EnerSys
For the period ended Jul 5, 2026. Filed Aug 12, 2026.
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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.
Jul 5, 2026 · Filed Aug 12, 2026
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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 July 5, 2026 and March 31, 2026, and the basis for that measurement:
| Total Fair Value Measurement July 5, 2026 | Quoted Price inActive Marketsfor IdenticalAssets(Level 1) | SignificantOtherObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | |
|---|---|---|---|---|
| Lead forward contracts | $(2,877) | $— | $(2,877) | $— |
| Foreign currency forward contracts | 386 | — | 386 | — |
| Interest Rate Swaps | (12) | — | (12) | — |
| Net investment hedges | (68,380) | — | (68,380) | — |
| Total derivatives | $(70,883) | $— | $(70,883) | $— |
| Total Fair ValueMeasurementMarch 31, 2026 | Quoted Price inActive Marketsfor IdenticalAssets(Level 1) | SignificantOtherObservableInputs(Level 2) | SignificantUnobservableInputs(Level 3) | |
|---|---|---|---|---|
| Lead forward contracts | $(3,521) | $— | $(3,521) | $— |
| Foreign currency forward contracts | 1,173 | — | 1,173 | — |
| Interest Rate Swaps | (68) | — | (68) | — |
| Net investment hedges | (69,990) | — | (69,990) | — |
| Total derivatives | $(72,406) | $— | $(72,406) | $— |
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 2026 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 is 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 credit facilities as included in Note 11, 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 11 and collectively, the "Senior Notes"), represents the trading values based upon quoted market prices and are classified as Level 2. The 2032 Notes were trading at approximately 102% and 102% of face value on July 5, 2026 and March 31, 2026, respectively. The 2027 Notes were trading at approximately 99% and 99% of the face value on July 5, 2026 and March 31, 2026, respectively.
The carrying amounts and estimated fair values of the Company’s derivatives and Senior Notes at July 5, 2026 and March 31, 2026 were as follows:
| July 5, 2026 | March 31, 2026 | |||
|---|---|---|---|---|
| CarryingAmount | Fair Value | CarryingAmount | Fair Value | |
| Financial liabilities: | ||||
| Senior Notes (1) | $600,000 | $604,800 | $600,000 | $601,425 |
| Derivatives (2) | $70,883 | $70,883 | $72,406 | $72,406 |
(1)The fair value amount of the Senior Notes at July 5, 2026 and March 31, 2026 represent the trading value of the instruments.
(2)Represents lead, foreign currency forward contracts, interest rate swaps, and net investment hedges (see Note 6 for asset and liability positions of the lead, foreign currency forward contracts, interest rate swaps, and net investment hedges at July 5, 2026 and March 31, 2026).
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