Quarterly report pursuant to Section 13 or 15(d)

Derivatives (Tables)

v3.19.3.a.u2
Derivatives (Tables)
9 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The balance sheet classifications and fair value of derivative instruments designated as hedges as of December 31, 2019 and March 31, 2019 are as follows (amounts in thousands):
 
 
 
 
Fair Value of Derivative Instruments
 
 
 
 
December 31, 2019
 
March 31, 2019
 
 
Balance Sheet Location
 
As Presented
 
Offset
 
Gross
 
As Presented
 
Offset
 
Gross
Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps
 
Other assets
 
$

 
$
4,408

 
$
4,408

 
$
4,577

 
$

 
$
4,577

Foreign exchange contracts
 
Prepaid and other current assets
 
3,193

 

 
3,193

 
564

 
645

 
1,209

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps
 
Other non-current obligations
 
$
3,376

 
$
4,408

 
$
7,784

 
$

 
$

 
$

Foreign exchange contracts
 
Accrued expenses
 

 

 

 

 
645

 
645


Gain (Loss) for Derivative Instruments Designated as Hedges
The following tables present gain and loss activity for the three and nine months ended December 31, 2019 and 2018 for derivative instruments designated as hedges (amounts in thousands):
 
 
 
 
 
 
Three Months Ended December 31, 2019
 
 
 
 
 
 
Gain (Loss)
Derivative Instrument
 
Hedge Designation
 
Location of Gain (Loss) Recognized in Statements of Operations
 
Recognized in AOCI
 
Reclassified from AOCI to Income
 
Recorded Directly to Income
Cross-currency swaps (2)
 
Net Investment  
 
Other income (expense), net
 
$
5,227

 
$
2,512

 
$

Cross-currency swaps (3)
 
Cash Flow
 
Other income (expense), net
 
(3,284
)
 
(3,578
)
 

Foreign exchange contracts (4)
 
Cash Flow
 
Cost of sales
 
4,760

 
295

 

 
 
 
 
 
 
Three Months Ended December 31, 2018
 
 
 
 
 
 
Gain (Loss)
Derivative Instrument
 
Hedge Designation
 
Location of Gain (Loss) Recognized in Statements of Operations
 
Recognized in AOCI
 
Reclassified from AOCI to Income
 
Recorded Directly to Income
Cross-currency swaps (1)
 
Fair Value 
 
Other income (expense), net
 
$
(3,407
)
 
$
(1,572
)
 
$
8,358

Cross-currency swaps (2)
 
Net Investment  
 
Other income (expense), net
 
(3,571
)
 
1,609

 

Foreign exchange contracts (4)
 
Cash Flow
 
Cost of sales
 
$
(2,435
)
 
$
170

 
$


 
 
 
 
 
 
Nine Months Ended December 31, 2019
 
 
 
 
 
 
Gain (Loss)
Derivative Instrument
 
Hedge Designation
 
Location of Gain (Loss) Recognized in Statements of Operations
 
Recognized in AOCI
 
Reclassified from AOCI to Income
 
Recorded Directly to Income
Cross-currency swaps (1)
 
Fair Value
 
Other income (expense), net
 
$
(346
)
 
$
(1,622
)
 
$
3,337

Cross-currency swaps (2)
 
Net Investment
 
Other income (expense), net
 
7,852

 
7,793

 

Cross-currency swaps (3)
 
Cash Flow
 
Other income (expense), net
 
(10,623
)
 
(2,602
)
 

Foreign exchange contracts (4)
 
Cash Flow
 
Cost of sales
 
4,477

 
1,848

 


 
 
 
 
 
 
Nine Months Ended December 31, 2018
 
 
 
 
 
 
Gain (Loss)
Derivative Instrument
 
Hedge Designation
 
Location of Gain (Loss) Recognized in Statements of Operations
 
Recognized in AOCI
 
Reclassified from AOCI to Income
 
Recorded Directly to Income
Cross-currency swaps (1)
 
Fair Value
 
Other income (expense), net
 
$
(3,407
)
 
$
(1,572
)
 
$
8,358

Cross-currency swaps (2)
 
Net Investment
 
Other income (expense), net
 
(3,571
)
 
1,609

 

Foreign exchange contracts (4)
 
Cash Flow
 
Cost of sales
 
$
(2,130
)
 
$
(275
)
 
$

_________________
(1) Amounts recognized in AOCI represent the change in the fair value of the derivative instruments related to the excluded components. Amounts reclassified from AOCI to income represent amortization of excluded components based upon the instruments' periodic coupons. Amounts recorded directly to income represent the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedge.
(2) Amounts recognized in AOCI represent the total change in the fair value of the derivative instrument. Amounts recorded to AOCI are recorded within foreign currency translation. Amounts reclassified from AOCI to income represent amortization of excluded components based on the instrument's periodic coupon.
(3) Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments related of the effective portion of the qualifying hedges, as well as amortization of the excluded components based upon the instruments' periodic coupons. For the three months ended December 31, 2019, the amount reclassified to income from AOCI includes $1.4 million in losses related to the effective portion of the hedges and $2.1 million in losses related to amortization of the excluded components. For the nine months ended December 31, 2019, the amount reclassified to income from AOCI includes $2.6 million in gains related to the effective portion of the hedges and $5.2 million in losses related to amortization of the excluded components.
(4) Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments pertaining to the settlement of the qualifying hedged item (effective portion).

Schedule of Fair Value and Cash Flow Hedges Included in Earnings
The following tables present the total amount of each income and expense line item presented in the Condensed Statements of Operations in which the results of fair value and cash flow hedges are recorded and the effects of those hedging strategies on income (amounts in thousands):
 
 
Three Months Ended December 31, 2019
 
Three Months Ended December 31, 2018
 
 
Cost of sales
 
Other income (expense), net
 
Cost of sales
 
Other income (expense), net
Total income (expense) in Statements of Operations
 
$
(201,560
)
 
$
(3,091
)
 
$
(226,425
)
 
$
(13,725
)
 
 
 
 
 
 
 
 
 
Fair value hedging impact
 
 
 
 
 
 
 
 
Cross-currency swaps:
 
 
 
 
 
 
 
 
Gain (loss) on hedged item
 

 

 

 
(8,358
)
Gain (loss) on derivative instrument (1)
 

 

 

 
6,786

 
 
 
 
 
 
 
 
 
Cash flow hedging impact
 
 
 
 
 
 
 
 
Cross-currency swaps:
 
 
 
 
 
 
 
 
Gain (loss) reclassified from AOCI to income (2)
 

 
(3,578
)
 

 

Foreign exchange contracts:
 
 
 
 
 
 
 
 
Gain (loss) reclassified from AOCI to income (3)
 
295

 

 
170

 


 
 
Nine Months Ended December 31, 2019
 
Nine Months Ended December 31, 2018
 
 
Cost of sales
 
Other income (expense), net
 
Cost of sales
 
Other income (expense), net
Total income (expense) in Statements of Operations
 
$
(638,901
)
 
$
(450
)
 
$
(694,888
)
 
$
(2,083
)
 
 
 
 
 
 
 
 
 
Fair value hedging impact
 
 
 
 
 
 
 
 
Cross-currency swaps:
 
 
 
 
 
 
 
 
Gain (loss) on hedged item
 

 
(3,337
)
 

 
(8,358
)
Gain (loss) on derivative instrument (1)
 

 
1,715

 

 
6,786

 
 
 
 
 
 
 
 
 
Cash flow hedging impact
 
 
 
 
 
 
 
 
Cross-currency swaps:
 
 
 
 
 
 
 
 
Gain (loss) reclassified from AOCI to income (2)
 

 
(2,602
)
 

 

Foreign exchange contracts:
 
 
 
 
 
 
 
 
Gain (loss) reclassified from AOCI to income (3)
 
1,848

 

 
(275
)
 

_________________
(1) Amounts recognized in income includes the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedges and amortization of the excluded components.
(2) Net losses of $8.1 million are expected to be reclassified from AOCI into income within the next 12 months.
(3) Net gains of $3.8 million are expected to be reclassified from AOCI into income within the next 12 months.