Derivative Financial Instruments

12 Months Ended

Sep. 30, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

4. Derivative Financial Instruments

The Company entered into foreign currency hedge arrangements during fiscal year ended September 30, 2012. At September 30, 2012, the Company’s Canadian subsidiary had $29.7 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 an $18.0 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. At September 30, 2012, the Company had accrued unrealized foreign exchange losses of $0.4 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	September 30, 2012
Foreign Currency Exchange Contracts	Accrued Expenses		215
		$	215

The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the years ended September 30, 2012:

(In thousands)
Amount of Loss Recognized in Income for the Year Ended
Derivative Instrument	Location	September 30, 2012
Foreign Currency Exchange Contracts	Other Income (loss)		(394	)
		$	(394	)