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 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):



	March 31, 2017		March 31, 2016
Danaher	$	404	$	44,161
Fortive	3,181		—
	$	3,585	$	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):



	March 31, 2017		March 31, 2016
Danaher	$	—	$	5,893
Fortive	444		—
	$	444	$	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):



	Year Ended March 31,
	2017			2016
Danaher:
Cost of product revenue	$	4,690		$	25,055
Cost of service revenue	485			5,736
Research and development expenses	1,720			16,701
Sales and marketing	2,273			15,430
General and administrative expenses	2,551			16,055
Other expense	—			379
	$	11,719		$	79,356
Fortive:
Cost of product revenue	$	2,539		$	—
Cost of service revenue	260			—
Research and development expenses	(96		)	—
Sales and marketing	150			—
General and administrative expenses	1,548			—
Other income	(426		)	—
	$	3,975		$	—

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



	Year Ended March 31,
	2017			2016
Due from related party:
Danaher	$	17,310		$	(18,483	)
Fortive	7,745			—
Total	$	25,055		$	(18,483	)

Due to related party:
Danaher	$	(2,954	)	$	(6,743	)
Fortive	162			—
Total	$	(2,792	)	$	(6,743	)

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



	Year Ended March 31,
	2017		2016
Due from related party:
Danaher	$	12,864	$	9,306
Total	$	12,864	$	9,306

The Company recognized $177 thousand and $130 thousand in revenue from Danaher during the fiscal years ended March 31, 2017 and 2016 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 fiscal years ended March 31, 2017 and 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 member resigned. The Company continued to report the wind down of preexisting transactions as related party transactions through the Company's fiscal year 2017. The Company recognized $167 thousand and $475 thousand in revenue from EMC during the fiscal years ended March 31, 2017 and 2016 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 related party transactions. The Company generated $24 thousand and $125 thousand in revenue from MITRE during the fiscal years ended March 31, 2017 and 2016 in the ordinary course of business.

During the 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 $452 thousand in revenue from State Street during the fiscal year ended March 31, 2016 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.