Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | May 18, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ADVANCED DRAINAGE SYSTEMS, INC. | ||
Entity Central Index Key | 0001604028 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-36557 | ||
Entity Tax Identification Number | 51-0105665 | ||
Entity Address, Address Line One | 4640 Trueman Boulevard | ||
Entity Address, City or Town | Hilliard | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43026 | ||
City Area Code | 614 | ||
Local Phone Number | 658-0050 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 71,591,660 | ||
Entity Public Float | $ 3,115 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Title of Each Class | Common Stock, $0.01 par value per share | ||
Trading Symbol(s) | WMS | ||
Name of Each Exchange On Which Registered | NYSE | ||
Documents Incorporated by Reference | Part III of this report incorporates by reference specific portions of the Registrant’s Notice of Annual Meeting and Proxy Statement relating to the Annual Meeting of Stockholders to be held on July 2 2 , 20 2 1 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash | $ 195,009 | $ 174,233 |
Receivables (less allowance for doubtful accounts of $5,323 and $5,035, respectively) | 236,191 | 200,028 |
Inventories | 300,961 | 282,398 |
Other current assets | 10,817 | 9,552 |
Total current assets | 742,978 | 666,211 |
Property, plant and equipment, net | 504,275 | 481,380 |
Other assets: | ||
Goodwill | 599,072 | 597,819 |
Intangible assets, net | 482,016 | 555,338 |
Other assets | 85,491 | 69,140 |
Total assets | 2,413,832 | 2,369,888 |
Current liabilities: | ||
Current maturities of debt obligations | 7,000 | 7,955 |
Current maturities of finance lease obligations | 19,318 | 20,382 |
Accounts payable | 171,098 | 106,710 |
Other accrued liabilities | 116,151 | 101,116 |
Accrued income taxes | 4,703 | 2,050 |
Total current liabilities | 318,270 | 238,213 |
Long-term debt obligation (less unamortized debt issuance costs of $2,030 and $2,419, respectively) | 782,220 | 1,089,368 |
Long-term finance lease obligations | 32,964 | 44,501 |
Deferred tax liabilities | 162,185 | 175,616 |
Other liabilities | 54,767 | 37,608 |
Total liabilities | 1,350,406 | 1,585,306 |
Commitments and contingencies (see Note 15) | ||
Mezzanine equity: | ||
Redeemable convertible preferred stock: $0.01 par value; 47,070 shares authorized; 44,170 shares issued; 19,275 and 21,562 shares outstanding, respectively | 240,944 | 269,529 |
Deferred compensation — unearned ESOP shares | (11,033) | (22,432) |
Total mezzanine equity | 229,911 | 247,097 |
Stockholders’ equity: | ||
Common stock: $0.01 par value; 1,000,000 shares authorized; 72,071 and 69,810 shares issued, respectively; 71,570 and 69,319 shares outstanding, respectively | 11,578 | 11,555 |
Paid-in capital | 918,587 | 827,573 |
Common stock in treasury, at cost | (10,959) | (10,461) |
Accumulated other comprehensive loss | (24,220) | (35,325) |
Retained deficit | (75,202) | (267,619) |
Total ADS stockholders’ equity | 819,784 | 525,723 |
Noncontrolling interest in subsidiaries | 13,731 | 11,762 |
Total stockholders’ equity | 833,515 | 537,485 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 2,413,832 | $ 2,369,888 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Allowance for doubtful accounts | $ 5,323 | $ 5,035 |
Unamortized debt issuance costs | $ 2,030 | $ 2,419 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 72,071,000 | 69,810,000 |
Common stock, shares outstanding | 71,570,000 | 69,319,000 |
Redeemable Convertible Preferred Stock [Member] | ||
Mezzanine equity, par value | $ 0.01 | $ 0.01 |
Mezzanine equity, shares authorized | 47,070,000 | 47,070,000 |
Mezzanine equity, shares issued | 44,170,000 | 44,170,000 |
Mezzanine equity, shares outstanding | 19,275,000 | 21,562,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | $ 1,982,780 | $ 1,673,805 | $ 1,384,733 |
Cost of goods sold | 1,292,698 | 1,188,716 | 1,057,766 |
Cost of goods sold - ESOP special dividend compensation | 168,610 | ||
Gross profit | 690,082 | 316,479 | 326,967 |
Operating expenses: | |||
Selling, general and administrative | 267,574 | 271,338 | 186,027 |
Loss on disposal of assets and costs from exit and disposal activities | 4,275 | 5,338 | 3,647 |
Intangible amortization | 73,708 | 57,010 | 7,880 |
Income (loss) from operations | 344,525 | (95,349) | 129,413 |
Other expense: | |||
Interest expense | 35,658 | 82,711 | 18,618 |
Derivative (gains) losses and other (income) expense, net | (3,404) | 1,554 | (815) |
Income (loss) before income taxes | 312,271 | (179,614) | 111,610 |
Income tax expense | 86,382 | 14,092 | 30,049 |
Equity in net (income) loss of unconsolidated affiliates | (201) | (1,909) | 95 |
Net income (loss) | 226,090 | (191,797) | 81,466 |
Less: net income attributable to noncontrolling interest | 1,860 | 1,377 | 3,694 |
Net income (loss) attributable to ADS | $ 224,230 | $ (193,174) | $ 77,772 |
Weighted average common shares outstanding: | |||
Basic | 70,155 | 63,820 | 57,025 |
Diluted | 71,566 | 63,820 | 57,611 |
Net income (loss) per share available to common stockholders: | |||
Basic | $ 2.64 | $ (3.21) | $ 1.23 |
Diluted | $ 2.59 | $ (3.21) | $ 1.22 |
ESOP special dividend compensation [Member] | |||
Operating expenses: | |||
Selling, general and administrative | $ 78,142 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ 226,090 | $ (191,797) | $ 81,466 |
Currency translation gain (loss) | 12,684 | (12,324) | (5,749) |
Comprehensive income (loss) | 238,774 | (204,121) | 75,717 |
Less: other comprehensive gain (loss) attributable to noncontrolling interest, net of tax | 1,579 | (2,866) | (1,129) |
Less: net income attributable to noncontrolling interest | 1,860 | 1,377 | 3,694 |
Total comprehensive income (loss) attributable to ADS | $ 235,335 | $ (202,632) | $ 73,152 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 226,090 | $ (191,797) | $ 81,466 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 145,586 | 124,940 | 71,900 |
Deferred income taxes | (13,477) | (2,924) | 12,813 |
Loss on disposal of assets and costs from exit and disposal activities | 4,275 | 5,338 | 3,647 |
ESOP and stock-based compensation | 65,434 | 32,395 | 21,828 |
ESOP special dividend compensation | 246,752 | ||
Amortization of deferred financing charges | 382 | 34,476 | 735 |
Inventory step up related to Infiltrator acquisition | 7,880 | ||
Fair market value adjustments to derivatives | (3,355) | 3,128 | 2,346 |
Equity in net (income) loss of unconsolidated affiliates | (201) | (1,909) | 95 |
Other operating activities | 6,770 | (6,005) | (5,219) |
Changes in working capital: | |||
Receivables | (34,760) | 5,170 | (17,953) |
Inventories | (14,561) | 19,086 | (2,034) |
Prepaid expenses and other current assets | (1,208) | (1,929) | (1,004) |
Accounts payable, accrued expenses and other liabilities | 71,241 | 31,588 | (16,942) |
Net cash provided by operating activities | 452,216 | 306,189 | 151,678 |
Cash Flows from Investing Activities | |||
Capital expenditures | (78,757) | (67,677) | (43,412) |
Acquisition of Infiltrator, net of cash acquired | (1,089,322) | ||
Other investing activities | 883 | 6,529 | 868 |
Net cash used in investing activities | (77,874) | (1,150,470) | (42,544) |
Cash Flows from Financing Activities | |||
Proceeds from Term Loan Facility | 1,300,000 | ||
Payments on Term Loan Facility | (1,300,000) | ||
Proceeds from syndication of Term Loan Facility | 700,000 | ||
Payments on syndicated Term Loan Facility | (207,000) | (51,750) | |
Proceeds from Senior Notes | 350,000 | ||
Proceeds from Credit Agreement | 277,900 | ||
Payments on Credit Agreement | (100,000) | (177,900) | |
Debt issuance costs | (34,606) | ||
Payments on Prudential Senior Notes | (100,000) | (25,000) | |
Payments of notes, mortgages, and other debt | (940) | ||
Payments on finance lease obligations | (21,491) | (27,119) | (24,284) |
Proceeds from common stock offering, net of offering costs | 293,648 | ||
Acquisition of noncontrolling interest in BaySaver | (8,821) | ||
Cash dividends paid | (32,155) | (92,127) | (26,148) |
Proceeds from option exercises | 7,553 | 8,163 | 5,908 |
Other financing activities | (1,490) | (237) | (1,270) |
Net cash (used in) provided by financing activities | (354,583) | 1,011,572 | (117,655) |
Effect of exchange rate changes on cash | 1,017 | (1,949) | (175) |
Net change in cash | 20,776 | 165,342 | (8,696) |
Cash at beginning of year | 174,233 | 8,891 | 17,587 |
Cash at end of year | $ 195,009 | 174,233 | 8,891 |
PNC Credit Agreement [Member] | |||
Cash Flows from Financing Activities | |||
Proceeds from Credit Agreement | 253,900 | 405,700 | |
Payments on Credit Agreement | $ (388,300) | $ (442,800) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Paid-In Capital [Member] | Common Stock in Treasury [Member] | Accumulated Other Comprehensive Loss [Member] | Retained (Deficit) Earnings [Member] | Retained (Deficit) Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Total ADS Stockholders' Equity [Member] | Total ADS Stockholders' Equity [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Non-controlling Interest in Subsidiaries [Member] |
Beginning Balance, Value at Mar. 31, 2018 | $ 324,259 | $ 11,426 | $ 364,908 | $ (8,277) | $ (21,247) | $ (39,214) | $ 307,596 | $ 16,663 | |||
Beginning Balance, Shares at Mar. 31, 2018 | 56,889 | 413 | |||||||||
Net (loss) income | 80,634 | 77,772 | 77,772 | 2,862 | |||||||
Other comprehensive income (loss) | (5,749) | (4,620) | (4,620) | (1,129) | |||||||
Redeemable convertible preferred stock dividends | (1,913) | (1,913) | (1,913) | ||||||||
Common stock dividend | (18,336) | (18,336) | (18,336) | ||||||||
Dividend paid to noncontrolling interest holder | (4,410) | (4,410) | |||||||||
Allocation of ESOP shares to participants for Compensation | 5,712 | 5,712 | 5,712 | ||||||||
Allocation of ESOP shares to participants for Dividend | (134) | (134) | (134) | ||||||||
Exercise of common stock options | 4,540 | $ 4 | 5,908 | $ (1,372) | 4,540 | ||||||
Exercise of common stock options, Shares | 420 | 52 | |||||||||
Restricted stock awards | (213) | $ 1 | $ (214) | (213) | |||||||
Restricted stock awards, Shares | 127 | 9 | |||||||||
Stock-based compensation | 6,532 | 6,532 | 6,532 | ||||||||
ESOP distributions in common stock | 8,609 | $ 5 | 8,604 | 8,609 | |||||||
ESOP distributions in common stock, Shares | 528 | ||||||||||
Acquisition of noncontrolling interest in BaySaver | (1,218) | (625) | (593) | (1,218) | |||||||
Ending Balance, Value at Mar. 31, 2019 | 398,313 | $ 11,436 | 391,039 | $ (9,863) | (25,867) | 17,582 | 384,327 | 13,986 | |||
Ending Balance, Shares at Mar. 31, 2019 | 57,964 | 474 | |||||||||
Net (loss) income | (191,797) | (193,174) | (193,174) | 1,377 | |||||||
Other comprehensive income (loss) | (12,324) | (9,458) | (9,458) | (2,866) | |||||||
Redeemable convertible preferred stock dividends | (10,847) | (10,847) | (10,847) | ||||||||
Common stock dividend | (80,821) | (80,821) | (80,821) | ||||||||
Dividend paid to noncontrolling interest holder | (735) | (735) | |||||||||
Allocation of ESOP shares to participants for Compensation | 8,164 | 8,164 | 8,164 | ||||||||
Allocation of ESOP shares to participants for Dividend | (359) | (359) | (359) | ||||||||
Special Dividend | 101,189 | 101,189 | 101,189 | ||||||||
Exercise of common stock options | 7,962 | $ 6 | 8,163 | $ (207) | 7,962 | ||||||
Exercise of common stock options, Shares | 571 | 7 | |||||||||
Restricted stock awards | (390) | $ 1 | $ (391) | (390) | |||||||
Restricted stock awards, Shares | 118 | 10 | |||||||||
Stock-based compensation | 12,269 | 12,269 | 12,269 | ||||||||
ESOP distributions in common stock | 13,109 | $ 8 | 13,101 | 13,109 | |||||||
ESOP distributions in common stock, Shares | 807 | ||||||||||
Common Stock Offering | 293,648 | $ 104 | 293,544 | 293,648 | |||||||
Common Stock Offering, Shares | 10,350 | ||||||||||
Other | 104 | 104 | 104 | ||||||||
Ending Balance, Value at Mar. 31, 2020 | $ 537,485 | $ (779) | $ 11,555 | 827,573 | $ (10,461) | (35,325) | (267,619) | $ (779) | 525,723 | $ (779) | 11,762 |
Ending Balance, Shares at Mar. 31, 2020 | 69,810 | 491 | |||||||||
Accounting Standards [Update Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||
Net (loss) income | $ 226,090 | 224,230 | 224,230 | 1,860 | |||||||
Other comprehensive income (loss) | 12,684 | 11,105 | 11,105 | 1,579 | |||||||
Redeemable convertible preferred stock dividends | (5,242) | (5,242) | (5,242) | ||||||||
Common stock dividend | (25,443) | (25,443) | (25,443) | ||||||||
Dividend paid to noncontrolling interest holder | (1,470) | (1,470) | |||||||||
Allocation of ESOP shares to participants for Compensation | 33,931 | 33,931 | 33,931 | ||||||||
Allocation of ESOP shares to participants for Dividend | (349) | (349) | (349) | ||||||||
Exercise of common stock options | 7,557 | $ 4 | 7,553 | 7,557 | |||||||
Exercise of common stock options, Shares | 368 | ||||||||||
Restricted stock awards | (497) | $ 1 | $ (498) | (497) | |||||||
Restricted stock awards, Shares | 134 | 10 | |||||||||
Stock-based compensation | 20,453 | 20,453 | 20,453 | ||||||||
ESOP distributions in common stock | 28,585 | $ 18 | 28,567 | 28,585 | |||||||
ESOP distributions in common stock, Shares | 1,759 | ||||||||||
Other | 510 | 510 | 510 | ||||||||
Ending Balance, Value at Mar. 31, 2021 | $ 833,515 | $ 11,578 | $ 918,587 | $ (10,959) | $ (24,220) | $ (75,202) | $ 819,784 | $ 13,731 | |||
Ending Balance, Shares at Mar. 31, 2021 | 72,071 | 501 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Common stock dividend per share | $ 0.36 | $ 1.36 | $ 0.32 |
Consolidated Statements of Mezz
Consolidated Statements of Mezzanine Equity - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Convertible Preferred Stock [Member] | Deferred Compensation - Unearned ESOP Shares [Member] | Total Mezzanine Equity [Member] | Redeemable Non-Controlling Interest in Subsidiaries [Member] |
Beginning Balance, Value at Mar. 31, 2018 | $ 291,247 | $ (190,168) | $ 109,550 | $ 8,471 | |
Beginning Balance, Shares at Mar. 31, 2018 | 23,300 | 15,219 | |||
Net (loss) income | 832 | 832 | |||
Dividend paid to noncontrolling interest holder | $ (4,410) | (1,075) | (1,075) | ||
Allocation of ESOP shares to participants for Compensation | 5,712 | $ 9,584 | 9,584 | ||
Allocation of ESOP shares to participants for Compensation, Shares | (767) | ||||
Allocation of ESOP shares to participants for Dividend | 134 | $ 268 | 268 | ||
ESOP distributions in common stock | $ (8,609) | (8,609) | |||
ESOP distributions in common stock, Shares | (689) | ||||
Acquisition of noncontrolling interest in BaySaver | (1,218) | (8,228) | $ (8,228) | ||
Ending Balance, Value at Mar. 31, 2019 | $ 282,638 | $ (180,316) | 102,322 | ||
Ending Balance, Shares at Mar. 31, 2019 | 22,611 | 14,452 | |||
Dividend paid to noncontrolling interest holder | (735) | ||||
Allocation of ESOP shares to participants for Compensation | 8,164 | $ 11,962 | 11,962 | ||
Allocation of ESOP shares to participants for Compensation, Shares | (957) | ||||
Allocation of ESOP shares to participants for Dividend | 359 | $ 359 | 359 | ||
Special Dividend | $ 145,563 | 145,563 | |||
Special Dividend, shares | (11,645) | ||||
ESOP distributions in common stock | $ (13,109) | (13,109) | |||
ESOP distributions in common stock, Shares | (1,049) | ||||
Ending Balance, Value at Mar. 31, 2020 | 247,097 | $ 269,529 | $ (22,432) | 247,097 | |
Ending Balance, Shares at Mar. 31, 2020 | 21,562 | 1,850 | |||
Dividend paid to noncontrolling interest holder | (1,470) | ||||
Allocation of ESOP shares to participants for Compensation | 33,931 | $ 11,050 | 11,050 | ||
Allocation of ESOP shares to participants for Compensation, Shares | (884) | ||||
Allocation of ESOP shares to participants for Dividend | 349 | $ 349 | 349 | ||
ESOP distributions in common stock | $ (28,585) | (28,585) | |||
ESOP distributions in common stock, Shares | (2,287) | ||||
Ending Balance, Value at Mar. 31, 2021 | $ 229,911 | $ 240,944 | $ (11,033) | $ 229,911 | |
Ending Balance, Shares at Mar. 31, 2021 | 19,275 | 966 |
Background and Summary of Signi
Background and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Background and Summary of Significant Accounting Policies | 1. BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business - Advanced Drainage Systems, Inc. and subsidiaries (collectively referred to as “ADS” and the “Company”), incorporated in Delaware, designs, manufactures and markets high performance thermoplastic corrugated pipe and related water management products, primarily in North and South America and Europe. ADS’s broad product line includes corrugated high-density polyethylene (or “HDPE”) pipe, polypropylene (or “PP”) pipe and related water management products. The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, references to “year” pertain to the fiscal year. For example, 2021 refers to fiscal 2021, which is the period from April 1, 2020 to March 31, 2021. On July 31, 2019, the Company completed the acquisition of Infiltrator Water Technologies Ultimate Holdings, Inc. (“ The Company is managed and reports results of operations in three reportable segments: Pipe, Infiltrator and International. The Company also reports the results of its Allied Products and all other business segments as Allied Products & Other. Principles of Consolidation - The consolidated financial statements include the Company, its wholly-owned subsidiaries, its majority owned subsidiaries, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Consolidated Balance Sheets and the related equity in earnings from these investments are included in Equity in net (income) loss of unconsolidated affiliates in the Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the fiscal 2021 presentation. Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingencies and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the allowance for doubtful accounts, valuation of inventory, useful lives of property, plant and equipment and amortizing intangible assets, determination of the proper accounting for leases, valuation of equity method investments, goodwill, intangible assets and other long-lived assets for impairment, accounting for stock-based compensation and the ESOP, valuation of the redeemable convertible preferred stock, determination of allowances for sales returns, rebates and discounts, determination of the valuation allowance, if any, on deferred tax assets, and reserves for uncertain tax positions. Management’s estimates and assumptions are evaluated on an ongoing basis and are based on historical experience, current conditions and available information. Management believes the accounting estimates are appropriate and reasonably determined; however, due to the inherent uncertainties in making these estimates, actual results could differ from those estimates. Receivables and Allowance for Doubtful Accounts - Receivables include trade receivables, net of an allowance for doubtful accounts, and other miscellaneous receivables. Receivables at March 31, 2021 and 2020 are as follows: (Amounts in thousands) 2021 2020 Trade receivables, net $ 233,753 $ 195,968 Other miscellaneous receivables 2,438 4,060 Receivables, net $ 236,191 $ 200,028 The Company extends credit to customers based on an evaluation of their financial condition and collateral is generally not required. The Company records an allowance for credit losses at the time accounts receivable are recorded based on the Company’s historical write-off activity, an evaluation of the current economic environment and the Company’s expectations of future economic conditions. Inventories - Inventories are stated at the lower of cost or net realizable value. The Company’s inventories are maintained on the first-in, first-out (“FIFO”) method. Costs include the cost of acquiring materials, including in-bound freight from vendors and freight incurred for the transportation of raw materials, tooling or finished goods between the Company’s manufacturing plants and its distribution centers, direct and indirect labor, factory overhead and certain corporate overhead costs related to the production of inventory. The portion of fixed manufacturing overhead that relates to capacity in excess of normal capacity is expensed in the period in which it is incurred and is not included in inventory. Net realizable value of inventory is established with consideration given to deterioration, obsolescence, and other factors. The Company periodically evaluates the carrying value of inventories and adjustments are made whenever necessary to reduce the carrying value to net realizable value. Property, Plant and Equipment and Depreciation Method - Property, plant and equipment are recorded at cost less accumulated depreciation, with the exception of assets acquired through acquisitions, which are initially recorded at fair value. Equipment acquired under finance lease is recorded at the present value of the future minimum lease payments. Depreciation is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the related assets or the lease term, if shorter, as follows: Years Buildings and leasehold improvements 20 to 45 or the lease term if shorter Machinery and production equipment 3 to 18 Transportation equipment 3 to 12 Costs of additions and major improvements are capitalized, whereas maintenance and repairs that do not improve or extend the life of the asset are charged to expense as incurred. When assets are retired or disposed, the cost and related accumulated depreciation are removed from the asset accounts and any resulting gain or loss is reflected in Loss on disposal of assets and costs from exit and disposal activities in the Consolidated Statements of Operations. Construction in progress is also recorded at cost and includes capitalized interest, capitalized payroll costs and related costs such as taxes and other fringe benefits. Goodwill - The Company records acquisitions resulting in the consolidation of an enterprise using the acquisition method of accounting. Under this method, the Company records the assets acquired, including intangible assets that can be identified, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the identifiable assets acquired and liabilities assumed is recorded as goodwill. Goodwill is reviewed annually for impairment as of March 31 or whenever events or changes in circumstances indicate the carrying value may be greater than fair value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired and the Company is not required to perform further testing. If the carrying value of a reporting unit’s goodwill exceeds its fair value, then the Company would record an impairment loss equal to the difference. With respect to this testing, a reporting unit is a component of the Company for which discrete financial information is available and regularly reviewed by management. The fair value of goodwill is determined by considering both the income and market approach. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market compar ison . The fair value estimates are based on assumptions management believes to be reasonable but are inherently uncertain. For the fiscal year ended March 31, 2021, the Company completed a quantitative assessment of the Infiltrator reporting unit and determined no impairment charge was required. For the fiscal year ended March 31, 2020, the Company completed a quantitative fair value assessment for all reporting units and determined no impairment charge was required. For all other fiscal years presented , ADS completed a quantitative fair value assessment of the Canada reporting unit and determined no impairment charge was required. GAAP allows entities testing goodwill for impairment the option of performing a qualitative assessment before calculating the fair value of a reporting unit for the goodwill impairment test. If the qualitative assessment is performed, an entity is no longer required to calculate the fair value of a reporting unit unless the entity determines that, based on that assessment, it is not more likely than not that its fair value is less than its carrying amount. ADS applied the qualitative assessment to all other reporting units for the annual impairment tests performed as of March 31, 2021 and 2019. The qualitative assessments indicated that no impairment charges were required for goodwill. Intangible Assets Intangible Assets — Definite-Lived - Definite-lived intangible assets are amortized using the straight-line method or an accelerated method over their estimated useful lives and are tested for recoverability whenever events or changes in circumstances indicate that carrying amounts of the asset group may not be recoverable. Asset groups are established primarily by determining the lowest level of cash flows available. If the estimated undiscounted future cash flows are less than the carrying amounts of such assets, an impairment loss is recognized to the extent the fair value of the asset less any costs of disposition is less than the carrying amount of the asset. Determining the fair value of these assets is judgmental in nature and involves the use of significant estimates and assumptions. Intangible Assets — Indefinite-Lived - Indefinite-lived intangible assets are tested for impairment annually as of March 31 or whenever events or changes in circumstances indicate the carrying value may be greater than fair value. Determining the fair value of these assets is judgmental in nature and involves the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions it believes to be reasonable, but that are inherently uncertain. To estimate the fair value of these indefinite-lived intangible assets, the Company uses an income approach, which utilizes a market derived rate of return to discount anticipated performance. An impairment loss is recognized when the estimated fair value of the intangible asset is less than the carrying value. ADS completed a quantitative fair value measurement of indefinite-lived trademarks as of March 31, 2020. The test indicated that the fair value of the indefinite-lived trademarks substantially exceeded the carrying value, indicating that no impairment existed. GAAP allows entities testing indefinite-lived intangible assets for impairment the option of performing a qualitative assessment before calculating the fair value of the indefinite-lived intangible assets for the impairment test. If the qualitative assessment is performed, an entity is no longer required to calculate the fair value of an indefinite-lived intangible assets unless the entity determines that, based on that assessment, it is more likely than not that its fair value is less than its carrying amount. ADS applied the qualitative assessment to specific trademarks for the annual impairment tests performed as of March 31, 2021 and 2019. For the qualitative test, ADS assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting unit as compared to its latest quantitative fair value measurement. The results of this assessment indicated that it is not more likely than not that the trademarks fair value is less than the reporting unit carrying value. The Company did not incur any impairment charges for Intangible assets. Other Assets - Other assets include operating lease right of use assets, investments in unconsolidated affiliates accounted for under the equity method, capitalized software development costs, including cloud computing costs, deposits, central parts, and other miscellaneous assets. See “Note 6. Leases” for further information on the operating lease right of use assets. The Company capitalizes development costs for internal use software. Capitalization of software development costs begins in the application development stage and ends when the asset is placed into service. The Company amortizes such costs using the straight-line method over estimated useful lives of 2 to 10 years, which is included in Selling, general and administrative expenses or Cost of goods sold within the Consolidated Statements of Operations depending on the nature of the asset and its intended use. Central parts represent spare production equipment items which are used to replace worn or broken production equipment parts and help reduce the risk of prolonged equipment outages. The cost of central parts is amortized on a straight-line basis over estimated useful lives of 3 to 10 years. The Company evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable and recognizes an impairment loss when a decline in value below carrying value is determined to be other-than-temporary. Under these circumstances, the Company would adjust the investment down to its estimated fair value, which then becomes its new carrying value. The impairment charge, if any, is included in Equity in net (income) loss of unconsolidated affiliates in the Consolidated Statements of Operations. Other assets as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Right of use assets - Operating leases $ 31,237 $ 24,875 Investments in unconsolidated affiliates 11,861 9,250 Capitalized software development costs, net 11,170 11,045 Deposits 4,649 3,842 Central parts 7,015 6,745 Other 19,559 13,383 Total other assets $ 85,491 $ 69,140 The following table sets forth amortization expense related to Other assets in each of the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Capitalized software development costs $ 3,578 $ 3,116 $ 2,659 Central parts 186 87 73 Other 80 85 1,419 Leases - The Company determines whether an arrangement contains a lease at inception by determining if the contract conveys the right to control the use of identified plant, property, and equipment for a period of time in exchange for consideration and other facts and circumstances as defined by ASC 842. For each lease which has an accounting lease term of greater than 12 months, the Company records the right-of-use asset and lease liability on the balance sheet. The accounting lease term includes cancellable and renewal periods which are reasonably assured. The lease liability is measured utilizing the incremental borrowing rate unless the Company can specifically determine the rate implicit in the lease. Leases are evaluated for appropriate classification as operating or financing at lease inception. For leases classified as finance leases at lease inception, the Company records a finance lease asset and lease financing obligation equal to the present value of the minimum lease payments. The finance lease right of use asset is recorded in Property, plant and equipment, net and amortized to its expected residual value at the end of the lease term using the straight-line method, and the lease financing obligation is amortized using the effective interest method over the lease term with the rental payments being allocated to principal and interest. For leases classified as operating leases, the Company records the operating lease right of use asset in Other assets and operating lease obligation in Other accrued liabilities and Other liabilities. Operating lease rent expense over the useful life using the straight-line method. Foreign Currency Translation - Assets and liabilities of foreign subsidiaries with a functional currency other than the U.S. dollar are translated into U.S. dollars at the current rate of exchange on the last day of the reporting period. Revenues and expenses are translated at a monthly average exchange rate and equity transactions are translated using either the actual exchange rate on the day of the transaction or a monthly average historical exchange rate. The South American Joint Venture operates within Argentina, which on July 1, 2018, was identified for high inflationary accounting. The Company has determined the effect of a change in the exchange rate under high inflationary accounting does not have a material effect on the Company’s results in any annual period. For the fiscal years ended March 31, 2021 and 2020, the Company’s Accumulated other comprehensive loss (“AOCL”) consisted of foreign currency translation gains and losses. Net Sales - The Company generates revenue by selling pipe and related water management products primarily to distributors, retailers, buying groups and co-operative buying groups. Products are shipped predominately by the Company’s internal fleet, and the Company does not provide any additional revenue generating services after product delivery. Payment terms and conditions vary by contract. Revenue is recognized at the point in-time obligations under the terms of a contract with a customer are satisfied, which generally occurs upon the transfer of control of the promised goods. In substantially all of the Company’s contracts with customers, control is transferred to the customer upon delivery. The Company recognizes revenue in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Shipping Costs - The Company incurs shipping costs to deliver products to customers using an in-house fleet or common carrier. Typically shipping costs are prepaid and included in the product price; however, in some instances, the Company bills shipping costs to customers. Shipping costs are also incurred to physically move raw materials, tooling and products between manufacturing and distribution facilities. Shipping costs to deliver products to customers for the fiscal years ended March 31, 2021, 2020, and 2019 were $174.2 million, $149.0 million, and $131.3 million, respectively, and are included in Cost of goods sold. Shipping costs billed to customers were $7.3 million, $7.9 million, and $7.7 million during the fiscal years ended March 31, 2021, 2020, and 2019, respectively, and are included in Net sales. Stock-Based Compensation - See “Note 17. Stock-Based Compensation” for information about the stock-based compensation award programs and related accounting policies. Advertising - The Company expenses advertising costs as incurred. Advertising costs are recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. The total advertising costs were $4.1 million, $4.9 million, and $3.8 million for the fiscal years ended March 31, 2021, 2020, and 2019, respectively Self-Insurance - The Company is self-insured for short-term disability and medical coverage it provides for substantially all eligible employees. The Company is self-insured for medical claims up to the individual and aggregate stop-loss coverage limits. The Company accrues for claims incurred but not reported based on an estimate of future claims related to events that occurred prior to the fiscal year end if it has not met the aggregate stop-loss coverage limit. Amounts expensed totaled $42.4 million, $50.3 million, and $42.4 million for the fiscal years ended March 31, 2021, 2020, and 2019, respectively, of which employees contributed $8.5 million, $7.9 million, and $6.7 million, respectively ADS is also self-insured for various other general insurance programs to the extent of the applicable deductible limits on the Company’s insurance coverage. These programs include primarily automobile, general liability, cybersecurity and employment practices coverage with a deductible of $0.5 million per occurrence for general liability and $0.8 million per occurrence for automobile or claim incurred. Amounts expensed during the period, including an estimate for claims incurred but not reported at year end, were $1.7 million, $2.5 million, and $2.3 million, for the years ended March 31, 2021, 2020, and 2019, respectively. ADS is also self-insured for workers’ compensation insurance with stop-loss coverage for claims that exceed $0.3 million per incident up to the respective state statutory limits. Amounts expensed, including an estimate for claims incurred but not reported, were $3.0 million, $3.0 million, and $2.8 million for the fiscal years ended March 31, 2021, 2020, and 2019, respectively. Income Taxes - Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized and represent the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. They are measured using the enacted tax rates expected to apply to taxable income in the years in which the related temporary differences are expected to be recovered or settled. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities. Penalties and interest recorded on income taxes payable are recorded as part of Income tax expense. The Company determines whether an uncertain tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation process, based upon the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. Fair Values - The fair value framework requires the categorization of assets and liabilities into three levels based upon assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. ADS’s policy for determining when transfers between levels have occurred is to use the actual date of the event or change in circumstances that caused the transfer. Concentrations of Risk - The Company has a large, active customer base of approximately twenty thousand customers with two customers, Ferguson Enterprises and Core and Main, each representing more than 10% of annual net sales. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of Receivables. The Company provides its products to customers based on an evaluation of the customers’ financial condition, generally without requiring collateral. Exposure to losses on Receivables is principally dependent on each customer’s financial condition. The Company performs ongoing credit evaluations of its customers. The Company monitors the exposure for credit losses and maintains allowances for anticipated losses. Concentrations of credit risk with respect to Receivables are limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographies. One customer, Ferguson Enterprises, accounted for approximately % and % of Receivables at March 31, 2021 and 2020 , respectively . Derivatives - The Company recognizes derivative instruments as either assets or liabilities and measure those instruments at fair value. ADS uses interest rate swaps, commodity options in the form of collars and swaps, and foreign currency forward contracts to manage various exposures to interest rate, commodity price, and exchange rate fluctuations. These instruments do not qualify for hedge accounting treatment. Interest rate swap gains and losses resulting from the difference between the spot rate and applicable base rate is recorded in the Consolidated Statements of Operations in Interest expense. For commodity options in the form of collars and swaps, and foreign currency forward contracts, gains and losses from contract settlements and changes in fair value of the derivative instruments are recognized in Derivative (gains) losses and other (income) expense, net in the Consolidated Statements of Operations. The Company’s policy is to present all derivative balances on a gross basis. The Company also has forward purchase agreements in place with certain resin suppliers for virgin polyethylene resin. The agreements specify a fixed amount of virgin resin material to be purchased at a fixed price for a given period of time in quantities the Company will use in the normal course of business, and therefore, qualify as normal purchase contracts. There were no agreements outstanding as of March 31, 2021. The cost of such resin is recognized in Cost of goods sold in the Consolidated Statements of Operations. Recent Accounting Pronouncements Recently Adopted Accounting Guidance Measurement of Credit Losses - In June 2016, the Finance Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) which provides amended guidance on the measurement of credit losses on financial instruments, including trade receivables. This standard requires the use of an impairment model referred to as the current expected credit loss model. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, and early adoption is permitted for fiscal years beginning after December 15, 2018. The Company adopted this standard effective April 1, 2020. The Company’s adoption of the standard did not have a material impact on the Company’s Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted Reference Rate Reform - In March 2020, the FASB issued an ASU that provides optional expedients and exceptions related to financial reporting impacts related to the expected market transition from LIBOR to another reference rates. The amendments are effective on March 12, 2020 and an entity may elect to adopt prospectively through December 31, 2022. The Company is currently evaluating the impact of this standard on the Consolidated Financial Statements. Income Taxes – In December 2019, the FASB issued an ASU to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, and improve the comparability of financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and early adoption is permitted. The Company does not expect the adoption of this standard to have an impact on the Consolidated Financial Statements. Except for the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the fiscal 2020 Form 10-K that have significance, or potential significance, to the Consolidated Financial Statements. |
Loss on Disposal of Assets and
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | 12 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | 2. LOSS ON DISPOSAL OF ASSETS AND COSTS FROM EXIT AND DISPOSAL ACTIVITIES In fiscal 2021, the Company undertook certain restructuring activities (the “2021 Restructuring Plan”), which followed the Company’s initiation of a restructuring plan in fiscal 2018 (the “2018 Restructuring Plan”). Actions taken under the 2021 Restructuring Plan included reducing headcount and eliminating nonessential costs designed to improve the Company’s cost structure. The Company does not currently have an estimate of additional costs or an expected end date for the restructuring actions. The following table summarizes the activity included in Loss on disposal of assets and costs from exit and disposal activities recorded during the periods presented. (Amounts in thousands) 2021 2020 2019 Accelerated depreciation $ — $ — $ 430 Plant severance — — 131 Headcount reduction 1,879 — 306 Product optimization — — 283 Other restructuring activities — — 475 Total 2021 and 2018 Restructuring Plan activities $ 1,879 $ — $ 1,625 Acquisition related severance and other costs — 2,557 $ — Loss on other disposals and partial disposals of property, plant and equipment 2,396 2,781 2,022 Total loss on disposal of assets and costs from exit and disposal activities $ 4,275 $ 5,338 $ 3,647 The restructuring activities are classified as operating expenses and not allocated to a segment. A reconciliation of the beginning and ending amounts of restructuring liability related to the 2021 and 2018 Restructuring Plan for the fiscal years ended March 31, 2021 and 2020 (Amounts in thousands) 2021 2020 Balance at beginning of year $ 574 $ 1,696 Expenses 1,879 — Non-cash expenses — — Payments (1,838 ) (1,122 ) Balance at end of year $ 615 $ 574 As of March 31, 2021, the Company had $0.6 million of short-term severance liability related to the restructuring activities recorded in Other accrued liabilities in the Consolidated Balance Sheet. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. REVENUE RECOGNITION On April 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers The Company generates revenue by selling pipe and related water management products primarily to distributors, retailers, buying groups and co-operative buying groups. Products are shipped predominately by the Company’s internal fleet, and the Company does not provide any additional revenue generating services after product delivery. Payment terms and conditions vary by contract. Revenue is recognized at the point in-time obligations under the terms of a contract with a customer are satisfied, which generally occurs upon the transfer of control of the promised goods. In substantially all of the Company’s contracts with customers, control is transferred to the customer upon delivery. The Company recognizes revenue in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue is presented in the Consolidated Statements of Operations net of allowances for returns, rebates, discounts, and taxes collected concurrently with revenue-producing activities. The Company disaggregates net sales by Domestic, International and Infiltrator and further disaggregates Domestic and International by product type, consistent with its reportable segment disclosure. This disaggregation level best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to “Note 21. Business Segments Information” for the Company’s disaggregation of Net sales by reportable segment. Significant Judgments - The Company’s performance obligation under contracts with customers is to sell and deliver pipe and related water management products. The Company’s contracts with customers may contain multiple performance obligations by promising to deliver multiple products to the customer. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company’s products are generally sold with a right of return, and the Company may provide credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Variable consideration is estimated at contract inception and updated at the end of each reporting period as additional information becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Contract Balances - The Company recognizes a contract asset representing the Company’s right to recover products upon the receipt of returned products and a contract liability for the customer refund. The adoption of this standard resulted in the Company recording a contract asset for estimated inventory returns. March 31, 2021 March 31, 2020 (In thousands) Contract asset - product returns $ 694 $ 594 Refund liability 1,801 1,458 Practical Expedients and Exemptions - The Company expenses incremental costs to obtain a contract (e.g. sales commissions) when incurred as the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses on the Consolidated Statements of Operations. The Company elected the accounting policy election permitted by ASC 606 to account for shipping and handling costs as activities to fulfill the promise to transfer the goods when these activities are performed after a customer obtains control of the goods. The Company elected the accounting policy to exclude from the transaction price all sales taxes that are assessed by a governmental authority and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer, for example, sales, use, value added, and some excise taxes. Further, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 4 . ACQUISITIONS Fiscal 2020 Acquisition of Infiltrator On July 31, 2019 (the “Closing Date”), the Company completed its Acquisition of Infiltrator pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) dated July 31, 2019. Infiltrator manufactures and sells wastewater systems for homes and provides drainage chambers for septic and storm water management. The total fair value of consideration transferred was $1,147.2 million. The Merger Agreement was funded through the Bridge Loan Facility as further described in “Note 13. Debt”. The results of operations of Infiltrator are included in the Consolidated Statements of Operations after July 31, 2019. The following table summarizes the consideration transferred and the purchase price allocation of the assets acquired and liabilities assumed. The Company finalized the valuation of the assets acquired and liabilities assumed during the second quarter of fiscal 2021. (Amounts in thousands) Cash $ 57,375 Total current assets, excluding cash 75,847 Property, plant and equipment 92,285 Goodwill 495,841 Intangible assets, net 575,000 Other assets 17,275 Total current liabilities (22,038 ) Deferred tax liabilities (132,385 ) Other liabilities (11,970 ) Total fair value of consideration transferred $ 1,147,230 The fair value of consideration transferred includes $6.0 million of Infiltrator payable to the Company and $6.6 million of Infiltrator receivable due from the Company. The goodwill of $495.8 million represents the excess of consideration transferred over the fair value of assets acquired and liabilities assumed and is attributable to expected revenue synergies, as well as operating efficiencies and cost savings. The goodwill is not deductible for tax purposes and is assigned to the Infiltrator segment. Of the $132.4 million of purchase price allocated to deferred tax liabilities, $82.3 million related to the step up of GAAP basis for fair market valuations, while the remaining $50.1 million were acquired deferred tax liabilities. Of the total $82.3 million, $80.2 million was attributed to intangible assets. See “Note 18. Income Taxes” for additional information. The purchase price excludes transaction costs. During the fiscal year ended March 31, 2020, the Company incurred $22.9 million of transaction costs related to the Acquisition such as legal, accounting, valuation and other professional services. For tax purposes, $7.1 million of transaction costs are not deductible. The Company did not incur any transaction costs during the fiscal year end March 31, 2021. These costs are included in selling, general and administrative expenses in the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss). The identifiable intangible assets recorded in connection with the closing of the Acquisition are based on valuations including customer relationships, patents and developed technology, and tradename and trademarks totaling $575.0 million. Customer relationships are amortized using an accelerated method over an estimated useful life of 20 years. Patents and developed technology and tradename and trademarks are on a straight-line basis over the respective useful lives of 10 and 20 years. (Amounts in thousands) Fair value Estimated useful lives Customer relationships $ 360,000 20 years Patents and developed technology 150,000 10 years Tradename and trademarks 65,000 20 years Total identifiable intangible assets $ 575,000 The net sales to external customers of Infiltrator since the acquisition are included in the Consolidated Statements of Operations for the fiscal year ended March 31, 2020 was $169.3 million. The income before taxes of Infiltrator since the acquisition are included in the Consolidated Statements of Operations for the fiscal year ended March 31, 2020 was $8.2 million. The unaudited pro forma information for the fiscal years ended March 31, 2020 and 2019 presented below includes the effects of the Acquisition as if it had been consummated as of April 1, 2018, with adjustments to give effect to pro forma events that are directly attributable to the Acquisition. Adjustments include those related to the amortization of acquired intangible assets, increases in interest expense due to additional borrowings incurred to finance the Acquisition, transaction costs, the elimination of transactions between the Company and Infiltrator and the estimated tax impacts thereof. The unaudited pro forma information does not reflect any operating efficiency or potential cost savings that could result from the consolidation of Infiltrator. Accordingly, the unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the actual results of the combined company if the Acquisition had occurred at the beginning of the period presented, nor is it indicative of the future results of operations. (Amounts in thousands) 2020 2019 Net sales $ 1,760,208 $ 1,608,450 Net income (loss) attributable to ADS (145,244 ) 27,411 Fiscal 2019 Acquisition of Noncontrolling interest in BaySaver BaySaver Technologies LLC (“BaySaver”) was a joint venture that was established to produce and distribute water quality filters and separators used in the removal of sediment and pollution from storm water. During the third quarter of fiscal 2019, ADS purchased the remaining 35% ownership interest in BaySaver for a purchase price of $8.8 million. The purchase of the remaining 35% ownership interest was reflected as a reduction in the Redeemable noncontrolling interest in subsidiary in the Consolidated Balance Sheets and as a financing activity in the Consolidated Statement of Cash Flows. Additionally, resulting from this transaction, the Company recorded a $0.4 million non-cash adjustment to deferred taxes. BaySaver is now a wholly-owned subsidiary of ADS. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 5 . PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Land, buildings and improvements $ 263,191 $ 253,379 Machinery and production equipment 646,592 631,932 Transportation equipment 210,738 208,037 Construction in progress 71,873 19,925 Total cost 1,192,394 1,113,273 Less: accumulated depreciation (688,119 ) (631,893 ) Property, plant and equipment, net $ 504,275 $ 481,380 The following table sets forth depreciation expense related to Property, plant and equipment in each of the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Depreciation expense (inclusive of leased assets depreciation) ( 1) $ 68,034 $ 64,642 $ 59,869 (1) Depreciation expense does not include accelerated depreciation expense from the 2018 Restructuring plan. See “Note 2. Loss on Disposal of Assets and Costs from Exit and Disposal Activities” for additional discussion. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 6 . LEASES ASC 842 Adoption - In February 2016, the FASB issued an ASU which amends the guidance for leases (“ASC 842”). The Company adopted the provisions of ASC 842 beginning on April 1, 2019 using the transition methodology in ASC 842 which does not require adjustments to comparative periods or require modified disclosures. The Company elected the transition relief practical expedient package as described in ASC 842-10-65-1. ASC 842 provides lessees with the option of electing an accounting policy, by class of underlying asset, in which the lessee may choose not to separate nonlease components from lease components. The Company elected this practical expedient for leases of certain classes of equipment, including forklifts and fleet tractors and trailers. The Company also elected the accounting policy to not recognize the right-of-use asset and lease liability for leases with an accounting lease term of twelve months or less (“Short-term leases”). The adoption of ASC 842 resulted in the recording of $13.3 million of additional lease liabilities and right-of-use assets to the beginning balance of the Company’s Consolidated Balance Sheet. Infiltrator adopted ASC 842 on July 31, 2019 using the same methodology and policy elections taken by the Company on April 1, 2019. The Infiltrator adoption of ASC 842 resulted in the recording of $11.2 million of additional lease liabilities and corresponding right-of-use assets to the beginning balance of the Company’s Consolidated Balance Sheet. At the date of adoption, ASC 842 did not have an impact on the Company’s Consolidated Statement of Operations and Consolidated Statement of Cash Flows. Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have remaining terms of less than one year to 30 years. A portion of the Company’s real estate leases include an option to extend the leases for up to 5 years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities. The Company’s lease payments are generally fixed. Certain equipment leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. The calculation is based on the original cost of the transportation equipment, less lease payments made, compared to a percentage of the transportation equipment’s fair market value at the time of sale. All leased units covered by this guarantee have been classified as finance leases and a corresponding finance lease obligation was recorded. Therefore, no contingent obligation is needed. For all leases with an initial expected term of more than 12 months, the Company recorded, at the adoption date of ASC 842 or lease commencement date for leases entered into after the adoption date, a lease liability, which is the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company will utilize its collateralized incremental borrowing rate commensurate to the lease term as the discount rate for its leases, unless the Company can specifically determine the lessor’s implicit rate. The incremental borrowing rate for each lease is determined based on the Company’s credit rating, adjusted for the impacts of collateral, and the lease term. Lease Cost - The components of lease cost for the years ended March 31, 2021 and March 31, 2020 were: (Amounts in thousands) Income Statement Classification 2021 2020 Operating lease cost Operating lease cost Cost of goods sold $ 8,391 $ 5,548 Operating lease cost Selling, general and administrative 1,593 1,204 Short-term lease cost Cost of goods sold 3,963 2,393 Total operating lease cost $ 13,947 $ 9,145 Finance lease cost Amortization of right-of-use assets Cost of goods sold 16,442 17,059 Amortization of right-of-use assets Selling, general and administrative 1,433 2,543 Interest on lease liabilities Interest expense 2,436 4,344 Total finance lease cost $ 20,311 $ 23,946 Supplemental cash flow information related to leases for the periods presented were as follows: (Amounts in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,984 $ 6,572 Operating cash flows from finance leases 3,205 4,675 Financing cash flows from finance leases 21,491 27,119 Right-of-use assets obtained in exchange for lease obligations: Operating leases 15,173 10,529 Finance leases (a) 9,907 5,078 (a) The Company acquired $27.6 million of property, plant and equipment under finance leases in the fiscal years ended March 31, 2019. Supplemental balance sheet information related to leases as of the periods presented were as follows: (Amounts in thousands) Balance Sheet Classification 2021 2020 Operating leases Right-of-use assets Other assets $ 31,237 $ 24,875 Current lease liabilities Other accrued liabilities 8,995 7,757 Non-current lease liabilities Other liabilities 22,393 17,173 Total operating lease liabilities $ 31,388 $ 24,930 Finance leases Right-of-use assets Property, plant and equipment 80,904 90,756 Current lease liabilities Current maturities of finance lease obligations 19,318 20,382 Non-current lease liabilities Long-term finance lease obligations 32,964 44,501 Total finance lease liabilities $ 52,282 $ 64,883 Weighted average lease term (in years): Operating leases 6.46 6.97 Finance leases 9.39 10.72 Weighted average discount rate: Operating leases 3.75 % 3.57 % Finance leases 4.90 % 5.36 % The following is a schedule by year of future minimum lease payments on a rolling twelve-month basis under operating and finance leases and the present value of the net minimum lease payments as of March 31, 2021: (Amounts in thousands) Operating Leases Finance Leases Year 1 $ 10,947 $ 21,202 Year 2 7,691 14,816 Year 3 6,255 9,845 Year 4 5,128 5,856 Year 5 3,331 3,043 Thereafter 6,965 2,103 Total minimum lease payments $ 40,317 $ 56,865 Less: amount representing interest 8,929 4,583 Present value of net minimum lease payments $ 31,388 $ 52,282 As of March 31, 2020, total contractual obligations for operating and finance leases were as follows: (Amounts in thousands) Operating Leases Finance Leases Year 1 $ 8,511 $ 23,492 Year 2 5,717 19,478 Year 3 3,839 13,182 Year 4 2,768 8,355 Year 5 2,041 4,736 Thereafter 6,075 4,722 Total minimum lease payments $ 28,951 $ 73,965 Less: amount representing interest 4,021 9,082 Present value of net minimum lease payments $ 24,930 $ 64,883 Disclosures Related to Periods Prior to the Adoption of ASC 842 – The following sets forth the interest and depreciation expense related to capital leases recorded in each fiscal year ended March 31: (Amounts in thousands) 2019 Lease interest expense $ 5,215 Depreciation of leased assets 19,155 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 7 . INVENTORIES Inventories as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Raw materials $ 75,294 $ 66,524 Finished goods 225,667 215,874 Total Inventories $ 300,961 $ 282,398 The Company had no work-in-process inventories as of March 31, 2021 and 2020. During fiscal years ended March 31, 2021 and 2020, the Company incurred production-related general and administrative costs included in the cost of finished goods inventory of $40.1 million and $38.8 million, respectively, of which $7.9 million and $8.6 million remained in inventory at March 31, 2021 and 2020, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8 . GOODWILL AND INTANGIBLE ASSETS Goodwill - The carrying amount of goodwill by reportable segment is as follows: As Previously Reported (Amounts in thousands) Domestic International Pipe Infiltrator Allied Products & Other Total Balance at March 31, 2019 $ 92,105 $ 10,533 $ — $ — $ — $ 102,638 Reallocation due to change in segments (92,105 ) — 57,663 — 34,442 — Acquisition — — — 495,841 — 495,841 Currency translation — (660 ) — — — (660 ) Balance at March 31, 2020 $ — $ 9,873 $ 57,663 $ 495,841 $ 34,442 $ 597,819 Currency translation — 1,253 — — — 1,253 Balance at March 31, 2021 $ — $ 11,126 $ 57,663 $ 495,841 $ 34,442 $ 599,072 Intangible Assets – Intangible assets as of March 31, 2021 and 2020 consisted of the following: 2021 2020 (Amounts in thousands) Gross Intangible Accumulated Amortization Net Intangible Gross Intangible Accumulated Amortization Net Intangible Definite-lived intangible assets Developed technology $ 177,579 $ (49,842 ) $ 127,737 $ 177,579 $ (32,437 ) $ 145,142 Customer relationships 377,742 (97,115 ) 280,627 377,742 (47,051 ) 330,691 Patents 8,985 (6,884 ) 2,101 8,951 (6,419 ) 2,532 Trademarks and tradenames 69,878 (10,193 ) 59,685 69,847 (4,736 ) 65,111 Total definite lived intangible assets 634,184 (164,034 ) 470,150 634,119 (90,643 ) 543,476 Indefinite-lived intangible assets (a) Trademarks 11,866 — 11,866 11,862 — 11,862 Total Intangible assets $ 646,050 $ (164,034 ) $ 482,016 $ 645,981 $ (90,643 ) $ 555,338 (a) Indefinite-lived intangible assets decreased as a result of foreign currency translation. The following table presents the amortization expense and weighted average amortization period for definite-lived intangible assets at March 31, 2021: Amortization expense (in thousands) 2021 2020 2019 Weighted Average Amortization Period (in years) Developed technology $ 17,405 $ 12,517 $ 2,517 7.2 Customer relationships 50,177 36,093 3,546 14.8 Patents 699 522 546 2.9 Non-compete and other contractual agreements — 22 22 — Trademarks and tradenames 5,427 7,856 1,249 17.1 The following table presents the future intangible asset amortization expense based on existing intangible assets at March 31, 2021: Fiscal Year (Amounts in thousands) 2022 2023 2024 2025 2026 Thereafter Total Amortization expense $ 60,767 $ 51,970 $ 47,681 $ 44,591 $ 40,815 $ 224,326 $ 470,150 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 9 . FAIR VALUE MEASUREMENT When applying fair value principles in the valuation of assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the fiscal years presented. The fair value estimates take into consideration the credit risk of both the Company and its counterparties. When active market quotes are not available for financial assets and liabilities, ADS uses industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves, foreign currency rates and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Generally, the fair value of Level 3 instruments is estimated as the net present value of expected future cash flows based on internal and external inputs. Recurring Fair Value Measurements The assets and liabilities carried at fair value as of the fiscal years ended March 31 were as follows: March 31, 2021 (Amounts in thousands) Total Level 1 Level 2 Level 3 Assets: Derivative assets — diesel fuel contracts $ 1,194 $ — $ 1,194 $ — Total assets at fair value on a recurring basis $ 1,194 $ — $ 1,194 $ — Liabilities: Derivative liability - diesel fuel contracts $ 32 $ — $ 32 $ — Total liabilities at fair value on a recurring basis $ 32 $ — $ 32 $ — March 31, 2020 (Amounts in thousands) Total Level 1 Level 2 Level 3 Assets: Derivative assets — diesel fuel contracts $ 36 $ — $ 36 $ — Total assets at fair value on a recurring basis $ 36 $ — $ 36 $ — Liabilities: Derivative liability - diesel fuel contracts $ 2,228 $ — $ 2,228 $ — Contingent consideration for acquisitions (a) 60 — — 60 Total liabilities at fair value on a recurring basis $ 2,288 $ — $ 2,228 $ 60 (a) The fair value of the contingent consideration for acquisitions is based on management’s estimate of contractual payments based on future product certifications obtained. There were no transfers in or out of Level 3 for the fiscal years ended March 31, 2021 and 2020. Valuation of Contingent Consideration for Acquisitions - The method used to price these liabilities is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Valuation of Debt - The carrying amounts of current financial assets and liabilities approximate fair value because of the immediate or short-term maturity of these items, or in the case of derivative instruments, because they are recorded at fair value. The following table presents the carrying and fair value of the Company’s Senior Notes (as defined below and further discussed in “Note 13. Debt”) for the periods presented: March 31, 2021 March 31, 2020 Fair Value Carrying Value Fair Value Carrying Value (In thousands) (In thousands) Senior Notes $ 367,633 $ 350,000 $ 314,951 $ 350,000 The fair value of the Senior Notes was determined based on a quoted market data for the Company’s Senior Notes. The categorization of the framework used to evaluate the Senior Notes is considered Level 2. The Company believes the carrying amount on the remaining long-term debt, including the Term Loan Facility and Revolving Credit Facility, is not materially different from its fair value as the interest rates and terms of the borrowings are similar to currently available borrowings . |
Investment in Affiliates
Investment in Affiliates | 12 Months Ended |
Mar. 31, 2021 | |
Unconsolidated Affiliates [Member] | |
Investment in Affiliates | 1 1 . INVESTMENT IN UNCONSOLIDATED AFFILIATES The Company participates in an unconsolidated joint venture, the South American Joint Venture, which is 50% owned by the Company’s wholly-owned subsidiary ADS Chile. South American Joint Venture - The Company’s investment in this unconsolidated joint venture was formed for the purpose of expanding upon the growth of manufacturing and selling HDPE corrugated pipe in the South American market via the joint venture partner’s local presence and expertise throughout the region. The Company has concluded that it is appropriate to account for this investment using the equity method, whereby the Company’s share of the income or loss of the joint venture is reported in the Consolidated Statements of Operations under Equity in net (income) loss of unconsolidated affiliates and the Company’s investment in the joint venture is included in Other assets in the Consolidated Balance Sheets. The Company is not required to consolidate the South American Joint Venture as it is not the primary beneficiary, although the Company does hold significant variable interests in the South American Joint Venture through the equity investment and debt guarantee. |
Subsidiaries [Member] | |
Investment in Affiliates | 10 . INVESTMENT IN CONSOLIDATED AFFILIATES ADS has one consolidated joint venture, ADS Mexicana, which is 51% owned by the Company’s wholly-owned subsidiary ADS Worldwide, Inc. The equity owned by the Company’s joint venture partner is shown as Noncontrolling interest in subsidiaries in the Consolidated Balance Sheets and the joint venture partner’s portion of net income is shown as Net income attributable to noncontrolling interest in the Consolidated Statements of Operations. ADS Mexicana - ADS participates in joint ventures for the purpose of expanding upon the growth of manufacturing and selling HDPE corrugated pipe and PVC conduit in emerging markets. ADS invested in ADS Mexicana for the purpose of expanding upon growth of manufacturing and selling ADS licensed HDPE corrugated pipe and related products in the Mexican and Central American markets via the joint venture partner’s local presence and expertise throughout the region. The Company executed a Technology, Patents and Trademarks Sub-License Agreement and a Distribution Agreement with ADS Mexicana that provides ADS Mexicana with the rights to manufacture and sell ADS licensed products in Mexico and Central America. The Company has concluded that it holds a variable interest in and is the primary beneficiary of ADS Mexicana based on the power to direct the most significant activities of ADS Mexicana and the obligation to absorb losses and the right to receive benefits that could be significant to ADS Mexicana. As the primary beneficiary, the Company is required to consolidate the assets and liabilities of ADS Mexicana. The table below includes the assets and liabilities of ADS Mexicana that are consolidated as of March 31, 2021 and 2020. The balances exclude intercompany transactions that are eliminated upon consolidation. (Amounts in thousands) 2021 2020 Assets Current assets $ 21,556 $ 18,357 Property, plant and equipment, net 13,891 12,438 Other noncurrent assets 1,425 1,317 Total assets $ 36,872 $ 32,112 Liabilities Current liabilities $ 9,186 $ 6,350 Noncurrent liabilities 1,462 1,131 Total liabilities $ 10,648 $ 7,481 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. RELATED PARTY TRANSACTIONS ADS Mexicana - ADS conducts business in Mexico and Central America through its joint venture ADS Mexicana. ADS Mexicana’s Revolving Credit Facility expired on June 22, 2018 and was replaced by an Intercompany Revolving Credit Promissory Note (the “Intercompany Note”) with a borrowing capacity of $12.0 million. The Intercompany Note matures on June 22, 2022. The Intercompany Note indemnifies the ADS Mexicana joint venture partner for 49% of any unpaid borrowing. The interest rates under the Intercompany Note are determined by certain base rates or London Interbank Offered Rate (“LIBOR”) plus an applicable margin based on the Leverage Ratio. As of March 31, 2021 and 2020, there were no borrowings under the Intercompany Note. South American Joint Venture - The Company’s South American Joint Venture manufactures and sells HDPE corrugated pipe in the South American market. ADS is the guarantor for 50% of the South American Joint Venture’s credit facility, and the debt guarantee is shared equally with the joint venture partner. The maximum potential obligation under this guarantee totals $11.0 million as of March 31, 2021. The maximum borrowing permitted under the South American Joint Venture’s credit facility is $22.0 million. This credit facility allows borrowings in either Chilean pesos or US dollars at a fixed interest rate determined at inception of each draw on the facility. The guarantee of the South American Joint Venture’s debt expires on December 31, 2023. ADS does not anticipate any required contributions related to the balance of this credit facility. As of March 31, 2021 and 2020, the outstanding principal balance of the credit facility including letters of credit was $10.0 million and $9.3 million, respectively. As of March 31, 2021, there were no U.S. dollar denominated loans. The weighted average interest rate as of March 31, 2021 was 3.5% on Chilean peso denominated loans. Tigre-ADS USA - Tigre-ADS USA was a joint venture established to manufacture and sell PVC fittings for waterworks, plumbing, and HVAC applications primarily in the United States and Canadian markets. ADS owned 49% of the outstanding shares of capital stock of Tigre-ADS USA which it exchanged for a release from the existing debt guarantees in fiscal 2019. The Company still considers Tigre-ADS USA a related party as a result of the Company’s joint venture in the South American Joint Venture discussed above. The following tables summarizes the purchases by ADS from related parties and sales by ADS to related parties for the periods presented: (Amounts in thousands) 2021 2020 2019 Purchases from South American Joint Venture $ 547 $ 696 $ 1,323 Sales to South American Joint Venture 582 934 1,191 Purchases from Tigre USA 1,970 1,966 354 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 1 3 . DEBT Long-term debt as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Term Loan Facility $ 441,250 $ 648,250 Senior Notes 350,000 350,000 Revolving Credit Facility — 100,000 Equipment financing — 1,492 Total 791,250 1,099,742 Unamortized debt issuance costs (2,030 ) (2,419 ) Current maturities (7,000 ) (7,955 ) Long-term debt obligations $ 782,220 $ 1,089,368 Bridge Credit Facility - On July 31, 2019, the Company entered into a credit agreement (the “Base Credit Agreement”) by and among the Company, as borrower, Barclays Bank PLC, as administrative agent, the several lenders from time to time party thereto. The Base Credit Agreement provided for a term loan facility in an initial aggregate principal amount of up to $1.3 billion (the “Bridge Loan Facility”), a revolving credit facility in an initial aggregate principal amount of up to $350 million (the “Bridge Revolving Credit Facility”), a letter of credit sub-facility in the initial aggregate available amount of up to $50 million, as a sublimit of such Revolving Credit Facility (the “Bridge L/C Facility”) and a swing line sub-facility in the aggregate available amount of up to $50 million, as a sublimit of the Revolving Credit Facility (together with the Bridge Loan Facility, the Bridge Revolving Credit Facility and the Bridge L/C Facility, the “Bridge Credit Facility”). On July 31, 2019, the Company borrowed approximately $1.3 billion under the Bridge Loan Facility and $145 million under the Bridge Revolving Credit Facility, which amounts were to (i) finance the consideration paid in connection with the closing of the Acquisition, (ii) repay the total outstanding amount as of the Closing Date under the Company’s then existing revolving credit facility with PNC, (iii) repay outstanding amounts of existing indebtedness incurred by Infiltrator under its outstanding credit facility in effect prior to the Acquisition, and (iv) pay certain transaction fees and expenses associated with the Acquisition and the Bridge Loan Facility. Approximately $300.0 million of outstanding borrowings under the Base Credit Agreement were repaid on September 10, 2019 with proceeds from the Company’s public offering of common stock as further described in “Note 19. Net Income Per Share and Stockholders’ Equity” and approximately $300.0 million of outstanding borrowings under the Bridge Loan Facility were repaid on September 23, 2019 with proceeds from the Company’s offering of $350.0 million Senior Notes, as defined and further described below. As a result of this borrowing, on July 31, 2019, the Company initially capitalized approximately $46.9 million of deferred financing fees associated with the Bridge Credit Facility. This amount was later reduced by $14.9 million due to refunds received by ADS. The remaining deferred financing costs were written off due to loss on early extinguishment of debt resulting from the $300.0 million principal payment primarily from the Common Stock Offering, $300.0 million principal payment from the issuance of Senior Notes due 2027, and $700.0 million principal payment from the issuance of the Senior Secured Credit Facility on September 24, 2019. These financings resulted in the Company treating the Bridge Credit Facility as having been extinguished and replaced with the Common Stock Offering, Senior Notes due 2027 and the syndicated Senior Secured Credit Facility for accounting purposes under ASC 470 Modifications and Extinguishments . The loss on early extinguishment of debt, which is included in Interest expense in the Company's Consolidated Statements of Operations, primarily reflects the write-off of unamortized debt issuance costs and discounts. Repayment of Prudential Senior Notes - On July 29, 2019, the Company repaid in full all of its and its subsidiaries’ indebtedness and other obligations totaling $ 104.4 million under that certain Second Amended and Restated Private Shelf Agreement, dated as of June 22, 2017 (as amended the “Shelf Note Agreement”) of the Company’s Senior Notes (“Prudential Senior Notes”), by and among the Company, as issuer, the guarantors from time to time a party thereto, PGIM, Inc., as a purchaser and the other purchasers from time to time a party thereto. The Company repaid the outstanding indebtedness under the Shelf Note Agreement using borrowings from the Company’s Second Amended and Restated Credit Agreement (the “PNC Credit Agreement”) as in effect as of July 29, 2019. Concurrently with the repayment, the Shelf Noteholders authorized and directed PNC Bank, National Association, in its capacity as Collateral Agent (as defined in the Shelf Note Agreement) to release the security interests and liens securing the Shelf Note Agreement and the Shelf Note Agreement was terminated. As a result of the repayment described above, the Company expensed approximately $4.2 million primarily consisting of prepayment premium or penalty associated with the debt payoff activity and the write-off of unamortized deferred financing fees, as the payoff meets the criteria to be accounted for as a debt extinguishment. Repayment of PNC Credit Agreement - On the Closing Date, using borrowings of the new Bridge Loan Facility the Company repaid in full all of its and its subsidiaries indebtedness and other obligations totaling $239.2 million under the PNC Credit Agreement. Concurrently with the repayment, all security interests and liens held by the Collateral Agent (as defined in the PNC Credit Agreement) securing the PNC Credit Agreement were terminated and released and the PNC Credit Agreement was terminated. As a result of the repayment described above, the Company expensed approximately $2.0 million primarily consisting of the write-off of unamortized deferred financing fees associated with the debt payoff activity, as the payoff meets the criteria to be accounted for as a debt extinguishment. Issuance of Senior Notes due 2027 - On September 23, 2019, the Company issued $350.0 million aggregate principal amount of 5.0% senior notes due 2027 (the “Senior Notes”) pursuant to an Indenture, dated September 23, 2019 (the “Indenture”), among the Company, the guarantors party thereto (the “Guarantors”) and U.S. Bank National Association, as Trustee (the “Trustee”). The Senior Notes are guaranteed by each of the Company’s present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under the Company's Senior Secured Credit Facility. The Senior Notes were offered and sold either to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933 (the “Securities Act”) or to persons outside the United States under Regulation S of the Securities Act. Interest on the Senior Notes will be payable semi-annually in cash in arrears on March 31 and September 30 of each year, commencing on March 31, 2020, at a rate of 5.0% per annum. The Senior Notes will mature on September 30, 2027. The Company used the majority of the net proceeds from the offering of the Senior Notes for the repayment of $300.0 million of its outstanding borrowings under the Company’s Bridge Loan Facility. The deferred financing costs associated with the Senior Notes totaled $2.1 million and are recorded as a direct reduction from the carrying amount of the related debt. The Company may redeem the Senior Notes, in whole or in part, at any time on or after September 30, 2022 at established redemption prices. At any time prior to September 30, 2022, the Company may also redeem up to 40% of the Senior Notes with net cash proceeds of certain equity offerings at a redemption price equal to 105.0% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, at any time prior to September 30, 2022, the Company may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date plus an applicable “make-whole” premium. The Indenture contains customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the Indenture or the Senior Notes and certain provisions related to bankruptcy events. The Indenture also contains customary negative covenants. New Senior Secured Credit Facility - On September 24, 2019, the Company successfully completed a $700 million syndication of the remaining balance of the Bridge Credit Facility subsequent to the aforementioned Common Stock Offering and Senior Notes due 2027 and in connection with the syndication, the Company amended the Base Credit Agreement (the “Senior Secured Credit Facility”). The Senior Secured Credit Facility reduced the applicable margin utilized in the determination of the interest rate, as well as other provisions. The Senior Secured Credit Facility provides for a term loan facility in an initial aggregate principal amount of $700 million (the “Term Loan Facility”), a revolving credit facility in an initial aggregate principal amount of up to $350 million (the “Revolving Credit Facility”), a letter of credit sub-facility in the initial aggregate available amount of up to $50 million, as a sublimit of such Revolving Credit Facility (the “L/C Facility”) and a swing line sub-facility in the aggregate available amount of up to $50 million, as a sublimit of the Revolving Credit Facility (together with the Term Loan Facility, the Revolving Credit Facility and the L/C Facility, the “Senior Secured Credit Facility”). During fiscal 2020, the Company paid $51.8 million of the Term Loan Facility. During fiscal 2021, the Company paid $207.0 million of the Term Loan Facility and $100.0 million of the Revolving Credit Facility. Letters of credit outstanding at March 31, 2021 amount to $11.0 million and reduced the availability of the Revolving Credit Facility. In connection with entering into the Senior Secured Credit Facility, the Company capitalized approximately $0.4 million in deferred financing fees. To the extent not previously paid, all then-outstanding amounts under the Term Loan Facility are due and payable on the maturity date of the Term Loan Facility, which is seven years from the Closing Date. Borrowings under the Revolving Credit Facility are available beginning on September 24, 2019 and, to the extent not previously paid, all then-outstanding amounts under the Revolving Credit Facility are due and payable on the maturity date of the Revolving Credit Facility, which is five years from the Closing Date. At the option of the Company, borrowings under the Term Loan Facility and under the Revolving Credit Facility (subject to certain limitations) bear interest at either a base rate (as determined pursuant to the Senior Secured Credit Facility) or at a Eurocurrency Rate, based on LIBOR (as defined in the Senior Secured Credit Facility), plus the applicable margin as set forth therein from time to time. In the case of the Revolving Credit Facility, the applicable margin is based on the Company’s consolidated senior secured net leverage ratio (as defined in the Senior Secured Credit Facility). All borrowings under the Term Loan Facility used to finance the Merger Consideration as described above initially bear interest at a Eurocurrency Rate applicable to Eurocurrency Loans (as defined in the Senior Secured Credit Facility) denominated in U.S. Dollars. The Company is also required to pay a commitment fee that is based upon the undrawn amounts of the Revolving Credit Facility at a rate per annum based upon a calculated ratio as prescribed within the Senior Secured Credit Facility. As of March 31, 2021, the rate the Company was committed to paying on the undrawn portion was equal to 0.2%. The Company’s obligations under the Senior Secured Credit Facility have been secured by granting a first priority lien on substantially all of the Company’s assets (subject to certain exceptions and limitations), and each of StormTech, LLC, Advanced Drainage of Ohio, Inc. and Infiltrator Water Technologies, LLC (collectively the “Guarantors”) has agreed to guarantee the obligations of the Company under the Senior Secured Credit Facility and to secure the obligations thereunder by granting a first priority lien in substantially all of such Guarantor’s assets (subject to certain exceptions and limitations). Principal Maturities - Maturities of long-term debt (excluding interest and deferred financing costs) as of March 31, 2021 are summarized below: Fiscal Years Ending March 31, (Amounts in thousands) 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 756,250 $ 791,250 |
Derivative Transactions
Derivative Transactions | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Derivative Transactions | 1 4 . DERIVATIVE TRANSACTIONS The Company uses interest rate swaps and commodity options in the form of collars and swaps to manage its various exposures to interest rate and commodity price fluctuations. For the interest rate swap executed on June 28, 2017, gains and losses resulting from the difference between the spot rate and applicable base rate is recorded in Interest expense. The Company’s interest rate swap was terminated during the year ended March 31, 2020 in conjunction with the new Senior Secured Credit Facility. For collars and commodity swaps, contract settlement gains and losses are recorded in the Consolidated Statements of Operations in Derivative (gains) losses and other (income) expense, net. Gains and losses related to mark-to-market adjustments for changes in fair value of the derivative contracts are also recorded in the Consolidated Statements of Operations in Derivative (gains) losses and other (income) expense, net. A summary of the fair values for the various derivatives at March 31, 2021 and 2020 is presented below: 2021 Assets Liabilities (Amounts in thousands) Receivables Other assets Other accrued liabilities Other liabilities Diesel fuel option collars and swaps $ 1,125 $ 69 $ (31 ) $ (1 ) 2020 Assets Liabilities (Amounts in thousands) Receivables Other assets Other accrued liabilities Other liabilities Diesel fuel option collars and swaps $ 21 $ 15 $ (2,000 ) $ (228 ) The Company recorded net losses and net (gains) on mark-to-market adjustments for changes in the fair value of derivative contracts as well as net losses and net (gains) on the settlement of derivative contracts as follows: Net Unrealized Mark-to-Market Losses (Gains) (Amounts in thousands) 2021 2020 2019 Interest rate swaps $ — $ 1,029 $ 1,712 Foreign exchange forward contracts — — 60 Diesel fuel option collars and swaps (3,355 ) 2,099 574 Total net unrealized mark to market losses (gains) $ (3,355 ) $ 3,128 $ 2,346 Net Realized Losses (Gains) (Amounts in thousands) 2021 2020 2019 Interest rate swaps $ — $ 378 $ (329 ) Foreign exchange forward contracts 47 102 (163 ) Diesel fuel option collars and swaps 1,409 357 (698 ) Total net realized losses (gains) $ 1,456 $ 837 $ (1,190 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 5 . COMMITMENTS AND CONTINGENCIES Purchase Commitments - The Company has historically secured supplies of resin raw material by agreeing to purchase quantities during a future given period at a fixed price. These purchase contracts typically ranged from 1 to 12 months and occur in the ordinary course of business. The Company, also, enters into equipment purchase contracts with manufacturers. The Company does not have any outstanding purchase commitments as of March 31, 2021. Litigation and Other Proceedings - The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. The Company does not believe that such litigation, claims, and administrative proceedings will have a material adverse impact on the Company’s financial position or results of operations. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 1 6 . EMPLOYEE BENEFIT PLANS Employee Stock Ownership Plan (“ESOP”) - The Company established the Advanced Drainage Systems, Inc. ESOP (the “ESOP” or the “Plan”) effective April 1, 1993. The Plan was funded through a transfer of assets from the Company’s tax-qualified profit-sharing retirement plan, as well as a 30-year term loan from ADS. Within 30 days following the repayment of the ESOP loan, which will occur no later than March 2023, the ESOP committee can direct the shares of redeemable convertible preferred stock owned by the ESOP to be converted into shares of the Company’s common stock. The Plan operates as a tax-qualified leveraged ESOP and was designed to enable eligible employees to acquire stock ownership interest in ADS. Employees of ADS who have reached the age of 18 are generally eligible to participate in the Plan on March 31 after six months of service. Upon retirement, disability, death, or vested terminations, (i) a participant or designated beneficiary may elect to receive the amount in their account attributable to the 1993 transfer of assets from the Company’s tax-qualified profit sharing retirement plan in the form of cash or ADS stock with any fractional shares paid in cash; (ii) stock credited to the participants’ ESOP stock account resulting from the ESOP’s loan repayments are distributed in the form of ADS stock, and (iii) amounts credited to the participants’ ESOP cash account are distributed in the form of cash. Upon attainment of age 50 and seven years of participation in the Plan, a participant may elect to diversify specified percentages of the number of shares of ADS stock credited to the participant’s ESOP stock account in compliance with applicable law. The Company is obligated to make contributions to the Plan, which, when aggregated with the Plan’s dividends on the Plan’s unallocated shares of redeemable convertible preferred stock, equal the amount necessary to enable the Plan to make its regularly scheduled payments of principal and interest due on its term loan to ADS. As the Plan makes annual payments of principal and interest, an appropriate percentage of preferred stock is allocated to ESOP participants’ accounts in accordance with plan terms that are compliant with applicable Internal Revenue Code and regulatory provisions. The carrying value of redeemable convertible preferred stock held by the ESOP trust, but not yet earned by the ESOP participants or used for dividends, is reported as Deferred compensation — unearned ESOP shares within the Mezzanine equity section of the Consolidated Balance Sheets. Compensation expense and related dividends paid with ESOP shares for services rendered throughout the period are recognized based upon the annual fair value of the shares allocated. Deferred compensation — unearned ESOP shares is relieved at fair value, with any difference between the annual fair value and the carrying value of shares when allocated being added to Additional paid in capital. The fair value of the shares allocated was $79.56, $22.70, and $19.90 per share of redeemable convertible preferred stock at March 31, 2021, 2020, and 2019, respectively, resulting in an average annual fair value per share of $51.13, $21.31, and $19.95 per share for the fiscal years ended March 31, 2021, 2020, and 2019, respectively. During the fiscal years ended March 31, 2021, 2020, and 2019, the Company recognized compensation expense of $45.0 million, $20.1 million, and $15.3 million, respectively, related to allocation of ESOP shares to participants. Required dividends on allocated shares are generally passed through and paid in cash to the participants and required dividends on unallocated shares are paid in cash to the Plan and generally used to service the Plan’s debt. The ESOP committee directed the Plan trustee to retain dividends on unallocated ADS shares rather than to service the Plan’s debt. In the fiscal years ended March 31, 2021, 2020, and 2019, the Company recognized compensation expense and the trustee retained $0.0 million, $0.0 million and $3.3 million, respectively, for dividends on unallocated ADS shares. These dividends were allocated to participants based on the total shares in their account in relation to total shares allocated at March 31, 2021 and 2020. Redeemable Convertible Preferred Stock - The Trustee of the Company’s ESOP has the ability to put shares of the redeemable convertible preferred stock to the Company absent a market for the Company’s common stock, and as a result the redeemable convertible preferred stock is classified as Mezzanine equity in the Company’s Consolidated Balance Sheets. The put option requirements of the Internal Revenue Code apply in the event that the Company’s common stock is not a registration type class of security or its trading has been restricted. Therefore, the holders of Redeemable convertible preferred stock have a put right to require the Company to repurchase such shares in the event that the common stock is not listed for trading or otherwise quoted on the NYSE, AMEX, NASDAQ, or any other market more senior than the OTC Bulletin Board. As of March 31, 2021, the applicable redemption value was $0.7818 per share as there were no unpaid cumulative dividends. Given that the event that may trigger redemption of the Redeemable convertible preferred stock (the listing or quotation on a market more senior than the OTC Bulletin Board) is not solely within the Company’s control, the redeemable convertible preferred stock is presented in the mezzanine equity section