Fair Value Measurements

3 Months Ended

Jun. 30, 2017

The fair value of the Company's cash and cash equivalents, trade accounts receivable, inventories, net, prepaid expenses, income taxes receivable, other current assets, short-term borrowings, trade accounts payable, accrued payroll, other accrued expenses, income taxes payable and value added tax payable approximate the carrying values due to the relatively short maturities of these assets and liabilities. The fair values of the Company's long-term liabilities do not significantly differ from the carrying values.

The inputs used in measuring fair value are prioritized into the following hierarchy:


•	Level 1: Quoted prices in active markets for identical assets or liabilities.


•	Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities.


•	Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring the reporting entity to develop its own assumptions.

The assets and liabilities that are measured on a recurring basis at fair value are summarized as follows:



	Fair Value as of June 30, 2017			Measured Using
	Fair Value as of June 30, 2017			Level 1			Level 2			Level 3
Assets (liabilities) at fair value:
Non-qualified deferred compensation asset	$	6,816		$	6,816		$	—		$	—
Non-qualified deferred compensation liability	(4,206		)	(4,206		)	—			—
Designated Derivative Contracts liability	(4,192		)	—			(4,192		)	—
Non-Designated Derivative Contracts asset	204			—			204			—
Non-Designated Derivative Contracts liability	(1,807		)	—			(1,807		)	—



	Fair Value as of March 31, 2017			Measured Using
	Fair Value as of March 31, 2017			Level 1			Level 2		Level 3
Assets (liabilities) at fair value:
Non-qualified deferred compensation asset	$	6,662		$	6,662		$	—	$	—
Non-qualified deferred compensation liability	(4,140		)	(4,140		)	—		—
Designated Derivative Contracts asset	1,365			—			1,365		—

The Level 2 inputs consist of forward spot rates at the end of the applicable reporting period. Refer to Note 9, "Foreign Currency Exchange Rate Contracts and Hedging", for more information on the nature and definitions of these derivative contracts. The Company records the fair value of assets or liabilities associated with derivative instruments and hedging activities in other current assets or other accrued expenses, respectively, in the condensed consolidated balance sheets.

In 2010, the Company established a non-qualified deferred compensation program that permits a select group of management employees to defer earnings to a future date on a non-qualified basis. For each plan year, the Company's Board of Directors may, but is not required to, contribute any amount it desires to any participant under this program. The Company's contribution is determined by the Board of Directors annually. In March 2015, the Board of Directors approved a Company contribution feature for future plan years beginning in calendar year 2016 and gave management the authority to approve actual contributions. As of June 30, 2017 and March 31, 2017, no payments were made under this program, however, there is a payment pending of $13 as of June 30, 2017. Deferred compensation is recognized based on the fair value of the participants' accounts. The Company has established a rabbi trust for the purpose of supporting the benefits payable under this program, with the assets invested in company-owned life insurance policies.

The non-qualified deferred compensation asset of $6,816 is recorded in other assets in the condensed consolidated balance sheets. The non-qualified deferred compensation liability of $4,206 is recorded in the condensed consolidated balance sheets as of June 30, 2017, with $883 recorded in other accrued expenses and $3,323 in other long-term liabilities.

- 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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