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):



	December 31, 2016		March 31, 2016
Danaher	$	759	$	44,161
Fortive	3,202		—
	$	3,961	$	44,161

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



	December 31, 2016		March 31, 2016
Danaher	$	2,242	$	5,893
Fortive	488		—
	$	2,730	$	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					Nine Months Ended
	December 31,					December 31,
	2016			2015		2016			2015
Danaher:
Cost of product revenue	$	—		$	8,736	$	4,690		$	16,464
Cost of service revenue	27			2,225		485			4,717
Research and development expenses	43			4,197		1,720			15,011
Sales and marketing	(49		)	3,650		2,273			12,728
General and administrative expenses	46			6,383		2,548			13,446
Other expense, net	—			—		—			383
	$	67		$	25,191	$	11,716		$	62,749
Fortive:
Cost of product revenue	$	45		$	—	$	2,418		$	—
Cost of service revenue	95			—		109			—
Research and development expenses	—			—		(104		)	—
Sales and marketing	—			—		150			—
General and administrative expenses	261			—		1,302			—
	$	401		$	—	$	3,875		$	—

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



	Nine Months Ended
	December 31, 2016			December 31, 2015
Due from related party:
Danaher	$	16,955		$	(5,777	)
Fortive	7,724			—
Total	$	24,679		$	(5,777	)

Due to related party:
Danaher	$	(712	)	$	(4,329	)
Fortive	206			—
Total	$	(506	)	$	(4,329	)

The Company recognized $143 thousand and $102 thousand in revenue from Danaher during the nine months ended December 31, 2016 and 2015, respectively, in the ordinary course of business.

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 nine months ended December 31, 2016, and therefore, the Company considers sales to EMC to be a related party transaction. During the quarter ended September 30, 2016, 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 $152 thousand and $409 thousand in revenue from EMC during the nine months ended December 31, 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 $24 thousand and $107 thousand in revenue from MITRE during the nine months ended December 31, 2016 and 2015, respectively, 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 $254 thousand in revenue from State Street during the nine months ended December 31, 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.