Derivative Financial Instruments

3 Months Ended

Dec. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

3. Derivative Financial Instruments

At December 31, 2014 and September 30, 2014, the Company’s Canadian subsidiary had $25.9 million and $26.6 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 of its exposure to changes in the value of the Canadian dollar.  At December 31, 2014, the Company was a party to a $28.0 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, but has not been designated as a hedge for accounting purposes.  At December 31, 2014, the Company had an accrued unrealized foreign exchange gain of $0.6 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	December31,2014		September30,2014
Foreign Currency Exchange Contracts	Prepaid Expenses and
	Other Current Assets	$	641	$	795

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, 2014 and 2013 (in thousands):

	Location of (Loss)
	Gain on Derivative	Three Months Ended
Derivative Instrument	Instrument	December31,2014		December31,2013
Foreign Currency Exchange Contracts	Other Income (Expense)	$	925	$	(862	)

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