of the Consolidated Balance Sheets. As of March 31, 2021, the Company did not adjust the carrying value of the redeemable convertible preferred stock to its redemption value or recognize any changes in fair value as the Company did not consider it probable that the Redeemable convertible preferred stock would become redeemable. The Redeemable convertible preferred stock has a required cumulative 2.5% dividend (based on the liquidation value of $0.7818 per share) and is convertible at a rate of 0.7692 shares of common stock for each share of Redeemable convertible preferred stock. The 2.5% annual dividend is payable in cash or additional shares of the Redeemable convertible preferred stock. During the first quarter of fiscal 2021, the Board of Directors approved the 2.5% annual dividend to be paid in cash on March 31, 2021 to stockholders of record as of March 15, 2021. The Redeemable convertible preferred stock has a liquidation value of $0.7818 per share that must be paid before any distribution or payment may be made to holders of common stock in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of ADS. During fiscal year ended March 31, 2020, the Board of Directors approved a special cash dividend of $1.00 per share. See “Note 19. Net Income Per Share and Stockholders’ Equity” for additional information. Cash and stock dividends on allocated Redeemable convertible preferred stock for the fiscal years ended March 31, 2021 and 2020, respectively, are summarized in the following table. (Amounts in thousands) 2021 2020 Quarterly cash dividends $ 5,238 $ 10,840 Annual cash dividends 4 7 Total cash dividends $ 5,242 $ 10,847 Annual stock dividend 349 359 Annual cash dividend 4 7 Total ESOP required dividends $ 353 $ 366 Allocated shares 18,124 18,756 Required dividend per share 0.0195 0.0195 Required dividends $ 353 $ 366 In the fiscal years ended March 31, 2021 and 2020, 0.9 million and 1.0 million shares of redeemable convertible preferred stock, respectively, were allocated to the ESOP participants, including, in addition to the cash dividends. Executive Retirement Expense – ADS has employment agreements with certain executives that include potential payments to be made to those executives upon termination at the required retirement age, which is accrued on a straight-line basis over the service period. The compensation (benefit) expense recorded related to the executive termination payments for the fiscal years ended March 31, 2021, 2020, and 2019 was $0.0 million, $0.2 million and $(0.2) million, respectively, and is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. As of March 31, 2021 and 2020, the executive termination payment obligation was $2.5 million and $2.6 million, respectively, and is included in Other accrued liabilities and Other liabilities in the Consolidated Balance Sheets. Profit-Sharing Retirement Plan - The Company has a tax-qualified profit-sharing retirement plan with a 401(k) feature, into which Infiltrator is part of beginning in the fiscal year ended March 31, 2021, covering substantially all U.S. eligible employees. Except for employer matching contributions made on behalf of Infiltrator employee-participants, the Company did not make employer contributions to this plan in the fiscal years ended March 31, 2021, 2020, and 2019. The Company has defined contribution postretirement benefit plans covering Canadian employees. The Company recognized costs of $0.6 million, $0.5 million and $0.4 million in the fiscal years ended March 31, 2021, 2020, and 2019, respectively. COVID-19 Pandemic Pay – In fiscal 2020, the Company communicated to all hourly employees that each would be entitled to the equivalent of two weeks, or 80 hours, of pandemic pay regardless of whether they experienced any interruption of employment. The Company recognized pandemic pay costs in Costs of goods sold on the Company’s Consolidated Statement of Operations and accrued pandemic pay liability in Other accrued liabilities on the Company’s Consolidated Balance Sheet of $4.8 million in the fiscal year ended March 31, 2020 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 1 7 . STOCK-BASED COMPENSATION The Company has several programs for stock-based payments to employees and directors, including stock options, performance-based restricted units and restricted stock. Stock-based compensation expense is recorded in Selling, general and administrative expenses and Cost of goods sold in the Consolidated Statements of Operations. The Company recognized stock-based compensation expense in the following line items on the Consolidated Statements of Operations for the fiscal years ended March 31, 2021, 2020, and 2019: (Amounts in thousands) 2021 2020 2019 Component of income before income taxes: Cost of goods sold $ 1,931 $ 897 $ 317 Selling, general and administrative expenses 18,522 11,372 6,215 Total stock-based compensation expense $ 20,453 $ 12,269 $ 6,532 The following table summarizes stock-based compensation expense by award type for the fiscal years ended March 31, 2021, 2020, and 2019: (Amounts in thousands) 2021 2020 2019 Stock-based compensation expense: Stock options $ 2,908 $ 2,554 $ 2,550 Restricted stock 5,177 3,807 2,064 Performance-based restricted stock units 11,017 4,682 869 Non-employee director restricted stock 1,351 1,226 1,049 Total stock-based compensation expense $ 20,453 $ 12,269 $ 6,532 Stock option awards are measured based on the grant date estimated fair value of each award. Compensation expense for stock options is recognized on a straight-line basis over the employee’s requisite service period, which is generally the vesting period of the grant. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used in estimating the fair value of stock options: 2021 2020 2019 Common stock price $41.97 - $71.55 $27.44 - $41.85 $25.75 - $27.99 Expected stock price volatility 35.5% - 36.3% 30.1% - 30.9% 30.3% - 31.1% Risk-free interest rate 0.4% - 0.6% 1.4% - 2.3% 2.9% - 3.1% Weighted-average expected life (years) 6.0 6.0 6.0 Dividend yield 0.5% - 0.9% 0.9% - 1.3% 1.1% - 1.2% The fair value of restricted stock and performance-based restricted stock units is based on the fair value of the Company’s common stock at the date of grant. Compensation expense is recognized on a straight-line basis over the employee’s requisite service period, which is generally the vesting period of the grant. 2017 Omnibus Plan On May 24, 2017, the Board of Directors approved the 2017 Omnibus Incentive Plan (the “2017 Incentive Plan”) which was approved by the Company’s stockholders on July 17, 2017. The 2017 Incentive Plan provides for the issuance of a maximum of 3.5 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards. The Company had approximately 1.3 million shares available for awards as of March 31, 2021. Stock Options - The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 785 $ 25.01 8.4 Granted 258 42.60 — Exercised (89 ) 25.78 — Forfeited (15 ) 30.30 — Outstanding at end of year 939 29.69 7.9 Vested at end of year 386 23.21 7.0 Unvested at end of year 553 34.22 8.5 Fair value of options granted during the year $ 13.29 Restricted Stock - The information about the unvested restricted stock grants as of March 31, 2021 is as follows: (Share amounts in thousands) Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 388 $ 30.38 Granted 132 44.04 Vested (130 ) 27.46 Forfeited (8 ) 31.63 Unvested at end of year 382 $ 36.03 At March 31, 2021, there was approximately $7.3 million of unrecognized compensation expense related to the restricted stock that will be recognized over the weighted average remaining service period of 1.6 years. The total fair value of restricted stock that vested during fiscal year ended March 31, 2021, 2020 and 2019 was $3.6 million, $2.3 million and $2.0 million, respectively. Performance-based Restricted Units (“performance units”) - The information about the performance units granted under the 2017 Omnibus Plan is as follows: (Share amounts in thousands) Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 389 $ 31.07 Granted 106 50.29 Vested — — Forfeited (10 ) 33.55 Unvested at end of year 485 $ 35.21 At March 31, 2021, there was approximately $11.3 million of unrecognized compensation expense related to the performance units that will be recognized over the weighted average remaining service period of 1.5 years. For the performance units granted in fiscal 2021, 2020 and 2019, 50% of the award is based upon the achievement of certain levels of Return on Invested Capital for the performance period and 50% is based upon the achievement of certain levels of Free cash flow for the performance period. In addition to the performance units based on ADS performance, the Company issued performance units based on the achievements of other performance targets. During fiscal year 2020, the Company granted 0.1 million units, subject to achieving predetermined synergies of the now consolidated legacy ADS business and Infiltrator, and 0.1 million units, subject to performance conditions of the Infiltrator reportable segment. For the performance units based on the Infiltrator reportable segment, 75% of the award is based upon the achievement of certain levels of Adjusted EBITDA for the performance period and 25% is based upon the achievement of certain levels of Free cash flow for the performance period. These two performance unit grants have a performance period from August 1, 2019 through March 31, 2022. 2000 and 2013 Stock Options Plans 2000 Plan - The Company’s 2000 stock option plan (“2000 Plan”) provided for the issuance of statutory and non-statutory stock options to management based upon the discretion of the Board of Directors. The plan generally provided for grants with the exercise price equal to fair value on the date of grant, which vest in three equal annual amounts beginning in year five and expire after approximately 10 years from issuance. The Company had no shares available for grant under the 2000 Plan as of March 31, 2021. The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 71 $ 14.69 3.4 Granted — — — Exercised (30 ) 14.22 — Forfeited (4 ) 15.74 — Outstanding at end of year 37 14.97 2.6 Vested at end of year 22 14.45 2.3 Unvested at end of year 15 15.74 3.0 Fair value of options granted during the year $ — As of March 31, 2021, there was a total of less than $0.1 million of unrecognized compensation expense related to unvested stock option awards under the 2000 plan that will be recognized as an expense as the awards vest over the remaining weighted average service period of 0.3 years. All options are expected to vest. During the fiscal years ended March 31, 2021 and 2020, approximately 0.1 million shares vested each year. No options vested during fiscal year ended March 31, 2019. No options were granted during the fiscal years ended March 31, 2021, 2020, and 2019. The aggregate intrinsic value for options outstanding and currently exercisable as of March 31, 2021 was $3.3 million and $2.0 million, respectively. The total intrinsic value of options exercised during the fiscal years ended March 31, 2021, 2020, and 2019 were $2.1 million, $0.2 million and $0.8 million, respectively. 2013 Plan - The Company’s 2013 stock option plan (“2013 Plan”) provided for the issuance of non-statutory common stock options to management subject to the Board’s discretion. The plan generally provided for grants with the exercise price equal to fair value on the date of grant. The grants generally vest in three to five equal annual amounts beginning in year one and expire after approximately 10 years from issuance. The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 565 $ 19.45 4.7 Granted — — — Exercised (249 ) 19.40 — Forfeited — — — Outstanding at end of year 316 19.48 3.7 Vested at end of year 312 19.43 3.6 Unvested at end of year 4 24.20 5.0 Fair value of options granted during the year $ — As of March 31, 2021, there was a total of less than $0.1 million of unrecognized compensation expense related to unvested stock option awards under the 2013 Plan that will be recognized as an expense as the awards vest over the remaining weighted average service period of 0.7 years. The aggregate intrinsic value for options outstanding and currently exercisable as of March 31, 2021 was $26.5 million and $26.2 million, respectively. The total fair value of options that vested during the fiscal years ended March 31, 2021, 2020, and 2019 were $ 0.1 million, $ 0.8 million, and $ 2.6 million, respectively. The total intrinsic value of options exercised during the fiscal year ended March 31, 2021 was $ 15.2 million. 2008 Restricted Stock Plan On September 16, 2008, the Board of Directors adopted the restricted stock plan, which provided for the issuance of restricted stock awards to certain key employees. Employees with restricted stock have the right to dividends on the shares awarded (vested and unvested) in addition to voting rights on non-forfeited shares. The Company had no shares available for grant under this plan as of March 31, 2021. The Company expects all restricted stock grants to vest. At March 31, 2021, there was less than $0.1 million of unrecognized compensation expense related to the restricted stock that will be recognized over the weighted average remaining service period of 0.6 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 18. INCOME TAXES The components of Income before income taxes for the fiscal years ended March 31 are as follows: (Amounts in thousands) 2021 2020 2019 United States $ 291,296 $ (186,209 ) $ 103,559 Foreign 20,975 6,595 8,051 Total $ 312,271 $ (179,614 ) $ 111,610 The components of Income tax expense for the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 2019 Current: Federal $ 76,986 $ 10,867 $ 11,575 State and local 17,189 4,655 3,998 Foreign 5,921 1,546 2,050 Total current tax expense 100,096 17,068 17,623 Deferred: Federal (12,250 ) 210 11,745 State and local (1,269 ) (1,228 ) 1,795 Foreign (195 ) (1,958 ) (1,114 ) Total deferred tax expense (benefit) (13,714 ) (2,976 ) 12,426 Total Income tax expense $ 86,382 $ 14,092 $ 30,049 For the fiscal years ended March 31, the effective tax rate varied from the statutory Federal income tax rate as a result of the following factors: 2021 2020 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % ESOP stock appreciation, ESOP dividends and special dividend (a) 2.7 (30.3 ) 3.2 Effect of tax rate of foreign subsidiaries 0.5 0.6 (0.3 ) State and local taxes—net of federal income tax benefit 3.9 (1.7 ) 4.6 Uncertain tax position change (0.5 ) 1.2 (1.3 ) Equity-based compensation (1.4 ) 1.1 (0.4 ) Executive compensation 1.5 (0.8 ) 1.1 Net operating losses 0.2 1.9 — Other (0.2 ) (0.9 ) (1.0 ) Effective rate 27.7 % (7.9 )% 26.9 % (a) This includes the special dividend paid in the first quarter of fiscal 2020 that resulted in $246.8 million in additional stock-based compensation. Of the total stock-based compensation expense and dividends paid, approximately $242.9 million related to non-deductible stock appreciation and deductible dividends. This decreased the effective tax rate by 28.4%. See “Note 19. Net Income Per Share and Stockholders’ Equity” for additional information. As discussed in “Note 4. Acquisitions”, the Company acquired Infiltrator on July 31, 2019. During the year ended March 31, 2020, as part of the purchase price, approximately $132.4 million was attributed to deferred tax liabilities. Of the $132.4 million, $82.3 million related to the step up of GAAP basis for fair market valuations, while the remaining $50.1 million were acquired deferred tax liabilities. Of the total $82.3 million, $80.2 million was attributed to intangibles. The Company also acquired a federal net operating loss of $24.0 million. As of March 31, 2021, the Company plans to repatriate earnings from Canada and believes that there will be no additional tax costs associated with the repatriation of such earnings other than any potential non-U.S. withholding taxes. No deferred tax liability has been recognized as of March 31, 2021. The Company has approximately $21.0 million of undistributed earnings from other foreign entities that are intended to be reinvested indefinitely with the exception of cash dividends paid by the Company’s ADS Mexicana joint venture. It is not practicable to estimate the amount of U.S. tax, which would primarily relate to withholding tax, that might be payable on the eventual remittance of such undistributed earnings. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31 were comprised of: (Amounts in thousands) 2021 2020 Deferred tax assets: Inventory 805 2,065 Stock-based compensation 5,084 2,770 Worker’s compensation 2,603 2,317 Net operating loss and credit carryforwards 1,202 2,059 Operating lease liabilities 7,403 6,160 Other 7,878 6,684 Total deferred tax assets 24,975 22,055 Less: valuation allowance (405 ) (941 ) Total net deferred tax assets 24,570 21,114 Deferred tax liabilities: Intangible assets 106,012 121,276 Property, plant and equipment 66,546 63,649 Operating lease assets 7,365 6,147 Goodwill 5,686 4,527 Other 568 600 Total deferred tax liabilities 186,177 196,199 Net deferred tax liabilities $ 161,607 $ 175,085 Net deferred tax assets and liabilities are included in Other assets and Deferred tax liabilities, respectively, on the Consolidated Balance Sheets. The related balances at March 31 were as follows: (Amounts in thousands) 2021 2020 Net non-current deferred tax assets $ 578 $ 531 Net non-current deferred tax liabilities 162,185 175,616 As a result of the acquisition of Infiltrator, the Company acquired state net operating losses (“NOLs”) and state credit carryforward attributes. The Company has recorded deferred tax assets related to state NOLs of $0.9 million as of March 31, 2020, with carryforward periods ranging from 5 to 20 years. Any losses not utilized within a specific state’s carryforward period will expire. A valuation allowance has been recorded against $0.1 million of these deferred tax assets as of March 31, 2020 for state NOLs that the Company does not expect to realize within their respective carryforward periods. The Company has no deferred tax assets and valuation allowances related to state NOLs as of March 31, 2021. Tax benefits associated with state tax credits will also expire if not utilized and amounted to $0.9 million and $0.8 million at March 31, 2021 and 2020, respectively. A valuation allowance in the amount of $0.3 million and $0.5 million has been established related to state credits the Company does not expect to utilize as of March 31, 2021 and 2020, respectively. Deferred tax assets related to foreign NOLs were $0.1 million and $0.3 million as of March 31, 2021 and 2020, respectively, with carryforward periods ranging from 20 years Accounting for Uncertain Tax Positions As of March 31, 2021, The Company had unrecognized tax benefit of $1.7 million, which if resolved favorably, would reduce income tax expense by $1.7 million. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended March 31 is as follows: (Amounts in thousands) 2021 2020 2019 Balance at beginning of year $ 3,343 $ 5,681 $ 7,593 Tax positions taken in current year — — 164 Decreases in tax positions for prior years — (1,398 ) (198 ) Increases in tax positions for prior years 105 1,907 136 Settlements (284 ) (124 ) (200 ) Lapse of statute of limitations (1,640 ) (2,589 ) (1,595 ) Foreign translation adjustment 162 (134 ) (219 ) Balance at end of year $ 1,686 $ 3,343 $ 5,681 The short-term portion of the unrecognized tax benefit of $0.3 million at March 31, 2021 is recorded in Other accrued liabilities on the Company’s Consolidated Balance Sheet. The long-term portion of unrecognized tax benefits are recorded in Other liabilities in the Company’s Consolidated Balance Sheets. These amounts include potential accrued interest and penalties of $0.5 million and $0.8 million at March 31, 2021 and 2020, respectively. The Company believes that over the next twelve months, it is reasonably possible that up to $0.3 million of unrecognized tax benefits could be resolved as the result of settlements of audits and the expiration of statutes of limitation. Final settlement of these issues may result in payments that are more or less than this amount, but the Company does not anticipate that the resolution of these matters will result in a material change to its consolidated financial position or results of operations. The Company is currently open to audit under the statute of limitations by the IRS for the fiscal years ended March 31, 2018 through March 31, 2021. The majority of the Company’s state income tax returns are open to audit under the statute of limitations for the years ended March 31, 2017 through March 31, 2021. The foreign income tax returns are open to audit under the statute of limitations for the years ended March 31, 2017 through March 31, 2021. |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 12 Months Ended |
Mar. 31, 2021 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Net Income Per Share and Stockholders' Equity | 1 9 . NET INCOME PER SHARE AND STOCKHOLDERS’ EQUITY Basic net income per share is calculated by dividing the Net income available to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share is computed by dividing the Net income available to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. Holders of certain unvested participating restricted stock have non-forfeitable rights to dividends when declared on common stock, and holders of redeemable convertible preferred stock participate in dividends on an as-converted basis when declared on common stock. As a result, unvested participating restricted stock and redeemable convertible preferred stock meet the definition of participating securities, which requires the Company to apply the two-class method to compute both basic and diluted net income per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. The dilutive effect of stock options, redeemable common stock, performance units and unvested nonparticipating restricted stock is based on the more dilutive of the treasury stock method or the diluted two-class method. These potential common stock equivalents are only included in the calculations when their effect is dilutive. The following table presents information necessary to calculate net income per share for the fiscal years ended March 31, 2021, 2020, and 2019, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive: (Amounts in thousands, except per share data) 2021 2020 2019 NET INCOME (LOSS) PER SHARE — BASIC: Net income (loss) attributable to ADS $ 224,230 $ (193,174 ) $ 77,772 Adjustment for: Dividends paid to participating securities (5,591 ) (11,544 ) (2,116 ) Net income available to common stockholders and participating securities 218,639 (204,718 ) 75,656 Undistributed income allocated to participating securities (33,251 ) — (5,474 ) Net income available to common stockholders — Basic 185,388 (204,718 ) 70,182 Weighted average number of common shares outstanding — Basic 70,155 63,820 57,025 Net income (loss) per common share — Basic $ 2.64 $ (3.21 ) $ 1.23 NET INCOME (LOSS) PER SHARE — DILUTED: Net income (loss) available to common stockholders — Diluted 185,388 (204,718 ) 70,182 Weighted average number of common shares outstanding — Basic 70,155 63,820 57,025 Assumed restricted stock - nonparticipating 247 — 39 Assumed exercise of stock options 844 — 547 Assumed performance units 320 — - Weighted average number of common shares outstanding — Diluted 71,566 63,820 57,611 Net income (loss) per common share —Diluted $ 2.59 $ (3.21 ) $ 1.22 Potentially dilutive securities excluded as anti-dilutive 14,594 14,449 5,966 Common Stock Offering – On September 10, 2019, the Company issued and sold an aggregate of 10,350,000 shares of common stock, $0.01 par value per share, which included the full exercise of the underwriters’ option to purchase additional shares, at a price of $29.75 per share, before underwriting discounts and commissions. The common stock was sold pursuant to the Company’s shelf registration statement and related prospectus supplement. The Company received proceeds of $293.6 million from the issuance after deducting underwriting discounts and commissions and offering expenses. The Company used the net proceeds for the repayment of a portion of the outstanding borrowings under the Senior Secured Credit Facility. Stockholders’ Equity - The Company did not repurchase any shares of common stock during fiscal years 2021 and 2020. In February 2017, the Company’s Board of Directors authorized the Company to repurchase up to $50 million of ADS common stock in accordance with applicable securities laws. As of March 31, 2021, approximately $42.1 million of common stock may be repurchased under the authorization. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or terminated at any time at the Company’s discretion. Special Dividend and the Employees Stock Ownership Plan (“ESOP”) - During fiscal year ended March 31, 2020, the Board of Directors approved a special cash dividend of $ 1.00 per share and quarterly dividends of $ 0.09 per share. The special and quarterly dividend were paid to all stockholders on June 14, 2019 to stockholders of record at the close of business on June 3, 2019 . The total dividend payment was $ 81.6 million. The dividends received by the unallocated redeemable convertible preferred stock held in the ESOP trust was used to pay $ 12.0 million of the ESOP loan back to the Company resulting in approximately 11.6 million shares of the Company’s redeemable convertible preferred stock being allocated to ESOP participants. The Company recognized $ 246.8 million in stock-based compensation expense based on the fair value on the date the Board of Directors approved the special dividend. The Board of Director’s approval committed the ESOP to use those proceeds to pay down the ESOP loan. The special dividend compensation expense was recognized in Cost of goods sold - ESOP special dividend compensation and Selling, general and administrative expenses - ESOP special dividend compensation on the Company’s Consolidated Statement of Operations. The Company’s ESOP is further described in “Note 16. Employee Benefit Plans” . |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | 20. OTHER ACCRUED LIABILITIES Other accrued liabilities as of fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Accrued compensation and benefits ( 1) $ 42,075 $ 33,215 Accrued rebate liability ( 2) 16,834 14,479 Lease liability - Operating leases 8,995 7,757 Self-insurance accruals 11,257 12,486 Other 36,990 33,179 Total accrued liabilities $ 116,151 $ 101,116 (1) Accrued compensation and benefits is primarily comprised of accrued payroll, bonuses and commissions. (2) Accrued rebate liability represents the Company’s estimated rebates to be paid to customers. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | 2 1 . BUSINESS SEGMENT INFORMATION ADS operates its business in three distinct reportable segments: “Pipe”, “International” and “Infiltrator.” “Allied Products & Other” represents the Company’s Allied Products and all other business segments. “Pipe” and “Allied Products & Other” were previously included as Domestic. The Chief Operating Decision Maker (“CODM”) reviews financial information and makes operational decisions based on Net Sales and Segment Adjusted Gross Profit. The Company calculates Segment Adjusted Gross Profit as net sales less costs of goods sold, depreciation and amortization, stock-based compensation, non-cash charges and certain other expenses Pipe – The Pipe segment manufactures and markets high performance thermoplastic corrugated pipe throughout the United States. The Company maintains and serves these markets through product distribution relationships with many of the largest national and independent waterworks distributors, buying groups and co-ops, major national retailers as well as an extensive network of hundreds of small to medium-sized distributors across the U.S. Products include single wall pipe, N-12 HDPE pipe sold into the Storm sewer, Infrastructure and Agriculture markets, High Performance polypropylene pipe sold into the Storm sewer, Infrastructure and sanitary sewer markets. Products are designed primarily for storm water management in the construction and infrastructure marketplace across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure. Products are manufactured using HDPE and polypropylene plastic material. Infiltrator – Infiltrator is a leading national provider of plastic leachfield chambers and systems, septic tanks and accessories, primarily for use in residential applications. Infiltrator products are used in on-site septic wastewater treatment systems in the United States and Canada. International – The International segment manufactures and markets pipe and allied products in certain regions outside of the United States, including Company owned facilities in Canada, subsidiaries that distribute to Europe and the Middle East, exports and through the Company’s joint ventures with local partners in Mexico and South America. The Company’s Mexican joint venture, ADS Mexicana, primarily serves the Mexican and Central American markets, while its South American Joint Venture, Tigre-ADS, is the primary channel to serve the South American markets. The Company’s International product lines include single wall pipe, N-12 HDPE pipe, high performance PP pipe and certain geographies also sell the Company’s broad line of Allied Products & Other . Allied Products & Other – Allied Products & Other manufactures and markets products throughout the United States. Products include StormTech, Nyloplast, ARC Septic Chambers, Inserta Tee, water quality filters and structures, Fittings, and FleXstorm. The Company maintains and serves these markets through product distribution relationships with many of the largest national and independent waterworks distributors, major national retailers as well as an extensive network of hundreds of small to medium-sized distributors across the U.S. The Company also sells through a broad variety of buying groups and co-ops in the United States. The Company aggregates operating segments within the Allied Products & Other segment disclosure. None of the operating segments within the Allied Products & Other businesses segment disclosure exceeds the quantitative thresholds for separate segment reporting. The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the fiscal years ended March 31: 2021 (Amounts in thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 1,059,200 $ (6,280 ) $ 1,052,920 Infiltrator 397,813 (68,669 ) 329,144 International International - Pipe 121,468 (6,589 ) 114,879 International - Allied Products & Other 43,390 — 43,390 Total International 164,858 (6,589 ) 158,269 Allied Products & Other 442,447 — 442,447 Intersegment Eliminations (81,538 ) 81,538 — Total Consolidated $ 1,982,780 $ — $ 1,982,780 2020 (Amounts in thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 954,633 $ (2,030 ) $ 952,603 Infiltrator 211,005 (41,657 ) 169,348 International International - Pipe 108,624 — 108,624 International - Allied Products & Other 39,957 — 39,957 Total International 148,581 — 148,581 Allied Products & Other 403,273 — 403,273 Intersegment Eliminations (43,687 ) 43,687 — Total Consolidated $ 1,673,805 $ — $ 1,673,805 2019 (Amounts in thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 868,805 $ — $ 868,805 Infiltrator — — — International International - Pipe 122,836 — 122,836 International - Allied Products & Other 37,766 — 37,766 Total International 160,602 — 160,602 Allied Products & Other 355,326 — 355,326 Intersegment Eliminations — — — Total Consolidated $ 1,384,733 $ — $ 1,384,733 The following sets forth certain financial information attributable to the reportable segments for the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Segment adjusted gross profit Pipe $ 322,846 $ 239,531 $ 191,002 Infiltrator 191,163 98,245 — International 49,921 36,999 37,191 Allied Products & Other 225,052 201,206 168,729 Intersegment Eliminations (503 ) (1,895 ) — Total $ 788,479 $ 574,086 $ 396,922 Depreciation and amortization Pipe $ 46,078 $ 46,611 $ 49,419 Infiltrator 12,468 7,159 — International 5,430 6,013 5,938 Allied Products & Other (a) 81,610 65,157 16,543 Total $ 145,586 $ 124,940 $ 71,900 Capital expenditures Pipe $ 17,135 $ 33,629 $ 34,878 Infiltrator 54,024 24,917 — International 1,627 2,623 3,765 Allied Products & Other (a) 5,971 6,508 4,769 Total $ 78,757 $ 67,677 $ 43,412 (a) Includes depreciation and amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets acquired is included in Allied Products & Other. Reconciliation of Gross Profit to Segment Adjusted Gross profit (Amounts in thousands) 2021 2020 2019 Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 690,082 $ 316,479 $ 326,967 Depreciation and amortization 66,408 62,225 59,164 ESOP and stock-based compensation expense 31,792 14,319 10,791 ESOP special dividend compensation — 168,610 — COVID-19 related expenses (a) 197 4,573 — Inventory step up related to Infiltrator acquisition — 7,880 — Total Segment Adjusted Gross Profit $ 788,479 $ 574,086 $ 396,922 (a) Represents the Company’s pandemic pay expense included in Gross profit in connection with the Company’s response to the COVID-19 pandemic, see “Note 16. Employee Benefit Plans” for additional information. Geographic Sales and Assets Information Net sales are attributed to the geographic location based on the location of the customer. The table below represents the Net sales and long-lived asset information by geographic location for each of the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Net Sales North America $ 1,966,947 $ 1,655,219 $ 1,366,470 Other 15,833 18,586 18,263 Total $ 1,982,780 $ 1,673,805 $ 1,384,733 (Amounts in thousands) 2021 2020 Long-Lived Assets (a) North America $ 511,290 $ 488,125 Other 11,861 9,250 Total $ 523,151 $ 497,375 (a) For segment reporting purposes, long-lived assets include Investments in unconsolidated affiliates, Central parts and Property, plant and equipment. