Financial Instruments and Hedging Activities

12 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments and Hedging Activities

Financial Instruments and Hedging Activities

Derivatives not Designated as Hedges

Forward Currency Contracts

We have operations in a number of international locations, including certain developing markets where currency exchange rates can be volatile. We utilize foreign currency forward contracts to mitigate the risks associated with changes in foreign currency exchange rates so that our exposure to foreign currencies will be mitigated or offset by the gains or losses on the foreign currency forward contracts. Generally, we enter into such contracts for less than 90 days and have no cash requirements until maturity. As of September 30, 2019 and 2018, we had outstanding contracts with a total notional value of $189.6 million and $117.1 million, respectively.

We did not designate any forward contracts as hedging instruments for fiscal years 2019, 2017 and 2016. Therefore, changes in fair value of foreign currency forward contracts were recognized within other expense, net in our 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 consolidated statement of cash flows.

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

Derivatives Not Designated as Hedges:	Balance Sheet Classification	September 30, 2019			September 30, 2018
Foreign currency contracts	Prepaid expenses and other current assets	$	597		$	143
Foreign currency contracts	Accrued expenses and other liabilities	$	(327	)	$	(1,192	)

A summary of gains (losses) recognized from the derivative instruments is as follows (dollars in thousands):

	Income Statement Classification Income (loss) recognized	September 30,
Derivatives Not Designated as Hedges:		2019		2018			2017
Foreign currency contracts	Other income (expense)	$	1,816	$	(3,616	)	$	6,811