Accumulated Other Comprehensive Loss

12 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss is as follows:

	March 31,
	2015			2014
Foreign currency translation adjustment – net of tax	$	(24,635	)	$	5,272
Pension liability – net of tax	(65,995		)	(46,271		)
Postretirement obligations – net of tax	(240		)	131
Split-dollar life insurance arrangements – net of tax	(1,904		)	(1,837		)
Derivatives qualifying as hedges – net of tax	(533		)	(199		)
Net unrealized investment gain – net of tax	859			1,768
Accumulated other comprehensive loss	$	(92,448	)	$	(41,136	)

The deferred taxes related to the adjustments associated with the items included in accumulated other comprehensive loss, net of deferred tax asset valuation allowances, were $13,406,000, $8,992,000, and $(216,000) for 2015, 2014, and 2013 respectively.  Refer to Note 17 for discussion of the deferred tax asset valuation allowance.  In the period subsequent to our initial recording of the valuation allowance in fiscal 2011, increases and decreases to both the deferred tax assets associated with items in accumulated other comprehensive loss, and the valuation allowance, have been recorded as offsets to comprehensive income.

As a result of the recording of a deferred tax asset valuation allowance in fiscal 2011, the Company recorded as an offsetting entry a $10,006,000 charge in the minimum pension liability component, $(935,000) charge in the other post retirement obligations component, $747,000 charge in the split dollar life insurance arrangement component, and a $557,000 charge in the net unrealized investment gain component of other comprehensive income. With the reversal of that valuation allowance in fiscal 2013, the Company recorded the reversal of the valuation allowance as a reduction of income taxes in the consolidated statement of operations. This is in accordance with ASC Topic 740, “Income Taxes,” even though the valuation allowance was initially established by a charge against comprehensive income. These amounts will remain indefinitely as a component of minimum pension liability adjustment.

As a result of the recording of a deferred tax asset valuation allowance in fiscal 2005, the Company recorded as an offsetting entry a $534,000 charge in the minimum pension liability component of other comprehensive income. With the reversal of that valuation allowance in fiscal 2006, the Company recorded the reversal of the valuation allowance as a reduction of income taxes in the consolidated statement of operations. This is in accordance with ASC Topic 740, “Income Taxes,” even though the valuation allowance was initially established by a charge against comprehensive income. This amount will remain indefinitely as a component of minimum pension liability adjustment.

The activity by year related to investments, including reclassification adjustments for activity included in earnings are as follows (all items shown net of tax):

	Year Ended March 31,
	2015			2014			2013
Net unrealized investment gain (loss) at beginning of year	$	1,768		$	2,808		$	2,580
Unrealized holdings gain arising during the period	433			395			725
Reclassification adjustments for gain included in earnings	(1,342		)	(1,435		)	(497		)
Net change in unrealized gain (loss) on investments	(909		)	(1,040		)	228
Net unrealized investment gain at end of year	$	859		$	1,768		$	2,808

Changes in accumulated other comprehensive income by component for the year ended March 31, 2015 are as follows (in thousands):

	March 31, 2015
	Unrealized Investment Gain			Retirement Obligations			Foreign Currency			Change in Derivatives Qualifying as Hedges			Total
Beginning balance net of tax	$	1,768		$	(47,977	)	$	5,272		$	(199	)	(41,136		)
Other comprehensive income (loss) before reclassification	433			(22,487		)	(29,907		)	(356		)	(52,317		)
Amounts reclassified from other comprehensive loss	(1,342		)	2,325			—			22			1,005
Net current period other comprehensive (loss) income	(909		)	(20,162		)	(29,907		)	(334		)	(51,312		)
Ending balance	$	859		$	(68,139	)	$	(24,635	)	$	(533	)	$	(92,448	)

Details of amounts reclassified out of accumulated other comprehensive loss for the year ended March 31, 2015 are as follows (in thousands):

Details of AOCL Components	Amount reclassified from AOCL			Affected line item on consolidated statement of operations
Unrealized gain on investments
	$	(2,065	)	Investment income
	(2,065		)	Total before tax
	723			Tax expense
	$	(1,342	)	Net of tax
Net amortization of prior service cost
	$	3,577		(1)
	3,577			Total before tax
	1,252			Tax benefit
	$	2,325		Net of tax
Change in derivatives qualifying as hedges
	$	34		Cost of products sold
	34			Total before tax
	12			Tax benefit
	$	22		Net of tax

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. (See Note 13 — Pensions and Other Benefit Plans for additional details.)