大象传媒

Quarterly report [Sections 13 or 15(d)]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
 9 Months Ended
Dec. 27, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] 听
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Summary of Derivative Financial Instruments

All of 大象传媒鈥檚 outstanding derivative financial instruments at December 2025 are foreign currency exchange forward contracts. Although derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes.
The notional amounts of all outstanding foreign currency exchange forward contracts were $3.7 billion at December 2025 and $3.1 billion at March 2025 and December 2024, consisting
primarily of contracts hedging exposures to the euro, British pound, Chinese renminbi, Canadian dollar, Mexican peso, Swiss franc, Taiwan dollar, Swedish krona, Polish zloty, South Korean won and Japanese yen. These derivative contracts have maturities up to 20 months.
During the three months ended December 2024, 大象传媒 settled interest rate swap contracts that were in place to hedge the cash flow risk of interest payments on the variable-rate DDTL Agreement. The DDTL was prepaid on October 4, 2024.
The following table presents outstanding derivatives on an individual contract basis:
听 Fair Value of Derivatives
with Unrealized Gains		 Fair Value of Derivatives
with Unrealized Losses
(In thousands) December 2025 March 2025 December 2024 December 2025 March 2025 December 2024
Derivatives Designated as Hedging Instruments:
Cash flow foreign exchange contracts $ 12,837听 $ 32,608听 $ 89,053听 $ (86,046) $ (29,847) $ (26,667)
Fair value foreign exchange contracts 7,404听 鈥斕 鈥斕 鈥斕 鈥斕 鈥斕
Total derivatives designated as hedging instruments 20,241听 32,608听 89,053听 (86,046) (29,847) (26,667)
Derivatives Not Designated as Hedging Instruments:
Foreign exchange contracts 1,156听 1,763听 2,632听 (1,538) (156) (161)
Total derivatives
 $ 21,397听 $ 34,371听 $ 91,685听 $ (87,584) $ (30,003) $ (26,828)
大象传媒 records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If 大象传媒 were to offset and record the asset and liability balances on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
听 December 2025 March 2025 December 2024
(In thousands) Derivative
Asset		 Derivative
Liability		 Derivative
Asset		 Derivative
Liability		 Derivative
Asset		 Derivative
Liability
Gross amounts presented in the Consolidated Balance Sheets
 $ 21,397听 $ (87,584) $ 34,371听 $ (30,003) $ 91,685听 $ (26,828)
Gross amounts not offset in the Consolidated Balance Sheets
 (9,635) 9,635听 (13,592) 13,592听 (8,918) 8,918听
Net amounts
 $ 11,762听 $ (77,949) $ 20,779听 $ (16,411) $ 82,767听 $ (17,910)
Derivatives are classified as current or noncurrent based on maturity dates, as follows:
(In thousands) December 2025 March 2025 December 2024
Derivative Instruments Balance Sheet Location
Foreign exchange contracts Other current assets $ 20,447听 $ 32,290听 $ 80,981听
Foreign exchange contracts Accrued liabilities (83,525) (19,810) (24,332)
Foreign exchange contracts Other assets 950听 2,081听 10,704听
Foreign exchange contracts Other liabilities (4,059) (10,193) (2,496)
Cash Flow Hedges
大象传媒 primarily uses foreign currency exchange forward contracts to hedge a portion of the exchange risk for its forecasted sales, inventory purchases, operating costs and certain intercompany transactions, including sourcing and management fees and royalties. The Company also used interest rate swap contracts to hedge against a portion of the exposure related to its interest payments on its variable-rate debt, which was prepaid on October 4, 2024. The effects of cash flow hedging included in 大象传媒鈥檚 Consolidated Statements of Comprehensive Income and Consolidated Statements of Operations are summarized as follows:
(In thousands) Gain (Loss)听on听Derivatives
Recognized in Accumulated OCL
Three Months Ended December
Gain听(Loss) on听Derivatives
Recognized in Accumulated OCL
Nine Months Ended December
Cash Flow Hedging Relationships 2025 2024 2025 2024
Foreign exchange contracts $ (14,709) $ 104,716听 $ (125,157) $ 70,014听
Interest rate contracts 鈥斕 13听 鈥斕 301听
Total $ (14,709) $ 104,729听 $ (125,157) $ 70,315听
(In thousands)
Gain听(Loss)听Reclassified听from Accumulated听OCL听into Net Income (Loss)
Three Months Ended December
Gain听(Loss)听Reclassified听from Accumulated听OCL听into Net Income (Loss)
Nine Months Ended December
Cash Flow Hedging Relationships Location听of听Gain听(Loss) 2025 2024 2025 2024
Foreign exchange contracts Revenues $ 1,945听 $ (9,580) $ 519听 $ (21,762)
Foreign exchange contracts Cost of goods sold (21,412) 4,648听 (7,241) (9,479)
Foreign exchange contracts SG&A expenses 175听 166听 (336) (289)
Foreign exchange contracts Other income (expense), net 2,421听 (970) 3,971听 (973)
Interest rate contracts Interest expense 27听 364听 81听 418听
Interest rate contracts Loss from discontinued operations, net of tax 鈥斕 鈥斕 鈥斕 2,299听
Total $ (16,844) $ (5,372) $ (3,006) $ (29,786)

