327 |  |  |  | 12,535 |
Japanese Yen / U.S. Dollar |  |  | 26,320 |  |  |  | 42,340 |
Swiss Franc / U.S. Dollar |  |  | 25,714 |  |  |  | 74,939 |
Swedish Krona / U.S. Dollar |  |  | 16,924 |  |  |  | 48,596 |
Chinese Renminbi / U.S. Dollar |  |  | 4,522 |  |  |  | 32,124 |
New Taiwan Dollar / U.S. Dollar |  |  | 14,221 |  |  |  | 16,368 |
All other |  |  | 15,858 |  |  |  | 25,368 |
Total |  | $ | 837,665 |  |  | $ | 1,058,478 |
The following table shows the effect of our non-designated hedges on the Consolidated Statements of Operations for the three months ended December 31, 2024 and December 31, 2023:
(in thousands) |  |  |  | Three months ended |
|  | Location of Gain (Loss) |  | December 31, 2024 |  |  | December 31, 2023 |
Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged |  | Other income (expense), net |  | $ | 558 |  |  | $ | (3,735 | )
In the three months ended December 31, 2024, total foreign currency losses, net were $1.2 million. In the three months ended December 31, 2023, total foreign currency gains, net were $1.0 million. Net Investment Hedges We translate balance sheet accounts of subsidiaries with foreign functional currencies into the U.S. Dollar using the exchange rate at each balance sheet date. Resulting translation adjustments are reported as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. We designate certain foreign exchange forward contracts as net investment hedges against exposure on translation of balance sheet accounts of Euro and Japanese Yen functional subsidiaries. Net investment hedges partially offset the impact of Foreign currency translation adjustment recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets. All foreign exchange forward contracts are carried at fair value on the Consolidated Balance Sheets and the maximum duration of net investment hedge foreign exchange forward contracts is approximately three mo nths. Net investment hedge relationships are designated at inception, and effectiveness is assessed retrospectively on a quarterly basis using the net equity position of Euro and Japanese Yen functional subsidiaries. As the forward contracts are highly effective in offsetting exchange rate exposure, we record changes in these net investment hedges in Accumulated other comprehensive loss and subsequently reclassify them to Foreign currency translation adjustment in Accumulated other comprehensive loss at the time of forward contract maturity. Changes in the fair value of foreign exchange forward contracts due to changes in time value are excluded from the assessment of effectiveness. Our derivatives are not subject to any credit contingent features. We manage credit risk with counterparties by trading among several counterparties and we review our counterparties’ credit at least quarterly. As of December 31, 2024 and September 30, 2024, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following:
Currency Hedged (in thousands) |  | December 31, 2024 |  |  | September 30, 2024 |
Euro / U.S. Dollar |  | $ | 436,716 |  |  | $ | 462,894 |
Japanese Yen / U.S. Dollar |  |  | 9,822 |  |  |  | 10,739 |
Total |  | $ | 446,538 |  |  | $ | 473,633 |
The following table shows the effect of our derivative instruments designated as net investment hedges in the Consolidated Statements of Operations for the three months ended December 31, 2024 and December 31, 2023:
(in thousands) |  |  |  | Three months ended |
|  | Location of Gain (Loss) |  | December 31, 2024 |  |  | December 31, 2023 |
Gain (loss) recognized in Other comprehensive income (loss) ("OCI") |  | OCI |  | $ | 33,448 |  |  | $ | (15,304 | )
Gain (loss) reclassified from OCI to earnings |  | n/a |  | $ | — |  |  | $ | — |
Gain recognized, excluded portion |  | Other income (expense), net |  | $ | 1,075 |  |  | $ | 1,136 |
As of December 31, 2024, we estimate that all amounts reported in Accumulated other comprehensive loss will be applied against exposed balance sheet accounts upon translation within the next three months. Offsetting Derivative Assets and Liabilities We have entered into master netting arrangements for our forward contracts that allow net settlements under certain conditions. Although netting is permitted, it is currently our policy and practice to record all derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets. The following table sets forth the offsetting of derivative assets as of December 31, 2024:
(in thousands) |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |  |  |
As of December 31, 2024 |  | Gross Amount of Recognized Assets |  |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  | Net Amounts of Assets Presented in the Consolidated Balance Sheets |  |  | Financial Instruments |  |  | Cash Collateral Received |  |  | Net Amount |
Forward contracts |  | $ | 10,598 |  |  | $ | — |  |  | $ | 10,598 |  |  | $ | (6,415 | ) |  | $ | — |  |  | $ | 4,183 |
The following table sets forth the offsetting of derivative liabilities as of December 31, 2024:
(in thousands) |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |  |  |
As of December 31, 2024 |  | Gross Amount of Recognized Liabilities |  |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets |  |  | Financial Instruments |  |  | Cash Collateral Pledged |  |  | Net Amount |
Forward contracts |  | $ | 6,415 |  |  | $ | — |  |  | $ | 6,415 |  |  | $ | (6,415 | ) |  | $ | — |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration