v3.25.2
Derivative Instruments and Hedging Activities
 3 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Forward Foreign Exchange Contracts

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 (i.e., cash flow hedges). The Company also enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Changes in the fair value of the foreign exchange contracts that are designated as hedges are reflected in accumulated other comprehensive income (loss), and changes in the fair value of foreign exchange contracts that are not designated as hedges and do not qualify for hedge accounting are recorded in direct operating expense. Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged.
As of June 30, 2025, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 21 months from June 30, 2025):

June 30, 2025
Foreign CurrencyForeign Currency AmountUS Dollar AmountWeighted Average Exchange Rate Per $1 USD
 (Amounts in millions)(Amounts in millions)
Euro109.7 EURin exchange for118.3 USD0.93 EUR
Australian Dollar4.8 AUDin exchange for3.1 USD1.55 AUD
Canadian Dollar32.0 CADin exchange for23.0 USD1.39 CAD
Mexican Peso69.5 MXNin exchange for3.4 USD20.52 MXN
South African Rand50.0 ZARin exchange for2.5 USD19.66 ZAR
Hungarian Forint6,000.0 HUFin exchange for15.8 USD379.00 HUF
Thai Bhat385.4 THBin exchange for11.8 USD32.56 THB
New Zealand Dollar23.2 NZDin exchange for14.0 USD19.66 NZD
Interest Rate Swaps

The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows. The Company primarily uses pay-fixed interest rate swaps to facilitate its interest rate risk management activities, which the Company generally designates as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these designated cash flow hedges are deferred in accumulated other comprehensive income (loss) and recognized in interest expense as the interest payments occur. Changes in the fair value of interest rate swaps that are not designated as hedges are recorded in interest expense (see further explanation below).

Cash settlements related to interest rate contracts are generally classified as operating activities on the consolidated statements of cash flows.

Designated Cash Flow Hedges. As of June 30, 2025, the Company had the following pay-fixed interest rate swaps, which were designated as cash flow hedges outstanding (all related to the Company’s SOFR-based debt, see Note 7 and Note 8):

Effective Date Notional Amount  Fixed Rate Paid  Maturity Date
 (in millions)
August 15, 2024$65.0 4.045%September 15, 2026
August 15, 2024$77.5 3.803%August 15, 2026
August 15, 2024$77.5 3.810%September 15, 2026
December 15, 2024$125.0 3.970%December 15, 2026
January 31, 2025$100.0 4.060%January 31, 2027
February 14, 2025$282.8 4.097%February 14, 2027
April 14, 2025$100.0 3.449%April 14, 2027
April 14, 2025$48.8 3.646%April 14, 2027
Total$876.6 

Financial Statement Effect of Derivatives

Unaudited condensed consolidated statements of operations and comprehensive loss: The following table presents the pre-tax effect of the Company’s derivatives on the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for the three months ended June 30, 2025 and 2024:
Three Months Ended
June 30,
20252024
 (Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts
Gain (loss) recognized in accumulated other comprehensive income$(3.5)$0.2 
Loss reclassified from accumulated other comprehensive income into direct operating expense$— $(1.0)
Interest rate swaps
Gain recognized in accumulated other comprehensive income$0.2 $3.5 
Gain reclassified from accumulated other comprehensive income into interest expense$0.8 $10.9 
Derivatives not designated as cash flow hedges:
Interest rate swaps
Gain (loss) reclassified from accumulated other comprehensive income into interest expense$6.6 $(1.6)
Total direct operating expense on consolidated statements of operations$339.0 $287.9 
Total interest expense on consolidated statements of operations$68.7 $63.5 
Unaudited condensed consolidated balance sheets: The Company classifies its forward foreign exchange contracts and interest rate swap agreements within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (see Note 9). Pursuant to the Company’s accounting policy to offset the fair value amounts recognized for derivative instruments, the Company presents the asset or liability position of the swaps that are with the same counterparty under a master netting arrangement net as either an asset or liability in its unaudited condensed consolidated balance sheets. As of June 30, 2025 and March 31, 2025, there were no swaps outstanding that were subject to a master netting arrangement.

As of June 30, 2025 and March 31, 2025, the Company had the following amounts recorded in the accompanying unaudited condensed consolidated balance sheets related to the Company’s use of derivatives:
June 30, 2025
Other Assets (current)Other Assets (non-current)Other Accrued Liabilities (current)Other Liabilities (non-current)
 (Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts$1.5 $— $3.4 $— 
Interest rate swaps— — — 3.7 
Fair value of derivatives$1.5 $— $3.4 $3.7 

March 31, 2025
Other Assets
(current)		Other Liabilities
(non-current)
 (Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts$1.8 $— 
Interest rate swaps— 3.1 
Fair value of derivatives$1.8 $3.1 

As of June 30, 2025, based on the current release schedule, the Company estimates approximately $1.3 million of gains associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive income will be reclassified into earnings during the one-year period ending June 30, 2026.
As of June 30, 2025, the Company estimates approximately $26.5 million of gains recorded in accumulated other comprehensive income associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending June 30, 2026.