v3.26.1
RISK MANAGEMENT AND DERIVATIVES
 12 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
RISK MANAGEMENT AND DERIVATIVES
NOTE 14. RISK MANAGEMENT AND DERIVATIVES
The Company is exposed to global market risks, including the effects of changes in foreign currency and interest rates. The Company uses derivative instruments to manage financial exposures that occur in the normal course of business and does not hold or issue derivatives for trading or speculative purposes.
The Company may elect to designate certain derivatives as hedging instruments in accordance with ASC Topic 815 "Derivatives and Hedging". The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to forecasted cash flows and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships.
The Company's foreign exchange risk management program consists of designated cash flow hedges and undesignated hedges. As of March 31, 2026, the Company has hedge instruments primarily for British Pound/U.S. Dollar, Euro/U.S. Dollar, U.S. Dollar/Chinese Renminbi, U.S. Dollar/Mexican Peso, U.S. Dollar/Canadian Dollar, U.S. Dollar/Japanese Yen, and U.S. Dollar/South Korean Won currency pairs.
All derivatives are recognized on the Consolidated Balance Sheets at fair value and are classified based on the instrument's maturity date.
The following table presents the fair value of the Company's foreign currency contracts within the respective line items on the Consolidated Balance Sheets. Refer to Note 13 to these Consolidated Financial Statements for a discussion of the fair value measurements.
March 31, 2026March 31, 2025
Derivatives designated as hedging instruments
Prepaid expenses and other current assets, net$11,120 $13,137 
Other long-term assets7,239 507 
Total derivative assets designated as hedging instruments$18,359 $13,644 
Other current liabilities$27,947 $6,359 
Other long-term liabilities2,378 5,581 
Total derivative liabilities designated as hedging instruments$30,325 $11,940 
Derivatives not designated as hedging instruments
Prepaid expenses and other current assets, net$1,436 $78 
Total derivative assets not designated as hedging instruments$1,436 $78 
Other current liabilities$162 $1,590 
Total derivative liabilities not designated as hedging instruments$162 $1,590 

The following table presents the amounts included on the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items:
Year Ended March 31,
202620252024
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Net revenues$4,966,370 $(24,251)$5,164,310 $(1,354)$5,701,879 $7,652 
Cost of goods sold2,707,512 7,606 2,689,566 1,222 3,071,626 (4,355)
Interest income (expense), net(30,288)(37)(6,115)(36)268 (36)
Other income (expense), net(7,276)— (13,431)— 32,055 — 

The following tables present the amounts affecting the Consolidated Statements of Comprehensive Income (Loss) from derivatives designated as cash flow hedges:
Balance as of
March 31, 2025		Amount of gain (loss) recognized in other comprehensive income (loss) on derivativesAmount of gain (loss) reclassified from other comprehensive income (loss) into incomeBalance as of
March 31, 2026
Foreign currency contracts$7,081 $(40,096)$(16,645)$(16,370)
Interest rate swaps(386)— (37)(349)
Total designated as cash flow hedges$6,695 $(40,096)$(16,682)$(16,719)
Balance as of March 31, 2024Amount of gain (loss) recognized in other comprehensive income (loss) on derivativesAmount of gain (loss) reclassified from other comprehensive income (loss) into incomeBalance as of March 31, 2025
Foreign currency contracts$(10,645)$17,594 $(132)$7,081 
Interest rate swaps(422)— (36)(386)
Total designated as cash flow hedges$(11,067)$17,594 $(168)$6,695 
Balance as of March 31, 2023Amount of gain (loss) recognized in other comprehensive income (loss) on derivativesAmount of gain (loss) reclassified from other comprehensive income (loss) into incomeBalance as of March 31, 2024
Foreign currency contracts$(4,764)$(2,584)$3,297 $(10,645)
Interest rate swaps(458)— (36)(422)
Total designated as cash flow hedges$(5,222)$(2,584)$3,261 $(11,067)

The following table presents the amounts included on the Consolidated Statements of Operations in which the effects of undesignated derivative instruments are recorded and the effects of fair value hedge activity on these line items:
Year Ended March 31,
202620252024
TotalAmount of Gain (Loss) on Fair Value Hedge ActivityTotalAmount of Gain (Loss) on Fair Value Hedge ActivityTotalAmount of Gain (Loss) on Fair Value Hedge Activity
Other income (expense), net$(7,276)$3,280 $(13,431)$1,134 $32,055 $355 
Cash Flow Hedges
The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to transactions generated by its international subsidiaries in currencies other than their local currencies. These gains and losses are driven by non-functional currency generated revenue, non-functional currency inventory purchases and certain other intercompany transactions. The Company enters into foreign currency contracts to reduce the risk associated with the foreign currency exchange rate fluctuations on these transactions. Certain contracts are designated as cash flow hedges. As of March 31, 2026, the aggregate notional value of the Company's outstanding cash flow hedges was $1,450.4 million (March 31, 2025: $1,113.6 million), with contract maturities ranging from one to twenty-four months.
The Company may enter into long-term debt arrangements with various lenders which bear a range of fixed and variable rates of interest. The nature and amount of the Company's long-term debt can be expected to vary as a result of future business requirements, market conditions and other factors. The Company may elect to enter into interest rate swap contracts to reduce the impact associated with interest rate fluctuations. The interest rate swap contracts are accounted for as cash flow hedges. Refer to Note 7 to these Consolidated Financial Statements for a discussion of long-term debt.
For contracts designated as cash flow hedges, the changes in fair value are reported as other comprehensive income (loss) and are recognized in current earnings in the period or periods during which the hedged transaction affects current earnings. Effective hedge results are classified on the Consolidated Statements of Operations in the same manner as the underlying exposure.
Undesignated Derivative Instruments
The Company has entered into foreign exchange forward contracts to mitigate the change in fair value of specific assets and liabilities on the Consolidated Balance Sheets. Undesignated instruments are recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in other expense, net, together with the re-measurement gain or loss from the hedged balance
sheet position. As of March 31, 2026, the total notional value of the Company's outstanding undesignated derivative instruments was $400.3 million (March 31, 2025: $450.7 million).
Credit Risk
The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions and considers the risk of counterparty default to be minimal.