Derivative Instruments

12 Months Ended

Sep. 30, 2012

Derivative Instruments

11.    Derivative Instruments

The Company has transactions and balances denominated in currencies other than the U.S. dollar. Most of these transactions or balances are denominated in Euros, sterling and a variety of Asian currencies. These transactions and balances, including short-term advances between the Company and its subsidiaries, subject the Company’s operations to exposure from exchange rate fluctuations. The impact of currency exchange rate movement can be positive or negative in any period. We mitigate the impact of potential currency translation gains and losses on short-term intercompany advances through timely settlement of each transaction, generally within 30 days. The Company entered into foreign exchange contracts to reduce its exposure to currency translation. Under forward contracts arrangements, the Company typically agrees to purchase a fixed amount of U.S. Dollars in exchange for a fixed amount of a foreign currency on specified dates with maturities of three months or less. These transactions do not qualify for hedge accounting and, accordingly, the instrument is recorded at fair value with the corresponding gains and losses recorded in the Consolidated Statements of Income.

The Company had the following notional amounts outstanding under foreign currency contracts at September 30, 2012 (in thousands):

Buy Currency	Notional Amount of Buy Currency		Sell Currency	Maturity		Notional Amount of Sell Currency in U.S. Dollars		Fair Value of Assets		Fair Value of Liabilities
U.S. Dollar	$	2,791	Taiwan Dollar		October 2012	$	2,786	$	5	$	—
U.S. Dollar		1,842	Israeli Shekel		October 2012		1,854		—		12
U.S. Dollar		1,058	Singapore Dollar		October 2012		1,056		2		—
U.S. Dollar		806	Korean Won		October 2012		803		3		—
U.S. Dollar		611	Japanese Yen		October 2012		611		—		—
U.S. Dollar		524	British Pound		October 2012		525		—		1
	$	7,632				$	7,635	$	10	$	13

There were no forward contracts outstanding at September 30, 2011.

The fair values of the forward contracts described above are recorded in the Company’s Consolidated Balance Sheets as prepaid expenses and other current assets and accrued expenses and other current liabilities at September 30, 2012. The amount recorded in the results of operations related to these forward contracts are recorded in other income, net in the Consolidated Statements of Operations.