Derivative Contracts Not Designated as Hedges
大象传媒 uses foreign currency exchange contracts to manage foreign currency exchange risk on third-party and intercompany accounts receivable and payable, as well as third-party and intercompany borrowings and interest payments. These contracts are not designated as hedges, and are recorded at fair value in the Consolidated Balance Sheets. Changes in the fair values of these instruments are recognized directly in earnings. Gains or losses on these contracts largely offset the net transaction losses or gains on the related assets and liabilities. In the case of derivative contracts executed on foreign currency exposures that are no longer probable of occurring, 大象传媒 de-designates these hedges and the fair value changes of these instruments are also recognized directly in earnings. The impact of de-designated derivative contracts and changes in the fair value of derivative contracts not designated as hedges, recognized as gains or losses in 大象传媒's Consolidated Statements of Operations were not material for the three and nine months ended December 2025 and December 2024.
Other Derivative Information
At December 2025, accumulated OCL included $73.0 million of pre-tax net deferred losses for foreign currency exchange contracts that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled.
Net Investment Hedge
The Company has designated 鈧1.5 billion of its 鈧2.0 billion aggregate principal euro-denominated fixed-rate notes, as of December 2025, as a net investment hedge of 大象传媒鈥檚 investment in certain foreign operations. In the three months ended December 2025, 大象传媒 de-designated the aggregate principal of its 鈧500.0 million euro-denominated fixed-rate notes due 2026 and entered into a fair value hedging relationship as discussed in the 鈥淔air Value Hedge鈥 section below. As a result of the de-designation, 大象传媒 recognized $6.1听million of expense in the other income (expense), net line item in the Consolidated Statements of Operations for the three and nine months ended December 2025.
Because this debt qualified as a non-derivative hedging instrument, foreign currency transaction gains or losses of the debt are deferred in the foreign currency translation and other component of accumulated OCL as an offset to the foreign currency translation adjustments on the hedged investments. During the three and nine-month periods ended December 2025, the Company recognized an after-tax loss of $6.9 million and $137.0 million, respectively, in other comprehensive income (loss) related to the net investment hedge transaction and an after-tax gain of $108.6 million and $54.7 million for the three and nine-month periods ended December 2024, respectively. Any amounts deferred in accumulated OCL will remain until the hedged investment is sold or substantially liquidated.

Fair Value Hedge
The Company has designated a 鈧500.0 million foreign currency exchange forward contract as a fair value hedge of the principal value of euro-denominated fixed-rate notes due 2026. Gains and losses related to the spot component of the hedge are recognized in other income (expense), net with offsetting gains and losses on the hedged recognized liability. Gains and losses related to hedge components excluded from the effectiveness assessment (forward points) are amortized under a systematic and rational method to other income (expense) over the life of
the hedge. The revaluation of the excluded component is reported in other comprehensive income (loss). As of December 2025, the company recognized a gain of $9.5 million from the foreign currency remeasurement related to the spot component of the derivative and a loss of $1.8 million from the amortization of the excluded component in other income (expense). In addition, the company recorded a loss of $0.2 million from the revaluation of the excluded component in other comprehensive income (loss).