Comprehensive Income and Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Jun. 30, 2013

Comprehensive Income and Accumulated Other Comprehensive (Loss) Income

Comprehensive Income and Accumulated Other Comprehensive (Loss) Income

3. Comprehensive Income and Accumulated Other Comprehensive (Loss) Income

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-05 which amended Accounting Standards Codification (“ASC”) Topic 220, Comprehensive Income. The Company adopted the provisions of ASU No. 2011-05, as amended, effective October 1, 2012. Accordingly, the components of the Company’s other comprehensive income are reported in the accompanying consolidated statements of comprehensive income. The Company’s other comprehensive (loss) income has historically consisted of foreign currency translation adjustments, as well as deferred gains (losses) on certain interest rate swaps until the expiration of such swaps in May 2012 (Please see Note 11 for more information about the Company’s interest rate swaps).

For the three and nine months ended June 30, 2013, other comprehensive loss consists exclusively of foreign currency translation adjustments of $4.2 million and $13.3 million, respectively. For the three months ended June 30, 2012, other comprehensive income consists of foreign currency translation adjustments of $10.8 million (before income taxes of $0.2 million) and deferred gains on certain interest rate swaps of $1.7 million (before income taxes of $0.7 million). For the nine months ended June 30, 2012, other comprehensive income consists of foreign currency translation adjustments of $1.7 million (before income taxes of $0.2 million) and deferred gains on certain interest rate swaps of $6.5 million (before income taxes of $2.5 million).

At June 30, 2013 and September 30, 2012, accumulated other comprehensive loss (“AOCI”) consists of cumulative foreign currency translation adjustments of $23.9 million and $10.7 million, respectively, and is net of income taxes of $2.9 million at each date. Any amounts previously reported in AOCI which were related to the interest rate swaps discussed above were reclassified into interest expense, as a yield adjustment, in the same period in which interest on the hedged variable-rate debt obligations affected earnings.