v3.7.0.1
Derivative Financial Instruments
 12 Months Ended
Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments

The Company utilizes derivative instruments to reduce its exposure to fluctuations in commodity prices and foreign exchange rates, under established procedures and controls. The Company does not enter into derivative contracts for speculative purposes. The Company’s agreements are with creditworthy financial institutions and the Company anticipates performance by counterparties to these contracts and therefore no material loss is expected.

Derivatives in Cash Flow Hedging Relationships

Lead Forward Contracts

The Company enters into lead forward contracts to fix the price for a portion of its lead purchases. Management considers the lead forward contracts to be effective against changes in the cash flows of the underlying lead purchases. The vast majority of such contracts are for a period not extending beyond one year and the notional amounts at March 31, 2017 and 2016 were 45.0 million pounds and 27.4 million pounds, respectively.

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts and options to hedge a portion of the Company’s foreign currency exposures for lead as well as other foreign currency exposures so that gains and losses on these contracts offset changes in the underlying foreign currency denominated exposures. The vast majority of such contracts are for a period not extending beyond one year. As of March 31, 2017 and 2016, the Company had entered into a total of $30,751 and $18,206, respectively, of such contracts.

In the coming twelve months, the Company anticipates that $3,118 of net pretax gain relating to lead and foreign currency forward contracts will be reclassified from AOCI as part of cost of goods sold. This amount represents the current net unrealized impact of hedging lead and foreign exchange rates, which will change as market rates change in the future, and will ultimately be realized in the Consolidated Statement of Income as an offset to the corresponding actual changes in lead costs to be realized in connection with the variable lead cost and foreign exchange rates being hedged.

Derivatives not Designated in Hedging Relationships

Foreign Currency Forward Contracts

The Company also enters into foreign currency forward contracts to economically hedge foreign currency fluctuations on intercompany loans and foreign currency denominated receivables and payables. These are not designated as hedging instruments and changes in fair value of these instruments are recorded directly in the Consolidated Statements of Income. As of March 31, 2017 and 2016, the notional amount of these contracts was $13,560 and $11,156, respectively.

Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Income:

Fair Value of Derivative Instruments
March 31, 2017 and 2016

 
 
Derivatives and Hedging Activities
Designated as Cash Flow Hedges
 
Derivatives and Hedging Activities
Not Designated as Hedging  Instruments
 
 
March 31, 2017
 
March 31, 2016
 
March 31, 2017
 
March 31, 2016
Prepaid and other current assets
 
 
 
 
 
 
 
 
Lead forward contracts
 
$
1,163

 
$
—

 
$
—

 
$
—

Foreign currency forward contracts
 
11

 
—

 
—

 
—

Total assets
 
$
1,174

 
$
—

 
$
—

 
$
—

Accrued expenses
 
 
 
 
 
 
 
 
Lead forward contracts
 
$
—

 
$
499

 
$
—

 
$
—

Foreign currency forward contracts
 
—

 
350

 
324

 
638

Total liabilities
 
$
—

 
$
849

 
$
324

 
$
638



The Effect of Derivative Instruments on the Consolidated Statements of Income
For the fiscal year ended March 31, 2017
 
Derivatives Designated as Cash Flow Hedges
 
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
 
Location of Gain
(Loss) Reclassified
from
AOCI into Income
(Effective Portion)
 
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Lead forward contracts
 
$
7,907

 
Cost of goods sold
 
$
5,803

Foreign currency forward contracts
 
845

 
Cost of goods sold
 
433

Total
 
$
8,752

 
 
 
$
6,236

 
Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss)
Recognized in Income
on Derivative
Pretax Gain (Loss)
Foreign currency forward contracts
Other (income) expense, net
$
(471
)
Total
 
$
(471
)
 
 
 


The Effect of Derivative Instruments on the Consolidated Statements of Income
For the fiscal year ended March 31, 2016
 
Derivatives Designated as Cash Flow Hedges
 
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
 
Location of Gain
(Loss) Reclassified
from
AOCI into Income
(Effective Portion)
 
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Lead forward contracts
 
$
(3,361
)
 
Cost of goods sold
 
$
(11,085
)
Foreign currency forward contracts
 
(3,023
)
 
Cost of goods sold
 
3,941

Total
 
$
(6,384
)
 
 
 
$
(7,144
)
 
Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss)
Recognized in Income
on Derivative
Pretax Gain (Loss)
Foreign currency forward contracts
Other (income) expense, net
$
(409
)
Total
 
$
(409
)
 
 
 


The Effect of Derivative Instruments on the Consolidated Statements of Income
For the fiscal year ended March 31, 2015
 
Derivatives Designated as Cash Flow Hedges
 
Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
 
Location of Gain
(Loss) Reclassified
from
AOCI into Income
(Effective Portion)
 
Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Lead forward contracts
 
$
(7,743
)
 
Cost of goods sold
 
$
(4,347
)
Foreign currency forward contracts
 
8,206

 
Cost of goods sold
 
1,386

Total
 
$
463

 
 
 
$
(2,961
)
 
Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss)
Recognized in Income
on Derivative
Pretax Gain (Loss)
Foreign currency forward contracts
Other (income) expense, net
$
972

Total
 
$
972