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Derivative Instruments | 12 Months Ended
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Mar. 31, 2022
Derivative Instruments [Abstract] |
Derivative Instruments | Note 19: Derivative Instruments The Company uses derivative financial instruments from time to time as a tool to manage certain financial risks. The Company’s policy prohibits the use of leveraged derivatives. 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. All of the Company’s derivative financial instruments are categorized within Level 2 of the fair value hierarchy. Refer to Note 4 for the definition of a Level 2 fair value measurement. Accounting for the gain or loss resulting from the change in fair value of the derivative financial instruments depends on whether it has been designated as a hedge, and, if so, on the nature of the hedging activity. Commodity Derivatives The Company periodically enters into over-the-counter forward contracts related to forecasted purchases of aluminum and copper. The Company’s strategy in entering into these contracts is to reduce its exposure to changing market prices of these commodities. The Company designates certain commodity forward contracts as cash flow hedges for accounting purposes. Accordingly, for these designated hedges, the Company records unrealized gains and losses related to the change in the fair value of the contracts in accumulated other comprehensive income (loss) (“AOCI”) within shareholders’ equity and subsequently recognizes the gains and losses within cost of sales as the underlying inventory is sold. Foreign Exchange Contracts The Company’s foreign exchange risk management strategy uses derivative financial instruments to mitigate foreign currency exchange risk. The Company periodically enters into foreign currency forward contracts to hedge specific foreign currency-denominated assets and liabilities as well as forecasted transactions. The Company designates certain hedges of forecasted transactions as cash flow hedges for accounting purposes. Accordingly, for these designated hedges, the Company records unrealized gains and losses related to the change in the fair value of the contracts in AOCI within shareholders’ equity and subsequently recognizes the gains and losses as a component of earnings at the same time and in the same financial statement line that the underlying transactions impact earnings. The Company has not designated forward contracts related to foreign currency-denominated assets and liabilities as hedges. Accordingly, for these non-designated contracts, the Company records unrealized gains and losses related to changes in fair value in other income and expense. Gains and losses on these foreign currency contracts are offset by foreign currency gains and losses associated with 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 |  | March 31, 2022 |  |  | March 31, 2021 |
Derivatives designated as hedges: |  |  |  |  |  |  |
Commodity derivatives | Other current assets |  | $ | 0.5 |  |  | $ | 0.5 |
Foreign exchange contracts | Other current assets |  |  | 0.3 |  |  |  | 0.1 |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current liabilities |  | $ | 0.3 |  |  | $ | - |
The amounts associated with derivative financial instruments that the Company designated for hedge accounting during the years ended March 31 were as follows:
|  | Gain (loss) recognized in other comprehensive income |  | Statement of Operations |  | Gain (loss) reclassified from AOCI |
|  | 2022 |  |  | 2021 |  |  | 2020 |  | Location |  | 2022 |  |  | 2021 |  |  | 2020 |
Commodity derivatives |  | $ | 1.1 |  |  | $ | 2.2 |  |  | $ | (2.6 | ) | Cost of sales |  | $ | 1.2 |  |  | $ | - |  |  | $ | (0.8 | )
Foreign exchange contracts |  |  | - |  |  |  | - |  |  |  | (0.1 | ) | Net sales |  |  | - |  |  |  | - |  |  |  | (0.1 | )
Foreign exchange contracts |  |  | 0.6 |  |  |  | (0.1 | ) |  |  | 0.2 |  | Cost of sales |  |  | 0.4 |  |  |  | (0.1 | ) |  |  | 0.4 |
Total gains (losses) |  | $ | 1.7 |  |  | $ | 2.1 |  |  | $ | (2.5 | ) |  |  | $ | 1.6 |  |  | $ | (0.1 | ) |  | $ | (0.5 | )
The amounts associated with derivative financial instruments that the Company did not designate for hedge accounting were as follows:
_ | Statement of Operations |  | Years ended March 31, |
_ | Location |  | 2022 |  |  | 2021 |  |  | 2020 |
Foreign exchange contracts | Net sales |  | $ | (0.6 | ) |  | $ | - |  |  | $ | (0.1 | )
Foreign exchange contracts | Other income (expense) - net |  |  | (0.8 | ) |  |  | 0.6 |  |  |  | (0.1 | )
Total gains (losses) |  |  | $ | (1.4 | ) |  | $ | 0.6 |  |  | $ | (0.2 | )

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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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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