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 2 2 . SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Supplemental disclosures of cash flow information for the fiscal years ended March 31 were as follows: (Amounts in thousands) 2021 2020 2019 Supplemental disclosures of cash flow information — cash paid during years: Interest $ 37,614 $ 41,290 $ 15,679 Income taxes 97,636 8,710 29,841 (Amounts in thousands) 2021 2020 2019 Supplemental disclosures of noncash investing and financing activities: Redeemable convertible preferred stock dividend $ 349 $ 359 $ 134 Purchases of plant, property, and equipment included in accounts payable 6,754 1,588 1,255 ESOP distributions in common stock 28,585 13,109 8,609 Lease obligation retired upon disposition of leased assets 1,940 799 578 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 2 3 . SUBSEQUENT EVENTS Dividends on Common Stock - During the first quarter of fiscal 2022, the Company declared a quarterly cash dividend of $0.11 per share of common stock. The dividend is payable on June 15, 2021 to stockholders of record at the close of business on June 1, 2021. Master Lease Agreement - On May 12, 2021, ADS entered into a master lease arrangement with a new bank to finance its procurement material handling equipment, trucks and trailers. Stock Repurchase Program - During the first quarter of fiscal 2022, the Company announced that its Board of Directors has authorized a stock repurchase program for the repurchase of up to $250 million in shares of the Company’s common stock, in addition to the $42 million outstanding under a previous authorization. |
Schedule II - Consolidated Valu
Schedule II - Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Consolidated Valuation and Qualifying Accounts | SCHEDULE II ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES Consolidated Valuation and Qualifying Accounts for the Fiscal Years Ended March 31, 2021, 2020 and 2019 (in thousands): Allowance for Doubtful Accounts: Year ended March 31, Balance at beginning of period Charged to costs and expenses (1) CECL Adoption (2) Charged to other accounts (3) Deductions Balance at end of period 2021 $ 5,035 $ 1,338 $ 779 $ 99 $ (1,928 ) $ 5,323 2020 7,653 (24 ) — (234 ) (2,360 ) 5,035 2019 6,826 1,154 — (65 ) (262 ) 7,653 (1) Amount for the year ended March 31, 2020 includes $0.4 million due to the Acquisition. (2) Amount represent the impact of the adoption of ASU 2016-13. ( 3 ) Amounts represent the impact of foreign currency translation. |
Background and Summary of Sig_2
Background and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements include the Company, its wholly-owned subsidiaries, its majority owned subsidiaries, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Consolidated Balance Sheets and the related equity in earnings from these investments are included in Equity in net (income) loss of unconsolidated affiliates in the Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the fiscal 2021 presentation. |
Estimates | Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingencies and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the allowance for doubtful accounts, valuation of inventory, useful lives of property, plant and equipment and amortizing intangible assets, determination of the proper accounting for leases, valuation of equity method investments, goodwill, intangible assets and other long-lived assets for impairment, accounting for stock-based compensation and the ESOP, valuation of the redeemable convertible preferred stock, determination of allowances for sales returns, rebates and discounts, determination of the valuation allowance, if any, on deferred tax assets, and reserves for uncertain tax positions. Management’s estimates and assumptions are evaluated on an ongoing basis and are based on historical experience, current conditions and available information. Management believes the accounting estimates are appropriate and reasonably determined; however, due to the inherent uncertainties in making these estimates, actual results could differ from those estimates. |
Receivables and Allowance for Doubtful Accounts | Receivables and Allowance for Doubtful Accounts - Receivables include trade receivables, net of an allowance for doubtful accounts, and other miscellaneous receivables. Receivables at March 31, 2021 and 2020 are as follows: (Amounts in thousands) 2021 2020 Trade receivables, net $ 233,753 $ 195,968 Other miscellaneous receivables 2,438 4,060 Receivables, net $ 236,191 $ 200,028 The Company extends credit to customers based on an evaluation of their financial condition and collateral is generally not required. The Company records an allowance for credit losses at the time accounts receivable are recorded based on the Company’s historical write-off activity, an evaluation of the current economic environment and the Company’s expectations of future economic conditions. |
Inventories | Inventories - Inventories are stated at the lower of cost or net realizable value. The Company’s inventories are maintained on the first-in, first-out (“FIFO”) method. Costs include the cost of acquiring materials, including in-bound freight from vendors and freight incurred for the transportation of raw materials, tooling or finished goods between the Company’s manufacturing plants and its distribution centers, direct and indirect labor, factory overhead and certain corporate overhead costs related to the production of inventory. The portion of fixed manufacturing overhead that relates to capacity in excess of normal capacity is expensed in the period in which it is incurred and is not included in inventory. Net realizable value of inventory is established with consideration given to deterioration, obsolescence, and other factors. The Company periodically evaluates the carrying value of inventories and adjustments are made whenever necessary to reduce the carrying value to net realizable value. |
Property, Plant and Equipment and Depreciation Method | Property, Plant and Equipment and Depreciation Method - Property, plant and equipment are recorded at cost less accumulated depreciation, with the exception of assets acquired through acquisitions, which are initially recorded at fair value. Equipment acquired under finance lease is recorded at the present value of the future minimum lease payments. Depreciation is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the related assets or the lease term, if shorter, as follows: Years Buildings and leasehold improvements 20 to 45 or the lease term if shorter Machinery and production equipment 3 to 18 Transportation equipment 3 to 12 Costs of additions and major improvements are capitalized, whereas maintenance and repairs that do not improve or extend the life of the asset are charged to expense as incurred. When assets are retired or disposed, the cost and related accumulated depreciation are removed from the asset accounts and any resulting gain or loss is reflected in Loss on disposal of assets and costs from exit and disposal activities in the Consolidated Statements of Operations. Construction in progress is also recorded at cost and includes capitalized interest, capitalized payroll costs and related costs such as taxes and other fringe benefits. |
Goodwill | Goodwill - The Company records acquisitions resulting in the consolidation of an enterprise using the acquisition method of accounting. Under this method, the Company records the assets acquired, including intangible assets that can be identified, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the identifiable assets acquired and liabilities assumed is recorded as goodwill. Goodwill is reviewed annually for impairment as of March 31 or whenever events or changes in circumstances indicate the carrying value may be greater than fair value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired and the Company is not required to perform further testing. If the carrying value of a reporting unit’s goodwill exceeds its fair value, then the Company would record an impairment loss equal to the difference. With respect to this testing, a reporting unit is a component of the Company for which discrete financial information is available and regularly reviewed by management. The fair value of goodwill is determined by considering both the income and market approach. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market compar ison . The fair value estimates are based on assumptions management believes to be reasonable but are inherently uncertain. For the fiscal year ended March 31, 2021, the Company completed a quantitative assessment of the Infiltrator reporting unit and determined no impairment charge was required. For the fiscal year ended March 31, 2020, the Company completed a quantitative fair value assessment for all reporting units and determined no impairment charge was required. For all other fiscal years presented , ADS completed a quantitative fair value assessment of the Canada reporting unit and determined no impairment charge was required. GAAP allows entities testing goodwill for impairment the option of performing a qualitative assessment before calculating the fair value of a reporting unit for the goodwill impairment test. If the qualitative assessment is performed, an entity is no longer required to calculate the fair value of a reporting unit unless the entity determines that, based on that assessment, it is not more likely than not that its fair value is less than its carrying amount. ADS applied the qualitative assessment to all other reporting units for the annual impairment tests performed as of March 31, 2021 and 2019. The qualitative assessments indicated that no impairment charges were required for goodwill. |
Intangible Assets - Definite-Lived | Intangible Assets — Definite-Lived - Definite-lived intangible assets are amortized using the straight-line method or an accelerated method over their estimated useful lives and are tested for recoverability whenever events or changes in circumstances indicate that carrying amounts of the asset group may not be recoverable. Asset groups are established primarily by determining the lowest level of cash flows available. If the estimated undiscounted future cash flows are less than the carrying amounts of such assets, an impairment loss is recognized to the extent the fair value of the asset less any costs of disposition is less than the carrying amount of the asset. Determining the fair value of these assets is judgmental in nature and involves the use of significant estimates and assumptions. |
Intangible Assets - Indefinite-Lived | Intangible Assets — Indefinite-Lived - Indefinite-lived intangible assets are tested for impairment annually as of March 31 or whenever events or changes in circumstances indicate the carrying value may be greater than fair value. Determining the fair value of these assets is judgmental in nature and involves the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions it believes to be reasonable, but that are inherently uncertain. To estimate the fair value of these indefinite-lived intangible assets, the Company uses an income approach, which utilizes a market derived rate of return to discount anticipated performance. An impairment loss is recognized when the estimated fair value of the intangible asset is less than the carrying value. ADS completed a quantitative fair value measurement of indefinite-lived trademarks as of March 31, 2020. The test indicated that the fair value of the indefinite-lived trademarks substantially exceeded the carrying value, indicating that no impairment existed. GAAP allows entities testing indefinite-lived intangible assets for impairment the option of performing a qualitative assessment before calculating the fair value of the indefinite-lived intangible assets for the impairment test. If the qualitative assessment is performed, an entity is no longer required to calculate the fair value of an indefinite-lived intangible assets unless the entity determines that, based on that assessment, it is more likely than not that its fair value is less than its carrying amount. ADS applied the qualitative assessment to specific trademarks for the annual impairment tests performed as of March 31, 2021 and 2019. For the qualitative test, ADS assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting unit as compared to its latest quantitative fair value measurement. The results of this assessment indicated that it is not more likely than not that the trademarks fair value is less than the reporting unit carrying value. The Company did not incur any impairment charges for Intangible assets. |
Other Assets | Other Assets - Other assets include operating lease right of use assets, investments in unconsolidated affiliates accounted for under the equity method, capitalized software development costs, including cloud computing costs, deposits, central parts, and other miscellaneous assets. See “Note 6. Leases” for further information on the operating lease right of use assets. The Company capitalizes development costs for internal use software. Capitalization of software development costs begins in the application development stage and ends when the asset is placed into service. The Company amortizes such costs using the straight-line method over estimated useful lives of 2 to 10 years, which is included in Selling, general and administrative expenses or Cost of goods sold within the Consolidated Statements of Operations depending on the nature of the asset and its intended use. Central parts represent spare production equipment items which are used to replace worn or broken production equipment parts and help reduce the risk of prolonged equipment outages. The cost of central parts is amortized on a straight-line basis over estimated useful lives of 3 to 10 years. The Company evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable and recognizes an impairment loss when a decline in value below carrying value is determined to be other-than-temporary. Under these circumstances, the Company would adjust the investment down to its estimated fair value, which then becomes its new carrying value. The impairment charge, if any, is included in Equity in net (income) loss of unconsolidated affiliates in the Consolidated Statements of Operations. Other assets as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Right of use assets - Operating leases $ 31,237 $ 24,875 Investments in unconsolidated affiliates 11,861 9,250 Capitalized software development costs, net 11,170 11,045 Deposits 4,649 3,842 Central parts 7,015 6,745 Other 19,559 13,383 Total other assets $ 85,491 $ 69,140 The following table sets forth amortization expense related to Other assets in each of the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Capitalized software development costs $ 3,578 $ 3,116 $ 2,659 Central parts 186 87 73 Other 80 85 1,419 |
Leases | Leases - The Company determines whether an arrangement contains a lease at inception by determining if the contract conveys the right to control the use of identified plant, property, and equipment for a period of time in exchange for consideration and other facts and circumstances as defined by ASC 842. For each lease which has an accounting lease term of greater than 12 months, the Company records the right-of-use asset and lease liability on the balance sheet. The accounting lease term includes cancellable and renewal periods which are reasonably assured. The lease liability is measured utilizing the incremental borrowing rate unless the Company can specifically determine the rate implicit in the lease. Leases are evaluated for appropriate classification as operating or financing at lease inception. For leases classified as finance leases at lease inception, the Company records a finance lease asset and lease financing obligation equal to the present value of the minimum lease payments. The finance lease right of use asset is recorded in Property, plant and equipment, net and amortized to its expected residual value at the end of the lease term using the straight-line method, and the lease financing obligation is amortized using the effective interest method over the lease term with the rental payments being allocated to principal and interest. For leases classified as operating leases, the Company records the operating lease right of use asset in Other assets and operating lease obligation in Other accrued liabilities and Other liabilities. Operating lease rent expense over the useful life using the straight-line method. ASC 842 Adoption - In February 2016, the FASB issued an ASU which amends the guidance for leases (“ASC 842”). The Company adopted the provisions of ASC 842 beginning on April 1, 2019 using the transition methodology in ASC 842 which does not require adjustments to comparative periods or require modified disclosures. The Company elected the transition relief practical expedient package as described in ASC 842-10-65-1. ASC 842 provides lessees with the option of electing an accounting policy, by class of underlying asset, in which the lessee may choose not to separate nonlease components from lease components. The Company elected this practical expedient for leases of certain classes of equipment, including forklifts and fleet tractors and trailers. The Company also elected the accounting policy to not recognize the right-of-use asset and lease liability for leases with an accounting lease term of twelve months or less (“Short-term leases”). The adoption of ASC 842 resulted in the recording of $13.3 million of additional lease liabilities and right-of-use assets to the beginning balance of the Company’s Consolidated Balance Sheet. Infiltrator adopted ASC 842 on July 31, 2019 using the same methodology and policy elections taken by the Company on April 1, 2019. The Infiltrator adoption of ASC 842 resulted in the recording of $11.2 million of additional lease liabilities and corresponding right-of-use assets to the beginning balance of the Company’s Consolidated Balance Sheet. At the date of adoption, ASC 842 did not have an impact on the Company’s Consolidated Statement of Operations and Consolidated Statement of Cash Flows. Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have remaining terms of less than one year to 30 years. A portion of the Company’s real estate leases include an option to extend the leases for up to 5 years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities. The Company’s lease payments are generally fixed. Certain equipment leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. The calculation is based on the original cost of the transportation equipment, less lease payments made, compared to a percentage of the transportation equipment’s fair market value at the time of sale. All leased units covered by this guarantee have been classified as finance leases and a corresponding finance lease obligation was recorded. Therefore, no contingent obligation is needed. For all leases with an initial expected term of more than 12 months, the Company recorded, at the adoption date of ASC 842 or lease commencement date for leases entered into after the adoption date, a lease liability, which is the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company will utilize its collateralized incremental borrowing rate commensurate to the lease term as the discount rate for its leases, unless the Company can specifically determine the lessor’s implicit rate. The incremental borrowing rate for each lease is determined based on the Company’s credit rating, adjusted for the impacts of collateral, and the lease term. |
Foreign Currency Translation | Foreign Currency Translation - Assets and liabilities of foreign subsidiaries with a functional currency other than the U.S. dollar are translated into U.S. dollars at the current rate of exchange on the last day of the reporting period. Revenues and expenses are translated at a monthly average exchange rate and equity transactions are translated using either the actual exchange rate on the day of the transaction or a monthly average historical exchange rate. The South American Joint Venture operates within Argentina, which on July 1, 2018, was identified for high inflationary accounting. The Company has determined the effect of a change in the exchange rate under high inflationary accounting does not have a material effect on the Company’s results in any annual period. For the fiscal years ended March 31, 2021 and 2020, the Company’s Accumulated other comprehensive loss (“AOCL”) consisted of foreign currency translation gains and losses. |
Net Sales | Net Sales - The Company generates revenue by selling pipe and related water management products primarily to distributors, retailers, buying groups and co-operative buying groups. Products are shipped predominately by the Company’s internal fleet, and the Company does not provide any additional revenue generating services after product delivery. Payment terms and conditions vary by contract. Revenue is recognized at the point in-time obligations under the terms of a contract with a customer are satisfied, which generally occurs upon the transfer of control of the promised goods. In substantially all of the Company’s contracts with customers, control is transferred to the customer upon delivery. The Company recognizes revenue in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. |
Shipping Costs | Shipping Costs - The Company incurs shipping costs to deliver products to customers using an in-house fleet or common carrier. Typically shipping costs are prepaid and included in the product price; however, in some instances, the Company bills shipping costs to customers. Shipping costs are also incurred to physically move raw materials, tooling and products between manufacturing and distribution facilities. Shipping costs to deliver products to customers for the fiscal years ended March 31, 2021, 2020, and 2019 were $174.2 million, $149.0 million, and $131.3 million, respectively, and are included in Cost of goods sold. Shipping costs billed to customers were $7.3 million, $7.9 million, and $7.7 million during the fiscal years ended March 31, 2021, 2020, and 2019, respectively, and are included in Net sales. |
Stock-Based Compensation | Stock-Based Compensation - See “Note 17. Stock-Based Compensation” for information about the stock-based compensation award programs and related accounting policies. The Company has several programs for stock-based payments to employees and directors, including stock options, performance-based restricted units and restricted stock. Stock-based compensation expense is recorded in Selling, general and administrative expenses and Cost of goods sold in the Consolidated Statements of Operations. The Company recognized stock-based compensation expense in the following line items on the Consolidated Statements of Operations for the fiscal years ended March 31, 2021, 2020, and 2019: (Amounts in thousands) 2021 2020 2019 Component of income before income taxes: Cost of goods sold $ 1,931 $ 897 $ 317 Selling, general and administrative expenses 18,522 11,372 6,215 Total stock-based compensation expense $ 20,453 $ 12,269 $ 6,532 The following table summarizes stock-based compensation expense by award type for the fiscal years ended March 31, 2021, 2020, and 2019: (Amounts in thousands) 2021 2020 2019 Stock-based compensation expense: Stock options $ 2,908 $ 2,554 $ 2,550 Restricted stock 5,177 3,807 2,064 Performance-based restricted stock units 11,017 4,682 869 Non-employee director restricted stock 1,351 1,226 1,049 Total stock-based compensation expense $ 20,453 $ 12,269 $ 6,532 Stock option awards are measured based on the grant date estimated fair value of each award. Compensation expense for stock options is recognized on a straight-line basis over the employee’s requisite service period, which is generally the vesting period of the grant. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used in estimating the fair value of stock options: 2021 2020 2019 Common stock price $41.97 - $71.55 $27.44 - $41.85 $25.75 - $27.99 Expected stock price volatility 35.5% - 36.3% 30.1% - 30.9% 30.3% - 31.1% Risk-free interest rate 0.4% - 0.6% 1.4% - 2.3% 2.9% - 3.1% Weighted-average expected life (years) 6.0 6.0 6.0 Dividend yield 0.5% - 0.9% 0.9% - 1.3% 1.1% - 1.2% The fair value of restricted stock and performance-based restricted stock units is based on the fair value of the Company’s common stock at the date of grant. Compensation expense is recognized on a straight-line basis over the employee’s requisite service period, which is generally the vesting period of the grant. 2017 Omnibus Plan On May 24, 2017, the Board of Directors approved the 2017 Omnibus Incentive Plan (the “2017 Incentive Plan”) which was approved by the Company’s stockholders on July 17, 2017. The 2017 Incentive Plan provides for the issuance of a maximum of 3.5 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards. The Company had approximately 1.3 million shares available for awards as of March 31, 2021. Stock Options - The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 785 $ 25.01 8.4 Granted 258 42.60 — Exercised (89 ) 25.78 — Forfeited (15 ) 30.30 — Outstanding at end of year 939 29.69 7.9 Vested at end of year 386 23.21 7.0 Unvested at end of year 553 34.22 8.5 Fair value of options granted during the year $ 13.29 Restricted Stock - The information about the unvested restricted stock grants as of March 31, 2021 is as follows: (Share amounts in thousands) Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 388 $ 30.38 Granted 132 44.04 Vested (130 ) 27.46 Forfeited (8 ) 31.63 Unvested at end of year 382 $ 36.03 At March 31, 2021, there was approximately $7.3 million of unrecognized compensation expense related to the restricted stock that will be recognized over the weighted average remaining service period of 1.6 years. The total fair value of restricted stock that vested during fiscal year ended March 31, 2021, 2020 and 2019 was $3.6 million, $2.3 million and $2.0 million, respectively. Performance-based Restricted Units (“performance units”) - The information about the performance units granted under the 2017 Omnibus Plan is as follows: (Share amounts in thousands) Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 389 $ 31.07 Granted 106 50.29 Vested — — Forfeited (10 ) 33.55 Unvested at end of year 485 $ 35.21 At March 31, 2021, there was approximately $11.3 million of unrecognized compensation expense related to the performance units that will be recognized over the weighted average remaining service period of 1.5 years. For the performance units granted in fiscal 2021, 2020 and 2019, 50% of the award is based upon the achievement of certain levels of Return on Invested Capital for the performance period and 50% is based upon the achievement of certain levels of Free cash flow for the performance period. In addition to the performance units based on ADS performance, the Company issued performance units based on the achievements of other performance targets. During fiscal year 2020, the Company granted 0.1 million units, subject to achieving predetermined synergies of the now consolidated legacy ADS business and Infiltrator, and 0.1 million units, subject to performance conditions of the Infiltrator reportable segment. For the performance units based on the Infiltrator reportable segment, 75% of the award is based upon the achievement of certain levels of Adjusted EBITDA for the performance period and 25% is based upon the achievement of certain levels of Free cash flow for the performance period. These two performance unit grants have a performance period from August 1, 2019 through March 31, 2022. 2000 and 2013 Stock Options Plans 2000 Plan - The Company’s 2000 stock option plan (“2000 Plan”) provided for the issuance of statutory and non-statutory stock options to management based upon the discretion of the Board of Directors. The plan generally provided for grants with the exercise price equal to fair value on the date of grant, which vest in three equal annual amounts beginning in year five and expire after approximately 10 years from issuance. The Company had no shares available for grant under the 2000 Plan as of March 31, 2021. The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 71 $ 14.69 3.4 Granted — — — Exercised (30 ) 14.22 — Forfeited (4 ) 15.74 — Outstanding at end of year 37 14.97 2.6 Vested at end of year 22 14.45 2.3 Unvested at end of year 15 15.74 3.0 Fair value of options granted during the year $ — As of March 31, 2021, there was a total of less than $0.1 million of unrecognized compensation expense related to unvested stock option awards under the 2000 plan that will be recognized as an expense as the awards vest over the remaining weighted average service period of 0.3 years. All options are expected to vest. During the fiscal years ended March 31, 2021 and 2020, approximately 0.1 million shares vested each year. No options vested during fiscal year ended March 31, 2019. No options were granted during the fiscal years ended March 31, 2021, 2020, and 2019. The aggregate intrinsic value for options outstanding and currently exercisable as of March 31, 2021 was $3.3 million and $2.0 million, respectively. The total intrinsic value of options exercised during the fiscal years ended March 31, 2021, 2020, and 2019 were $2.1 million, $0.2 million and $0.8 million, respectively. 2013 Plan - The Company’s 2013 stock option plan (“2013 Plan”) provided for the issuance of non-statutory common stock options to management subject to the Board’s discretion. The plan generally provided for grants with the exercise price equal to fair value on the date of grant. The grants generally vest in three to five equal annual amounts beginning in year one and expire after approximately 10 years from issuance. The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 565 $ 19.45 4.7 Granted — — — Exercised (249 ) 19.40 — Forfeited — — — Outstanding at end of year 316 19.48 3.7 Vested at end of year 312 19.43 3.6 Unvested at end of year 4 24.20 5.0 Fair value of options granted during the year $ — As of March 31, 2021, there was a total of less than $0.1 million of unrecognized compensation expense related to unvested stock option awards under the 2013 Plan that will be recognized as an expense as the awards vest over the remaining weighted average service period of 0.7 years. The aggregate intrinsic value for options outstanding and currently exercisable as of March 31, 2021 was $26.5 million and $26.2 million, respectively. The total fair value of options that vested during the fiscal years ended March 31, 2021, 2020, and 2019 were $ 0.1 million, $ 0.8 million, and $ 2.6 million, respectively. The total intrinsic value of options exercised during the fiscal year ended March 31, 2021 was $ 15.2 million. 2008 Restricted Stock Plan On September 16, 2008, the Board of Directors adopted the restricted stock plan, which provided for the issuance of restricted stock awards to certain key employees. Employees with restricted stock have the right to dividends on the shares awarded (vested and unvested) in addition to voting rights on non-forfeited shares. The Company had no shares available for grant under this plan as of March 31, 2021. The Company expects all restricted stock grants to vest. At March 31, 2021, there was less than $0.1 million of unrecognized compensation expense related to the restricted stock that will be recognized over the weighted average remaining service period of 0.6 years. |
