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DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES: The Company operates internationally and utilizes certain derivative financial instruments to manage its foreign currency, debt and interest rate exposures. At September 30, 2024 and 2023, derivative instruments were reflected on a gross-basis in the consolidated balance sheets as follows:
Derivatives: | September 30, 2024 |  | September 30, 2023
| Interest Rate Swaps | Cross-Currency Swaps |  | Interest Rate Swaps | Cross-Currency Swaps
Current assets: |  |  |  |  |
Other current assets | $ | — |  | $ | — |  |  | $ | 920 |  | $ | — |
Long-term assets: |  |  |  |  |
Other assets | — |  | — |  |  | 3,086 |  | — |
Current liabilities: |  |  |  |  |
Other current liabilities | (863) |  | (18,042) |  |  | — |  | — |
Long-term liabilities: |  |  |  |  |
Other liabilities | (1,743) |  | (48,925) |  |  | — |  | (2,766) |
Total derivatives (1) | $ | (2,606) |  | $ | (66,967) |  |  | $ | 4,006 |  | $ | (2,766) |
(1) Fiscal 2024 cross-currency swaps amount includes $58,432 of partial advance payments received from the counterparties to certain swap contracts (see below).
The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges:
|  | September 30, 2024 |  | September 30, 2023
Notional amount |  | $ | 175,000 |  |  | $ | 175,000 |
Weighted-average maturity period (years) |  | 3.2 |  | 4.1
Weighted-average received rate |  | 4.85 | % |  | 5.32 | %
Weighted-average pay rate |  | 3.83 | % |  | 3.83 | %
The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. In order to transition the Company's swaps from LIBOR-based to SOFR-based rates, the LIBOR-based swaps were settled during the second quarter of fiscal 2023, resulting in cash proceeds of $10,474. Concurrently, the Company entered into new interest rate swaps with SOFR-based rates with a notional amount of $175,000. The interest rate swaps have been designated as cash flow hedges of future variable interest payments which are considered probable of occurring. Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective. The fair value of the interest rate swaps reflected a net unrealized loss of $2,606 ($1,948 after tax) and a net unrealized gain of $4,006 ($2,991 after tax) at September 30, 2024 and 2023, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income ("AOCI"). Unrecognized gains of $3,848 ($2,874 after tax) and $8,084 ($6,041 after tax) related to previously terminated LIBOR-based swaps were also included in AOCI as of September 30, 2024 and 2023, respectively. Assuming market rates remain constant with the rates at September 30, 2024, a gain (net of tax) of approximately $1,032 included in AOCI is expected to be recognized in earnings over the next twelve months. The Company utilizes certain cross currency swaps as net investment hedges of foreign operations and assesses effectiveness for these contracts based on changes in fair value attributable to changes in spot prices. The following table presents information related to cross currency swaps entered into by the Company and designated as net investment hedges:
|  | Notional Amount |  | Unrealized Losses Recognized in AOCI |
Swap Currencies | Maturity Date | September 30, 2024 | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023 |
USD/EUR | September 2027 | $ | 81,392 |  | $ | 81,392 |  |  | $ | (5,440) |  |  | $ | (2,065) |  |
USD/SEK | June 2025 | 20,000 |  | — |  |  | (468) |  |  | — |  |
USD/SGD | August 2026 | 20,000 |  | — |  |  | (441) |  |  | — |  |
USD/EUR | August 2026 | 25,000 |  | — |  |  | (30) |  |  | — |  |
|  | $ | 146,392 |  | $ | 81,392 |  |  | $ | (6,379) |  | (1) | $ | (2,065) |  | (1)
(1) Total unrealized losses are presented net of tax of $2,156 and $701, for the years ended September 30, 2024 and 2023, respectively. In connection with certain of these cross currency swaps, the Company received cash from the counterparties, representing partial advance payments of amounts due under the U.S. dollar leg of the swaps. Such amounts totaled $58,432, of which $17,416 and $41,016 were included in other current liabilities and other liabilities, respectively, on the Consolidated Balance Sheets at September 30, 2024. The Company uses certain foreign currency debt instruments as net investment hedges of foreign operations with a notional amount of €30,000 ($33,485) as of September 30, 2024. Currency losses of $3,820 (net of income taxes of $1,113), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at September 30, 2024. No such net investment hedges were outstanding as of September 30, 2023. Refer to Note 17, "Accumulated Other Comprehensive Income" for further details regarding amounts recorded in AOCI and the Consolidated Statements of Income (Loss) related to derivatives.

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