XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.19.1

Derivatives | 12 Months Ended
--- | ---
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | We manage exposure to changes in market interest rates. Our use of derivative instruments is limited to highly effective interest rate swaps to hedge the risk of changes in cash flows (future interest payments) attributable to changes in LIBOR swap rates, with the designated benchmark interest rate being hedged on certain of our LIBOR indexed variable rate debt and a variable rate operating lease. The interest rate swaps effectively fix our interest payments on certain LIBOR indexed variable rate debt. We monitor our positions and the credit ratings of its counterparties and do not currently anticipate non-performance by the counterparties. Interest rate swap agreements are not entered into for trading purposes. The derivative fair values reflected in prepaid expense and accounts payable and accrued expenses in the balance sheets were as follows:
|  | March 31, 2019 |  | March 31, 2018
|  | (In thousands)
Interest rate contracts designated as hedging instruments |  |  |  |
Assets | $ | 139 | $ | 437
Liabilities |  | – |  | (897)
Notional amount (debt) |  | 22,792 |  | 123,779
Notional amount (lease) |  | – |  | 6,182
|  | The Effect of Interest Rate
|  | Contracts on the Statements of Operations
|  | Years Ended March 31,
|  | 2019 |  | 2018 |  | 2017
|  | (In thousands)
Loss recognized in income on interest rate contracts | $ | 824 | $ | 3,893 | $ | 8,603
Gain recognized in AOCI on interest rate contracts (effective portion) | $ | (633) | $ | (4,445) | $ | (9,916)
Loss reclassified from AOCI into income (effective portion) | $ | 789 | $ | 3,893 | $ | 8,628
(Gain) loss recognized in income on interest rate contracts (ineffective portion and amount excluded from effectiveness testing) | $ | 35 | $ | – | $ | (25)
Gains or losses recognized in income on derivatives are recorded as interest expense in the statements of operations. During fiscal 2019, we recognized an increase in the fair value of our cash flows hedges of $0.5 million, net of taxes. Embedded in this change was $0.8 million of losses reclassified from accumulated other comprehensive income (loss) to interest expense during the year. As of March 31, 2019, we expect to reclassify $0.2 million of net gains on interest rate contracts from accumulated other comprehensive income (loss) (“AOCI”) to earnings as interest expense over the next twelve months. Please see Note 3, Accounting Policies, in the Notes to Consolidated Financial Statements. We use derivatives to hedge our equity market exposure to indexed annuity products sold by our Life Insurance company. These contracts earn a return for the contractholder based on the change in the value of the S&P 500 index between annual index point dates. We buy and sell listed equity and index call options and call option spreads. The credit risk is with the party in which the options are written. The net option price is paid up front and there are no additional cash requirements or additional contingent liabilities. These contracts are held at fair market value on our balance sheet. At March 31, 2019 and 2018, these derivative hedges had a net market value of $1.5 million and $4.4 million, with notional amounts of $284.0 million and $227.4 million, respectively. These derivative instruments are included in Investments, other; on the consolidated balance sheets. Although the call options are employed to be effective hedges against our policyholder obligations from an economic standpoint, they do not meet the requirements for hedge accounting under GAAP. Accordingly, the call options are marked to fair value on each reporting date with the change in fair value, plus or minus, included as a component of net investment and interest income. The change in fair value of the call options includes the gains or losses recognized at the expiration of the option term and the changes in fair value for open contracts.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration