XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.22.1

Derivative Financial Instruments | 12 Months Ended
--- | ---
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial InstrumentsThe Company utilizes derivative instruments to reduce its exposure to fluctuations in commodity prices, foreign exchange rates and interest 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. At March 31, 2022 and 2021, the Company has hedged the price to purchase approximately 54.0 million pounds and 54.5 million pounds of lead, respectively, for a total purchase price of $56,768 and $50,567, 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, 2022 and 2021, the Company had entered into a total of $29,676 and $26,033, respectively, of such contracts. Derivatives in Net Investment Hedging Relationships Net Investment Hedges On December 23, 2021, the Company entered into cross currency fixed interest rate swap agreements, with aggregate notional amounts of $300,000, to hedge its net investments in foreign operations against future volatility in the exchange rates between U.S. Dollars and Euros. These swaps mature on December 15, 2027 and qualify for hedge accounting as a net investment hedging instrument, which allows the swaps to be remeasured to foreign currency translation adjustment within AOCI to offset the translation risk from those investments. Balances in the foreign currency translation adjustment accounts remain until the sale or substantially complete liquidation of the foreign entity, upon which they are recognized as a component of income (expense). Impact of Hedging Instruments on AOCI In the coming twelve months, the Company anticipates that $8,436 of pretax gain relating to lead, foreign currency forward contracts and net investment hedges will be reclassified from AOCI as part of cost of goods sold and interest expense. This amount represents the current net unrealized impact of hedging lead, foreign exchange rates and interest rates, which will change as market rates change in the future. This amount will ultimately be realized in the Consolidated Statements of Income as an offset to the corresponding actual changes in lead, foreign exchange rates and lead costs resulting from variable lead cost, foreign exchange and interest rates 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, 2022 and 2021, the notional amount of these contracts was $22,990 and $28,995, 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, 2022 and 2021
|  | Derivatives and Hedging Activities Designated as Cash Flow Hedges |  | Derivatives and Hedging Activities Designated as Net Investment Hedges |  | Derivatives and Hedging Activities Not Designated as Hedging Instruments
|  | March 31, 2022 |  | March 31, 2021 |  | March 31, 2022 |  | March 31, 2021 |  | March 31, 2022 |  | March 31, 2021
Prepaid and other current assets: |  |  |  |  |  |  |  |  |  |  |  |
Lead forward contracts |  | $ | 2,520 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign currency forward contracts |  | 256 |  |  | 524 |  |  | — |  |  | — |  |  | — |  |  | — |
Net investment hedges |  | — |  |  | — |  |  | 4,388 |  |  | — |  |  | — |  |  | — |
Total assets |  | $ | 2,776 |  |  | $ | 524 |  |  | $ | 4,388 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accrued expenses: |  |  |  |  |  |  |  |  |  |  |  |
Lead forward contracts |  | $ | — |  |  | $ | 1,980 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign currency forward contracts |  | — |  |  | — |  |  | — |  |  | — |  |  | 512 |  |  | 100 |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Net investment hedges |  | — |  |  | — |  |  | 4,090 |  |  | — |  |  | — |  |  | — |
Total liabilities |  | $ | — |  |  | $ | 1,980 |  |  | $ | 4,090 |  |  | $ | — |  |  | $ | 512 |  |  | $ | 100 |
The Effect of Derivative Instruments on the Consolidated Statements of Income For the fiscal year ended March 31, 2022
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 |  | $ | 12,193 |  |  | Cost of goods sold |  | $ | 8,974 |
Foreign currency forward contracts |  | 941 |  |  | Cost of goods sold |  | 768 |
Total |  | $ | 13,134 |  |  |  |  | $ | 9,742 |
Derivatives Designated as Net Investment 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)
Cross currency fixed interest rate swaps |  | $ | 1,479 |  |  | Interest expense |  | $ | 1,181 |
Total |  | $ | 1,479 |  |  |  |  | $ | 1,181 |
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivatives |  | Pretax Gain (Loss)
Foreign currency forward contracts | Other (income) expense, net |  | $ | (157) |
Total |  |  | $ | (157) |
The Effect of Derivative Instruments on the Consolidated Statements of Income For the fiscal year ended March 31, 2021
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 |  | $ | 202 |  |  | Cost of goods sold |  | $ | (7,411) |
Foreign currency forward contracts |  | 130 |  |  | Cost of goods sold |  | (492) |
Total |  | $ | 332 |  |  |  |  | $ | (7,903) |
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivatives |  | Pretax Gain (Loss)
Foreign currency forward contracts | Other (income) expense, net |  | $ | 430 |
Total |  |  | $ | 430 |
The Effect of Derivative Instruments on the Consolidated Statements of Income For the fiscal year ended March 31, 2020
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 |  | $ | (8,683) |  |  | Cost of goods sold |  | $ | (1,690) |
Foreign currency forward contracts |  | (54) |  |  | Cost of goods sold |  | 539 |
Total |  | $ | (8,737) |  |  |  |  | $ | (1,151) |
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivatives |  | Pretax Gain (Loss)
Foreign currency forward contracts | Other (income) expense, net |  | $ | (178) |
Total |  |  | $ | (178) |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration