Derivative Financial Instruments

3 Months Ended

Dec. 31, 2013

Derivative Financial Instruments

2. Derivative Financial Instruments

At December 31, 2013, the Company’s Canadian subsidiary had $50.0 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, the Company routinely enters into foreign currency forward contracts to hedge a portion of its exposure to changes in the value of the Canadian dollar. At December 31, 2013, the Company was a party to a $35.0 million foreign currency forward contract. This contract reduces the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate. At December 31, 2013, the Company had accrued unrealized foreign exchange gains of $0.1million 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	December 31, 2013		September 30, 2013
Foreign Currency Exchange Contracts	Prepaid Expenses and Other Current Assets	$	84	$	--
Foreign Currency Exchange Contracts	Accrued Expenses		--	$	351
		$	84	$	351

The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the three month periods ended December 31, 2013 and 2012 (in thousands ):

	Location of (Loss)Gain on Derivative Instrument	Three Months Ended
Derivative Instrument		December 31, 2013			December 31, 2012
Foreign Currency Exchange Contracts	Other Income (Expense)	$	(862	)	$	213