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DERIVATIVES
 12 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
Cash Flow Hedges. The Company periodically enters into forward foreign exchange contracts to hedge the cash flow risk from the forecasted purchase and sale of inventory denominated in foreign currencies. These obligations generally require the Company to exchange foreign currencies for Australian Dollars, Canadian Dollars, Colombian Pesos, Euros, Japanese Yen, Mexican Pesos, Pound Sterling, or U.S. Dollars. The fair value of qualifying hedges are recorded in Accumulated Other Comprehensive Income ("AOCI") and as a derivative asset or liability, as applicable, until the purchase or sale is recognized, or otherwise determined to be ineffective or discontinued, at which point the fair value of the related hedge is reclassified to earnings.
Derivative Instruments Not Designated as Hedge. The Company periodically enters into forward contracts to economically hedge a portion of risk from balance sheet exposures denominated in foreign currencies. These obligations generally require the Company to exchange foreign currencies for, among others, Australian Dollars, Canadian Dollars, Euros, Japanese Yen, Polish Zloty, Pound Sterling, Turkish Lira, or U.S. Dollars. These foreign exchange contracts are fair value hedges of related intercompany balances with the gain or loss on the derivative instruments recorded in earnings offsetting the change in value of the related intercompany balance.
The following summarizes outstanding notional balances and maturities of derivative instruments as of September 30, 2025 and September 30, 2024.
20252024
(in millions)Notional BalanceMaturities thruNotional BalanceMaturities thru
Foreign exchange contracts - cash flow hedges$333.5 March 2027$351.7 June 2026
Foreign exchange contracts - not designated as hedge447.7 October 2025466.9 October 2024
The following summarizes the fair value and location of outstanding derivative instruments in the Consolidated Statements of Financial Position as of September 30, 2025 and September 30, 2024.
(in millions)Line Item20252024
Derivative Assets
Foreign exchange contracts – cash flow hedgesOther receivables$0.6 $1.4 
Foreign exchange contracts – cash flow hedgesDeferred charges and other0.1 0.1 
Foreign exchange contracts – not designated as hedgeOther receivables0.1 0.3 
Total Derivative Assets$0.8 $1.8 
Derivative Liabilities
Foreign exchange contracts – cash flow hedgesAccounts payable$8.8 $11.5 
Foreign exchange contracts – cash flow hedgesOther long term liabilities0.1 1.4 
Foreign exchange contracts – not designated as hedgeAccounts payable0.7 2.4 
Total Derivative Liabilities$9.6 $15.3 
The following summarizes the pre-tax gain (loss) from derivative instruments and location in the Consolidated Statements of Income for the years ended September 30, 2025, 2024, and 2023.
(in millions)Line Item202520242023
Foreign exchange contracts - cash flow hedgesNet sales$0.1 $0.3 $0.2 
Foreign exchange contracts - cash flow hedges Cost of goods sold(8.9)(15.5)(12.4)
Foreign exchange contracts - not designated as hedgeOther non-operating expense, net11.1 (20.1)(14.3)
There was no gain or loss realized from cash flow hedges due to the ineffectiveness or discontinuation of the cash flow hedge because it was not considered probable that the original forecasted transaction would not occur. See Note 18 - Accumulated Other Comprehensive Income for unrealized gains and losses initially recognized as other comprehensive income and the accumulated unrealized gain (loss) associated with cash flow hedges recognized in AOCI. As of September 30, 2025, the net loss estimated to be reclassified from AOCI into earnings associated with cash flow hedges over the next 12 months is $5.7 million, net of tax.
Net Investment Hedge
SBI had €425.0 million aggregate principal amount of the 2026 Notes designated as a non-derivative economic hedge, or net investment hedge, of the translation of the Company’s net investments in Euro denominated subsidiaries at the time of issuance. The hedge effectiveness is measured on the beginning balance of the net investment and re-designated every three months. Any gains and losses attributable to the translation of the Euro denominated debt designated as net investment hedge are recognized as a component of foreign currency translation within AOCI, and gains and losses attributable to the translation of the undesignated portion are recognized as foreign currency translation gains or losses within Other Non-Operating Expense, Net in the Consolidated Statements of Income.
Net unrealized gains or losses from the net investment hedge are reclassified from AOCI into earnings upon liquidation event or deconsolidation of Euro denominated subsidiaries. Effective June 20, 2024, the net investment hedge is no longer outstanding due to the full redemption of the 2026 Notes. See Note 9 - Debt for additional detail. The cumulative unrealized gain of $11.9 million related to the net investment hedge will remain in AOCI until a liquidation event or deconsolidation of the underlying Euro denominated subsidiaries. The following summarizes the pre-tax (loss) gain from the net investment hedge recognized in Other Comprehensive Income for the year ended September 30, 2024, through redemption of the 2026 Notes, and the year ended September 30, 2023:
(Loss) Gain in OCI (in millions)20242023
Net investment hedge$(13.2)$(31.7)