Derivative Financial Instruments

6 Months Ended

Mar. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

3. Derivative Financial Instruments

At March 31, 2018 and September 30, 2017, the Company’s Canadian subsidiary had CAN$41.1 million and CAD$26.1 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. On March 28, 2018, the Company entered into two short-term hedge contracts totaling $30.0 million Canadian dollars with a United States bank to reduce the impact on cash flows from movements in the Canadian dollar/U.S. dollar currency exchange rate, but have not been designated as hedges for accounting purposes.

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, 2018				September 30, 2017
Foreign Currency Forward Contracts		Accrued Expenses and Other Current Liabilities		$	55			$	—

The following table summarizes the Company’s gains on derivative instruments in the consolidated statements of operations for the three and six month periods ended March 31, 2018 and 2017 (in thousands):

		Three Months Ended					Six Months Ended
Derivative Instrument	Location	March 31, 2018		March 31, 2017			March 31, 2018		March 31, 2017
Foreign Currency Forward Contracts	Other Income (Expense)	$	733	$	(44	)	$	575	$	28

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