Deferred Payment Obligation

12 Months Ended

Mar. 31, 2020

Other Liabilities Disclosure [Abstract]

Deferred Payment Obligation

DEFERRED PAYMENT OBLIGATION

Pursuant to an Agreement and Plan of Merger, or the Merger Agreement, dated as of May 15, 2008, and subsequently amended, The Carlyle Group indirectly acquired all of the issued and outstanding stock of the Company. In connection with this transaction, on July 31, 2008 the Company established a Deferred Payment Obligation, or DPO, of $158.0 million, payable 8.5 years after the closing date, or until settlement of all outstanding claims, less any settled claims. Pursuant to the Merger Agreement, $78.0 million of the $158.0 million DPO was required to be paid in full to the selling stockholders. On December 11, 2009, in connection with a recapitalization transaction, $100.4 million was paid to the selling stockholders, of which $78.0 million was the repayment of that portion of the DPO, with approximately $22.4 million representing accrued interest.

The remaining $80.0 million balance, which was recorded in other current liabilities, was available to indemnify the Company for certain pre-acquisition tax contingencies, related interest and penalties, and other matters pursuant to the Merger Agreement. All remaining potential claims outstanding that were able to be indemnified under the DPO related to former officers and stockholders' lawsuits, which were all settled as of December 31, 2019. See Note 22 to the accompanying consolidated financial statements. Any amounts remaining after the settlement of all claims were to be paid out to the selling stockholders. On December 18, 2019, the Company paid approximately $83.0 million to the selling stockholders, of which $80.0 million was the repayment of the remaining DPO balance, with $3.0 million representing accrued interest.