Derivatives (Tables)

3 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The balance sheet classifications and fair value of derivative instruments designated as hedges as of June 30, 2019 and March 31, 2019 are as follows (amounts in thousands):



		Fair Value of Derivative Instruments
		June 30, 2019						March 31, 2019
	Balance Sheet Location	As Presented		Offset		Gross		As Presented		Offset		Gross
Derivative Assets
Cross-currency swaps	Other assets	$	—	$	—	$	—	$	4,577	$	—	$	4,577
Foreign exchange contracts	Prepaid and other current assets	706		633		1,339		564		645		1,209

Derivative Liabilities
Cross-currency swaps	Other non-current obligations	$	3,145	$	—	$	3,145	$	—	$	—	$	—
Foreign exchange contracts	Accrued expenses	—		633		633		—		645		645

Gain (Loss) for Derivative Instruments Designated as Hedges

The following tables present gain and loss activity for the three months ended June 30, 2019 and 2018 for derivative instruments designated as hedges (amounts in thousands):



			Three Months Ended June 30, 2019
			Gain (Loss)
Derivative Instrument	Hedge Designation	Location of Gain (Loss) Recognized in Statements of Operations	Recognized in AOCI			Reclassified from AOCI to Income			Recorded Directly to Income
Cross-currency swaps ⁽¹⁾	Fair Value	Other income/expense, net	$	(346	)	$	(1,622	)	$	3,337
Cross-currency swaps ⁽²⁾	Net Investment	Other income/expense, net	(2,006		)	2,655			—
Cross-currency swaps ⁽³⁾	Cash Flow	Other income/expense, net	(2,231		)	3,909			—
Foreign exchange contracts ⁽⁴⁾	Cash Flow	Cost of sales	527			385			—

Three-Months Ended June 30, 2018

Gain (Loss)

Derivative Instrument

Hedge Designation

Location of Gain (Loss) Recognized in Statements of Operations

Recognized in AOCI

Reclassified from AOCI to Income

Recorded Directly to Income

Foreign exchange contracts ⁽⁴⁾

Cash Flow

Cost of sales

(3,795

)

643

—

_________________

⁽¹⁾ Amounts recognized in AOCI represent the change in the fair value of the derivative instruments related to the excluded components. Amounts reclassified from AOCI to income represent amortization of excluded components based upon the instruments' periodic coupons. Amounts recorded directly to income represent the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedge.

⁽²⁾ Amounts recognized in AOCI represent the total change in the fair value of the derivative instrument. Amounts recorded to AOCI are recorded within foreign currency translation. Amounts reclassified from AOCI to income represent amortization of excluded components based on the instrument's periodic coupon.

⁽³⁾ Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments related of the effective portion of the qualifying hedges, as well as amortization of the excluded components based upon the instruments' periodic coupons. For the three months ended June 30, 2019, the amount reclassified to income from AOCI includes $4.7 million in gains related to the effective portion of the hedges and $0.8 million in losses related to amortization of the excluded components.

⁽⁴⁾ Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments pertaining to the settlement of the qualifying hedged item (effective portion).

Schedule of Fair Value and Cash Flow Hedges Included in Earnings

The following tables present the total amount of each income and expense line item presented in the Condensed Statements of Operations in which the results of fair value and cash flow hedges are recorded and the effects of those hedging strategies on income (amounts in thousands):



	Three Months Ended June 30, 2019						Three Months Ended June 30, 2018
	Cost of sales			Other income (expense), net			Cost of sales			Other income (expense), net
Total income (expense) in Statements of Operations	$	(223,614	)	$	726		$	(232,795	)	$	11,371

Fair value hedging impact
Cross-currency swaps:
Gain (loss) on hedged item	—			(3,337		)	—			—
Gain (loss) on derivative instrument ⁽¹⁾	—			1,715			—			—

Cash flow hedging impact
Cross-currency swaps:
Gain (loss) reclassified from AOCI to income⁽²⁾	—			3,909			—			—
Foreign exchange contracts:
Gain (loss) reclassified from AOCI to income⁽³⁾	385			—			643			—

_________________

⁽¹⁾ Amounts recognized in income includes the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedges and amortization of the excluded components.

⁽²⁾Net losses of $8.5 million are expected to be reclassified from AOCI into income within the next 12 months.

⁽³⁾ Net gains of $1.5 million are expected to be reclassified from AOCI into income within the next 12 months.