Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

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Fair Value Measurements
 9 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and September 30, 2023 under ASC 820, Fair Value Measurements (in thousands):

June 30, 2024 September 30, 2023
(unaudited)
Level 2 Level 2
Assets:
Commodity swap contracts $ —  $ 204 
Interest rate swaps 20,452  26,909 
U.S. government securities 7,351  6,549 
Corporate debt securities 6,789  5,605 
Municipal government securities 1,695  1,748 
Agency backed securities 1,181  1,177 
Total assets 37,468  42,192 
Liabilities:
Commodity swap contracts $ —  $ 20 
Total liabilities $ —  $ 20 

The fair value of the interest rate swap contract is based on a model-driven valuation using the observable components (e.g., interest rates), which are observable at commonly quoted intervals for the full term of the contracts. The fair value of the Company’s commodity swap contracts is based on an analysis of the expected cash flow of the contract in combination with observable forward price inputs obtained from a third-party pricing source. The calculations are adjusted for credit risk. Therefore, the Company’s derivative assets and liabilities are classified within Level 2 of the fair value hierarchy. Derivative assets are included within “Prepaid expenses and other current assets” and “Other assets” on the Company’s Consolidated Balance Sheets. Derivative liabilities are included within “Accrued expense and other current liabilities” and “Other long-term liabilities” on the Company’s Consolidated Balance Sheets.