Accumulated Other Comprehensive Loss

12 Months Ended

Mar. 31, 2025

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

The components of accumulated other comprehensive loss is as follows:


	March 31,
	2025		2024
Foreign currency translation adjustment – net of tax	$	(33,942)	$	(32,785)
Pension liability – net of tax	12,661		(12,924)
Postretirement obligations – net of tax	1,573		1,675
Split-dollar life insurance arrangements – net of tax	526		553
Derivatives qualifying as hedges – net of tax	(1,919)		3,804

Accumulated other comprehensive loss	$	(21,101)	$	(39,677)

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 $(6,530,121), $636,000, and $(6,371,000) for fiscal 2025, 2024, and 2023 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 Tax Cuts and Jobs Act (the "TCJA"), the Company recorded as an offsetting entry a $(7,251,000) stranded tax effect in the minimum pension liability component and a $(194,000) stranded tax effect in the split dollar life insurance arrangement component of other comprehensive income in fiscal 2018. As a result of the pension termination in fiscal 2025, $(7,050,000) of the stranded tax effect was released from accumulated other comprehensive loss and recorded as a decrease of income taxes in the consolidated statement of operations. The resulting stranded tax effect of $201,000 relates to the Company's remaining U.S. pension plan. The stranded tax effect related to the other post retirement obligations component was not material.

As a result of the recording of a deferred tax asset valuation allowance in fiscal 2011, the Company recorded as an offsetting entry a $7,605,000 stranded tax effect in the minimum pension liability component, $935,000 stranded tax effect in the other post retirement obligations component and a $747,000 stranded tax effect in the split dollar life insurance arrangement 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. As a result of the pension termination in fiscal 2025, the stranded tax effect of $7,605,000 was released from accumulated other comprehensive loss and recorded as a decrease of income taxes in the consolidated statement of operations.

As a result of the recording of a deferred tax asset valuation allowance in fiscal 2005, the Company recorded as an offsetting entry a $406,000 stranded tax effect 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. As a result of the pension termination in fiscal 2025, the stranded tax effect of $406,000 was released from accumulated other comprehensive loss and recorded as a decrease of income taxes in the consolidated statement of operations.

The stranded tax effects described above are in accordance with ASC Topic 740, “Income Taxes” even though the impact of the TCJA and the deferred tax asset valuation allowance described above were initially established as an adjustment to comprehensive income. This amount will remain indefinitely as a component of accumulated other comprehensive loss.

Changes in accumulated other comprehensive income by component are as follows (in thousands):


	March 31, 2025
	Retirement Obligations		Foreign Currency		Change in Derivatives Qualifying as Hedges		Total
Beginning balance net of tax	$	(10,696)	$	(32,785)	$	3,804	(39,677)
Other comprehensive income (loss) before reclassification	7,274		(1,157)		2,243		8,360
Amounts reclassified from other comprehensive loss to net income	18,182		—		(7,966)		10,216
Net current period other comprehensive (loss) income	25,456		(1,157)		(5,723)		18,576
Ending balance net of tax	$	14,760	$	(33,942)	$	(1,919)	$	(21,101)


	March 31, 2024
		Retirement Obligations		Foreign Currency		Change in Derivatives Qualifying as Hedges		Total
Beginning balance net of tax		$	(12,800)	$	(32,352)	$	7,109	(38,043)
Other comprehensive income (loss) before reclassification		(1,979)		(433)		6,907		4,495
Amounts reclassified from other comprehensive loss to net income		4,083		—		(10,212)		(6,129)
Net current period other comprehensive (loss) income		2,104		(433)		(3,305)		(1,634)
Ending balance net of tax		$	(10,696)	$	(32,785)	$	3,804	$	(39,677)

Details of amounts reclassified out of accumulated other comprehensive loss for the year ended March 31, 2025 are as follows (in thousands):


Details of AOCL Components	Amount reclassified from AOCL		Affected line item on consolidated statement of operations






Net pension amount unrecognized
	$	24,118	(1)
	24,118		Total before tax
	(5,936)		Tax benefit
	$	18,182	Net of tax

Change in derivatives qualifying as hedges
	$	36	Cost of products sold
	(10,717)		Interest expense
	20		Foreign currency
	(10,661)		Total before tax
	2,695		Tax benefit
	$	(7,966)	Net of tax

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

Details of amounts reclassified out of accumulated other comprehensive loss for the year ended March 31, 2024 are as follows (in thousands):


Details of AOCL Components	Amount reclassified from AOCL		Affected line item on consolidated statement of operations






Net pension amount unrecognized
	$	5,344	(1)
	5,344		Total before tax
	(1,261)		Tax benefit
	$	4,083	Net of tax

Change in derivatives qualifying as hedges
	$	38	Cost of products sold
	(12,861)		Interest expense
	(663)		Foreign currency
	(13,486)		Total before tax
	3,274		Tax benefit
	$	(10,212)	Net of tax

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