Derivative Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Outstanding Forward Contracts

As of March 31, 2018 and September 30, 2017, we had outstanding forward contracts with notional amounts equivalent to the following:

Currency Hedged	March 31, 2018		September 30, 2017
	(in thousands)
Canadian / U.S. Dollar	$	7,500	$	12,809
Swiss Franc / Euro	—		7,157
Swiss Franc / U.S. Dollar	13,135		605
Chinese Yuan offshore / Euro	—		10,423
Euro / U.S. Dollar	320,627		244,000
Japanese Yen / Euro	18,864		17,694
Israeli Shekel / U.S. Dollar	6,684		8,820
Japanese Yen / U.S. Dollar	5,611		3,198
Swedish Krona / U.S. Dollar	12,619		4,627
Danish Krona / U.S. Dollar	4,629		1,743
Brazilian Real / U.S. Dollar	3,117		—
All other	8,725		7,443
Total	$	401,511	$	318,519

As of March 31, 2018 and September 30, 2017, we had outstanding forward contracts designated as cash flow hedges with notional amounts equivalent to the following:

Currency Hedged	March 31, 2018		September 30, 2017
	(in thousands)
Euro / U.S. Dollar	$	55,744	$	64,831
Japanese Yen / U.S. Dollar	20,077		22,675
SEK / U.S. Dollar	15,116		14,091
Total	$	90,937	$	101,597

Net Gains and Losses on Foreign Currency Exposures

The following table shows the effect of our non-designated hedges in the Consolidated Statements of Operations for the three and six months ended March 31, 2018 and April 1, 2017:

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income	Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged)
		Three months ended				Six months ended
		March 31, 2018		April 1, 2017		March 31, 2018		April 1, 2017
		(in thousands)
Forward Contracts	Interest income and other expense, net	$	2,435	$	238	$	3,022	$	(8,091	)

The following table shows the effect of our derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the three and six months ended March 31, 2018 and April 1, 2017 (in thousands):

Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI-Effective Portion						Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion	Gain or (Loss) Reclassified from OCI into Income-Effective Portion					Location of Gain or (Loss) Recognized-Ineffective Portion	Gain or (Loss) Recognized-Ineffective Portion
	Three months ended							Three months ended						Three months ended
	March 31, 2018			April 1, 2017				March 31, 2018			April 1, 2017			March 31, 2018			April 1, 2017
Forward Contracts	$	(2,339	)	$	(589	)	Subscription, support and license revenue	$	(1,728	)	$	567	Interest income and other expense, net	$	(16	)	$	(4	)
	Six months ended							Six months ended						Six months ended
	March 31, 2018			April 1, 2017				March 31, 2018			April 1, 2017			March 31, 2018			April 1, 2017
Forward Contracts	$	(3,382	)	$	2,882		Subscription, support and license revenue	$	(2,382	)	$	974	Interest income and other expense, net	$	(35	)	$	5

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:

	Fair Value of Derivatives Designated As Hedging Instruments				Fair Value of Derivatives Not Designated As Hedging Instruments
	March 31, 2018		September 30, 2017		March 31, 2018		September 30, 2017
	(in thousands)				(in thousands)
Derivative assets (1):
Forward Contracts	$	296	$	540	$	531	$	623
Derivative liabilities (2):
Forward Contracts	$	3,119	$	2,352	$	1,718	$	1,995
(1) As of March 31, 2018, $827 thousand current derivative assets are recorded in other current assets, in the Consolidated Balance Sheets. As of September 30, 2017, $1,128 thousand current derivative assets are recorded in other current assets, and $35 thousand long-term derivative assets are recorded in other assets in the Consolidated Balance Sheets.
(2) As of March 31, 2018, $4,837 thousand current derivative liabilities are recorded in accrued expenses and other current liabilities in the Consolidated Balance Sheets. As of September 30, 2017, $4,329 thousand current derivative liabilities are recorded in accrued expenses and other current liabilities, and $18 thousand long term derivative liabilities are recorded in other liabilities in the Consolidated Balance Sheets.

Offsetting Assets

The following table sets forth the offsetting of derivative assets as of March 31, 2018:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
As of March 31, 2018	Gross Amount of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received		Net Amount
	(in thousands)
Forward Contracts	$	827	$	—	$	827	$	(827	)	$	—	$	—

Offsetting Liabilities

The following table sets forth the offsetting of derivative liabilities as of March 31, 2018:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
As of March 31, 2018	Gross Amount of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
	(in thousands)
Forward Contracts	$	4,837	$	—	$	4,837	$	(827	)	$	—	$	4,010