v3.26.1
Derivative Instruments
 12 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In May 2025, the Company entered into an interest rate swap agreement to manage interest rate risk related to the Company’s Term Facilities by swapping variable interest at a rate based on SOFR with a fixed rate of 3.79%. The interest rate swap (“swap”) agreement has a notional amount of $1,000.0 million and will expire on June 30, 2028.
On July 1, 2025, the Company met the requirements to designate the swap as a cash flow hedge. The fair value of the swap is estimated by using a valuation model based on observable market data, including yield curves. The gain (loss) is recorded in Accumulated other comprehensive loss and then reclassified into Interest, net in the same period in which the hedged transaction affects earnings. As of March 31, 2026, the Company expects to reclass approximately $5.4 million ($4.0 million after-tax) as a decrease to interest expense in the next 12 months.
For the three months ended June 30, 2025, the swap did not meet the requirements for hedge designation and the Company recorded a loss of $11.6 million in Other expense (income), net.
The fair value of the swap and classification on the consolidated balance sheets is as follows:
Fair Value as of
(Millions of US dollars)Fair Value HierarchyBalance Sheet LocationMarch 31, 2026March 31, 2025
Interest rate swapLevel 2Other current liabilities$4.7 $— 
Refer to Note 18, “Accumulated Other Comprehensive Loss” for further details of the effect of derivative instruments.