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DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended
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Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS |
| 12. | DERIVATIVE FINANCIAL INSTRUMENTS
Market risks relating to the Company’s operations result primarily from changes in interest rates and changes in foreign currency exchange rates. The Company is exposed to market risk related to changes in interest rates and selectively uses derivative financial instruments, including forward contracts and swaps, to manage these risks. In 2018, the Company entered into three interest rate swaps with a notional amount of $150 million to hedge some of its exposure to variability in future LIBOR-based interest payments on variable rate debt. In addition, the Company’s Canadian subsidiary Morgan Schaffer enters into foreign exchange contracts to manage foreign currency risk as a portion of their revenue is denominated in U.S. dollars. The Company expects hedging gains or losses to be essentially offset by losses or gains on the related underlying exposures. All derivative instruments are reported in either accrued expenses or other receivables on the balance sheet at fair value. For derivative instruments designated as cash flow hedges, the gain or loss on the derivative is deferred in accumulated other comprehensive income until recognized in earnings with the underlying hedged item. The interest rate swaps entered into during 2018 were not designated as cash flow hedges and, therefore, the gain or loss on the derivative is reflected in earnings each period. The following is a summary of the notional transaction amounts and fair values for the Company’s outstanding derivative financial instruments by risk category and instrument type as of March 31, 2018:
(In thousands) |  | Notional amount |  |  | Fair Value (US$) |  |  | Float Rate |  |  | Fix Rate |
Forward contracts |  |  | 700 |  |  |  | GBP |  |  |  | 7 |  |  |  |  |  |  |  |  |
Forward contracts |  |  | 7,500 |  |  |  | USD |  |  |  | (227 | ) |  |  |  |  |  |  |  |
Interest rate swap |  |  | 150,000 |  |  |  | USD |  |  |  | 327 |  |  |  | 2.48 | % |  |  | 2.09 | %
Interest rate swap * |  |  | 150,000 |  |  |  | USD |  |  |  | (101 | ) |  |  | N/A |  |  |  | 2.24 | %
*This swap represents a forward contract and will be effective in November 2019.

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- References No definition available. + Details
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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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