Fair Value Measurements

3 Months Ended

Jun. 30, 2022

Fair Value Measurements [Abstract]

Fair Value Measurements

7. Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes our assets and liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:

			Quoted in		Significant Other		Significant
			Identical Markets		Observable Inputs		Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Balance at June 30, 2022:
Interest rate cap agreements	$	34,128	$	—	$	34,128	$	—
Total	$	34,128	$	—	$	34,128	$	—
Balance at March 31, 2022:
Interest rate cap agreements	$	25,471	$	—	$	25,471	$	—
Total	$	25,471	$	—	$	25,471	$	—

Derivative Financial Instruments

The valuation of our derivative financial instruments is determined using widely accepted valuation techniques, including a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the

derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair value of the interest rate cap agreements is determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities.

We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements. We measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilize Level 3 inputs to evaluate the likelihood of both our own default and counterparty default. As of June 30, 2022, we determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives and therefore, the valuations are classified in Level 2 of the fair value hierarchy.

Assets and Liabilities Measured at Fair Value upon Initial Recognition

The carrying amount and the fair value of financial instruments held as of June 30, 2022 and March 31, 2022 were as follows:

	June 30, 2022				March 31, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	94,009	$	94,009	$	252,298	$	252,298
Senior Credit Facilities (Level 2)	$	3,264,496	$	3,230,419	$	3,257,487	$	3,288,401
Senior Notes (Level 2)	$	1,220,491	$	1,194,375	$	1,319,697	$	1,316,785
Debt component of tangible equity units (Level 2)	$	—	$	—	$	4,234	$	4,284