Derivative Financial Instruments (Notes)

12 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

As of September 30, 2016 and 2015, we had outstanding forward contracts for derivatives not designated as hedging instruments with notional amounts equivalent to the following:

	September 30,
Currency Hedged	2016		2015
	(in thousands)
Canadian/U.S. Dollar	$	14,685	$	17,448
Euro/U.S. Dollar	174,120		82,917
British Pound/Euro	1,382		9,409
Israeli Sheqel/U.S. Dollar	7,271		4,607
Japanese Yen/Euro	32,782		25,133
Japanese Yen/U.S. Dollar	6,716		—
Swiss Franc/U.S. Dollar	730		5,149
All other	11,848		12,592
Total	$	249,534	$	157,255

The following table shows the effect of our non-designated hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2016 and 2015:

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income	Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged)
		Twelve months ended
		September 30, 2016			September 30, 2015		September 30, 2014
		(in thousands)
Forward Contracts	Other Income (Expense)	$	(883	)	$	615	$	(3,769	)

As of September 30, 2016 and 2015, we had outstanding forward contracts designated as cash flow hedges with notional amounts equivalent to the following:

Currency Hedged	September 30, 2016		September 30, 2015
	(in thousands)
Euro / U.S. Dollar	$	26,181	$	—
Japanese Yen / U.S. Dollar	8,800		—
SEK / U.S. Dollar	4,078		—
Total	$	39,059	$	—

We had no derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2015 and 2014. The following table shows the effect of the our derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the twelve months ended September 30, 2016 (in thousands):

Derivatives Designated as Hedging Instruments	Gain or (Loss)Recognized in OCI-Effective Portion			Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion	Gain or (Loss) Reclassified from OCI into Income-Effective Portion			Location of Gain or (Loss) Recognized-Ineffective Portion	Gain or (Loss) Recognized-Ineffective Portion
	Twelve Months Ended				Twelve Months Ended				Twelve Months Ended
	September 30, 2016				September 30, 2016				September 30, 2016
Forward Contracts	$	(3,859	)	Software Revenue	$	(2,436	)	Other Income (Expense)	$	(24	)

As of September 30, 2016, we estimated that approximately all values reported in accumulated other comprehensive income will be reclassified to income within the next twelve months.

In the event the underlying forecast transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge would be immediately reclassified to “Other Income (Expense)” on the Consolidated Statements of Operations. For the twelve months ended September 30, 2016, there were no such gains or losses.

The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:

	Fair Value of Derivatives Designated As Hedging Instruments				Fair Value of Derivatives Not Designated As Hedging Instruments
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
	(in thousands)				(in thousands)
Derivative assets (a):
Forward Contracts	$	44	$	—	$	216	$	507
Derivative liabilities (b):
Forward Contracts	$	1,477	$	—	$	1,693	$	46
(a) All derivative assets are recorded in “other current assets” in the Consolidated Balance Sheets.
(b) All derivative liabilities are recorded in "accrued expenses and other current liabilities" in the Consolidated Balance Sheets.

Offsetting Derivative Assets and Liabilities

We have entered into master netting arrangements which allow net settlements under certain conditions. Although netting is permitted, it is currently our policy and practice to record all derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets.

The following table sets forth the offsetting of derivative assets as of September 30, 2016:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
September 30, 2016	Gross Amount of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received		Net Amount
	(in thousands)
Forward Contracts	$	260	$	—	$	260	$	(260	)	$	—	$	—

The following table sets forth the offsetting of derivative liabilities as of September 30, 2016:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
September 30, 2016	Gross Amount of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
	(in thousands)
Forward Contracts	$	3,170	$	—	$	3,170	$	(260	)	$	—	$	2,910

Net gains and losses on foreign currency exposures, including realized and unrealized gains and losses on forward contracts, included in foreign currency net losses, were net losses of $1.9 million, $2.7 million and $4.5 million for 2016, 2015 and 2014, respectively. Net realized and unrealized gains and losses on forward contracts included in foreign currency net losses were a net loss of 0.5 million in 2016, a net gain of 0.6 million in 2015, and a net loss of 3.8 million in 2014.