Advertising | Advertising - The Company expenses advertising costs as incurred. Advertising costs are recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. The total advertising costs were $4.1 million, $4.9 million, and $3.8 million for the fiscal years ended March 31, 2021, 2020, and 2019, respectively |
Self-Insurance | Self-Insurance - The Company is self-insured for short-term disability and medical coverage it provides for substantially all eligible employees. The Company is self-insured for medical claims up to the individual and aggregate stop-loss coverage limits. The Company accrues for claims incurred but not reported based on an estimate of future claims related to events that occurred prior to the fiscal year end if it has not met the aggregate stop-loss coverage limit. Amounts expensed totaled $42.4 million, $50.3 million, and $42.4 million for the fiscal years ended March 31, 2021, 2020, and 2019, respectively, of which employees contributed $8.5 million, $7.9 million, and $6.7 million, respectively ADS is also self-insured for various other general insurance programs to the extent of the applicable deductible limits on the Company’s insurance coverage. These programs include primarily automobile, general liability, cybersecurity and employment practices coverage with a deductible of $0.5 million per occurrence for general liability and $0.8 million per occurrence for automobile or claim incurred. Amounts expensed during the period, including an estimate for claims incurred but not reported at year end, were $1.7 million, $2.5 million, and $2.3 million, for the years ended March 31, 2021, 2020, and 2019, respectively. ADS is also self-insured for workers’ compensation insurance with stop-loss coverage for claims that exceed $0.3 million per incident up to the respective state statutory limits. Amounts expensed, including an estimate for claims incurred but not reported, were $3.0 million, $3.0 million, and $2.8 million for the fiscal years ended March 31, 2021, 2020, and 2019, respectively. |
Income Taxes | Income Taxes - Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized and represent the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. They are measured using the enacted tax rates expected to apply to taxable income in the years in which the related temporary differences are expected to be recovered or settled. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities. Penalties and interest recorded on income taxes payable are recorded as part of Income tax expense. The Company determines whether an uncertain tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation process, based upon the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. |
Fair Values | Fair Values - The fair value framework requires the categorization of assets and liabilities into three levels based upon assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. ADS’s policy for determining when transfers between levels have occurred is to use the actual date of the event or change in circumstances that caused the transfer. |
Concentrations of Risk | Concentrations of Risk - The Company has a large, active customer base of approximately twenty thousand customers with two customers, Ferguson Enterprises and Core and Main, each representing more than 10% of annual net sales. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of Receivables. The Company provides its products to customers based on an evaluation of the customers’ financial condition, generally without requiring collateral. Exposure to losses on Receivables is principally dependent on each customer’s financial condition. The Company performs ongoing credit evaluations of its customers. The Company monitors the exposure for credit losses and maintains allowances for anticipated losses. Concentrations of credit risk with respect to Receivables are limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographies. One customer, Ferguson Enterprises, accounted for approximately % and % of Receivables at March 31, 2021 and 2020 , respectively . |
Derivatives | Derivatives - The Company recognizes derivative instruments as either assets or liabilities and measure those instruments at fair value. ADS uses interest rate swaps, commodity options in the form of collars and swaps, and foreign currency forward contracts to manage various exposures to interest rate, commodity price, and exchange rate fluctuations. These instruments do not qualify for hedge accounting treatment. Interest rate swap gains and losses resulting from the difference between the spot rate and applicable base rate is recorded in the Consolidated Statements of Operations in Interest expense. For commodity options in the form of collars and swaps, and foreign currency forward contracts, gains and losses from contract settlements and changes in fair value of the derivative instruments are recognized in Derivative (gains) losses and other (income) expense, net in the Consolidated Statements of Operations. The Company’s policy is to present all derivative balances on a gross basis. The Company also has forward purchase agreements in place with certain resin suppliers for virgin polyethylene resin. The agreements specify a fixed amount of virgin resin material to be purchased at a fixed price for a given period of time in quantities the Company will use in the normal course of business, and therefore, qualify as normal purchase contracts. There were no agreements outstanding as of March 31, 2021. The cost of such resin is recognized in Cost of goods sold in the Consolidated Statements of Operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Guidance Measurement of Credit Losses - In June 2016, the Finance Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) which provides amended guidance on the measurement of credit losses on financial instruments, including trade receivables. This standard requires the use of an impairment model referred to as the current expected credit loss model. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, and early adoption is permitted for fiscal years beginning after December 15, 2018. The Company adopted this standard effective April 1, 2020. The Company’s adoption of the standard did not have a material impact on the Company’s Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted Reference Rate Reform - In March 2020, the FASB issued an ASU that provides optional expedients and exceptions related to financial reporting impacts related to the expected market transition from LIBOR to another reference rates. The amendments are effective on March 12, 2020 and an entity may elect to adopt prospectively through December 31, 2022. The Company is currently evaluating the impact of this standard on the Consolidated Financial Statements. Income Taxes – In December 2019, the FASB issued an ASU to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, and improve the comparability of financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and early adoption is permitted. The Company does not expect the adoption of this standard to have an impact on the Consolidated Financial Statements. Except for the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the fiscal 2020 Form 10-K that have significance, or potential significance, to the Consolidated Financial Statements. |
Background and Summary of Sig_3
Background and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Receivables | Receivables and Allowance for Doubtful Accounts - Receivables include trade receivables, net of an allowance for doubtful accounts, and other miscellaneous receivables. Receivables at March 31, 2021 and 2020 are as follows: (Amounts in thousands) 2021 2020 Trade receivables, net $ 233,753 $ 195,968 Other miscellaneous receivables 2,438 4,060 Receivables, net $ 236,191 $ 200,028 |
Estimated Useful Lives of Related Assets | Depreciation is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the related assets or the lease term, if shorter, as follows: Years Buildings and leasehold improvements 20 to 45 or the lease term if shorter Machinery and production equipment 3 to 18 Transportation equipment 3 to 12 |
Other Assets | Other assets as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Right of use assets - Operating leases $ 31,237 $ 24,875 Investments in unconsolidated affiliates 11,861 9,250 Capitalized software development costs, net 11,170 11,045 Deposits 4,649 3,842 Central parts 7,015 6,745 Other 19,559 13,383 Total other assets $ 85,491 $ 69,140 |
Amortization Expense Related to Other Assets | The following table sets forth amortization expense related to Other assets in each of the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Capitalized software development costs $ 3,578 $ 3,116 $ 2,659 Central parts 186 87 73 Other 80 85 1,419 |
Loss on Disposal of Assets an_2
Loss on Disposal of Assets and Costs from Exit and Disposal Activities (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Loss on Disposal of Assets and Costs from Exit and Disposal Activities | The following table summarizes the activity included in Loss on disposal of assets and costs from exit and disposal activities recorded during the periods presented. (Amounts in thousands) 2021 2020 2019 Accelerated depreciation $ — $ — $ 430 Plant severance — — 131 Headcount reduction 1,879 — 306 Product optimization — — 283 Other restructuring activities — — 475 Total 2021 and 2018 Restructuring Plan activities $ 1,879 $ — $ 1,625 Acquisition related severance and other costs — 2,557 $ — Loss on other disposals and partial disposals of property, plant and equipment 2,396 2,781 2,022 Total loss on disposal of assets and costs from exit and disposal activities $ 4,275 $ 5,338 $ 3,647 |
Summary of Reconciliation of Restructuring Liability | A reconciliation of the beginning and ending amounts of restructuring liability related to the 2021 and 2018 Restructuring Plan for the fiscal years ended March 31, 2021 and 2020 (Amounts in thousands) 2021 2020 Balance at beginning of year $ 574 $ 1,696 Expenses 1,879 — Non-cash expenses — — Payments (1,838 ) (1,122 ) Balance at end of year $ 615 $ 574 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Asset and Liability | The following table presents the balance of the Company’s contract asset and liability as of March 31, 2021 and 2020: March 31, 2021 March 31, 2020 (In thousands) Contract asset - product returns $ 694 $ 594 Refund liability 1,801 1,458 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Acquisition [Line Items] | |
Summary of Identifiable Intangible Assets | The following table presents the amortization expense and weighted average amortization period for definite-lived intangible assets at March 31, 2021: Amortization expense (in thousands) 2021 2020 2019 Weighted Average Amortization Period (in years) Developed technology $ 17,405 $ 12,517 $ 2,517 7.2 Customer relationships 50,177 36,093 3,546 14.8 Patents 699 522 546 2.9 Non-compete and other contractual agreements — 22 22 — Trademarks and tradenames 5,427 7,856 1,249 17.1 |
Infiltrator [Member] | |
Business Acquisition [Line Items] | |
Summary of Consideration Transferred and Preliminary Purchase Price Allocation of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred and the purchase price allocation of the assets acquired and liabilities assumed. (Amounts in thousands) Cash $ 57,375 Total current assets, excluding cash 75,847 Property, plant and equipment 92,285 Goodwill 495,841 Intangible assets, net 575,000 Other assets 17,275 Total current liabilities (22,038 ) Deferred tax liabilities (132,385 ) Other liabilities (11,970 ) Total fair value of consideration transferred $ 1,147,230 |
Summary of Identifiable Intangible Assets | The identifiable intangible assets recorded in connection with the closing of the Acquisition are based on valuations including customer relationships, patents and developed technology, and tradename and trademarks totaling $575.0 million. Customer relationships are amortized using an accelerated method over an estimated useful life of 20 years. Patents and developed technology and tradename and trademarks are on a straight-line basis over the respective useful lives of 10 and 20 years. (Amounts in thousands) Fair value Estimated useful lives Customer relationships $ 360,000 20 years Patents and developed technology 150,000 10 years Tradename and trademarks 65,000 20 years Total identifiable intangible assets $ 575,000 |
Summary of Unaudited Pro Forma Information | The unaudited pro forma information for the fiscal years ended March 31, 2020 and 2019 presented below includes the effects of the Acquisition as if it had been consummated as of April 1, 2018, with adjustments to give effect to pro forma events that are directly attributable to the Acquisition. (Amounts in thousands) 2020 2019 Net sales $ 1,760,208 $ 1,608,450 Net income (loss) attributable to ADS (145,244 ) 27,411 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Land, buildings and improvements $ 263,191 $ 253,379 Machinery and production equipment 646,592 631,932 Transportation equipment 210,738 208,037 Construction in progress 71,873 19,925 Total cost 1,192,394 1,113,273 Less: accumulated depreciation (688,119 ) (631,893 ) Property, plant and equipment, net $ 504,275 $ 481,380 |
Depreciation Expense Related to Property, Plant and Equipment | The following table sets forth depreciation expense related to Property, plant and equipment in each of the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Depreciation expense (inclusive of leased assets depreciation) ( 1) $ 68,034 $ 64,642 $ 59,869 (1) Depreciation expense does not include accelerated depreciation expense from the 2018 Restructuring plan. See “Note 2. Loss on Disposal of Assets and Costs from Exit and Disposal Activities” for additional discussion. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | Lease Cost - The components of lease cost for the years ended March 31, 2021 and March 31, 2020 were: (Amounts in thousands) Income Statement Classification 2021 2020 Operating lease cost Operating lease cost Cost of goods sold $ 8,391 $ 5,548 Operating lease cost Selling, general and administrative 1,593 1,204 Short-term lease cost Cost of goods sold 3,963 2,393 Total operating lease cost $ 13,947 $ 9,145 Finance lease cost Amortization of right-of-use assets Cost of goods sold 16,442 17,059 Amortization of right-of-use assets Selling, general and administrative 1,433 2,543 Interest on lease liabilities Interest expense 2,436 4,344 Total finance lease cost $ 20,311 $ 23,946 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the periods presented were as follows: (Amounts in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,984 $ 6,572 Operating cash flows from finance leases 3,205 4,675 Financing cash flows from finance leases 21,491 27,119 Right-of-use assets obtained in exchange for lease obligations: Operating leases 15,173 10,529 Finance leases (a) 9,907 5,078 (a) The Company acquired $27.6 million of property, plant and equipment under finance leases in the fiscal years ended March 31, 2019. |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of the periods presented were as follows: (Amounts in thousands) Balance Sheet Classification 2021 2020 Operating leases Right-of-use assets Other assets $ 31,237 $ 24,875 Current lease liabilities Other accrued liabilities 8,995 7,757 Non-current lease liabilities Other liabilities 22,393 17,173 Total operating lease liabilities $ 31,388 $ 24,930 Finance leases Right-of-use assets Property, plant and equipment 80,904 90,756 Current lease liabilities Current maturities of finance lease obligations 19,318 20,382 Non-current lease liabilities Long-term finance lease obligations 32,964 44,501 Total finance lease liabilities $ 52,282 $ 64,883 Weighted average lease term (in years): Operating leases 6.46 6.97 Finance leases 9.39 10.72 Weighted average discount rate: Operating leases 3.75 % 3.57 % Finance leases 4.90 % 5.36 % |
Schedule of Future Minimum Lease Payments on Rolling Twelve-month Basis under Operating and Finance Leases | The following is a schedule by year of future minimum lease payments on a rolling twelve-month basis under operating and finance leases and the present value of the net minimum lease payments as of March 31, 2021: (Amounts in thousands) Operating Leases Finance Leases Year 1 $ 10,947 $ 21,202 Year 2 7,691 14,816 Year 3 6,255 9,845 Year 4 5,128 5,856 Year 5 3,331 3,043 Thereafter 6,965 2,103 Total minimum lease payments $ 40,317 $ 56,865 Less: amount representing interest 8,929 4,583 Present value of net minimum lease payments $ 31,388 $ 52,282 |
Schedule of Contractual Obligations for Capital and Operating Leases | As of March 31, 2020, total contractual obligations for operating and finance leases were as follows: (Amounts in thousands) Operating Leases Finance Leases Year 1 $ 8,511 $ 23,492 Year 2 5,717 19,478 Year 3 3,839 13,182 Year 4 2,768 8,355 Year 5 2,041 4,736 Thereafter 6,075 4,722 Total minimum lease payments $ 28,951 $ 73,965 Less: amount representing interest 4,021 9,082 Present value of net minimum lease payments $ 24,930 $ 64,883 |
Schedule of Interest and Depreciation Expense Related to Capital Leases | The following sets forth the interest and depreciation expense related to capital leases recorded in each fiscal year ended March 31: (Amounts in thousands) 2019 Lease interest expense $ 5,215 Depreciation of leased assets 19,155 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Raw materials $ 75,294 $ 66,524 Finished goods 225,667 215,874 Total Inventories $ 300,961 $ 282,398 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Reportable Segment | Goodwill - The carrying amount of goodwill by reportable segment is as follows: As Previously Reported (Amounts in thousands) Domestic International Pipe Infiltrator Allied Products & Other Total Balance at March 31, 2019 $ 92,105 $ 10,533 $ — $ — $ — $ 102,638 Reallocation due to change in segments (92,105 ) — 57,663 — 34,442 — Acquisition — — — 495,841 — 495,841 Currency translation — (660 ) — — — (660 ) Balance at March 31, 2020 $ — $ 9,873 $ 57,663 $ 495,841 $ 34,442 $ 597,819 Currency translation — 1,253 — — — 1,253 Balance at March 31, 2021 $ — $ 11,126 $ 57,663 $ 495,841 $ 34,442 $ 599,072 |
Summary of Intangible Assets | Intangible Assets – Intangible assets as of March 31, 2021 and 2020 consisted of the following: 2021 2020 (Amounts in thousands) Gross Intangible Accumulated Amortization Net Intangible Gross Intangible Accumulated Amortization Net Intangible Definite-lived intangible assets Developed technology $ 177,579 $ (49,842 ) $ 127,737 $ 177,579 $ (32,437 ) $ 145,142 Customer relationships 377,742 (97,115 ) 280,627 377,742 (47,051 ) 330,691 Patents 8,985 (6,884 ) 2,101 8,951 (6,419 ) 2,532 Trademarks and tradenames 69,878 (10,193 ) 59,685 69,847 (4,736 ) 65,111 Total definite lived intangible assets 634,184 (164,034 ) 470,150 634,119 (90,643 ) 543,476 Indefinite-lived intangible assets (a) Trademarks 11,866 — 11,866 11,862 — 11,862 Total Intangible assets $ 646,050 $ (164,034 ) $ 482,016 $ 645,981 $ (90,643 ) $ 555,338 |
Summary of Identifiable Intangible Assets | The following table presents the amortization expense and weighted average amortization period for definite-lived intangible assets at March 31, 2021: Amortization expense (in thousands) 2021 2020 2019 Weighted Average Amortization Period (in years) Developed technology $ 17,405 $ 12,517 $ 2,517 7.2 Customer relationships 50,177 36,093 3,546 14.8 Patents 699 522 546 2.9 Non-compete and other contractual agreements — 22 22 — Trademarks and tradenames 5,427 7,856 1,249 17.1 |
Future Intangible Asset Amortization Expense | The following table presents the future intangible asset amortization expense based on existing intangible assets at March 31, 2021: Fiscal Year (Amounts in thousands) 2022 2023 2024 2025 2026 Thereafter Total Amortization expense $ 60,767 $ 51,970 $ 47,681 $ 44,591 $ 40,815 $ 224,326 $ 470,150 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Carried at Fair Value | The assets and liabilities carried at fair value as of the fiscal years ended March 31 were as follows: March 31, 2021 (Amounts in thousands) Total Level 1 Level 2 Level 3 Assets: Derivative assets — diesel fuel contracts $ 1,194 $ — $ 1,194 $ — Total assets at fair value on a recurring basis $ 1,194 $ — $ 1,194 $ — Liabilities: Derivative liability - diesel fuel contracts $ 32 $ — $ 32 $ — Total liabilities at fair value on a recurring basis $ 32 $ — $ 32 $ — March 31, 2020 (Amounts in thousands) Total Level 1 Level 2 Level 3 Assets: Derivative assets — diesel fuel contracts $ 36 $ — $ 36 $ — Total assets at fair value on a recurring basis $ 36 $ — $ 36 $ — Liabilities: Derivative liability - diesel fuel contracts $ 2,228 $ — $ 2,228 $ — Contingent consideration for acquisitions (a) 60 — — 60 Total liabilities at fair value on a recurring basis $ 2,288 $ — $ 2,228 $ 60 (a) The fair value of the contingent consideration for acquisitions is based on management’s estimate of contractual payments based on future product certifications obtained. |
Summary of Carrying And Fair Value of Senior Notes | The following table presents the carrying and fair value of the Company’s Senior Notes (as defined below and further discussed in “Note 13. Debt”) for the periods presented: March 31, 2021 March 31, 2020 Fair Value Carrying Value Fair Value Carrying Value (In thousands) (In thousands) Senior Notes $ 367,633 $ 350,000 $ 314,951 $ 350,000 |
Investment in Affiliates (Table
Investment in Affiliates (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
ADS Mexicana [Member] | |
Assets and Liabilities of Joint Ventures | The table below includes the assets and liabilities of ADS Mexicana that are consolidated as of March 31, 2021 and 2020. The balances exclude intercompany transactions that are eliminated upon consolidation. (Amounts in thousands) 2021 2020 Assets Current assets $ 21,556 $ 18,357 Property, plant and equipment, net 13,891 12,438 Other noncurrent assets 1,425 1,317 Total assets $ 36,872 $ 32,112 Liabilities Current liabilities $ 9,186 $ 6,350 Noncurrent liabilities 1,462 1,131 Total liabilities $ 10,648 $ 7,481 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Purchases and Sales by ADS with Related Parties | The following tables summarizes the purchases by ADS from related parties and sales by ADS to related parties for the periods presented: (Amounts in thousands) 2021 2020 2019 Purchases from South American Joint Venture $ 547 $ 696 $ 1,323 Sales to South American Joint Venture 582 934 1,191 Purchases from Tigre USA 1,970 1,966 354 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt as of the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Term Loan Facility $ 441,250 $ 648,250 Senior Notes 350,000 350,000 Revolving Credit Facility — 100,000 Equipment financing — 1,492 Total 791,250 1,099,742 Unamortized debt issuance costs (2,030 ) (2,419 ) Current maturities (7,000 ) (7,955 ) Long-term debt obligations $ 782,220 $ 1,089,368 |
Maturities of Long-term Debt (Excluding Interest and Deferred Financing Costs) | Maturities of long-term debt (excluding interest and deferred financing costs) as of March 31, 2021 are summarized below: Fiscal Years Ending March 31, (Amounts in thousands) 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 756,250 $ 791,250 |
Derivative Transactions (Tables
Derivative Transactions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Values for Various Derivatives | A summary of the fair values for the various derivatives at March 31, 2021 and 2020 is presented below: 2021 Assets Liabilities (Amounts in thousands) Receivables Other assets Other accrued liabilities Other liabilities Diesel fuel option collars and swaps $ 1,125 $ 69 $ (31 ) $ (1 ) 2020 Assets Liabilities (Amounts in thousands) Receivables Other assets Other accrued liabilities Other liabilities Diesel fuel option collars and swaps $ 21 $ 15 $ (2,000 ) $ (228 ) |
Schedule of Cash Settlements and Net Losses and Net (Gains) on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts | The Company recorded net losses and net (gains) on mark-to-market adjustments for changes in the fair value of derivative contracts as well as net losses and net (gains) on the settlement of derivative contracts as follows: Net Unrealized Mark-to-Market Losses (Gains) (Amounts in thousands) 2021 2020 2019 Interest rate swaps $ — $ 1,029 $ 1,712 Foreign exchange forward contracts — — 60 Diesel fuel option collars and swaps (3,355 ) 2,099 574 Total net unrealized mark to market losses (gains) $ (3,355 ) $ 3,128 $ 2,346 Net Realized Losses (Gains) (Amounts in thousands) 2021 2020 2019 Interest rate swaps $ — $ 378 $ (329 ) Foreign exchange forward contracts 47 102 (163 ) Diesel fuel option collars and swaps 1,409 357 (698 ) Total net realized losses (gains) $ 1,456 $ 837 $ (1,190 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Redeemable Convertible Preferred Stock [Member] | |
Summarized Cash and Stock Dividends on Allocated Redeemable Convertible Preferred Stock | During fiscal year ended March 31, 2020, the Board of Directors approved a special cash dividend of $1.00 per share. See “Note 19. Net Income Per Share and Stockholders’ Equity” for additional information. Cash and stock dividends on allocated Redeemable convertible preferred stock for the fiscal years ended March 31, 2021 and 2020, respectively, are summarized in the following table. (Amounts in thousands) 2021 2020 Quarterly cash dividends $ 5,238 $ 10,840 Annual cash dividends 4 7 Total cash dividends $ 5,242 $ 10,847 Annual stock dividend 349 359 Annual cash dividend 4 7 Total ESOP required dividends $ 353 $ 366 Allocated shares 18,124 18,756 Required dividend per share 0.0195 0.0195 Required dividends $ 353 $ 366 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Summary of Stock-based Compensation Expense | The Company recognized stock-based compensation expense in the following line items on the Consolidated Statements of Operations for the fiscal years ended March 31, 2021, 2020, and 2019: (Amounts in thousands) 2021 2020 2019 Component of income before income taxes: Cost of goods sold $ 1,931 $ 897 $ 317 Selling, general and administrative expenses 18,522 11,372 6,215 Total stock-based compensation expense $ 20,453 $ 12,269 $ 6,532 The following table summarizes stock-based compensation expense by award type for the fiscal years ended March 31, 2021, 2020, and 2019: (Amounts in thousands) 2021 2020 2019 Stock-based compensation expense: Stock options $ 2,908 $ 2,554 $ 2,550 Restricted stock 5,177 3,807 2,064 Performance-based restricted stock units 11,017 4,682 869 Non-employee director restricted stock 1,351 1,226 1,049 Total stock-based compensation expense $ 20,453 $ 12,269 $ 6,532 |
Summary of Assumption Used in Estimate Fair Value of Stock Options | The following table summarizes the assumptions used in estimating the fair value of stock options: 2021 2020 2019 Common stock price $41.97 - $71.55 $27.44 - $41.85 $25.75 - $27.99 Expected stock price volatility 35.5% - 36.3% 30.1% - 30.9% 30.3% - 31.1% Risk-free interest rate 0.4% - 0.6% 1.4% - 2.3% 2.9% - 3.1% Weighted-average expected life (years) 6.0 6.0 6.0 Dividend yield 0.5% - 0.9% 0.9% - 1.3% 1.1% - 1.2% |
2017 Omnibus Plan [Member] | |
Schedule of Stock Option Activity | Stock Options - The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 785 $ 25.01 8.4 Granted 258 42.60 — Exercised (89 ) 25.78 — Forfeited (15 ) 30.30 — Outstanding at end of year 939 29.69 7.9 Vested at end of year 386 23.21 7.0 Unvested at end of year 553 34.22 8.5 Fair value of options granted during the year $ 13.29 |
Summary of Unvested Restricted Stock Grants | Restricted Stock - The information about the unvested restricted stock grants as of March 31, 2021 is as follows: (Share amounts in thousands) Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 388 $ 30.38 Granted 132 44.04 Vested (130 ) 27.46 Forfeited (8 ) 31.63 Unvested at end of year 382 $ 36.03 |
Summary of Performance Units Granted | Performance-based Restricted Units (“performance units”) - The information about the performance units granted under the 2017 Omnibus Plan is as follows: (Share amounts in thousands) Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 389 $ 31.07 Granted 106 50.29 Vested — — Forfeited (10 ) 33.55 Unvested at end of year 485 $ 35.21 |
2000 Stock Option Plan [Member] | |
Schedule of Stock Option Activity | The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 71 $ 14.69 3.4 Granted — — — Exercised (30 ) 14.22 — Forfeited (4 ) 15.74 — Outstanding at end of year 37 14.97 2.6 Vested at end of year 22 14.45 2.3 Unvested at end of year 15 15.74 3.0 Fair value of options granted during the year $ — |
2013 Stock Option Plan [Member] | |
Schedule of Stock Option Activity | The stock option activity for the fiscal year ended March 31, 2021 is summarized as follows: (Share amounts in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at beginning of year 565 $ 19.45 4.7 Granted — — — Exercised (249 ) 19.40 — Forfeited — — — Outstanding at end of year 316 19.48 3.7 Vested at end of year 312 19.43 3.6 Unvested at end of year 4 24.20 5.0 Fair value of options granted during the year $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of Income before income taxes for the fiscal years ended March 31 are as follows: (Amounts in thousands) 2021 2020 2019 United States $ 291,296 $ (186,209 ) $ 103,559 Foreign 20,975 6,595 8,051 Total $ 312,271 $ (179,614 ) $ 111,610 |
Components of Income Tax Expense | The components of Income tax expense for the fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 2019 Current: Federal $ 76,986 $ 10,867 $ 11,575 State and local 17,189 4,655 3,998 Foreign 5,921 1,546 2,050 Total current tax expense 100,096 17,068 17,623 Deferred: Federal (12,250 ) 210 11,745 State and local (1,269 ) (1,228 ) 1,795 Foreign (195 ) (1,958 ) (1,114 ) Total deferred tax expense (benefit) (13,714 ) (2,976 ) 12,426 Total Income tax expense $ 86,382 $ 14,092 $ 30,049 |
Effective Tax Rate Varied from Statutory Federal Income Tax Rate | For the fiscal years ended March 31, the effective tax rate varied from the statutory Federal income tax rate as a result of the following factors: 2021 2020 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % ESOP stock appreciation, ESOP dividends and special dividend (a) 2.7 (30.3 ) 3.2 Effect of tax rate of foreign subsidiaries 0.5 0.6 (0.3 ) State and local taxes—net of federal income tax benefit 3.9 (1.7 ) 4.6 Uncertain tax position change (0.5 ) 1.2 (1.3 ) Equity-based compensation (1.4 ) 1.1 (0.4 ) Executive compensation 1.5 (0.8 ) 1.1 Net operating losses 0.2 1.9 — Other (0.2 ) (0.9 ) (1.0 ) Effective rate 27.7 % (7.9 )% 26.9 % (a) This includes the special dividend paid in the first quarter of fiscal 2020 that resulted in $246.8 million in additional stock-based compensation. Of the total stock-based compensation expense and dividends paid, approximately $242.9 million related to non-deductible stock appreciation and deductible dividends. This decreased the effective tax rate by 28.4%. See “Note 19. Net Income Per Share and Stockholders’ Equity” for additional information. |
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31 were comprised of: (Amounts in thousands) 2021 2020 Deferred tax assets: Inventory 805 2,065 Stock-based compensation 5,084 2,770 Worker’s compensation 2,603 2,317 Net operating loss and credit carryforwards 1,202 2,059 Operating lease liabilities 7,403 6,160 Other 7,878 6,684 Total deferred tax assets 24,975 22,055 Less: valuation allowance (405 ) (941 ) Total net deferred tax assets 24,570 21,114 Deferred tax liabilities: Intangible assets 106,012 121,276 Property, plant and equipment 66,546 63,649 Operating lease assets 7,365 6,147 Goodwill 5,686 4,527 Other 568 600 Total deferred tax liabilities 186,177 196,199 Net deferred tax liabilities $ 161,607 $ 175,085 Net deferred tax assets and liabilities are included in Other assets and Deferred tax liabilities, respectively, on the Consolidated Balance Sheets. The related balances at March 31 were as follows: (Amounts in thousands) 2021 2020 Net non-current deferred tax assets $ 578 $ 531 Net non-current deferred tax liabilities 162,185 175,616 |
Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended March 31 is as follows: (Amounts in thousands) 2021 2020 2019 Balance at beginning of year $ 3,343 $ 5,681 $ 7,593 Tax positions taken in current year — — 164 Decreases in tax positions for prior years — (1,398 ) (198 ) Increases in tax positions for prior years 105 1,907 136 Settlements (284 ) (124 ) (200 ) Lapse of statute of limitations (1,640 ) (2,589 ) (1,595 ) Foreign translation adjustment 162 (134 ) (219 ) Balance at end of year $ 1,686 $ 3,343 $ 5,681 |
Net Income Per Share and Stoc_2
Net Income Per Share and Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Summary of Net Income Per Share | The following table presents information necessary to calculate net income per share for the fiscal years ended March 31, 2021, 2020, and 2019, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive: (Amounts in thousands, except per share data) 2021 2020 2019 NET INCOME (LOSS) PER SHARE — BASIC: Net income (loss) attributable to ADS $ 224,230 $ (193,174 ) $ 77,772 Adjustment for: Dividends paid to participating securities (5,591 ) (11,544 ) (2,116 ) Net income available to common stockholders and participating securities 218,639 (204,718 ) 75,656 Undistributed income allocated to participating securities (33,251 ) — (5,474 ) Net income available to common stockholders — Basic 185,388 (204,718 ) 70,182 Weighted average number of common shares outstanding — Basic 70,155 63,820 57,025 Net income (loss) per common share — Basic $ 2.64 $ (3.21 ) $ 1.23 NET INCOME (LOSS) PER SHARE — DILUTED: Net income (loss) available to common stockholders — Diluted 185,388 (204,718 ) 70,182 Weighted average number of common shares outstanding — Basic 70,155 63,820 57,025 Assumed restricted stock - nonparticipating 247 — 39 Assumed exercise of stock options 844 — 547 Assumed performance units 320 — - Weighted average number of common shares outstanding — Diluted 71,566 63,820 57,611 Net income (loss) per common share —Diluted $ 2.59 $ (3.21 ) $ 1.22 Potentially dilutive securities excluded as anti-dilutive 14,594 14,449 5,966 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities as of fiscal years ended March 31 consisted of the following: (Amounts in thousands) 2021 2020 Accrued compensation and benefits ( 1) $ 42,075 $ 33,215 Accrued rebate liability ( 2) 16,834 14,479 Lease liability - Operating leases 8,995 7,757 Self-insurance accruals 11,257 12,486 Other 36,990 33,179 Total accrued liabilities $ 116,151 $ 101,116 (1) Accrued compensation and benefits is primarily comprised of accrued payroll, bonuses and commissions. (2) Accrued rebate liability represents the Company’s estimated rebates to be paid to customers. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from Reportable Segments by Product Type | The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the fiscal years ended March 31: 2021 (Amounts in thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 1,059,200 $ (6,280 ) $ 1,052,920 Infiltrator 397,813 (68,669 ) 329,144 International International - Pipe 121,468 (6,589 ) 114,879 International - Allied Products & Other 43,390 — 43,390 Total International 164,858 (6,589 ) 158,269 Allied Products & Other 442,447 — 442,447 Intersegment Eliminations (81,538 ) 81,538 — Total Consolidated $ 1,982,780 $ — $ 1,982,780 2020 (Amounts in thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 954,633 $ (2,030 ) $ 952,603 Infiltrator 211,005 (41,657 ) 169,348 International International - Pipe 108,624 — 108,624 International - Allied Products & Other 39,957 — 39,957 Total International 148,581 — 148,581 Allied Products & Other 403,273 — 403,273 Intersegment Eliminations (43,687 ) 43,687 — Total Consolidated $ 1,673,805 $ — $ 1,673,805 2019 (Amounts in thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 868,805 $ — $ 868,805 Infiltrator — — — International International - Pipe 122,836 — 122,836 International - Allied Products & Other 37,766 — 37,766 Total International 160,602 — 160,602 Allied Products & Other 355,326 — 355,326 Intersegment Eliminations — — — Total Consolidated $ 1,384,733 $ — $ 1,384,733 |
Schedule of Financial Information Attributable to Reportable Segments | The following sets forth certain financial information attributable to the reportable segments for the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Segment adjusted gross profit Pipe $ 322,846 $ 239,531 $ 191,002 Infiltrator 191,163 98,245 — International 49,921 36,999 37,191 Allied Products & Other 225,052 201,206 168,729 Intersegment Eliminations (503 ) (1,895 ) — Total $ 788,479 $ 574,086 $ 396,922 Depreciation and amortization Pipe $ 46,078 $ 46,611 $ 49,419 Infiltrator 12,468 7,159 — International 5,430 6,013 5,938 Allied Products & Other (a) 81,610 65,157 16,543 Total $ 145,586 $ 124,940 $ 71,900 Capital expenditures Pipe $ 17,135 $ 33,629 $ 34,878 Infiltrator 54,024 24,917 — International 1,627 2,623 3,765 Allied Products & Other (a) 5,971 6,508 4,769 Total $ 78,757 $ 67,677 $ 43,412 (a) Includes depreciation and amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets acquired is included in Allied Products & Other. |
Reconciliation of Gross Profit to Segment Adjusted Gross Profit | Reconciliation of Gross Profit to Segment Adjusted Gross profit (Amounts in thousands) 2021 2020 2019 Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 690,082 $ 316,479 $ 326,967 Depreciation and amortization 66,408 62,225 59,164 ESOP and stock-based compensation expense 31,792 14,319 10,791 ESOP special dividend compensation — 168,610 — COVID-19 related expenses (a) 197 4,573 — Inventory step up related to Infiltrator acquisition — 7,880 — Total Segment Adjusted Gross Profit $ 788,479 $ 574,086 $ 396,922 (a) Represents the Company’s pandemic pay expense included in Gross profit in connection with the Company’s response to the COVID-19 pandemic, see “Note 16. Employee Benefit Plans” for additional information. |
Net Sales and Long-Lived Asset by Geographic Location | Geographic Sales and Assets Information Net sales are attributed to the geographic location based on the location of the customer. The table below represents the Net sales and long-lived asset information by geographic location for each of the fiscal years ended March 31: (Amounts in thousands) 2021 2020 2019 Net Sales North America $ 1,966,947 $ 1,655,219 $ 1,366,470 Other 15,833 18,586 18,263 Total $ 1,982,780 $ 1,673,805 $ 1,384,733 (Amounts in thousands) 2021 2020 Long-Lived Assets (a) North America $ 511,290 $ 488,125 Other 11,861 9,250 Total $ 523,151 $ 497,375 (a) For segment reporting purposes, long-lived assets include Investments in unconsolidated affiliates, Central parts and Property, plant and equipment. |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures Cash Flow Information | Supplemental disclosures of cash flow information for the fiscal years ended March 31 were as follows: (Amounts in thousands) 2021 2020 2019 Supplemental disclosures of cash flow information — cash paid during years: Interest $ 37,614 $ 41,290 $ 15,679 Income taxes 97,636 8,710 29,841 (Amounts in thousands) 2021 2020 2019 Supplemental disclosures of noncash investing and financing activities: Redeemable convertible preferred stock dividend $ 349 $ 359 $ 134 Purchases of plant, property, and equipment included in accounts payable 6,754 1,588 1,255 ESOP distributions in common stock 28,585 13,109 8,609 Lease obligation retired upon disposition of leased assets 1,940 799 578 |
Background and Summary of Sig_4
Background and Summary of Significant Accounting Policies - Additional Information (Detail) | Jul. 31, 2019 | Mar. 31, 2021USD ($)SegmentCustomerAgreement | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Impairment charges for goodwill | $ 0 | $ 0 | ||
Impairment charges for intangible assets | 0 | 0 | ||
Advertising costs | 4,100,000 | $ 4,900,000 | 3,800,000 | |
Life, accidental death and dismemberment and medical coverage | 42,400,000 | 50,300,000 | 42,400,000 | |
Self insurance plan employees contribution | 8,500,000 | 7,900,000 | 6,700,000 | |
Total claims expense, self insurance | $ 3,000,000 | $ 3,000,000 | $ 2,800,000 | |
Minimum likelihood percentage of tax benefit to be realized upon settlement | 50.00% | |||
Number of derivative agreements outstanding | Agreement | 0 | |||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2020 | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |||
Accounting Standards [Update Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||
Sales Revenue, Net [Member] | Ferguson Enterprises and HD Supply Waterworks [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers in the customer base | Customer | 20,000 | |||
Concentration risk description | The Company has a large, active customer base of approximately twenty thousand customers with two customers, Ferguson Enterprises and Core and Main, each representing more than 10% of annual net sales. | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Ferguson Enterprises and HD Supply Waterworks [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 22.80% | 24.30% | 25.40% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Ferguson Enterprises [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 18.10% | 18.20% | ||
Other General Insurance Programs [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Claims per occurrence for general liability | $ 500,000 | |||
Claims per occurrence for automobile | 800,000 | |||
Total claims expense, self insurance | 1,700,000 | $ 2,500,000 | $ 2,300,000 | |
Shipping and Handling [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Shipping costs | 174,200,000 | 149,000,000 | 131,300,000 | |
Shipping and Handling [Member] | Sales [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Shipping costs | $ 7,300,000 | 7,900,000 | $ 7,700,000 | |
Minimum [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized software development costs estimated useful lives | 2 years | |||
Central parts estimated useful lives | 3 years | |||
Claims per incident | $ 300,000 | |||
Maximum [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized software development costs estimated useful lives | 10 years | |||
Central parts estimated useful lives | 10 years | |||
Infiltrator Segment [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment charges for goodwill | $ 0 | |||
Infiltrator [Member] | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Agreement and Plan of Merger date | Jul. 31, 2019 |
Background and Summary of Sig_5
Background and Summary of Significant Accounting Policies - Summary of Receivables (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | $ 236,191 | $ 200,028 |
Trade Receivables, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | 233,753 | 195,968 |
Other Miscellaneous Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | $ 2,438 | $ 4,060 |
Background and Summary of Sig_6
Background and Summary of Significant Accounting Policies - Estimated Useful Lives of Related Assets (Detail) | 12 Months Ended |
Mar. 31, 2021 | |
Buildings and Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 to 45 or the lease term if shorter |
Machinery and Production Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Machinery and Production Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 18 years |
Transportation Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Transportation Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 12 years |
Background and Summary of Sig_7
Background and Summary of Significant Accounting Policies - Other assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Other Assets Noncurrent [Abstract] | ||
Right of use assets - Operating leases | $ 31,237 | $ 24,875 |
Investments in unconsolidated affiliates | 11,861 | 9,250 |
Capitalized software development costs, net | 11,170 | 11,045 |
Deposits | 4,649 | 3,842 |
Central parts | 7,015 | 6,745 |
Other | 19,559 | 13,383 |
Total other assets | $ 85,491 | $ 69,140 |
Background and Summary of Sig_8
Background and Summary of Significant Accounting Policies - Amortization Expense Related to Other Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Adjustment For Amortization [Abstract] | |||
Capitalized software development costs | $ 3,578 | $ 3,116 | $ 2,659 |
Central parts | 186 | 87 | 73 |
Other | $ 80 | $ 85 | $ 1,419 |
Loss on Disposal of Assets an_3
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Summary of Loss on Disposal of Assets and Costs from Exit and Disposal Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Accelerated depreciation | $ 430 | ||
Plant severance | 131 | ||
Headcount reduction | $ 1,879 | 306 | |
Product optimization | 283 | ||
Other restructuring activities | 475 | ||
Total 2021 and 2018 Restructuring Plan activities | 1,879 | 1,625 | |
Acquisition related severance and other costs | $ 2,557 | ||
Loss on other disposals and partial disposals of property, plant and equipment | 2,396 | 2,781 | 2,022 |
Total loss on disposal of assets and costs from exit and disposal activities | $ 4,275 | $ 5,338 | $ 3,647 |
Loss on Disposal of Assets an_4
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Summary of Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Balance at beginning of year | $ 574 | $ 1,696 | |
Expenses | 1,879 | $ 1,625 | |
Payments | (1,838) | (1,122) | |
Balance at end of year | $ 615 | $ 574 | $ 1,696 |
Loss on Disposal of Assets an_5
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Additional Information (Detail) $ in Millions | Mar. 31, 2021USD ($) |
Other Liabilities [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Severance liability related to restructuring plan | $ 0.6 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Contract With Customer Asset And Liability [Abstract] | ||
Contract asset - product returns | $ 694 | $ 594 |
Refund liability | $ 1,801 | $ 1,458 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 599,072 | $ 597,819 | $ 102,638 | ||
BaySaver, purchase price | $ 8,821 | ||||
BaySaver [Member] | |||||
Business Acquisition [Line Items] | |||||
BaySaver, purchase price | $ 8,800 | ||||
Non-cash adjustment to deferred taxes | $ 400 | ||||
Company's ownership percentage | 35.00% | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, useful life | 14 years 9 months 18 days | ||||
Tradename and Trademarks [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, useful life | 17 years 1 month 6 days | ||||
Infiltrator [Member] | |||||
Business Acquisition [Line Items] | |||||
Agreement and Plan of Merger date | Jul. 31, 2019 | ||||
Total fair value of consideration transferred | $ 1,147,200 | ||||
Amount payable to acquire | 6,000 | ||||
Amount receivable from acquire | 6,600 | ||||
Goodwill | 495,800 | ||||
Deferred tax liabilities | 132,400 | ||||
Step up of GAAP basis for fair market valuations | 82,300 | ||||
Deferred tax liabilities, acquired | 50,100 | ||||
Transaction costs related to Acquisition | 22,900 | ||||
Estimates transaction cost including tax | 7,100 | ||||
Intangible assets | $ 575,000 | ||||
Net sales to external customers of acquired entity included in consolidated statements of operations | 169,300 | ||||
Earnings from operations of acquired entity included in consolidated statements of operations | $ 8,200 | ||||
Infiltrator [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, useful life | 20 years | ||||
Infiltrator [Member] | Patents and Developed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, useful life | 10 years | ||||
Infiltrator [Member] | Tradename and Trademarks [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, useful life | 20 years | ||||
Infiltrator [Member] | Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Step up of GAAP basis for fair market valuations | $ 80,200 |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Transferred and Preliminary Purchase Price Allocation of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 599,072 | $ 597,819 | $ 102,638 |
Infiltrator [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 57,375 | ||
Total current assets, excluding cash | 75,847 | ||
Property, plant and equipment | 92,285 | ||
Goodwill | 495,841 | ||
Intangible assets, net | 575,000 | ||
Other assets | 17,275 | ||
Total current liabilities | (22,038) | ||
Deferred tax liabilities | (132,385) | ||
Other liabilities | (11,970) | ||
Total fair value of consideration transferred | $ 1,147,230 |
Acquisitions - Summary of Ident
Acquisitions - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Mar. 31, 2021 |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 14 years 9 months 18 days | |
Tradename and Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 17 years 1 month 6 days | |
Infiltrator [Member] | ||
Business Acquisition [Line Items] | ||
Total identifiable intangible assets, Fair value | $ 575,000 | |
Infiltrator [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Total identifiable intangible assets, Fair value | $ 360,000 | |
Intangible asset, useful life | 20 years | |
Infiltrator [Member] | Patents and Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Total identifiable intangible assets, Fair value | $ 150,000 | |
Intangible asset, useful life | 10 years | |
Infiltrator [Member] | Tradename and Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Total identifiable intangible assets, Fair value | $ 65,000 | |
Intangible asset, useful life | 20 years |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Detail) - Infiltrator [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ||
Net sales | $ 1,760,208 | $ 1,608,450 |
Net income (loss) attributable to ADS | $ (145,244) | $ 27,411 |
Property, Plant, and Equipment
Property, Plant, and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 71,873 | $ 19,925 |
Property, plant and equipment, gross | 1,192,394 | 1,113,273 |
Less: accumulated depreciation | (688,119) | (631,893) |
Property, plant and equipment, net | 504,275 | 481,380 |
Land, Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 263,191 | 253,379 |
Machinery and Production Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 646,592 | 631,932 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 210,738 | $ 208,037 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Depreciation Expense Related to Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Property Plant And Equipment [Abstract] | ||||
Depreciation expense (inclusive of leased assets depreciation) | [1] | $ 68,034 | $ 64,642 | $ 59,869 |
[1] | Depreciation expense does not include accelerated depreciation expense from the 2018 Restructuring plan. See “Note 2. Loss on Disposal of Assets and Costs from Exit and Disposal Activities” for additional discussion. |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Apr. 01, 2019 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Leases remaining term | 1 year | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Leases remaining term | 30 years | |
Maximum [Member] | Real Estate Leases [Member] | ||
Lessee Lease Description [Line Items] | ||
Leases options to extend | 5 years | |
ASC 842 Adoption [Member] | ||
Lessee Lease Description [Line Items] | ||
Additional lease liabilities | $ 13.3 | |
Right-of-use assets | $ 13.3 | |
Infiltrator Water Technologies [Member] | ASC 842 Adoption [Member] | ||
Lessee Lease Description [Line Items] | ||
Additional lease liabilities | $ 11.2 | |
Right-of-use assets | $ 11.2 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating lease cost | ||
Short-term lease cost | $ 3,963 | $ 2,393 |
Total operating lease cost | 13,947 | 9,145 |
Finance lease cost | ||
Total finance lease cost | 20,311 | 23,946 |
Cost of Goods Sold [Member] | ||
Operating lease cost | ||
Operating lease cost | 8,391 | 5,548 |
Finance lease cost | ||
Amortization of right-of-use assets | 16,442 | 17,059 |
Selling, General and Administrative [Member] | ||
Operating lease cost | ||
Operating lease cost | 1,593 | 1,204 |
Finance lease cost | ||
Amortization of right-of-use assets | 1,433 | 2,543 |
Interest Expense [Member] | ||
Finance lease cost | ||
Interest on lease liabilities | $ 2,436 | $ 4,344 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 9,984 | $ 6,572 | |
Operating cash flows from finance leases | 3,205 | 4,675 | |
Financing cash flows from finance leases | 21,491 | 27,119 | $ 24,284 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 15,173 | 10,529 | |
Finance leases | $ 9,907 | $ 5,078 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Leases [Abstract] | |||
Financial leases, Right-of-use assets | $ 80,904 | $ 90,756 | $ 27,600 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net | Property, plant and equipment, net |
Leases - Schedule of Suppleme_3
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Operating leases | |||
Right-of-use assets | $ 31,237 | $ 24,875 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Current lease liabilities | $ 8,995 | $ 7,757 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities | |
Non-current lease liabilities | $ 22,393 | $ 17,173 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Total operating lease liabilities | $ 31,388 | $ 24,930 | |
Finance leases | |||
Right-of-use assets | $ 80,904 | $ 90,756 | $ 27,600 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net | Property, plant and equipment, net |
Current lease liabilities | $ 19,318 | $ 20,382 | |
Non-current lease liabilities | 32,964 | 44,501 | |
Total finance lease liabilities | $ 52,282 | $ 64,883 | |
Weighted average lease term (in years): | |||
Operating leases | 6 years 5 months 15 days | 6 years 11 months 19 days | |
Finance leases | 9 years 4 months 20 days | 10 years 8 months 19 days | |
Weighted average discount rate: | |||
Operating leases | 3.75% | 3.57% | |
Finance leases | 4.90% | 5.36% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments on Rolling Twelve-month Basis under Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Operating Leases | ||
Year 1 | $ 10,947 | |
Year 2 | 7,691 | |
Year 3 | 6,255 | |
Year 4 | 5,128 | |
Year 5 | 3,331 | |
Thereafter | 6,965 | |
Total minimum lease payments | 40,317 | $ 28,951 |
Less: amount representing interest | 8,929 | 4,021 |
Present value of net minimum lease payments | 31,388 | 24,930 |
Finance Leases | ||
Year 1 | 21,202 | |
Year 2 | 14,816 | |
Year 3 | 9,845 | |
Year 4 | 5,856 | |
Year 5 | 3,043 | |
Thereafter | 2,103 | |
Total minimum lease payments | 56,865 | 73,965 |
Less: amount representing interest | 4,583 | 9,082 |
Present value of net minimum lease payments | $ 52,282 | $ 64,883 |
Leases - Schedule of Contractua
Leases - Schedule of Contractual Obligations for Capital and Operating Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Operating Leases | ||
Year 1 | $ 8,511 | |
Year 2 | 5,717 | |
Year 3 | 3,839 | |
Year 4 | 2,768 | |
Year 5 | 2,041 | |
Thereafter | 6,075 | |
Total minimum lease payments | $ 40,317 | 28,951 |
Less: amount representing interest | 8,929 | 4,021 |
Present value of net minimum lease payments | 31,388 | 24,930 |
Finance Leases | ||
Year 1 | 23,492 | |
Year 2 | 19,478 | |
Year 3 | 13,182 | |
Year 4 | 8,355 | |
Year 5 | 4,736 | |
Thereafter | 4,722 | |
Total minimum lease payments | 56,865 | 73,965 |
Less: amount representing interest | 4,583 | 9,082 |
Present value of net minimum lease payments | $ 52,282 | $ 64,883 |
Leases - Schedule of Interest a
Leases - Schedule of Interest and Depreciation Expense Related to Capital Leases (Detail) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease interest expense | $ 5,215 |
Depreciation of leased assets | $ 19,155 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 75,294 | $ 66,524 |
Finished goods | 225,667 | 215,874 |
Total Inventories | $ 300,961 | $ 282,398 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Work-in-process inventories | $ 0 | $ 0 |
General and administrative cost in inventory | 40,100,000 | 38,800,000 |
General and administrative cost remained in inventory | $ 7,900,000 | $ 8,600,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Carrying Amount of Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill [Line Items] | ||
Beginning balance | $ 597,819 | $ 102,638 |
Acquisition | 495,841 | |
Currency translation | 1,253 | (660) |
Ending balance | 599,072 | 597,819 |
Pipe [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 57,663 | |
Reallocation due to change in segments | 57,663 | |
Ending balance | 57,663 | 57,663 |
Infiltrator [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 495,841 | |
Acquisition | 495,841 | |
Ending balance | 495,841 | 495,841 |
Allied Products & Other [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 34,442 | |
Reallocation due to change in segments | 34,442 | |
Ending balance | 34,442 | 34,442 |
Domestic [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 92,105 | |
Reallocation due to change in segments | (92,105) | |
International [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 9,873 | 10,533 |
Currency translation | 1,253 | (660) |
Ending balance | $ 11,126 | $ 9,873 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Intangible | $ 634,184 | $ 634,119 | |
Accumulated Amortization | (164,034) | (90,643) | |
Net Intangible | 470,150 | 543,476 | |
Intangible Assets, Gross | 646,050 | 645,981 | |
Intangible assets, net | 482,016 | 555,338 | |
Trademarks [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | [1] | 11,866 | 11,862 |
Developed Technology [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Intangible | 177,579 | 177,579 | |
Accumulated Amortization | (49,842) | (32,437) | |
Net Intangible | 127,737 | 145,142 | |
Customer Relationships [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Intangible | 377,742 | 377,742 | |
Accumulated Amortization | (97,115) | (47,051) | |
Net Intangible | 280,627 | 330,691 | |
Patents [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Intangible | 8,985 | 8,951 | |
Accumulated Amortization | (6,884) | (6,419) | |
Net Intangible | 2,101 | 2,532 | |
Trademarks and Tradenames [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Intangible | 69,878 | 69,847 | |
Accumulated Amortization | (10,193) | (4,736) | |
Net Intangible | $ 59,685 | $ 65,111 | |
[1] | Indefinite-lived intangible assets decreased as a result of foreign currency translation |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense and Weighted Average Amortization Period for Definite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 73,708 | $ 57,010 | $ 7,880 |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 17,405 | 12,517 | 2,517 |
