Fair Value of Financial Instruments

12 Months Ended

Mar. 31, 2014

The following tables represent the financial assets and (liabilities), measured at fair value on a recurring basis as of March 31, 2014 and March 31, 2013 and the basis for that measurement:



	Total Fair Value Measurement March 31, 2014			Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swap agreements	$	—		$	—	$	—		$	—
Lead forward contracts	(2,371		)	—		(2,371		)	—
Foreign currency forward contracts	113			—		113			—
Total derivatives	$	(2,258	)	$	—	$	(2,258	)	$	—



	Total Fair Value Measurement March 31, 2013			Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swap agreements	$	(654	)	$	—	$	(654	)	$	—
Lead forward contracts	(2,832		)	—		(2,832		)	—
Foreign currency forward contracts	(11		)	—		(11		)	—
Total derivatives	$	(3,497	)	$	—	$	(3,497	)	$	—

The fair values of interest rate swap agreements are based on observable prices as quoted for receiving the variable three-month LIBOR and paying fixed interest rates and, therefore, were classified as Level 2. At March 31, 2014, the Company had no interest rate swap agreements.

The fair values of lead forward contracts are calculated using observable prices for lead as quoted on the London Metal Exchange (“LME”) and, therefore, were classified as Level 2.

The fair values for foreign currency forward contracts are based upon current quoted market prices and are classified as Level 2 based on the nature of the underlying market in which these derivatives are traded.

Financial Instruments

The fair values of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate carrying value due to their short maturities.

The fair values of the Company’s short-term debt approximates its carrying value, as it is variable rate debt and the terms are comparable to market terms as of the balance sheet dates and is classified as Level 2.

The Company's senior 3.375% Convertible Notes, with a face value of $172,500, were issued when the Company’s stock price was trading at $30.19 per share. On March 31, 2014, the Company’s stock price closed at $69.29 per share. The Convertible Notes have a conversion option of $40.26 per share which equates to 24.8385 shares of the Company's common stock per one thousand dollars in principal amount of the Convertible Notes as of April 1, 2014, the date when the the holders were notified that they can submit the Convertible Notes for conversion. The conversion rate may be adjusted in accordance with the terms of the Convertible Notes and the indenture under which the Convertible Notes were issued. The fair value of these notes represent the trading values based upon quoted market prices and are classified as Level 2. The Convertible Notes were trading at 175% of face value on March 31, 2014, and 126% of face value on March 31, 2013. See Note 8 for further details.

The carrying amounts and estimated fair values of the Company’s derivatives and Convertible Notes at March 31, 2014 and 2013 were as follows:



	March 31, 2014						March 31, 2013
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Financial assets:
Derivatives⁽¹⁾	$	113		$	113		$	241		$	241
Financial liabilities:
Convertible Notes	$	162,887	⁽²⁾	$	301,875	⁽³⁾	$	155,273	⁽²⁾	$	217,350	⁽³⁾
Derivatives⁽¹⁾	2,371			2,371			3,738			3,738


(1)	Represents interest rate swap agreements, lead and foreign currency hedges (see Note 12 for asset and liability positions of the interest rate swap agreements, lead and foreign currency hedges at March 31, 2014 and March 31, 2013).


(2)	The carrying amounts of the Convertible Notes at March 31, 2014 and March 31, 2013 represent the $172,500 principal value, less the unamortized debt discount (see Note 8 for further details).


(3)	The fair value amounts of the Convertible Notes represent the trading values of the Convertible Notes with a principal value of $172,500 at March 31, 2014 and March 31, 2013.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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