XML 41 R26.htm IDEA: XBRL DOCUMENT
v3.22.1

Financial Instruments | 12 Months Ended
--- | ---
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments | 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) Derivative Instruments and Hedging Activities Forward Foreign Exchange 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 (i.e., cash flow hedges). The Company also enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Changes in the fair value of the foreign exchange contracts that are designated as hedges are reflected in accumulated other comprehensive income (loss), and changes in the fair value of foreign exchange contracts that are not designated as hedges and do not qualify for hedge accounting are recorded in direct operating expense. Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged. As of March 31, 2022, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 30 months from March 31, 2022):
March 31, 2022
Foreign Currency |  | Foreign Currency Amount |  | US Dollar Amount |  | Weighted Average Exchange Rate Per $1 USD
|  | (Amounts in millions) |  | (Amounts in millions) |  |
British Pound Sterling |  | 1.9 | GBP | in exchange for | $2.5 |  |  | 0.75 | GBP
Hungarian Forint |  | 4,089.2 | HUF | in exchange for | $13.5 |  |  | 303.41 | HUF
Euro |  | 18.0 | EUR | in exchange for | $17.5 |  |  | 1.03 | EUR
Canadian Dollar |  | 7.6 | CAD | in exchange for | $6.2 |  |  | 1.24 | CAD
Polish Zloty |  | 10.4 | PLN | in exchange for | $2.5 |  |  | 4.15 | PLN
Bulgarian Lev |  | 5.5 | BGN | in exchange for | $3.2 |  |  | 1.69 | BGN
Mexican Peso |  | 217.3 | MXN | in exchange for | $10.6 |  |  | 20.47 | MXN
Interest Rate Swaps The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows. The Company primarily uses pay-fixed interest rate swaps to facilitate its interest rate risk management activities, which the Company generally designates as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these designated cash flow hedges are deferred in accumulated other comprehensive income (loss) and recognized in interest expense as the interest payments occur. Changes in the fair value of interest rate swaps that are not designated as hedges are recorded in interest expense (see further explanation below). Cash settlements related to interest rate contracts are generally classified as operating activities on the consolidated statements of cash flows. However, due to an other-than-insignificant financing element on a portion of our interest rate swaps (see designated cash flow hedges table below), the cash flows related to these contracts are classified as financing activities. Designated Cash Flow Hedges. As of March 31, 2022, the Company had the following designated cash flow hedge pay-fixed interest rate swaps outstanding (all related to the Company's LIBOR-based debt, see Note 7 and Note 8):
Effective Date |  | Notional Amount |  | Fixed Rate Paid |  | Maturity Date(1) |
|  | (in millions) |  |  |  |  |
May 23, 2018 |  | $300.0 |  |  | 2.915% |  | March 24, 2025 |
May 19, 2020 |  | $700.0 |  |  | 1.923% |  | March 23, 2030 | (2)
May 19, 2020 |  | $350.0 |  |  | 2.531% |  | March 23, 2027 | (2)
June 15, 2020 |  | $150.0 |  |  | 2.343% |  | March 23, 2027 | (2)
August 14, 2020 |  | $200.0 |  |  | 1.840% |  | March 23, 2030 | (2)
Total |  | $1,700.0 |  |  |  |  |  |
__________________ (1)Subject to a mandatory early termination date of March 23, 2025. (2)These pay-fixed interest rate swaps are considered hybrid instruments with a financing component and an embedded at-market derivative that was designated as a cash flow hedge (see discussion of cash flow presentation above). Not Designated. As of March 31, 2022, the Company had the following pay-fixed receive-variable and offsetting pay-variable receive-fixed interest rate swaps outstanding, which are not designated as cash flow hedges:
Pay-Fixed Receive-Variable(1) |  | Offsetting Pay-Variable Receive-Fixed(1) |  |
Effective Date |  | Notional Amount |  | Fixed Rate Paid |  | Effective Date |  | Notional Amount |  | Fixed Rate Received |  | Maturity Date
|  | (in millions) |  |  |  |  |  | (in millions) |  |  |  |
May 23, 2018 |  | $700.0 |  |  | 2.915% |  | May 19, 2020 |  | $700.0 |  |  | 2.915% |  | March 24, 2025
June 25, 2018 |  | $200.0 |  |  | 2.723% |  | August 14, 2020 |  | $200.0 |  |  | 2.723% |  | March 23, 2025
July 31, 2018 |  | $300.0 |  |  | 2.885% |  | May 19, 2020 |  | $300.0 |  |  | 2.885% |  | March 23, 2025
December 24, 2018 |  | $50.0 |  |  | 2.744% |  | May 19, 2020 |  | $50.0 |  |  | 2.744% |  | March 23, 2025
December 24, 2018 |  | $100.0 |  |  | 2.808% |  | June 15, 2020 |  | $100.0 |  |  | 2.808% |  | March 23, 2025
December 24, 2018 |  | $50.0 |  |  | 2.728% |  | June 15, 2020 |  | $50.0 |  |  | 2.728% |  | March 23, 2025
Total |  | $1,400.0 |  |  |  |  | Total |  | $1,400.0 |  |  |  |  |
__________________ (1)During the fiscal year ended March 31, 2021, the Company completed a series of transactions to amend and extend certain interest rate swap agreements, and as part of these transactions, the $1.4 billion pay-fixed receive-variable interest rate swaps presented in the table above were de-designated, and the Company entered into $1.4 billion of pay-variable receive-fixed interest rate swaps, as presented in the table above, which are designed to offset the terms of the $1.4 billion of pay-fixed receive-variable swaps in the table above. At the time of the de-designation of the above $1.4 billion in pay-fixed receive-variable interest rate swaps, there was approximately $163.0 million of unrealized losses recorded in accumulated other comprehensive income (loss). This amount is being amortized to interest expense through the remaining term of the de-designated swaps unless it becomes