Derivatives

9 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

Prior to the Business Combination, the Predecessor was a party to interest rate swap agreements of varying expiration dates through March 2017, to help manage the exposure to interest rate risk related to the variable-rate Predecessor Term Loan Facility. As a result of the Business Combination, the Predecessor Term Loan Facility was extinguished, the related swap agreements were terminated and an early termination payment penalty of $0.3 million was paid in the Successor period and recorded in Transaction related costs in the condensed consolidated statements of operations. No new swaps have been entered into.

The interest rate swaps were accounted for as cash flow hedges. Accordingly, gains or losses resulting from changes in the fair value of the swaps were recorded in other comprehensive income to the extent that the swaps are effective as hedges. Gains and losses resulting from changes in the fair value applicable to the ineffective portion, if any, were reflected in income. Gains and losses recorded in other comprehensive income were reclassified into and recognized in income when the interest expense on the Predecessor Term Loan Facility was recognized.

Gains and losses net of reclassifications into income related to the Predecessor’s interest rate swaps were as follows:

		Predecessor
	Recorded to	April 1 Through June 8, 2016		October 1, 2015 Through June 8, 2016		Three Months Ended   June 30, 2015		Nine Months Ended   June 30, 2015
Realized loss	Interest expense	$	0.1	$	0.3	$	0.1	$	0.4
Unrealized gain	Other comprehensive income	$	0.1	$	0.3	$	—	$	0.1

See Note 9 for additional information on the fair value of the Predecessor’s derivative instruments.