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Derivatives/Hedges | 3 Months Ended
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Jun. 30, 2012
Derivatives/Hedges [Abstract] |
Derivatives/Hedges | Note 14: Derivatives/Hedges Modine uses derivative financial instruments from time to time as a tool to manage certain financial risks. Leveraged derivatives are prohibited by Company policy. Accounting for derivatives and hedging activities requires derivative financial instruments to be measured at fair value and recognized as assets or liabilities in the consolidated balance sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instruments depends on whether it has been designated, and is effective, as a hedge and, if so, on the nature of the hedging activity. Commodity Derivatives: The Company enters into futures contracts related to certain of the Company's forecasted purchases of aluminum and copper. The Company's strategy in entering into these contracts is to reduce its exposure to changing market prices for future purchases of these commodities. Until the fourth quarter of fiscal 2012, these contracts were designated as cash flow hedges by the Company. Accordingly, unrealized gains and losses on these contracts were deferred as a component of accumulated other comprehensive (loss) income (AOCI), and recognized as a component of earnings at the same time that the underlying purchases of aluminum and copper impact earnings. During the fourth quarter of fiscal 2012, the future contracts used for aluminum and copper hedging became ineffective. Accordingly, the Company de-designated the hedges and began recording the unrealized gains and losses within cost of goods sold (see "Out of period adjustments" within Note 2). The amounts recorded in AOCI prior to the de-designation will remain in AOCI until the underlying purchases of aluminum and copper impact earnings. Foreign exchange contracts: The Company's foreign exchange risk management strategy uses derivative financial instruments in a limited way to mitigate foreign currency exchange risk. The Company periodically enters into foreign currency exchange contracts to hedge specific foreign currency-denominated assets and liabilities. The Company has not designated its forward contracts as hedges. Accordingly, unrealized gains and losses related to the change in fair value are recorded in other income - net. Gains and losses on these foreign currency forward contracts are offset by gains and losses recorded on the underlying assets and liabilities. The fair value of the derivative financial instruments recorded in the consolidated balance sheets as of June 30, 2012 and March 31, 2012 are as follows:
| Balance Sheet Location |  | June 30, 2012 |  |  | March 31, 2012 |
Derivative instruments designated as cash flow hedges: |  |  |  |  |  |  |
Commodity derivatives | Deferred income taxes and other current assets |  | $ | - |  |  | $ | 156 |
Commodity derivatives | Accrued expenses and other current liabilities |  |  | - |  |  |  | 924 |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Deferred income taxes and other current assets |  | $ | 463 |  |  | $ | 205 |
Commodity derivatives | Accrued expenses and other current liabilities |  |  | 4,265 |  |  |  | 2,606 |
The amounts recorded in AOCI and in the consolidated statement of operations for the three months ended June 30, 2012 are as follows:
|  | Amount of Loss Recognized in AOCI |  | Location of Loss (Gain) Recognized in Income |  | Amount of Loss Reclassified from AOCI into Continuing Operations |  |  | Amount of Loss (Gain) Recognized in Income |
Derivatives not designated: |  |  |  |  |  |  |  |  |  |
Commodity derivatives |  | $ | 2,366 |  | Cost of sales |  | $ | 780 |  |  | $ | 1,959 |
Foreign exchange contracts |  |  | - |  | Other income - net |  |  | - |  |  |  | (436 | )
Total |  | $ | 2,366 |  |  |  | $ | 780 |  |  | $ | 1,523 |
The amounts recorded in AOCI and in the consolidated statement of operations for the three months ended June 30, 2011 is as follows:
|  | Amount of Loss Recognized in AOCI |  | Location of Gain Reclassified from AOCI into Continuing Operations |  | Amount of Gain Reclassified from AOCI into Continuing Operations |
Designated derivative instruments: |  |  |  |  |  |  |
Commodity derivatives |  | $ | 1,777 |  | Cost of sales |  | $ | (269 | )
Total |  | $ | 1,777 |  |  |  | $ | (269 | )

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- Definition The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708775-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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