Derivative Instruments and Hedging Activities

3 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 11: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

See Note 10 for a discussion of the Cash Convertible Notes Hedges and Cash Convertible Notes Embedded Derivative presented below.

During the fiscal years ended September 30, 2015 and 2014, Grupo Finmart entered into cross-currency forward contracts to hedge foreign exchange rate fluctuations in connection with the formation of the VIEs and related transfer of certain loans as described in Note 12. The Company guarantees the future cash outflows of the forward contract, which is included in the Company’s condensed consolidated balance sheets and adjusted to fair value each reporting period through earnings.

Grupo Finmart received proceeds of $3.6 million, net with the settlement of remaining foreign currency forwards attributable to the cross-border 8.5% unsecured notes due 2015 which were repaid during the three-month period ended December 31, 2015.

The following tables set forth certain information regarding our derivative instruments not designated as hedging instruments:

		Fair Value Asset (Liability) of Derivative Instruments
Derivative Instrument	Balance Sheet Location	December 31, 2015			December 31, 2014			September 30, 2015
		(in thousands)
Foreign currency forwards	Prepaid expenses and other current assets	$	9,499		$	9,987		$	14,169
Cash Convertible Notes Hedges	Other assets, net	7,777			45,163			10,505
Cash Convertible Notes Embedded Derivative	Long-term debt, less current maturities	(7,777		)	(45,163		)	(10,505		)

		Amount of Unrealized Gain (Loss) on Derivatives
		Three Months Ended December 31,
Derivative Instrument	Income Statement Location	2015			2014
		(in thousands)
Foreign currency forwards	Other expense*	$	(1,113	)	$	7,014

*Amount is partially offset by gains and losses caused by related foreign currency fluctuations.