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 will continue to report the wind down of preexisting transactions as related party transactions through the Company's fiscal year 2018. 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):



	June 30, 2017		March 31, 2017
Danaher	$	413	$	404
Fortive	3,191		3,181
	$	3,604	$	3,585

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):



	June 30, 2017		March 31, 2017
Danaher	$	63	$	—
Fortive	359		444
	$	422	$	444

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
	June 30,
	2017		2016
Danaher:
Cost of product revenue	$	—	$	4,577
Cost of service revenue	—		190
Research and development expenses	—		1,026
Sales and marketing	2		1,600
General and administrative expenses	1		1,504
	$	3	$	8,897
Fortive:
Cost of product revenue	$	245	$	—
Cost of service revenue	29		—
Research and development expenses	3		—
Sales and marketing	—		—
General and administrative expenses	243		—
	$	520	$	—

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):



	Three Months Ended
	June 30,
	2017			2016
Due from related party:
Danaher	$	—		$	(1,984	)
Fortive	—			—
Total	$	—		$	(1,984	)

Due to related party:
Danaher	$	63		$	704
Fortive	(85		)	—
Total	$	(22	)	$	704