XML 36 R24.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Derivative Instruments and Hedging Activities | 9 Months Ended
--- | ---
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | 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 December 31, 2024, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 16 months from December 31, 2024):
December 31, 2024
Foreign Currency |  | Foreign Currency Amount |  | US Dollar Amount |  | Weighted Average Exchange Rate Per $1 USD
|  | (Amounts in millions) |  | (Amounts in millions) |  |
British Pound Sterling |  | 0.2 | GBP | in exchange for | $0.3 |  |  | 0.77 | GBP
Czech Koruna |  | 180.0 | CZK | in exchange for | $7.7 |  |  | 23.29 | CZK
Euro |  | 13.9 | EUR | in exchange for | $14.6 |  |  | 0.94 | EUR
Canadian Dollar |  | 8.5 | CAD | in exchange for | $6.2 |  |  | 1.37 | CAD
Mexican Peso |  | 20.7 | MXN | in exchange for | $1.0 |  |  | 20.43 | MXN
Hungarian Forint |  | 5,612.8 | HUF | in exchange for | $15.0 |  |  | 373.74 | HUF
New Zealand Dollar |  | 2.7 | NZD | in exchange for | $1.7 |  |  | 1.67 | NZD
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. Designated Cash Flow Hedges. As of March 31, 2024, the Company had the following pay-fixed interest rate swaps, which were designated as cash flow hedges outstanding (all related to the Company's SOFR-based debt, see Note 6 and Note 7), and were terminated in December 2024, as further described below. Designated Cash Flow Hedges at March 31, 2024:
Effective Date |  | Notional Amount |  | Fixed Rate Paid |  | Maturity Date
|  | (in millions) |  |  |  |
May 23, 2018 |  | $300.0 |  |  | 2.915% |  | March 24, 2025
May 23, 2018 |  | $700.0 |  |  | 2.915% |  | March 24, 2025
June 25, 2018 |  | $200.0 |  |  | 2.723% |  | March 23, 2025
July 31, 2018 |  | $300.0 |  |  | 2.885% |  | March 23, 2025
December 24, 2018 |  | $50.0 |  |  | 2.744% |  | March 23, 2025
December 24, 2018 |  | $100.0 |  |  | 2.808% |  | March 23, 2025
December 24, 2018 |  | $50.0 |  |  | 2.728% |  | March 23, 2025
Total |  | $1,700.0 |  |  |  |  |
In December 2024, the Company terminated all of its pay-fixed interest rate swaps which were outstanding at March 31, 2024, as shown in the table above. As a result of the termination, the Company received approximately $9.4 million, which was recorded as a reduction of the interest rate swap asset values, and represents the amount of unrealized gains recorded in accumulated other comprehensive income related to the terminated interest rate swaps which will be amortized as a reduction of interest expense through the remaining term of the terminated swaps unless it becomes probable that the cash flows originally hedged will not occur, in which case the proportionate amount of the gain will be recorded to interest expense at that time. The receipt of approximately $9.4 million was classified in the consolidated statement of cash flows as cash provided by operating activities. During the nine months ended December 31, 2024, the Company entered into the following pay-fixed interest rate swaps, which have been designated as cash flow hedges outstanding (all related to the Company's SOFR-based debt, see Note 6 and Note 7). Designated Cash Flow Hedges at December 31, 2024:
Effective Date |  | Notional Amount |  | Fixed Rate Paid |  | Maturity Date
|  | (in millions) |  |  |  |
August 15, 2024 |  | $65.0 |  |  | 4.045% |  | September 15, 2026
August 15, 2024 |  | $77.5 |  |  | 3.803% |  | August 15, 2026
August 15, 2024 |  | $77.5 |  |  | 3.810% |  | September 15, 2026
December 15, 2024 |  | $125.0 |  |  | 3.970% |  | December 15, 2026
Total |  | $345.0 |  |  |  |  |
Financial Statement Effect of Derivatives Unaudited condensed consolidated statements of operations and comprehensive loss: The following table presents the pre-tax effect of the Company's derivatives on the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine months ended December 31, 2024 and 2023:
| Three Months Ended |  | Nine Months Ended
| December 31, |  | December 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (Amounts in millions)
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |
Forward exchange contracts |  |  |  |  |  |  |
Gain (loss) recognized in accumulated other comprehensive income (loss) | $ | 2.4 |  |  | $ | (4.3) |  |  | $ | 3.5 |  |  | $ | (7.3) |
Loss reclassified from accumulated other comprehensive income (loss) into direct operating expense | $ | (0.1) |  |  | $ | (2.6) |  |  | $ | (1.2) |  |  | $ | (2.5) |
Interest rate swaps |  |  |  |  |  |  |
Gain (loss) recognized in accumulated other comprehensive income (loss) | $ | 1.6 |  |  | $ | (11.7) |  |  | $ | (1.1) |  |  | $ | 24.7 |
Gain reclassified from accumulated other comprehensive income (loss) into interest expense | $ | 2.0 |  |  | $ | 11.4 |  |  | $ | 24.3 |  |  | $ | 31.5 |
Derivatives not designated as cash flow hedges: |  |  |  |  |  |  |
Interest rate swaps |  |  |  |  |  |  |
Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense | $ | 1.4 |  |  | $ | (1.8) |  |  | $ | (1.7) |  |  | $ | (5.5) |
Total direct operating expense on consolidated statements of operations | $ | 567.3 |  |  | $ | 510.8 |  |  | $ | 1,639.7 |  |  | $ | 1,549.1 |
Total interest expense on consolidated statements of operations | $ | 69.1 |  |  | $ | 67.1 |  |  | $ | 212.2 |  |  | $ | 192.9 |
Unaudited condensed 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 8). 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 unaudited condensed consolidated balance sheets. As of December 31, 2024 and March 31, 2024, there were no swaps outstanding that were subject to a master netting arrangement. As of December 31, 2024 and March 31, 2024, the Company had the following amounts recorded in the accompanying unaudited condensed consolidated balance sheets related to the Company's use of derivatives:
|  | December 31, 2024
|  | Other Current Assets |  | Other Non-Current Assets |  | Other Accrued Liabilities (current) |  |
|  | (Amounts in millions)
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |
Forward exchange contracts |  | $ | 1.9 |  |  | $ | — |  |  | $ | — |  |  |
Interest rate swaps |  | — |  |  | 0.7 |  |  | — |  |  |
Fair value of derivatives |  | $ | 1.9 |  |  | $ | 0.7 |  |  | $ | — |  |  |
|  | March 31, 2024
|  | Other Current Assets |  |  |  | Other Accrued Liabilities (current) |  |
|  | (Amounts in millions)
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |
Forward exchange contracts |  | $ | — |  |  |  |  | $ | 2.8 |  |  |
Interest rate swaps |  | 35.6 |  |  |  |  | — |  |  |
Fair value of derivatives |  | $ | 35.6 |  |  |  |  | $ | 2.8 |  |  |
As of December 31, 2024, based on the current release schedule, the Company estimates approximately $1.3 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 December 31, 2025. As of December 31, 2024, the Company estimates approximately $26.7 million of gains 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 December 31, 2025.

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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration