Derivative Instruments

12 Months Ended

Mar. 31, 2016

Derivative Instruments [Abstract]

Derivative Instruments

Note 18: Derivative Instruments

The Company uses derivative financial instruments from time to time as a tool to manage certain financial risks.  The Company’s policy prohibits the use of leveraged derivatives.  Accounting for derivatives and hedging activities requires derivative financial instruments to be measured at fair value and recognized as assets or liabilities in the consolidated balance sheets.  Accounting for the gain or loss resulting from the change in fair value of the derivative financial instruments depends on whether it has been designated, and is effective, as a hedge, and, if so, on the nature of the hedging activity.

Commodity Derivatives:  The Company periodically enters into futures contracts related to certain forecasted purchases of aluminum and copper.  The Company’s strategy in entering into these contracts is to reduce its exposure to changing market prices for future purchases of these commodities.  The Company has not designated commodity contracts entered into in fiscal 2014, 2015, and 2016 for hedge accounting.  Accordingly, unrealized gains and losses on these contracts are recorded within cost of sales.

Foreign exchange contracts:  The Company’s foreign exchange risk management strategy uses derivative financial instruments to mitigate foreign currency exchange risk.  The Company periodically enters into foreign currency exchange contracts to hedge specific foreign currency-denominated assets and liabilities.  The Company has not designated these contracts for hedge accounting.  Accordingly, unrealized gains and losses related to changes in fair value are recorded in other income and expense.  Gains and losses on these foreign currency contracts are offset by foreign currency gains and losses associated with the related assets and liabilities.

The fair value of the Company’s derivative financial instruments recorded in the consolidated balance sheets were as follows:

	Balance Sheet Location	March 31, 2016		March 31, 2015
Foreign exchange contracts	Other current assets	$	0.1	$	-
Foreign exchange contracts	Other current liabilities		-		0.3
Commodity derivatives	Other current liabilities		0.1		0.1

The amounts recorded in the consolidated statements of operations for the Company’s derivative financial instruments were as follows:

	Statement of Operations	Years ended March 31,
	Location	2016			2015			2014
Commodity derivatives	Cost of sales	$	(0.7	)	$	(0.2	)	$	(0.5	)
Foreign exchange contracts	Other income (expense) - net		0.6			(1.1	)		-
Total loss		$	(0.1	)	$	(1.3	)	$	(0.5	)