Financial Instruments and Hedging Activities

3 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments and Hedging Activities

Derivatives Not Designated as Hedges

Forward Currency Contracts

We utilize foreign currency forward contracts to mitigate the risks associated with changes in foreign currency exchange rates. Generally, we enter into such contracts for less than 90 days and have no cash requirements until maturity. At December 31, 2018 and September 30, 2018, we had outstanding contracts with a total notional value of $121.7 million and $117.1 million, respectively.

We did not designate any forward contracts as hedging instruments for the three months ended December 31, 2018 or 2017. Therefore, changes in fair value of foreign currency forward contracts were recognized within other expense, net in our condensed consolidated statements of operations. The cash flows related to the settlement of forward contracts not designated as hedging instruments are included in cash flows from investing activities within our condensed consolidated statement of cash flows.

A summary of the derivative instruments is as follows (dollars in thousands):



Derivatives Not Designated as Hedges	Balance Sheet Classification	Fair Value
Derivatives Not Designated as Hedges	Balance Sheet Classification	December 31, 2018			September 30, 2018
Foreign currency forward contracts	Prepaid expenses and other current assets	$	463		$	143
Foreign currency forward contracts	Accrued expenses and other current liabilities	(130		)	(1,192		)

A summary of income (loss) related to the derivative instruments for the three months ended December 31, 2018 and 2017 is as follows (dollars in thousands):



	Income Statement Classification	Three Months Ended December 31,
Derivatives Not Designated as Hedges	Income (loss) recognized	2018			2017
Foreign currency forward contracts	Other expense, net	$	(1,730	)	$	(397	)