Derivative Instruments and Hedging Activities

6 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies. As of September 30, 2017, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 24 months from September 30, 2017):

September 30, 2017
Foreign Currency	Foreign Currency Amount			US Dollar Amount		Weighted Average Exchange Rate Per $1 USD
	(Amounts in millions)			(Amounts in millions)
British Pound Sterling		£0.1	in exchange for		$0.1	£0.75
Hungarian Forint	HUF 2,851.5		in exchange for		$10.4	HUF 274.39
Euro		€2.0	in exchange for		$2.3	€0.87
Canadian Dollar		C$17.2	in exchange for		$13.6	C$1.26

Changes in the fair value representing a net unrealized fair value gain (loss) on foreign exchange contracts that qualified as effective hedge contracts outstanding during the three and six months ended September 30, 2017 were losses, net of tax, of $0.8 million and $0.1 million (2016 - $0.4 million and $3.0 million), and are included in accumulated other comprehensive loss, a separate component of shareholders’ equity. Changes in the fair value representing a net unrealized fair value gain on foreign exchange contracts that did not qualify as effective hedge contracts outstanding during the three and six months ended September 30, 2017 were $0.2 million and $0.2 million, respectively (2016 - nil and loss of $0.4 million, respectively) and were included in direct operating expenses in the accompanying unaudited condensed consolidated statements of income. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions.

As of September 30, 2017, $2.2 million was included in other assets and $2.3 million in accounts payable and accrued liabilities (March 31, 2017 - $0.6 million in other assets and $0.5 million in accounts payable and accrued liabilities) in the accompanying unaudited condensed consolidated balance sheets related to the Company's use of foreign currency derivatives. The Company classifies its forward foreign exchange contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

During the three and six months ended September 30, 2017, no amounts were reclassified out of accumulated other comprehensive loss into earnings. As of September 30, 2017, based on the current release schedule, the Company estimates approximately $1.8 million of losses associated with cash flow hedges in accumulated other comprehensive loss to be reclassified into earnings during the one-year period ending September 30, 2018.