Derivative Instruments and Hedging Activities

9 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Foreign Currency Forward and Option Contracts. The Company uses foreign currency forward and option contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities, specifically those associated with its Japanese operations. As a result of foreign currency fluctuations, the U.S. dollar equivalent values of its foreign currency-denominated assets and liabilities change. The Company has not elected to account for these contracts as hedge instruments and as such, gains and losses on these contracts are included in other income (expense), net in the Company's condensed consolidated statements of operations, along with foreign currency gains and losses of the related foreign currency-denominated assets and liabilities associated with this foreign currency forward and option contracts. During the three months ended December 31, 2022, the Company entered into four quarterly tiered collar contracts with quarterly maturities ending January 2024. During three months ended December 31, 2022 the Company recognized net gains of $0.1 million associated with these contracts.

The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of December 31, 2022 (in thousands):


	Derivative Not Designated as Hedging Instruments		Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets and Liabilities Presented in the Balance Sheet
Prepaid expenses and other current assets	$	75	$	75	$	—	$	75
Net	$	75	$	75	$	—	$	75