EnerSys
For the period ended Jun 29, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Aug 6, 2025
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Fair Value of Financial Instruments
- Fair Value of Financial Instruments
Recurring Fair Value Measurements
The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of June 29, 2025 and March 31, 2025, and the basis for that measurement:
| Total Fair Value Measurement June 29, 2025 | Quoted Price inActive Marketsfor IdenticalAssets(Level 1) | SignificantOtherObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | |
|---|---|---|---|---|
| Lead forward contracts | $2,484 | $— | $2,484 | $— |
| Foreign currency forward contracts | (746) | — | (746) | — |
| Interest Rate Swaps | (73) | — | (73) | — |
| Net investment hedges | (87,823) | — | (87,823) | — |
| Total derivatives | $(86,158) | $— | $(86,158) | $— |
| Total Fair ValueMeasurementMarch 31, 2025 | Quoted Price inActive Marketsfor IdenticalAssets(Level 1) | SignificantOtherObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | |
|---|---|---|---|---|
| Lead forward contracts | $(225) | $— | $(225) | $— |
| Foreign currency forward contracts | $1,629 | — | 1,629 | — |
| Interest Rate Swaps | $5 | — | 5 | — |
| Net investment hedges | (33,002) | — | (33,002) | — |
| Total derivatives | $(31,593) | $— | $(31,593) | $— |
The fair values of lead forward contracts are calculated using observable prices for lead as quoted on the London Metal Exchange (“LME”) and, therefore, were classified as Level 2 within the fair value hierarchy, as described in Note 1-Summary of Significant Accounting Policies to the Company's Consolidated Financial Statements included in the 2025 Annual Report.
The fair values for foreign currency forward contracts and net investment hedges are based upon current quoted market prices and are classified as Level 2 based on the nature of the underlying market in which these derivatives are traded.
The fair value of interest rate swap agreements are based on observable prices as quoted for receiving the variable one-month term SOFR and paying fixed interest rates and, therefore, were classified as Level 2.
Financial Instruments
The fair values of the Company’s cash and cash equivalents approximate carrying value due to their short maturities.
The fair value of the Company’s short-term debt and borrowings under the Fourth Amended Credit Facility (as defined in Note 12), approximate their respective carrying value, as they are variable rate debt and the terms are comparable to market terms as of the balance sheet dates and are classified as Level 2.
The fair value of the Company's 2032 Notes and 2027 Notes (each as defined in Note 12 and collectively, the "Senior Notes"), represent the trading values based upon quoted market prices and are classified as Level 2. The 2032 Notes were trading at approximately 102% and 101% of face value on June 29, 2025 and March 31, 2025, respectively. The 2027 Notes were trading at approximately 98% and 96% of the face value on June 29, 2025 and March 31, 2025, respectively.
The carrying amounts and estimated fair values of the Company’s derivatives and Senior Notes at June 29, 2025 and March 31, 2025 were as follows:
| June 29, 2025 | March 31, 2025 | |||
|---|---|---|---|---|
| CarryingAmount | Fair Value | CarryingAmount | Fair Value | |
| Financial liabilities: | ||||
| Senior Notes (2) | $600,000 | $599,550 | $600,000 | $591,420 |
| Derivatives (1) | $86,158 | $86,158 | $(31,593) | $(31,593) |
(1)Represents lead, foreign currency forward contracts, interest rate swaps, and net investment hedges (see Note 7 for asset and liability positions of the lead, foreign currency forward contracts, interest rate swaps, and net investment hedges at June 29, 2025 and March 31, 2025).
(2)The fair value amount of the Senior Notes at June 29, 2025 and March 31, 2025 represent the trading value of the instruments.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.