Stockholders' Equity and Noncontrolling Interests

12 Months Ended

Mar. 31, 2019

Stockholders' Equity and Noncontrolling Interests [Abstract]

Stockholders' Equity and Noncontrolling Interests

Stockholders’ Equity and Noncontrolling Interests

Preferred Stock and Common Stock

The Company’s certificate of incorporation authorizes the issuance of up to 1,000,000 shares of preferred stock, par value $0.01 per share (“Preferred Stock”). At March 31, 2019 and 2018, no shares of Preferred Stock were issued or outstanding. The Board of Directors of the Company has the authority to specify the terms of any Preferred Stock at the time of issuance.

The following summarizes the change in the number of shares of common stock outstanding during fiscal years ended March 31, 2017, 2018 and 2019, respectively:




Shares outstanding as of March 31, 2016	43,189,502
Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes	258,034
Shares outstanding as of March 31, 2017	43,447,536
Purchase of treasury stock	(1,756,831	)
Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes	224,295
Shares outstanding as of March 31, 2018	41,915,000
Purchase of treasury stock	(726,347	)
Shares issued towards purchase consideration of Alpha acquisition	1,177,630
Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes	254,467
Shares outstanding as of March 31, 2019	42,620,750

Treasury Stock

In fiscal 2019, the Company purchased 726,347 shares of its common stock for $56,436 and in fiscal 2018, purchased 1,756,831 shares for $121,191. Of the shares purchased in fiscal 2018, 1,495,714 were acquired through an accelerated share repurchase program (“ASR”) for a total cash investment of $100,000 at an average price of $66.86. There were no repurchases of common stock during fiscal 2017. At March 31, 2019 and 2018, the Company held 12,227,773 and 12,680,105 shares as treasury stock, respectively.

Treasury Stock Reissuance

On December 7, 2018, the Company acquired Alpha. The initial purchase consideration for the acquisition was $750,000, of which $650,000 was paid in cash and the balance was settled by issuing 1,177,630 shares of EnerSys common stock. These shares were issued out of the Company's treasury stock and were valued at $84.92 per share, which was based on the thirty-day volume weighted average stock price of the Company’s common stock at closing. The 1,177,630 shares had a closing date fair value of $93,268. During fiscal 2019, the Company also issued 3,256 shares out of its treasury stock, valued at $62.55 per share, on LIFO basis, to participants under the Company's Employee Stock Purchase Plan.

Accumulated Other Comprehensive Income (“AOCI”)

The components of AOCI, net of tax, are as follows:



	Beginning Balance			Before Reclassifications			Amount Reclassified from AOCI			Ending Balance
March 31, 2019
Pension funded status adjustment	$	(22,503	)	$	339		$	1,373		$	(20,791	)
Net unrealized gain (loss) on derivative instruments	(3,425		)	(8,396		)	11,691			(130		)
Foreign currency translation adjustment	(15,789		)	(105,972		)	—			(121,761		)
Accumulated other comprehensive loss	$	(41,717	)	$	(114,029	)	$	13,064		$	(142,682	)
March 31, 2018
Pension funded status adjustment	$	(25,555	)	$	1,692		$	1,360		$	(22,503	)
Net unrealized gain (loss) on derivative instruments	1,975			(2,868		)	(2,532		)	(3,425		)
Foreign currency translation adjustment	(129,244		)	113,455			—			(15,789		)
Accumulated other comprehensive loss	$	(152,824	)	$	112,279		$	(1,172	)	$	(41,717	)
March 31, 2017
Pension funded status adjustment	$	(21,861	)	$	(4,659	)	$	965		$	(25,555	)
Net unrealized gain (loss) on derivative instruments	388			5,523			(3,936		)	1,975
Foreign currency translation adjustment	(75,876		)	(53,368		)	—			(129,244		)
Accumulated other comprehensive loss	$	(97,349	)	$	(52,504	)	$	(2,971	)	$	(152,824	)

The following table presents reclassifications from AOCI during the twelve months ended March 31, 2019:



Components of AOCI	Amounts Reclassified from AOCI			Location of (Gain) Loss Recognized on Income Statement
Derivatives in Cash Flow Hedging Relationships:
Net unrealized loss on derivative instruments	$	15,281		Cost of goods sold
Tax benefit	(3,590		)
Net unrealized loss on derivative instruments, net of tax	$	11,691

Defined benefit pension costs:
Prior service costs and deferrals	$	1,704		Net periodic benefit cost, included in other (income) expense, net - See Note 1 and 14
Tax benefit	(331		)
Net periodic benefit cost, net of tax	$	1,373

The following table presents reclassifications from AOCI during the twelve months ended March 31, 2018:



Components of AOCI	Amounts Reclassified from AOCI			Location of (Gain) Loss Recognized on Income Statement
Derivatives in Cash Flow Hedging Relationships:
Net unrealized gain on derivative instruments	$	(3,142	)	Cost of goods sold
Tax expense	610
Net unrealized gain on derivative instruments, net of tax	$	(2,532	)

Defined benefit pension costs:
Prior service costs and deferrals	$	1,771		Net periodic benefit cost, included in other (income) expense, net - See Note 1 and 14
Tax benefit	(411		)
Net periodic benefit cost, net of tax	$	1,360

The following table presents reclassifications from AOCI during the twelve months ended March 31, 2017:



Components of AOCI	Amounts Reclassified from AOCI			Location of (Gain) Loss Recognized on Income Statement
Derivatives in Cash Flow Hedging Relationships:
Net unrealized gain on derivative instruments	$	(6,236	)	Cost of goods sold
Tax expense	2,300
Net unrealized gain on derivative instruments, net of tax	$	(3,936	)

Defined benefit pension costs:
Prior service costs and deferrals	$	1,431		Net periodic benefit cost, included in other (income) expense, net - See Note 1 and 14
Tax benefit	(466		)
Net periodic benefit cost, net of tax	$	965

Redeemable Noncontrolling Interests

In fiscal 2017, the Company deconsolidated its joint venture in South Africa and the impact of this deconsolidation was reflected in the Consolidated Statements of Income.

The following demonstrates the change in redeemable noncontrolling interests during the fiscal year ended March 31, 2017:




Balance as of March 31, 2016	$	5,997
Net losses attributable to redeemable noncontrolling interests	(2,021		)
Deconsolidation of joint venture	(4,035		)
Foreign currency translation adjustment	59
Balance as of March 31, 2017	$	—