v3.25.4
Derivative Financial Instruments
 9 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company is exposed to foreign currency exchange rate risk related to our international operations. Principal currencies hedged include the Brazilian real and the Malawian kwacha. The Company uses forward or option currency contracts to manage risks associated with changes in foreign currency exchange rates. These derivative contracts are either designated as cash flow hedges of forecasted transactions for the purchase of green tobacco, other processing-related costs, and selling, general, and administrative expenses, or are not designated as hedging instruments because they are used to partially offset the immediate earnings impact of exchange rate risk on certain foreign currency denominated transactions.

As of December 31, 2025 and 2024, and March 31, 2025, the Company's derivative financial instruments outstanding were designated as cash flow hedges. Derivative assets and liabilities are recorded in other current assets and accrued expenses and other current liabilities, respectively, within our condensed consolidated balance sheets. See "Note 15. Fair Value Measurements" for the fair values of the Company's outstanding derivative assets and liabilities and corresponding fair value classifications.

The following summarizes the U.S. Dollar notional amount of derivative contracts outstanding:

December 31, 2025December 31, 2024March 31, 2025
Foreign currency exchange contracts$4,550 $55,000 $49,500 

The following summarizes the pre-tax effects of derivative financial instruments in the condensed consolidated statements of comprehensive income and the condensed consolidated statements of operations:

Three Months EndedNine Months Ended
December 31,December 31,
2025202420252024
Foreign currency exchange contracts designated as cash flow hedges:
Gain (loss) recognized in accumulated other comprehensive income(1)
$81 $(4,702)$3,287 $(5,699)
Gain (loss) reclassified from accumulated other comprehensive income to earnings(2)
761 (537)3,300 (98)
Foreign currency exchange contracts not designated as hedging instruments:(3)
Gain recognized in earnings(2)
$693 $— $3,380 $— 
(1) Amount represents the change in fair value of derivative financial instruments.
(2) These gains (losses) are recognized in cost of goods and services sold within the condensed consolidated statements of operations.
(3) There were foreign currency exchange contracts not designated as hedging instruments outstanding during the three and nine months ended December 31, 2025, but all had expired or settled by period end.