v3.26.3
Discontinued Operations And Assets Ands Liabilities Held For Sale
 6 Months Ended
Sep. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations And Assets Ands Liabilities Held For Sale RESTRUCTURING AND LOSS (GAIN) ON DISPOSAL OF ASSETS AND COSTS FROM EXIT AND DISPOSAL ACTIVITIES
In fiscal 2026, the Company undertook certain restructuring and realignment activities (the “2026 Restructuring Plan”) to optimize the Company’s production, recycling and distribution network and to plan and implement go-to-market and operating model enhancements to scale for future growth, including the integration of NDS. Under the 2026 Restructuring Plan, for the three and six months ended September 30, 2026, the Company recorded expense of $3.9 million and $9.2 million, respectively, related to the optimization of the Company’s production, recycling and distribution networks, including the closure of four facilities and changes to the Company’s production footprint. For the three and six months ended September 30, 2025, the Company recorded expense of $7.2 million and $16.0 million, respectively, related to the closure of one of the Company’s recycling facilities to optimize its recycling network, one offsite storage location and one distribution yard. The Company does not currently have an estimate of additional costs or an expected end date for the restructuring actions. The following table summarizes the activities included in Restructuring and realignment expense during the periods presented.
Three Months Ended September 30,Six Months Ended September 30,
(Amounts in thousands)2026202520262025
Loss (gain) on disposal of assets and costs from exit and disposal activities:
Accelerated depreciation$— $— $— $1,764 
Severance400 (150)2,545 1,854 
Impairment of right-of-use assets— 853 — 2,120 
Other exit and disposal costs254 1,015 271 1,806 
Selling, general and administrative expenses:
Realignment expenses3,223 5,453 6,397 8,422 
Total 2026 Restructuring Plan activities$3,877 $7,171 $9,213 $15,966 
The costs incurred under the 2026 Restructuring Plan to date are classified as operating expenses and not allocated to a segment. During the six months ended September 30, 2026 and 2025, the Company recorded accelerated
depreciation, severance costs, impairment of right-of-use lease assets and other exit and disposal costs. Other exit and disposal activities include legal and professional fees, inventory and equipment transfer costs and other costs.
The following table summarizes the restructuring liability for the periods presented:
(Amounts in thousands)20262025
Accrual balance at April 1$1,201 $— 
Costs incurred9,213 15,966 
Non-cash charges— (3,884)
Expenses paid(9,768)(7,845)
Accrual balance at end of period$646 $4,237 
The restructuring liability is recorded in Other accrued liabilities in the Company’s Condensed Consolidated Balance Sheet.
(Gain) Loss on Disposal of Assets and Costs From Exit and Disposal Activities - The Company recorded $17.6 million and $16.4 million gain on disposal of assets in the three and six months ended September 30, 2025, respectively. The sale of properties previously held-for-sale resulted in the gain of $18.1 million. The remaining balance is due to the sale or disposal of other property, plant and equipment.
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
The Company determined Teco S.r.l., Kimplas Piping Systems Private Limited, Kimplas Limited, Teco Irrigation USA, Inc. and Fish Water Products Sdn. Bhd. (collectively, the “NDS International Entities”) met the held for sale criteria upon acquisition. As a result, the assets and liabilities of the NDS International Entities have been classified as held for sale and are reported as assets held for sale and liabilities held for sale on the Consolidated Balance Sheet. The results of the NDS International Entities have been accounted for as discontinued operations and are reported as income or loss from discontinued operations, net of tax, on the Consolidated Statements of Operations. In addition to the NDS International Entities, one property is included as held for sale.
In July 2026, the Company completed the sale of Teco S.r.l. and Teco Irrigation USA. The sale resulted in a loss of $3.0 million included in discontinued operations, net of tax, for the six months ended September 30, 2026.
The Company measured the net assets of the disposal group at fair value less costs to sell. Costs to sell represent incremental direct costs expected to be incurred in connection with the disposal. Fair value was determined based on the valuation techniques noted in “Note 4. Acquisitions” in the Company’s Fiscal 2026 Form 10-K. In the three months ended September 30, 2026, the Company recorded a valuation allowance to adjust the assets to estimated fair value, less costs to sell, based on anticipated sale price. The Company anticipates selling the NDS International Entities in the third quarter of fiscal 2027.
The assets and liabilities classified as held for sale on the Company’s Consolidated Balance Sheet as of September 30, 2026 and March 31, 2026, include the following:
(Amounts in thousands)September 30, 2026March 31, 2026
Cash$8,660 $9,184 
Accounts receivable5,430 6,957 
Inventory3,346 6,848 
Other current assets683 1,284 
Property, plant and equipment18,276 18,645 
Other assets334 533 
Valuation allowance to adjust assets to estimated fair value, less costs to sell(25,314)— 
Total assets held-for-sale$11,415 $43,451 
Current maturities of debt obligations$— $562 
Accounts payable2,262 2,776 
Accrued expenses2,431 8,669 
Other liabilities2,584 3,132 
Total liabilities held-for-sale$7,277 $15,139 
The following table summarizes the major classes of items constituting the results from discontinued operations presented in the Condensed Consolidated Statement of Operations for the three and six months ended September 30, 2026:
(Amounts in thousands)Three Months Ended September 30, 2026Six Months Ended September 30, 2026
Net sales$4,457 $11,672 
Cost of goods sold4,216 10,197 
Gross profit241 1,475 
Selling, general and administrative expenses909 2,238 
Loss from classification to held for sale23,825 29,818 
Income tax benefit(971)(1,406)
Net loss from discontinued operations$(23,522)$(29,175)