Derivative Financial Instruments

12 Months Ended

Sep. 30, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

3. Derivative Financial Instruments

At September 30, 2014 and 2013, the Company’s Canadian subsidiary had $26.6 million and $28.3 million, respectively, of Canadian dollar denominated intercompany accounts payable owed to the Company’s U.S. subsidiary. 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 or all of its exposure to changes in the value of the Canadian dollar. At September 30, 2014, the Company was a party to a $30.0 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 September 30, 2014, the Company had an accrued unrealized foreign exchange gain of $0.8 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	SEPTEMBER 30, 2014		SEPTEMBER 30, 2013
Foreign Currency Forward Contracts	Prepaid Expenses and Other Current Assets	$	795	$	—
Foreign Currency Forward Contracts	Accrued Expenses and Other Current Liabilities		—		351
		$	795	$	351

The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the fiscal years ended September 30, 2014, 2013 and 2012 (in thousands):

		FOR THE YEAR ENDED
Derivative Instrument	Location of Gain (loss) on Derivative Instrument	SEPTEMBER 30, 2014			SEPTEMBER 30, 2013	SEPTEMBER 30, 2012
Foreign Currency Forward Contracts	Other Income (Expense)	$	2,439	$	398	$	(394	)
		$	2,439	$	398	$	(394	)

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