Financial Instruments

(a) Credit Risk

Concentration of credit risk with the Company’s customers is limited due to the Company’s customer base and the diversity of its sales throughout the world. The Company performs ongoing credit evaluations and maintains a provision for potential credit losses. The Company generally does not require collateral for its trade accounts receivable.

(b) Forward Contracts

The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies. As of March 31, 2017, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 12 months from March 31, 2017):



March 31, 2017
Foreign Currency	Foreign Currency Amount			US Dollar Amount		Weighted Average Exchange Rate Per $1 USD
	(Amounts in millions)			(Amounts in millions)
British Pound Sterling		£16.5	in exchange for		$20.5	£0.81
Hungarian Forint	HUF 1,038.5		in exchange for		$3.9	HUF 269.26
Euro		€1.8	in exchange for		$2.0	€0.88
Canadian Dollar		C$24.7	in exchange for		$18.8	C$1.31
New Zealand Dollar	NZD 3.3		in exchange for		$2.4	NZD 0.73

Changes in the fair value representing a net unrealized fair value gain (loss) on foreign exchange contracts that qualified as effective hedge contracts outstanding during the year ended March 31, 2017 were losses, net of tax, of $3.5 million (2016 - losses, net of tax, of $0.2 million; 2015 - gains, net of tax, of $2.8 million) and are included in accumulated other comprehensive loss, a separate component of shareholders’ equity. Changes in the fair value representing a net unrealized fair value loss on foreign exchange contracts that did not qualify as effective hedge contracts outstanding were less than $1 million during the year ended March 31, 2017 (2016 - gain of $1.3 million and 2015 - gain of $0.4 million), and are included in direct operating expenses in the consolidated statements of income. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions.

As of March 31, 2017, $0.6 million was included in other assets and $0.5 million in accounts payable and accrued liabilities (March 31, 2016 - $9.4 million in other assets and $0.7 million in accounts payable and accrued liabilities) in the accompanying consolidated balance sheets related to the Company's use of foreign currency derivatives. The Company classifies its forward foreign exchange contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

During the year ended March 31, 2017, the Company reclassified a gain of $5.0 million out of accumulated other comprehensive loss into earnings, included in direct operating expenses in the consolidated statement of operations. As of March 31, 2017, based on the current release schedule, the Company estimates no significant amounts associated with cash flow hedges in accumulated other comprehensive loss to be reclassified into earnings during the one-year period ending March 31, 2018.