Deritvatives and Hedging (Notes)

6 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

Derivatives and Hedging

From time to time, we enter into forward contracts to hedge potential foreign currency gains and losses that arise from transactions denominated in foreign currencies, including inter-company transactions. We may also enter into commodity swap contracts to hedge price changes in nickel that impact raw materials included in our cost of revenues. During the second quarter of fiscal 2023, we also held forward foreign currency contracts to hedge a portion of our expected non-U.S. dollar denominated earnings against our reporting currency, the U.S. dollar. These foreign currency exchange contracts will mature during fiscal 2023. We did not elect hedge accounting for these forward foreign currency contracts; however, we may seek to apply hedge accounting in future scenarios. We do not use derivative financial instruments for speculative purposes.

None of these contracts are designated as hedging instruments and do not receive hedge accounting treatment; therefore, changes in their fair value are not deferred but are recognized immediately in the Consolidated Statements of Income. At September 30, 2022, we held foreign currency forward contracts to buy 28.5 million British pounds sterling; and to sell 100.0 million Mexican pesos, and 78.8 million euros. At September 30, 2022, we held commodity swap contracts to buy 400.8 thousand pounds of nickel.

	Asset Derivatives				Liability Derivatives
	Fair Value at		Fair Value at		Fair Value at		Fair Value at
Balance sheet location	September 30, 2022		March 31, 2022		September 30, 2022		March 31, 2022
Prepaid & Other	$	2,324	$	2,780	$	—	$	—
Accrued expenses and other	$	—	$	—	$	1,230	$	198

The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income:

	Location of gain (loss) recognized in income	Amount of gain (loss) recognized in income
		Three Months Ended September 30,				Six Months Ended September 30,
		2022		2021		2022		2021
Foreign currency forward contracts	Selling, general and administrative	$	2,279	$	1,143	$	4,629	$	2,571
Commodity swap contracts	Cost of revenues	$	(358)	$	28	$	(3,183)	$	693