Derivative Financial Instruments

6 Months Ended

Mar. 31, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

4. Derivative Financial Instruments

At March 31, 2012, the Company's Canadian subsidiary had $20.7 million of U.S. 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, the Company entered into a $14.0 million foreign currency forward contract to hedge a portion of the Canadian subsidiary's U.S. dollar denominated debt. This contract reduces the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate. The Company entered into this contract during its second fiscal quarter ended March 31, 2012. At March 31, 2012, the Company had accrued unrealized foreign exchange losses of $0.1 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)
Liability Derivatives
Derivative Instrument	Location	March 31, 2012		September 30, 2011
Foreign Currency Exchange Contracts	Accrued Expenses		148		—
		$	148	$	—

The following table summarizes the impact of the Company's derivatives on the condensed consolidated financial statements of operations for the three and six month periods ended March 31, 2012 and 2011:

		Amount of (Loss) Gain Recognized in Income (In thousands)
Derivative	Location of (Loss) Gain on Derivative	Three Months Ended March 31,					Six Months Ended March 31,
Instrument	Instrument	2012			2011		2012			2011
Foreign Currency Exchange Contracts	Other Income (Expense)	$	(148	)	$	—	$	(148	)	$	—