Fair Value:

Fair Value Hierarchy:

The fair value framework requires the categorization of assets and liabilities into

three

levels based upon the assumptions (inputs) used to value the assets or liabilities. Level

provides the most reliable measure of fair value, whereas Level

generally requires significant management judgment. The

three

levels are defined as follows:

■

Level

: Unadjusted quoted prices in active markets for identical assets and liabilities.

■

Level

: Observable inputs other than those included in Level

For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

■

Level

: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

During the fiscal years ended

March 31, 2016,

2017,

and

2018,

there have been

transfers of assets between the levels within the fair value hierarchy.

			Based on
			Quoted prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2017		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program (1)	$	6,082	$	4,810	$	1,272	$	-
Foreign currency derivatives (2)		1,492		-		1,492		-
Total	$	7,574	$	4,810	$	2,764	$	-

			Based on
			Quoted prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2017		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program (1)	$	6,082	$	4,810	$	1,272	$	-
Foreign currency derivatives (2)		886		-		886		-
Total	$	6,968	$	4,810	$	2,158	$	-

			Based on
			Quoted prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program (1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives (2)		257		-		257		-
Total	$	6,906	$	5,959	$	947	$	-

			Based on
			Quoted prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program (1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives (2)		514		-		514		-
Total	$	7,163	$	5,959	$	1,204	$	-

(

) The market value of the assets held in the trust for the non-qualified deferred compensation program is included as an asset and as a liability as the trust’s assets are both assets of the Company and also a liability as they are available to general creditors in certain circumstances.

(

) Foreign currency derivatives in the form of forward contracts are included in prepaid and other assets and liabilities in the

March 31, 2017

and

2018

consolidated balance sheets. Unrealized gains and losses on derivatives classified as cash flow hedges are recorded in other comprehensive income (loss). Realized gains and losses on derivatives classified as cash flow hedges and gains and losses on derivatives

not

designated as hedges are recorded in other income.

Valuation Techniques:

The following describes valuation techniques used to value our assets held in the non-qualified deferred compensation plan and derivatives.

Assets held in the non-qualified deferred compensation plan

Assets valued using Level

inputs in the table above represent assets from our non-qualified deferred compensation program. The funds in the non-qualified deferred compensation program are valued based on the number of shares in the funds using a price per share traded in an active market.

Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an investment exceeds its fair value, among other factors, we evaluate general market conditions, the duration and extent to which the fair value is less than cost, our intent and ability to hold the investment, and whether or

not

we expect to recover the security’s entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.

Derivatives

We primarily use forward contracts, with maturities generally less than

four

months, designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in forecasted transactions related to purchase commitments and sales, denominated in various currencies. We also use derivatives

not

designated as hedging instruments to hedge foreign currency balance sheet exposures. These derivatives are used to offset currency changes in the fair value of the hedged assets and liabilities. Fair values for all of our derivative financial instruments are valued by adjusting the market spot rate by forward points, based on the date of the contract. The spot rates and forward points used are an average rate from an actively traded market. At

March 31, 2017

and

2018,

all of our forward contracts have been designated as Level

measurements.