Derivatives

12 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

DERIVATIVES

From time to time, we enter into interest rate swaps to fix a portion of our interest expense, and foreign exchange forward contracts to offset the earnings impacts of exchange rate fluctuations on certain monetary assets and liabilities. We do not enter into derivative instruments for any purpose other than to manage interest rate or foreign currency exposure. That is, we do not engage in interest rate or currency exchange rate speculation using derivative instruments.

We may hedge our net recognized foreign currency assets and liabilities with forward foreign exchange contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These derivative instruments hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value with changes in the fair value recorded as other income. These derivative instruments do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. As of March 31, 2023, total outstanding forward foreign exchange contract notional amounts were $18.6 million and had maturities of 63 days or less.

The fair value of our derivative instruments was included in our Consolidated Balance Sheets as follows (in thousands):

	Balance Sheet Classification	As of March 31,
		2023		2022
Derivative instruments not designated as cash flow hedges:
Foreign currency forward contracts	Accrued liabilities	$	141	$	128

The effect of derivative instruments on our Consolidated Statements of Operations was as follows (in thousands):

	Statement of Operations Classification	Year Ended March 31,
		2023		2022
Derivative instruments not designated as cash flow hedges:
Loss recognized in earnings	Other, net	$	(24)	$	(30)
Income tax expense (benefit)	Income tax expense (benefit)	6		(7)

For additional information related to our derivatives, see Notes 6 and 19.