probable that the cash flows originally hedged will not occur, in which case the proportionate amount of the loss will be recorded to interest expense at that time. The $1.4 billion of pay-fixed receive-variable interest rate swaps de-designated as cash flow hedges and the $1.4 billion of offsetting pay-variable receive-fixed swaps are marked to market with changes in fair value recognized, along with the fixed and variable payments on these swaps, in interest expense, which are expected to nearly offset each other. Financial Statement Effect of Derivatives Consolidated statement of operations and comprehensive income (loss): The following table presents the pre-tax effect of the Company's derivatives on the accompanying consolidated statements of operations and comprehensive income (loss) for the years ended March 31, 2022, 2021 and 2020:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Derivatives designated as cash flow hedges: |  |  |  |  |
Forward exchange contracts |  |  |  |  |
Gain (loss) recognized in accumulated other comprehensive income (loss) | $ | 1.7 |  |  | $ | (1.0) |  |  | $ | 0.8 |
Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense | (0.2) |  |  | 0.2 |  |  | 1.6 |
Interest rate swaps |  |  |  |  |
Gain (loss) recognized in accumulated other comprehensive income (loss) | $ | 66.5 |  |  | $ | 72.0 |  |  | $ | (138.6) |
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | (15.0) |  |  | (20.0) |  |  | (14.3) |
Derivatives not designated as cash flow hedges: |  |  |  |  |
Forward exchange contracts |  |  |  |  |
Gain (loss) recognized in direct operating expense | $ | — |  |  | $ | 0.3 |  |  | $ | (0.4) |
Interest rate swaps |  |  |  |  |
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | $ | (33.8) |  |  | $ | (28.3) |  |  | $ | — |
Total direct operating expense on consolidated statements of operations | $ | 2,064.2 |  |  | $ | 1,725.9 |  |  | $ | 2,226.1 |
Total interest expense on consolidated statements of operations | $ | 176.0 |  |  | $ | 181.5 |  |  | $ | 191.3 |
Consolidated balance sheets: The Company classifies its forward foreign exchange contracts and interest rate swap agreements within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (see Note 10). The portion of the swaps reflecting the financing component of the hybrid instrument discussed above is recorded at amortized cost and reduced over time based on payments. Pursuant to the Company's accounting policy to offset the fair value amounts recognized for derivative instruments, the Company presents the asset or liability position of the swaps that are with the same counterparty under a master netting arrangement net as either an asset or liability in its consolidated balance sheets. As of March 31, 2022, the gross amount of swaps in an asset and liability position that were subject to a master netting arrangement was $169.6 million and $147.3 million, respectively, resulting in an asset recorded in other assets - non-current of $32.0 million and a liability recorded in other liabilities - non-current of $9.8 million. As of March 31, 2021, the gross amount of swaps in an asset and liability position that were subject to a master netting arrangement was $211.2 million and $236.3 million, respectively, resulting in an asset recorded in other assets - non-current of $50.8 million and a liability recorded in other liabilities - non-current of $75.9 million. As of March 31, 2022 and 2021, the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company's use of derivatives:
|  | March 31, 2022
|  | Other Current Assets |  | Other Non-Current Assets |  | Accounts Payable and Accrued Liabilities |  | Other Non-Current Liabilities
|  | (Amounts in millions)
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |
Forward exchange contracts |  | $ | 3.5 |  |  | $ | — |  |  | $ | 2.8 |  |  | $ | — |
Interest rate swaps |  | — |  |  | 109.1 |  |  | — |  |  | (39.4) |
Derivatives not designated as cash flow hedges: |  |  |  |  |  |  |  |
Interest rate swaps(1) |  | — |  |  | (77.1) |  |  | — |  |  | 56.8 |
Fair value of derivatives |  | $ | 3.5 |  |  | $ | 32.0 |  |  | $ | 2.8 |  |  | $ | 17.4 |
________________ (1)Includes $88.1 million and $46.0 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the pay-variable receive-fixed interest rate swaps outstanding at March 31, 2022.
|  | March 31, 2021
|  | Other Current Assets |  | Other Non-Current Assets |  | Accounts Payable and Accrued Liabilities |  | Other Non-Current Liabilities
|  | (Amounts in millions)
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |
Forward exchange contracts |  | $ | 1.5 |  |  | $ | — |  |  | $ | 2.6 |  |  | $ | — |
Interest rate swaps |  | — |  |  | 72.7 |  |  | — |  |  | 5.6 |
Derivatives not designated as cash flow hedges: |  |  |  |  |  |  |  |
Interest rate swaps(1) |  | — |  |  | (21.9) |  |  | — |  |  | 127.1 |
Fair value of derivatives |  | $ | 1.5 |  |  | $ | 50.8 |  |  | $ | 2.6 |  |  | $ | 132.7 |
________________ (1)Includes $98.2 million and $54.3 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the pay-variable receive-fixed interest rate swaps outstanding at March 31, 2021. As of March 31, 2022, based on the current release schedule, the Company estimates approximately $1.8 million of gains associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive income (loss) will be reclassified into earnings during the one-year period ending March 31, 2023. As of March 31, 2022, the Company estimates approximately $20.6 million of losses recorded in accumulated other comprehensive income (loss) associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending March 31, 2023.

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 financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration