Annual report pursuant to Section 13 and 15(d)

Derivatives (Tables)

v3.20.1
Derivatives (Tables)
12 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Gain (Loss) for Derivative Instruments Designated as Hedges [Table Text Block]
Hedging Strategy Impact on Statements of Operations
The following tables present gain and loss activity for the fiscal years ended March 31, 2020, 2019, and 2018 for derivative instruments designated as hedges (amounts in thousands):
 
 
 
 
 
 
Fiscal Year Ended March 31, 2020
 
 
 
 
 
 
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
 
18,152

 
10,278

 

Cross-currency swaps (3)
 
Cash Flow
 
Other income (expense), net
 
(21,656
)
 
(4,670
)
 

Foreign exchange contracts (4)
 
Cash Flow
 
Cost of sales
 
(13,422
)
 
3,111

 

 
 
 
 
 
 
Fiscal Year Ended March 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
 
$
(6,383
)
 
$
(4,134
)
 
$
6,034

Cross-currency swaps (2)
 
Net Investment  
 
Other income (expense), net
 
5,009

 
4,230

 

Foreign exchange contracts (4)
 
Cash Flow
 
Cost of sales
 
(1,286
)
 
(698
)
 

 
 
 
 
 
 
Fiscal Year Ended March 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
 
$

 
$

 
$

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

 

 

Foreign exchange contracts (4)
 
Cash Flow
 
Cost of sales
 
667

 
2,420

 

______________________________________________________________________________
(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 fiscal year ended March 31, 2020, the amount reclassified to income from AOCI includes $2.6 million in gains related to the effective portion of the hedges and $7.3 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 [Table Text Block]
The following tables present the total amount of each income and expense line item presented in the Consolidated 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):
 
 
Cost of sales
 
 
Fiscal Year Ended March 31,
 
 
2020
 
2019
 
2018
Total income (expense) in Statements of Operations
 
$
(840,066
)
 
$
(924,276
)
 
$
(860,744
)
 
 
 
 
 
 
 
Cash flow hedging impact
 
 
 
 
 
 
Foreign exchange contracts:
 
 
 
 
 
 
Gain (loss) reclassified from AOCI to income (1)
 
3,111

 
(698
)
 
2,420

 
 
Other income (expense), net
 
 
Fiscal Year Ended March 31,
 
 
2020
 
2019
 
2018
Total income (expense) in Statements of Operations
 
$
4,356

 
$
(4,513
)
 
$
(14,692
)
 
 
 
 
 
 
 
Fair value hedging impact
 
 
 
 
 
 
Cross-currency swaps:
 
 
 
 
 
 
Gain (loss) on hedged item
 
(3,337
)
 
(6,034
)
 

Gain (loss) on derivative instrument (2)
 
1,715

 
1,900

 

 
 
 
 
 
 
 
Cash flow hedging impact
 
 
 
 
 
 
Cross-currency swaps:
 
 
 
 
 
 
Gain (loss) reclassified from AOCI to income (3)
 
(4,670
)
 

 

______________________________________________________________________________
(1) Net losses of $11.0 million are expected to be reclassified from AOCI into income within the next 12 months.
(2) Amounts recognized in income include 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.
(3)
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 March 31, 2020 and 2019 are as follows (amounts in thousands):
 
 
 
 
Fair Value of Derivative Instruments
 
 
 
 
March 31, 2020
 
March 31, 2019
 
 
Balance Sheet Location
 
As Presented
 
Offset
 
Gross
 
As Presented
 
Offset
 
Gross
Derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps
 
Other assets
 
$

 
$
10,366

 
$
10,366

 
$
3,485

 
$

 
$
3,485

Foreign exchange contracts
 
Prepaid and other current assets
 

 

 

 
564

 
645

 
1,209

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps
 
Other non-current obligations
 
4,318

 
10,366

 
14,684

 

 

 

Foreign exchange contracts
 
Accrued expenses
 
13,992

 

 
13,992

 

 
645

 
645

Foreign exchange contracts
 
Other non-current obligations
 
1,977

 

 
1,977