Derivative Financial Instruments

9 Months Ended

Jun. 30, 2013

Derivative Financial Instruments

3. Derivative Financial Instruments

Periodically the Company enters into foreign currency hedge arrangements. At June30, 2013, the Company’s Canadian subsidiary had $28.1 million of Canadian dollar denominated intercompany accounts payable owed to the Company’s U.S. subsidiaries. In order to mitigate its exposure to movements in foreign currency rates between the U.S. dollar and Canadian dollar, during its third quarter ended June30, 2013, the Company entered into a $20.0 million foreign currency forward contract to hedge a portion of the Canadian subsidiary’s Canadian dollar denominated debt. This contract reduces the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate. At June30, 2013, the Company had accrued unrealized foreign exchange gains of $0.6 million under this contract.

The following table summarizes the gross fair value of all derivative instruments, which are not designated as hedging instruments and their location in the consolidated balance sheets (in thousands):

Derivative Instrument	Location		June30,2013		September30,2012
Foreign Currency Exchange Contracts		Prepaid and other	$	590	$	--
Foreign Currency Exchange Contracts		AccruedExpenses		--		215
			$	590	$	215

The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the three and nine month periods ended June30, 2013 and 2012 (in thousands):

Derivative Instrument	Locationof GainonDerivative Instrument		ThreeMonthsEnded June30				NineMonthsEnded June30
			2013		2012		2013		2012
Foreign Currency Forward Contracts		OtherIncome(Expense)		657		285		812		137
			$	657	$	285	$	812	$	137

Amounts in the above table include realized and unrealized derivative gains and losses.