Derivative Financial Instruments

9 Months Ended

Jun. 30, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

4. Derivative Financial Instruments

Periodically the Company enters into foreign currency hedge arrangements. At June 30, 2012, the Company’s Canadian subsidiary had $14.3 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 third fiscal quarter ended June 30, 2012. At June 30, 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	June 30, 2012		September 30, 2011
Foreign Currency Exchange Contracts	Accrued Expenses		137		—
		$	137	$	—

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 June 30, 2012 and 2011:

	Location of (Loss) Gain on Derivative Instrument	Amount of (Loss) Gain Recognized in Income (In thousands)
Derivative Instrument		Three Months Ended June 30,				Nine Months Ended June 30,
		2012		2011		2012		2011
Foreign Currency Exchange Contracts	Other Income (Expense)	$	285	$	—	$	137	$	—