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Derivatives and Hedging Activities | 6 Months Ended
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Sep. 30, 2012
Derivatives and Hedging Activities [Abstract] |
Derivatives and Hedging Activities | Note 14: Derivatives and Hedging Activities 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 has, from time to time, entered into futures contracts related to certain forecasted purchases of aluminum and copper. The Company's strategy in entering into these contracts was 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 contracts used for aluminum and copper hedging became ineffective and the Company began recording the unrealized gains and losses within cost of sales. The amounts recorded in AOCI will remain there until the underlying purchases of aluminum and copper impact earnings. The Company did not enter into any futures contracts during the second quarter of fiscal 2013. 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 these contracts for hedge accounting. Accordingly, unrealized gains and losses related to the change in fair value are recorded in other income and expense. Gains and losses on these foreign currency contracts are offset by gains and losses recorded within the related assets and liabilities. The fair value of the Company's derivative financial instruments recorded in the consolidated balance sheets were as follows:
| Balance Sheet Location |  | September 30, 2012 |  |  | March 31, 2012 |
Derivative instruments designated as cash flow hedges: |  |  |  |  |  |  |
Commodity derivatives | Other current assets |  | $ | - |  |  | $ | 156 |
Commodity derivatives | Other current liabilities |  |  | - |  |  |  | 924 |
Derivative instruments not designated as cash flow hedges: |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current assets |  | $ | 205 |  |  | $ | 205 |
Commodity derivatives | Other current liabilities |  |  | 1,593 |  |  |  | 2,606 |
The amounts recorded in AOCI and in the consolidated statement of operations for all of the Company's derivative financial instruments were as follows:
|  |  |  |  |  | Three months ended |  |  | Six months ended |
|  |  |  |  |  | September 30, 2012 |  |  | September 30, 2012 |
|  | Amount of Loss Recognized in AOCI |  | Location of Loss Reclassified from AOCI into Continuing Operations |  | Loss Reclassified from AOCI into Continuing Operations |  |  | Total (Gain) Loss Recognized in Continuing Operations |  |  | Loss Reclassified from AOCI into Continuing Operations |  |  | Total (Gain) Loss Recognized in Continuing Operations |
Commodity derivatives |  | $ | 1,382 |  | Cost of sales |  | $ | 991 |  |  | $ | (14 | ) |  | $ | 1,715 |  |  | $ | 2,725 |
Foreign exchange contracts |  |  | - |  | Other (income) expense -net |  |  | - |  |  |  | 97 |  |  |  | - |  |  |  | (339 | )
Total |  | $ | 1,382 |  |  |  | $ | 991 |  |  | $ | 83 |  |  | $ | 1,715 |  |  | $ | 2,386 |
|  |  |  |  |  | Three months ended |  |  | Six months ended |
|  |  |  |  |  | September 30, 2011 |  |  | September 30, 2011 |
|  | Amount of Loss Recognized in AOCI |  | Location of Loss Reclassified from AOCI into Continuing Operations |  | Amount of Loss Reclassified from AOCI into Continuing Operations |  |  | Amount of Loss Reclassified from AOCI into Continuing Operations |
Commodity derivatives |  | $ | 5,239 |  | Cost of sales |  | $ | 617 |  |  | $ | 417 |
Total |  | $ | 5,239 |  |  |  | $ | 617 |  |  | $ | 417 |

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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. 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