RELATED PARTY TRANSACTIONS

During our fiscal year ended March 31, 2016 and the three months ended June 30, 2016, a member of the Company’s Board of Directors served as an executive officer of Danaher. As part of the split off of Danaher’s Communications Business and the Company’s subsequent acquisition of that business from Newco's shareholders, NetScout has entered into multiple transactions with Danaher which include: transition services agreements, lease agreements, closing agreements, and compensation for post-combination services provisions within the separation and distribution agreement. This board member is now the founding President and CEO of Fortive Corporation (Fortive), which spun off of Danaher in July 2016. As part of the spin off of Fortive, the transition services agreement was amended to, among other things, assign Danaher's rights, duties, obligations and liabilities under the transition services agreement to Fluke Corporation, a subsidiary of Fortive. The Company has disclosed the transactions with Danaher and Fortive parenthetically within the financial statements.

As disclosed parenthetically within the Company's consolidated balance sheet, the Company has receivables from related parties. The following table summarizes those balances (in thousands):



	September 30, 2016		March 31, 2016
Danaher	$	12,402	$	44,161
Fortive	5,111		—
	$	17,513	$	44,161

As disclosed within the Company's consolidated balance sheet, the Company has payables due to related parties. The following table summarizes those balances (in thousands):



	September 30, 2016		March 31, 2016
Danaher	$	3,910	$	5,893
Fortive	659		—
	$	4,569	$	5,893

As disclosed parenthetically within the Company's consolidated statements of operations, the Company has recorded expenses from related parties. The following table summarizes those balances (in thousands):



	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2016			2015		2016			2015
Danaher:
Cost of product revenue	$	113		$	7,728	$	4,690		$	7,728
Cost of service revenue	268			2,492		458			2,492
Research and development expenses	652			10,814		1,677			10,814
Sales and marketing	722			9,078		2,322			9,078
General and administrative expenses	998			7,063		2,502			7,063
	$	2,753		$	37,175	$	11,649		$	37,175
Fortive:
Cost of product revenue	$	2,373		$	—	$	2,373		$	—
Cost of service revenue	14			—		14			—
Research and development expenses	(104		)	—		(104		)	—
Sales and marketing	150			—		150			—
General and administrative expenses	1,041			—		1,041			—
	$	3,474		$	—	$	3,474		$	—

As disclosed within the Company's consolidated statements of cash flows, the Company has cash flows due to related parties and due from related parties. The following table summarizes those cash flows (in thousands):



	Six Months Ended
	September 30, 2016			September 30, 2015
Cash flows:
Due from related party:
Danaher	$	16,955		$	(28,878	)
Fortive	5,815			—
Total	$	22,770		$	(28,878	)

Due to related party:
Danaher	$	(2,955	)	$	7,513
Fortive	376			—
Total	$	(2,579	)	$	7,513

A member of the Company’s Board of Directors served as a member of the board of directors for EMC Corporation (EMC) during the three and six months ended September 30, 2016, and therefore, the Company considers sales to EMC to be a related party transaction. During the quarter EMC was acquired by Dell Technologies and EMC's board members resigned. The Company will continue to report the wind down of preexisting transactions as related party transactions through the Company's fiscal year 2017. The Company recognized $107 thousand and $346 thousand in revenue from EMC during the six months ended September 30, 2016 and 2015 in the ordinary course of business.

A member of the Company’s Board of Directors also serves as a consultant for The MITRE Corporation (MITRE) and therefore, the Company considers sales to MITRE to be a related party transaction. The Company generated $22 thousand and $0 in revenue from MITRE during the six months ended September 30, 2016 and 2015 in the ordinary course of business.

During our fiscal year ended March 31, 2016, the Company had a member of the Board of Directors who served as a Section 16 officer of State Street Corporation (State Street) and therefore, the Company considered sales to State Street to be a related party transaction. The Company recognized $122 thousand in revenue from State Street during the six months ended September 30, 2015 in the ordinary course of business. This board member is no longer a Section 16 officer of State Street, and as a result, State Street is no longer considered a related party in the Company's fiscal year ended March 31, 2017.