Derivative Financial Instruments

12 Months Ended

Sep. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

4. Derivative Financial Instruments

At September 30, 2018 and 2017, the Company’s Canadian subsidiary had CAN$20.4 million and CAN$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 September 28, 2018, the Company entered into a CAN$30.0 million 90-day hedge contract 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 has not been designated as a hedge for accounting purposes. On October 18, 2018, the Company reduced its hedge to CAN$20.0 million.

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, 2018		September 30, 2017
Foreign Currency Forward Contracts	Accrued Expenses and Other Current Liabilities	$	270	$	—
		$	270	$	—

The following table summarizes the impact of the Company’s derivatives on the consolidated statements of operations in thousands):

		FOR THE YEAR ENDED SEPTEMBER 30,
Derivative Instrument	Location	2018		2017			2016
Foreign Currency Forward Contracts	Other Income (Expense)	$	779	$	(106	)	$	50
		$	779	$	(106	)	$	50

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