Derivative Financial Instruments

6 Months Ended

Mar. 31, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

3. Derivative Financial Instruments

At March 31, 2015 and September 30, 2014, the Company’s Canadian subsidiary had $28.6 million and $29.8 million, respectively, of Canadian dollar denominated intercompany accounts payable owed to one of 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 March 31, 2015, the Company was a party to a $28.0 million Canadian dollar 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 March 31, 2015, the Company had an accrued unrealized foreign exchange gain of $0.3 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	March 31, 2015		September 30, 2014
Foreign Currency Exchange Contracts	Prepaid Expenses and Other Current Assets	$	294	$	795

The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations for the three and six month periods ended March 31, 2015 and 2014 (in thousands):

		Three Months Ended					Six Months Ended
		March 31					March 31
Derivative Instrument	Location of Gain (Loss)	2015		2014			2015		2014
Foreign Currency Exchange Contracts	Other Income (Expense)	$	2,023	$	(58	)	$	2,948	$	155

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