v3.24.3
Fair Value Measurements
 12 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
3.
Fair Value Measurements

Our financial instruments consist of cash equivalents, trade and other accounts receivable, accounts payable, derivative instruments, including foreign exchange contracts and interest rate caps, and debt. The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these financial instruments.

We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement, as amended (“ASC 820”). We define “fair value” as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for measuring fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date.

The three levels of that hierarchy are defined as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data; and

Level 3 - Unobservable inputs for the asset or liability.

Fair value on recurring basis

Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows (in thousands):

 

 

 

 

 

 

 

As of September 30,

 

 

 

Classification

 

Fair Value Hierarchy Level

 

2024

 

 

2023

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

Non-designated foreign exchange contracts

 

Other current assets

 

Level 2

 

$

1,207

 

 

$

1,160

 

Interest rate swap

 

Other assets

 

Level 2

 

 

—

 

 

 

4,668

 

Total assets

 

 

 

 

 

$

1,207

 

 

$

5,828

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

Non-designated foreign exchange contracts

 

Accrued liabilities

 

Level 2

 

$

1,485

 

 

$

397

 

Interest rate swap

 

Other liabilities

 

Level 2

 

 

635

 

 

 

—

 

Total Liabilities

 

 

 

 

 

$

2,120

 

 

$

397

 

 

The fair value of each asset and liability was measured using widely accepted valuation techniques, including discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates.

Other fair value disclosures

Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, are as follows:

 

 

 

 

As of September 30,

 

 

 

 

 

2024

 

 

2023

 

(in thousands)

 

Fair Value Hierarchy Level

 

Carrying
Value

 

 

Fair
Value

 

 

Carrying
Value

 

 

Fair
Value

 

Long-term debt, excluding finance lease obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2032

 

Level 2

 

$

600,000

 

 

$

615,000

 

 

$

—

 

 

$

—

 

Senior notes due 2025

 

Level 2

 

 

—

 

 

 

—

 

 

 

679,961

 

 

 

662,962

 

Term loan B due 2030

 

Level 2

 

 

394,000

 

 

 

393,508

 

 

 

398,000

 

 

 

398,000

 

Total long-term debt

 

 

 

$

994,000

 

 

$

1,008,508

 

 

$

1,077,961

 

 

$

1,060,962

 

The fair value of our senior notes was measured using unadjusted quoted market prices. The fair value of our term loan B agreements was measured using unadjusted quoted market prices for similar debt securities in active markets.