Accounting for Derivatives

9 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

ACCOUNTING FOR DERIVATIVES

ACCOUNTING FOR DERIVATIVES

The Company uses derivative contracts to hedge the volatility arising from changes in the fair value of certain assets and liabilities that are subject to market risk, such as interest rates on debt instruments, foreign currency exchange rates, and certain commodities. The Company does not enter into derivative contracts for trading or speculative purposes.

The Company recognizes outstanding derivative instruments as assets or liabilities, based on measurements of their fair values. If a derivative qualifies for hedge accounting, gains or losses in its fair value that offset changes in the fair value of the asset or liability being hedged (“effective” gains or losses) are reported in accumulated other comprehensive income, and subsequently recorded to earnings only as the related variability on the hedged transaction is recorded in earnings. If a derivative does not qualify for hedge accounting, changes in its fair value are reported in earnings immediately upon occurrence, and the classification of cash flows from these instruments is consistent with that of the transactions being hedged. Derivatives qualify for hedge accounting if they are designated as hedging instruments at their inception, and if they are highly effective in achieving changes in fair value that offset the fair value changes in the assets or liabilities being hedged. Regardless of a derivative’s accounting designation, changes in its fair value that are not offset by changes in the fair value of the asset or liability being hedged are considered ineffective, and are recognized in earnings immediately.

The following tables set forth information on the presentation of the derivative instruments in the Company’s Condensed Consolidated Financial Statements:

		Fair Value As of
	Balance Sheet Location	December 31, 2012		March 31, 2012
		(In thousands)
Asset Derivatives:
Foreign exchange forwards	Current assets	$	—	$	104
Commodity swaps / forwards	Current assets	563		320
Interest rate swaps	Current assets	—		1,755
Interest rate swaps	Noncurrent assets	—		2,323
Liability Derivatives:
Foreign exchange forwards	Current liabilities	1		5,725
Commodity swaps / forwards	Current liabilities	—		697

		For the Three Months Ended						For the Nine Months Ended
	Statement of Operations Location	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
		(In thousands)
Foreign Exchange Forwards
Loss (gain)	Other (income) expense, net	$	163		$	(3,124	)	$	(2,678	)	$	(9,287	)
Commodity Swaps / Forwards
(Gain) loss	Cost of sales	(962		)	2,998			1,580			3,808
Interest Rate Swaps
Gain	Interest expense, net	(142		)	(1,028		)	(1,912		)	(1,546		)

At December 31, 2012, an approximately $0.2 milliongain is expected to be reclassified from accumulated other comprehensive income ("OCI") to cost of sales during the remainder of fiscal 2013.