Note 9 - Financial Derivatives

6 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Text Block]

9.            FINANCIAL DERIVATIVES

Foreign Currency Hedging

The notional amount of foreign currency contracts hedging our exposure related to monetary assets and liabilities denominated in nonfunctional currency totaled $49.8 million at March 31, 2013 and $34.1 million at September 30, 2012.

Interest Rate Management

In conjunction with our 7.5% Bonds issued in June 2009, we executed $250.0 million notional value of interest rate swaps that exchange 7.5% fixed interest payments for variable rate interest payments, at one-month LIBOR plus 342 bps, reset two business days before the 15th of each month. In April 2011, we additionally executed $250.0 million notional value interest rate swaps that exchange the remaining fixed interest payments on these bonds for variable rate interest payments, based on six-month LIBOR plus 409 bps, reset in arrears two business days before June 15 and December 15 each year. All of these swaps terminate on June 15, 2019.

In conjunction with our 5.5% Bonds issued in June 2010, we executed $300.0 million notional value of interest rate swaps that terminate on June 15, 2020. These swaps effectively exchange 5.5% fixed interest payments for variable rate interest payments, based on the six-month LIBOR plus 186 bps, reset in arrears two business days before June 15 and December 15 each year. These swaps terminate on June 15, 2020.

All of our interest rate swaps are designated fair value hedges against changes in the fair value of a portion of their related bonds. Net amounts receivable or payable under our swaps settle semiannually on June 15 and December 15. Our assessments have determined that these interest rate swaps are highly effective.

Presentation of Derivative Amounts

Balance Sheet Location and Fair Value	March 31, 2013		September 30, 2012
Non-designated Hedges
Foreign currency contracts:  Other assets and deferred costs (current)	$	0.2	$	0.1
Foreign currency contracts:  Other accrued liabilities		0.3		0.2
Designated Hedges
Interest rate swaps:  Other assets and deferred costs (noncurrent)	$	102.3	$	118.1
Interest rate swaps:  Long-term debt		104.2		119.5

	Periods Ended March 31,
	Quarters					Six Months
Income Statement Location and Gain (loss)	2013			2012		2013			2012
Non-designated Hedges
Foreign currency contracts:  Other income (expense)	$	0.2		$	0.1	$	0.1		$	0.6
Designated Hedges
Interest rate swap - ineffectiveness:  Other income (expense)	$	(1.9	)	$	0.6	$	(0.5	)	$	0.9
Interest rate swap - effectiveness:  Interest expense		6.6			6.3		11.6			12.2