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Derivative Financial Instruments | 12 Months Ended
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Sep. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | 17. Derivative Financial Instruments Non-Designated Hedges As of September 30, 2020 and 2019, we had outstanding forward contracts for derivatives not designated as hedging instruments with notional amounts equivalent to the following:
|  | September 30, |
Currency Hedged (in thousands) |  | 2020 |  |  | 2019 |
Canadian / U.S. Dollar |  | $ | 6,847 |  |  | $ | 9,408 |
Euro / U.S. Dollar |  |  | 390,673 |  |  |  | 308,282 |
British Pound / U.S. Dollar |  |  | 6,328 |  |  |  | 3,756 |
Israeli Shekel / U.S. Dollar |  |  | 9,503 |  |  |  | 10,272 |
Japanese Yen / U.S. Dollar |  |  | 50,379 |  |  |  | 37,462 |
Swiss Franc / U.S. Dollar |  |  | 12,874 |  |  |  | 12,001 |
Swedish Krona / U.S. Dollar |  |  | 18,871 |  |  |  | 20,636 |
Singapore Dollar / U.S. Dollar |  |  | 3,281 |  |  |  | 34,585 |
Chinese Renminbi / U.S. Dollar |  |  | 5,415 |  |  |  | 52,466 |
All other |  |  | 8,291 |  |  |  | 9,487 |
Total |  | $ | 512,462 |  |  | $ | 498,355 |
The following table shows the effect of our non-designated hedges, all of which were forward contracts, on the Consolidated Statements of Operations for the years ended September 30, 2020, 2019 and 2018:
(in thousands) |  |  |  | Year ended September 30, |
|  | Location of gain (loss) |  | 2020 |  |  | 2019 |  |  | 2018 |
Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged |  | Other income (expense), net |  | $ | 3,518 |  |  | $ | (11,314 | ) |  | $ | (9,720 | )
Cash Flow Hedges We stopped entering into cash flow hedges in the first quarter of 2019. We had no outstanding forward contracts designated as cash flow hedges as of either September 30, 2020 or 2019. The following table shows the effect of our derivative instruments designated as cash flow hedges, all of which were forward contracts, in the Consolidated Statements of Operations for the years ended September 30, 2020, 2019, and 2018:
(in thousands) |  |  |  | Year ended September 30, |
|  | Location of gain (loss) |  | 2020 |  |  | 2019 |  |  | 2018 |
Gain (loss) recognized in OCI—effective portion |  | OCI |  | $ | - |  |  | $ | 187 |  |  | $ | 1,652 |
Gain (loss) reclassified from OCI into income—effective portion |  | Software revenue |  | $ | - |  |  | $ | 627 |  |  | $ | (552 | )
Gain (loss) recognized—ineffective portion |  | Other income (expense), net |  | $ | - |  |  | $ | - |  |  | $ | 21 |
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), net on the Consolidated Statements of Operations. For the years ended September 30, 2020, 2019 and 2018, there were no such gains or losses. Net Investment Hedges As of September 30, 2020 and 2019, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following:
|  | September 30, |
Currency Hedged (in thousands) |  | 2020 |  |  | 2019 |
Euro / U.S. Dollar |  | $ | 164,885 |  |  | $ | 183,396 |
The following table shows the effect of our derivative instruments designated as net investment hedges, all of which were forward contracts, on the Consolidated Statements of Operations for the years ended September 30, 2020, 2019, and 2018:
(in thousands) |  |  |  | Year ended September 30, |
|  | Location of gain (loss) |  | 2020 |  |  | 2019 |  |  | 2018 |
Gain (loss) recognized in OCI—effective portion |  | OCI |  | $ | (5,483 | ) |  | $ | (2,925 | ) |  | $ | - |
Gain (loss) reclassified from OCI—effective portion |  | OCI |  | $ | 109 |  |  | $ | (7,630 | ) |  | $ | - |
Gain (loss) recognized—portion excluded from effectiveness testing |  | Other income (expense), net |  | $ | 3,506 |  |  | $ | 4,598 |  |  | $ | - |
As of September 30, 2020, we estimate that all amounts reported in accumulated other comprehensive loss will be applied against exposed balance sheet accounts upon translation within the next three months. The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:
(in thousands) |  | Fair Value of Derivatives Designated As Hedging Instruments |  |  | Fair Value of Derivatives Not Designated As Hedging Instruments |
|  | September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Derivative assets:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward contracts |  | $ | 3 |  |  | $ | 1,674 |  |  | $ | 900 |  |  | $ | 1,390 |
Derivative liabilities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward contracts |  | $ | 306 |  |  | $ | — |  |  | $ | 767 |  |  | $ | 2,771 |
(1) | As of September 30, 2020 and 2019, current derivative assets of $0.9 million and $3.1 million, respectively, are recorded in other current assets on the Consolidated Balance Sheets.
(2) | As of September 30, 2020 and 2019, current derivative liabilities of $1.1 million and $2.8 million, respectively, are recorded in accrued expenses and other current liabilities on 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, 2020:
(in thousands) |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |  |  |  |
As of September 30, 2020 |  | 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 |
Forward Contracts |  | $ | 903 |  |  | $ | — |  |  | $ | 903 |  |  | $ | (903 | ) |  | $ | — |  |  | $ | — |
The following table sets forth the offsetting of derivative liabilities as of September 30, 2020:
(in thousands) |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |  |  |  |
As of September 30, 2020 |  | 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 |
Forward Contracts |  | $ | 1,073 |  |  | $ | — |  |  | $ | 1,073 |  |  | $ | (903 | ) |  | $ | — |  |  | $ | 170 |
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 $1.7 million, $3.2 million and $7.0 million in 2020, 2019 and 2018, respectively. Net realized and unrealized gains and losses on forward contracts included in foreign currency net losses were a net gain of $7.0 million in 2020 and net losses of $8.4 million and $7.5 million in 2019 and 2018, respectively.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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