Derivative Instruments

6 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The Company has transactions and balances denominated in currencies other than the U.S. dollar. Most of these transactions or balances are denominated in Euros, British Pounds and a variety of Asian currencies. These transactions and balances, including short-term advances between the Company and its subsidiaries, subject the Company's operations to exposure from exchange rate fluctuations. The impact of currency exchange rate movement can be positive or negative in any period. The Company mitigates the impact of potential currency translation gains and losses on short-term intercompany advances through timely settlement of each transaction, generally within 30 days.

The Company also enters into foreign exchange contracts to reduce its exposure to currency translation. Under forward contract arrangements, the Company typically agrees to purchase a fixed amount of U.S. dollars in exchange for a fixed amount of a foreign currency on specified dates with maturities of three months or less. These transactions do not qualify for hedge accounting.

Net gains and losses recorded as a component of "Other income, net" in the Consolidated Statements of Operations related to these contracts for the three and six months ended March 31, 2015 and 2014 is as follows (in thousands):

	Three months ended March 31,					Six months ended March 31,
	2015		2014			2015		2014
Realized gains (losses) on derivative instruments not designated as hedging instruments	$	126	$	(154	)	$	426	$	(107	)

The Company had the following notional amounts outstanding under foreign currency contracts that do not qualify for hedge accounting at March 31, 2015 and September 30, 2014 (in thousands):

March 31, 2015:

Buy Currency	Notional Amount of Buy Currency	Sell Currency	Maturity	Notional Amount of Sell Currency	Fair Value of Assets		Fair Value of Liabilities
U.S. Dollar	1,343	Japanese Yen	April to June 2015	160,000	$	5	$	—
British Pound	1,098	Euro	April 2015	1,500	—		7
U.S. Dollar	673	Taiwan Dollar	April 2015	21,000	2		—
U.S. Dollar	1,248	British Pound	April 2015	840	—		1
Euro	5,100	U.S. Dollar	April 2015	5,560	23
Korean Won	330,000	U.S. Dollar	April 2015	299	—		—
U.S. Dollar	403	Japanese Yen	April 2015	48,000	1		—
U.S. Dollar	603	Israeli Shekel	April 2015	2,400	—		7
					$	31	$	15

September 30, 2014:

Buy Currency	Notional Amount of Buy Currency	Sell Currency	Maturity	Notional Amount of Sell Currency	Fair Value of Assets		Fair Value of Liabilities
U.S. Dollar	1,736	Japanese Yen	October 2014 to December 2014	190,000	$	—	$	11
U.S. Dollar	1,395	Euro	October 2014	1,100	—		16
U.S. Dollar	656	Taiwan Dollar	October 2014	20,000	—		5
U.S. Dollar	650	British Pound	October 2014	400	—		5
U.S. Dollar	731	Israeli Shekel	October 2014	2,700	—		5
U.S. Dollar	76	Korean Won	October 2014	80,000	—		1
British Pound	3,513	Euro	October 2014	4,500	—		15
					$	—	$	58

The fair values of the forward contracts described above are recorded in the Company's Consolidated Balance Sheets as "Prepaid expenses and other current assets" and "Accrued expenses and other current liabilities".

Stock Warrants

The BioCision warrant agreements contain net share settlement provisions, which permit the Company to pay the warrant exercise price using shares issuable under the warrants (“cashless exercise”). The value of the stock warrants will fluctuate primarily in relation to the value of BioCision's underlying securities, either providing an appreciation in value or potentially expiring with no value. Gains and losses on the revaluation of the stock warrants are recognized in "Other income, net" on the Consolidated Statements of Income.See Note 17 “Fair Value Measurements” for further information regarding the fair value of the stock warrants.