Weighted average amortization period | 7 years 2 months 12 days | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 50,177 | 36,093 | 3,546 |
Weighted average amortization period | 14 years 9 months 18 days | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 699 | 522 | 546 |
Weighted average amortization period | 2 years 10 months 25 days | ||
Non-compete and Other Contractual Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 22 | 22 | |
Trademarks and Tradenames [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 5,427 | $ 7,856 | $ 1,249 |
Weighted average amortization period | 17 years 1 month 6 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense, 2022 | $ 60,767 | |
Amortization expense, 2023 | 51,970 | |
Amortization expense, 2024 | 47,681 | |
Amortization expense, 2025 | 44,591 | |
Amortization expense, 2026 | 40,815 | |
Amortization expense, Thereafter | 224,326 | |
Net Intangible | $ 470,150 | $ 543,476 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Assets and Liabilities Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 1,194 | $ 36 |
Contingent consideration for acquisitions | 60 | |
Total liabilities at fair value on a recurring basis | 32 | 2,288 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 1,194 | 36 |
Total liabilities at fair value on a recurring basis | 32 | 2,228 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisitions | 60 | |
Total liabilities at fair value on a recurring basis | 60 | |
Diesel Fuel Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,194 | 36 |
Derivative liability | 32 | 2,228 |
Diesel Fuel Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,194 | 36 |
Derivative liability | $ 32 | $ 2,228 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Fair value of assets and liabilities, additional transfers | $ 0 | $ 0 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Carrying And Fair Value of Senior Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 367,633 | $ 314,951 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 350,000 | $ 350,000 |
Investment in Consolidated Affi
Investment in Consolidated Affiliates - Additional Information (Detail) - Subsidiaries [Member] | 12 Months Ended |
Mar. 31, 2021JointVenture | |
Investments in and Advances to Affiliates [Line Items] | |
Number of unconsolidated joint venture participated | 1 |
ADS Worldwide, Inc [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Company's ownership percentage | 51.00% |
Investment in Consolidated Af_2
Investment in Consolidated Affiliates - Assets and Liabilities of Joint Ventures (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Assets | ||
Current assets | $ 742,978 | $ 666,211 |
Property, plant and equipment, net | 504,275 | 481,380 |
Other noncurrent assets | 85,491 | 69,140 |
Total assets | 2,413,832 | 2,369,888 |
Liabilities | ||
Current liabilities | 318,270 | 238,213 |
Total liabilities | 1,350,406 | 1,585,306 |
ADS Mexicana [Member] | ||
Assets | ||
Current assets | 21,556 | 18,357 |
Property, plant and equipment, net | 13,891 | 12,438 |
Other noncurrent assets | 1,425 | 1,317 |
Total assets | 36,872 | 32,112 |
Liabilities | ||
Current liabilities | 9,186 | 6,350 |
Noncurrent liabilities | 1,462 | 1,131 |
Total liabilities | $ 10,648 | $ 7,481 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates - Additional Information (Detail) | Mar. 31, 2021 |
South American Joint Venture [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Percentage of ownership in joint ventures | 50.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
South American Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Maximum borrowings permitted under credit facility | $ 22,000,000 | ||
Debt, expiration date | Dec. 31, 2023 | ||
Percentage of debt guarantee | 50.00% | ||
Maximum potential payment under guarantee | $ 11,000,000 | ||
Outstanding principal balance including letters of credit | 10,000,000 | $ 9,300,000 | |
South American Joint Venture [Member] | US Dollar Denominated Loans [Member] | |||
Related Party Transaction [Line Items] | |||
Outstanding principal balance including letters of credit | $ 0 | ||
South American Joint Venture [Member] | Chilean Peso Denominated Loans [Member] | |||
Related Party Transaction [Line Items] | |||
Weighted average interest rate | 3.50% | ||
Tigre-ADS USA [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||
Related Party Transaction [Line Items] | |||
Company's ownership percentage | 49.00% | 49.00% | 49.00% |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||
Related Party Transaction [Line Items] | |||
Maximum borrowings permitted under credit facility | $ 12,000,000 | ||
Revolving credit facility maturity date | Jun. 22, 2018 | ||
Debt, expiration date | Jun. 22, 2022 | ||
Outstanding principal balance including letters of credit | $ 0 | $ 0 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ADS Mexicana [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership in joint venture | 49.00% |
Related Party Transactions - Su
Related Party Transactions - Summary of Purchases and Sales by ADS with Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
South American Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | $ 547 | $ 696 | $ 1,323 |
Sales to related party | 582 | 934 | 1,191 |
Tigre USA [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | $ 1,970 | $ 1,966 | $ 354 |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt , Gross | $ 791,250 | $ 1,099,742 |
Unamortized debt issuance costs | (2,030) | (2,419) |
Current maturities | (7,000) | (7,955) |
Long-term debt obligations | 782,220 | 1,089,368 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt , Gross | 441,250 | 648,250 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt , Gross | $ 350,000 | 350,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt , Gross | 100,000 | |
Equipment Financing [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt , Gross | $ 1,492 |
Debt (Bridge Credit Facility) -
Debt (Bridge Credit Facility) - Additional Information (Detail) - USD ($) | Sep. 24, 2019 | Sep. 23, 2019 | Sep. 10, 2019 | Jul. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Repayment of borrowings | $ 100,000,000 | $ 177,900,000 | |||||
Repayment of notes | 1,300,000,000 | ||||||
Proceeds from Senior Notes | 350,000,000 | ||||||
Principal payment from common stock offering | $ 300,000,000 | $ 293,648,000 | |||||
5.0% Senior Notes due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 350,000,000 | ||||||
Deferred financing fees capitalized | 2,100,000 | ||||||
Bridge Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings permitted under credit facility | $ 350,000,000 | ||||||
Amount borrowed | 145,000,000 | ||||||
Letter of Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings permitted under credit facility | $ 50,000,000 | 50,000,000 | |||||
Sublimit of Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings permitted under credit facility | 50,000,000 | 50,000,000 | |||||
Bridge Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of borrowings | $ 300,000,000 | ||||||
Deferred financing fees capitalized | 46,900,000 | ||||||
Decrease in deferred financing costs due to refunds received | 14,900,000 | ||||||
Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Senior Notes | 700,000,000 | ||||||
Deferred financing fees capitalized | $ 400,000 | ||||||
Bridge Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | 1,300,000,000 | ||||||
Amount borrowed | $ 1,300,000,000 | ||||||
Repayment of notes | 300,000,000 | ||||||
Bridge Loan Facility [Member] | 5.0% Senior Notes due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of notes | 300,000,000 | ||||||
Proceeds from Senior Notes | $ 300,000,000 | $ 350,000,000 |
Debt (Repayment of Prudential S
Debt (Repayment of Prudential Senior Notes) - Additional Information (Detail) - Prudential Senior Notes [Member] $ in Millions | Jul. 29, 2019USD ($) |
Debt Instrument [Line Items] | |
Repayments of debt | $ 104.4 |
Write-off of unamortized deferred financing fees and prepayment premium or penalty | $ 4.2 |
Debt (Repayment of PNC Credit A
Debt (Repayment of PNC Credit Agreement) - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||||
Write-off of unamortized deferred financing fees | $ 382 | $ 34,476 | $ 735 | |
PNC Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 239,200 | |||
Write-off of unamortized deferred financing fees | $ 2,000 |
Debt (Issuance of Senior Notes
Debt (Issuance of Senior Notes due 2027) - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 23, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Jul. 31, 2019 |
Debt Instrument [Line Items] | ||||
Repayment of notes | $ 1,300,000 | |||
Bridge Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 1,300,000 | |||
Repayment of notes | $ 300,000 | |||
5.0% Senior Notes due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 350,000 | |||
Debt instrument, interest rate | 5.00% | |||
Debt instrument, description of payment terms | Interest on the Senior Notes will be payable semi-annually in cash in arrears on March 31 and September 30 of each year, commencing on March 31, 2020, at a rate of 5.0% per annum. | |||
Debt instrument, frequency of periodic payment | semi-annually | |||
Debt instrument, date of first required payment | Mar. 31, 2020 | |||
Debt instrument, maturity date | Sep. 30, 2027 | |||
Deferred financing costs | $ 2,100 | |||
5.0% Senior Notes due 2027 [Member] | Prior to September 30, 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 105.00% | |||
Debt instrument, redemption price, percentage of principal amount redeemed excluding "make-whole" premium | 100.00% | |||
5.0% Senior Notes due 2027 [Member] | Maximum [Member] | Prior to September 30, 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage | 40.00% | |||
5.0% Senior Notes due 2027 [Member] | Bridge Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of notes | $ 300,000 |
Debt (New Senior Secured Credit
Debt (New Senior Secured Credit Facility) - Additional Information (Detail) - USD ($) | Sep. 24, 2019 | Sep. 10, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Jul. 31, 2019 |
Debt Instrument [Line Items] | |||||
Repayment of borrowings | $ 100,000,000 | $ 177,900,000 | |||
Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 700,000,000 | ||||
Repayment of borrowings | 207,000,000 | $ 51,800,000 | |||
Debt instrument term | 7 years | ||||
Bridge Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | $ 700,000,000 | ||||
Repayment of borrowings | $ 300,000,000 | ||||
Deferred financing fees capitalized | $ 46,900,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowings permitted under credit facility | $ 350,000,000 | ||||
Repayment of borrowings | 100,000,000 | ||||
Outstanding letters of credit | $ 11,000,000 | ||||
Debt instrument term | 5 years | ||||
Commitment fee on undrawn portion, percentage | 0.20% | ||||
Letter of Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowings permitted under credit facility | $ 50,000,000 | 50,000,000 | |||
Sublimit of Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowings permitted under credit facility | 50,000,000 | $ 50,000,000 | |||
Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Deferred financing fees capitalized | $ 400,000 |
Debt - Maturities of Long-term
Debt - Maturities of Long-term Debt (Excluding Interest and Deferred Financing Costs) (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 7,000 |
2023 | 7,000 |
2024 | 7,000 |
2025 | 7,000 |
2026 | 7,000 |
Thereafter | 756,250 |
Total | $ 791,250 |
Derivative Transactions - Summa
Derivative Transactions - Summary of Fair Values for Various Derivatives (Detail) - Diesel Fuel Option Collars and Swaps [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Receivables [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset | $ 1,125 | $ 21 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 69 | 15 |
Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
(Liability) | (31) | (2,000) |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
(Liability) | $ (1) | $ (228) |
Derivative Transactions - Sched
Derivative Transactions - Schedule of Cash Settlements and Net Losses and Net (Gains) on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Total net unrealized mark to market losses (gains) | $ (3,355) | $ 3,128 | $ 2,346 |
Total net realized losses (gains) | 1,456 | 837 | (1,190) |
Interest Rate Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total net unrealized mark to market losses (gains) | 1,029 | 1,712 | |
Total net realized losses (gains) | 378 | (329) | |
Foreign Exchange Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total net unrealized mark to market losses (gains) | 60 | ||
Total net realized losses (gains) | 47 | 102 | (163) |
Diesel Fuel Option Collars and Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total net unrealized mark to market losses (gains) | (3,355) | 2,099 | 574 |
Total net realized losses (gains) | $ 1,409 | $ 357 | $ (698) |
Commitments and Contingencies (
Commitments and Contingencies (Purchase Commitments) - Additional Information (Detail) - Inventory [Member] | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase contracts period range, start | 1 month |
Purchase contracts period range, end | 12 months |
Total purchase commitment | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Average fair value of shares allocated under ESOP, per share | $ 51.13 | $ 21.31 | $ 19.95 | |
Compensation expense related to allocation of ESOP shares | $ 45,000,000 | $ 20,100,000 | $ 15,300,000 | |
Trustee retained for dividends on unallocated ADS shares | $ 0 | 0 | 3,300,000 | |
Cash dividend declared | $ 0.09 | |||
Defined contribution postretirement benefit plan, costs recognized | $ 600,000 | 500,000 | 400,000 | |
Covid-19 Pandemic pay, description | to all hourly employees that each would be entitled to the equivalent of two weeks, or 80 hours, of pandemic pay regardless of whether they experienced any interruption of employment. | |||
Pandemic pay costs in other accrued liabilities | 4,800,000 | |||
Covid-19 Pandemic pay, recognize | $ 0 | |||
Profit-Sharing Retirement Plan [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Contribution to the profit sharing retirement plan | 0 | 0 | 0 | |
Other Liabilities [Member] | Executive Retirement Expense [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Executive termination payment obligation | 2,500,000 | 2,600,000 | ||
Selling, General and Administrative Expense [Member] | Executive Retirement Expense [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Compensation expense (benefit) | $ 0 | $ 200,000 | $ (200,000) | |
Special Dividend [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Dividend to be paid | Jun. 14, 2019 | |||
Dividend record date | Jun. 3, 2019 | |||
Cash dividend declared | $ 1 | $ 1 | ||
Redeemable Convertible Preferred Stock [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Fair value of shares allocated under ESOP, per share | 79.56 | 22.70 | $ 19.90 | |
Preferred stock, redemption value per share | $ 0.7818 | |||
Preferred stock, unpaid cumulative dividends | $ 0 | |||
Preferred stock, dividend rate percentage | 2.50% | 2.50% | ||
Redeemable convertible preferred stock liquidation | $ 0.7818 | |||
Convertible preferred stock, converted to common stock | 0.7692 | |||
Dividend to be paid | Mar. 31, 2021 | |||
Dividend record date | Mar. 15, 2021 | |||
Cash dividend declared | $ 0.0195 | $ 0.0195 | ||
Employee stock ownership plan number of shares approved by the board of directors to the plan | 900,000 | 1,000,000 | ||
Employee Stock Ownership Plan (ESOP) [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Number of days, share of redeemable convertible preferred stock converted into common stock following repayment of the ESOP Loan | 30 days | |||
Employee stock ownership plan participation description | Employees of ADS who have reached the age of 18 are generally eligible to participate in the Plan on March 31 after six months of service. | |||
Employee stock ownership plan stock ownership description | Upon attainment of age 50 and seven years of participation in the Plan, a participant may elect to diversify specified percentages of the number of shares of ADS stock credited to the participant’s ESOP stock account in compliance with applicable law. | |||
Employee Stock Ownership Plan (ESOP) [Member] | ADS [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Debt instrument, term | 30 years |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summarized Cash and Stock Dividends on Allocated Redeemable Convertible Preferred Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Annual stock dividend | $ 349 | $ 359 | $ 134 |
Total ESOP required dividends | 168,610 | ||
Required dividend per share | $ 0.09 | ||
Redeemable Convertible Preferred Stock [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Total cash dividends | $ 5,242 | 10,847 | |
Total ESOP required dividends | $ 353 | $ 366 | |
Allocated shares | 18,124 | 18,756 | |
Required dividend per share | $ 0.0195 | $ 0.0195 | |
Redeemable Convertible Preferred Stock [Member] | Quarterly Cash Dividends [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Total cash dividends | $ 5,238 | $ 10,840 | |
Redeemable Convertible Preferred Stock [Member] | Annual Cash Dividend [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Total cash dividends | 4 | 7 | |
Annual cash dividend | 4 | 7 | |
Redeemable Convertible Preferred Stock [Member] | Annual Stock Dividend | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Annual stock dividend | $ 349 | $ 359 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 20,453 | $ 12,269 | $ 6,532 |
Non-Employee Director Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,351 | 1,226 | 1,049 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 2,908 | 2,554 | 2,550 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 5,177 | 3,807 | 2,064 |
Performance-based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 11,017 | 4,682 | 869 |
Cost of Goods Sold [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,931 | 897 | 317 |
Selling, General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 18,522 | $ 11,372 | $ 6,215 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Assumption Used in Estimate Fair Value of Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Expected stock price volatility, minimum | 35.50% | 30.10% | 30.30% |
Expected stock price volatility, maximum | 36.30% | 30.90% | 31.10% |
Risk-free interest rate, minimum | 0.40% | 1.40% | 2.90% |
Risk-free interest rate, maximum | 0.60% | 2.30% | 3.10% |
Weighted-average expected life (years) | 6 years | 6 years | 6 years |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Common stock price | $ 41.97 | $ 27.44 | $ 25.75 |
Dividend yield | 0.50% | 0.90% | 1.10% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Common stock price | $ 71.55 | $ 41.85 | $ 27.99 |
Dividend yield | 0.90% | 1.30% | 1.20% |
Stock-Based Compensation (2017
Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail) - 2017 Omnibus Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | May 24, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for awards | 1,300,000 | |||
Stock-based awards, unrecognized compensation expense | $ 3.5 | |||
Unrecognized compensation cost, weighted average service period for recognition | 1 year 9 months 18 days | |||
Aggregate intrinsic value of options outstanding | $ 69.2 | |||
Aggregate intrinsic value of options exercisable | 31 | |||
Intrinsic value of options exercised | $ 0.1 | |||
Share-based compensation award description | For the performance units granted in fiscal 2021, 2020 and 2019, 50% of the award is based upon the achievement of certain levels of Return on Invested Capital for the performance period and 50% is based upon the achievement of certain levels of Free cash flow for the performance period. | |||
Performance awards performance period | 3 years | |||
Number of shares, Granted | 132,000 | |||
IWT [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation award description | the performance units based on the Infiltrator reportable segment, 75% of the award is based upon the achievement of certain levels of Adjusted EBITDA for the performance period and 25% is based upon the achievement of certain levels of Free cash flow for the performance period. These two performance unit grants have a performance period from August 1, 2019 through March 31, 2022 | |||
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost, weighted average service period for recognition | 1 year 7 months 6 days | |||
Unrecognized compensation expense | $ 7.3 | |||
Intrinsic value of options vested | $ 3.6 | $ 2.3 | $ 2 | |
Performance Shares [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost, weighted average service period for recognition | 1 year 6 months | |||
Unrecognized compensation expense | $ 11.3 | |||
Number of shares, Granted | 106,000 | |||
Performance Shares [Member] | IWT [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, Granted | 100,000 | |||
Predetermined Synergies Performance Shares [Member] | IWT [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, Granted | 100,000 | |||
Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock approved for issuance | 3,500,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
2017 Omnibus Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 785,000 | ||
Number of Shares, Granted | 258,000 | ||
Number of Shares, Exercised | (89,000) | ||
Number of Shares, Forfeited | (15,000) | ||
Number of Shares, Outstanding, Ending Balance | 939,000 | 785,000 | |
Number of Shares, Vested at end of year | 386,000 | ||
Number of Shares, Unvested at end of year | 553,000 | ||
Number of Shares, Fair value of options granted during the year | 0 | ||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 25.01 | ||
Weighted Average Exercise Price, Granted | 42.60 | ||
Weighted Average Exercise Price, Exercised | 25.78 | ||
Weighted Average Exercise Price, Forfeited | 30.30 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance | 29.69 | $ 25.01 | |
Weighted Average Exercise Price, Vested at end of period | 23.21 | ||
Weighted Average Exercise Price, Unvested at end of year | 34.22 | ||
Weighted Average Exercise Price, Fair value of options granted during the year | $ 13.29 | ||
Weighted Average Remaining Contractual Term (in years), Outstanding | 7 years 10 months 24 days | 8 years 4 months 24 days | |
Weighted Average Remaining Contractual Term (in years), Vested at end of year | 7 years | ||
Weighted Average Remaining Contractual Term (in years), Unvested at end of year | 8 years 6 months | ||
2000 Stock Option Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 71,000 | ||
Number of Shares, Granted | 0 | 0 | 0 |
Number of Shares, Exercised | (30,000) | ||
Number of Shares, Forfeited | (4,000) | ||
Number of Shares, Outstanding, Ending Balance | 37,000 | 71,000 | |
Number of Shares, Vested at end of year | 22,000 | ||
Number of Shares, Unvested at end of year | 15,000 | ||
Number of Shares, Fair value of options granted during the year | 0 | ||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 14.69 | ||
Weighted Average Exercise Price, Granted | 0 | ||
Weighted Average Exercise Price, Exercised | 14.22 | ||
Weighted Average Exercise Price, Forfeited | 15.74 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance | 14.97 | $ 14.69 | |
Weighted Average Exercise Price, Vested at end of period | 14.45 | ||
Weighted Average Exercise Price, Unvested at end of year | 15.74 | ||
Weighted Average Exercise Price, Fair value of options granted during the year | $ 0 | ||
Weighted Average Remaining Contractual Term (in years), Outstanding | 2 years 7 months 6 days | 3 years 4 months 24 days | |
Weighted Average Remaining Contractual Term (in years), Vested at end of year | 2 years 3 months 18 days | ||
Weighted Average Remaining Contractual Term (in years), Unvested at end of year | 3 years | ||
2013 Stock Option Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 565,000 | ||
Number of Shares, Granted | 0 | ||
Number of Shares, Exercised | (249,000) | ||
Number of Shares, Outstanding, Ending Balance | 316,000 | 565,000 | |
Number of Shares, Vested at end of year | 312,000 | ||
Number of Shares, Unvested at end of year | 4,000 | ||
Number of Shares, Fair value of options granted during the year | 0 | ||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 19.45 | ||
Weighted Average Exercise Price, Granted | 0 | ||
Weighted Average Exercise Price, Exercised | 19.40 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance | 19.48 | $ 19.45 | |
Weighted Average Exercise Price, Vested at end of period | 19.43 | ||
Weighted Average Exercise Price, Unvested at end of year | 24.20 | ||
Weighted Average Exercise Price, Fair value of options granted during the year | $ 0 | ||
Weighted Average Remaining Contractual Term (in years), Outstanding | 3 years 8 months 12 days | 4 years 8 months 12 days | |
Weighted Average Remaining Contractual Term (in years), Vested at end of year | 3 years 7 months 6 days | ||
Weighted Average Remaining Contractual Term (in years), Unvested at end of year | 5 years |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Unvested Restricted Stock Grants (Detail) - 2017 Omnibus Plan [Member] shares in Thousands | 12 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested at beginning of year | shares | 388 |
Number of shares, Granted | shares | 132 |
Number of Shares, Vested | shares | (130) |
Number of Shares, Forfeited | shares | (8) |
Number of Shares, Unvested at end of year | shares | 382 |
Weighted Average Grant Date Fair Value, Unvested at beginning of year | $ / shares | $ 30.38 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 44.04 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 27.46 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 31.63 |
Weighted Average Grant Date Fair Value, Unvested at end of year | $ / shares | $ 36.03 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Performance Units Granted (Detail) - 2017 Omnibus Plan [Member] shares in Thousands | 12 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested at beginning of year | shares | 388 |
Number of shares, Granted | shares | 132 |
Number of Shares, Vested | shares | (130) |
Number of Shares, Forfeited | shares | (8) |
Number of Shares, Unvested at end of year | shares | 382 |
Weighted Average Grant Date Fair Value, Unvested at beginning of year | $ / shares | $ 30.38 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 44.04 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 27.46 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 31.63 |
Weighted Average Grant Date Fair Value, Unvested at end of year | $ / shares | $ 36.03 |
Performance Shares [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested at beginning of year | shares | 389 |
Number of shares, Granted | shares | 106 |
Number of Shares, Vested | shares | 0 |
Number of Shares, Forfeited | shares | (10) |
Number of Shares, Unvested at end of year | shares | 485 |
Weighted Average Grant Date Fair Value, Unvested at beginning of year | $ / shares | $ 31.07 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 50.29 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 33.55 |
Weighted Average Grant Date Fair Value, Unvested at end of year | $ / shares | $ 35.21 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021USD ($)Installmentshares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | |
2000 Stock Option Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of options vested | shares | 100,000 | 100,000 | 0 |
Weighted average fair value of options granted | shares | 0 | 0 | 0 |
Aggregate intrinsic value of options outstanding | $ 3.3 | ||
Aggregate intrinsic value of options exercisable | 2 | ||
Intrinsic value of options exercised | $ 2.1 | $ 0.2 | $ 0.8 |
2000 Stock Option Plan [Member] | Liability-Classified Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost, weighted average service period for recognition | 3 months 18 days | ||
2000 Stock Option Plan [Member] | Liability-Classified Stock Options [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based awards, unrecognized compensation expense | $ 0.1 | ||
2000 Stock Option Plan [Member] | Liability-Classified Stock Options [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock awards, expiration period | 10 years | ||
Stock awards, number of annual installments for vesting | Installment | 3 | ||
Stock based awards, shares available for grant | shares | 0 | ||
2013 Stock Option Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock based awards, shares available for grant | shares | 0 | ||
Unrecognized compensation cost, weighted average service period for recognition | 8 months 12 days | ||
Weighted average fair value of options granted | shares | 0 | ||
2013 Stock Option Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based awards, unrecognized compensation expense | $ 0.1 | ||
2013 Stock Option Plan [Member] | Management [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock awards, expiration period | 10 years | ||
2013 Stock Option Plan [Member] | Management [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock awards, number of annual installments for vesting | Installment | 5 | ||
2013 Stock Option Plan [Member] | Management [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock awards, number of annual installments for vesting | Installment | 3 | ||
2013 Stock Option Plan [Member] | Liability-Classified Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Aggregate intrinsic value of options outstanding | $ 26.5 | ||
Aggregate intrinsic value of options exercisable | 26.2 | ||
Intrinsic value of options exercised | 15.2 | ||
Intrinsic value of options vested | $ 0.1 | $ 0.8 | $ 2.6 |
Stock-Based Compensation (2008
Stock-Based Compensation (2008 Restricted Stock Plan) - Additional Information (Detail) - Two Thousand Eight Restricted Stock Plan - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock based awards, shares available for grant | 0 | ||
Unrecognized compensation cost, weighted average service period for recognition | 7 months 6 days | ||
Intrinsic value of options vested | $ 0.2 | $ 0.9 | $ 1.4 |
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 0.1 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 291,296 | $ (186,209) | $ 103,559 |
Foreign | 20,975 | 6,595 | 8,051 |
Income (loss) before income taxes | $ 312,271 | $ (179,614) | $ 111,610 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current: | |||
Federal | $ 76,986 | $ 10,867 | $ 11,575 |
State and local | 17,189 | 4,655 | 3,998 |
Foreign | 5,921 | 1,546 | 2,050 |
Total current tax expense | 100,096 | 17,068 | 17,623 |
Deferred: | |||
Federal | (12,250) | 210 | 11,745 |
State and local | (1,269) | (1,228) | 1,795 |
Foreign | (195) | (1,958) | (1,114) |
Total deferred tax expense (benefit) | (13,714) | (2,976) | 12,426 |
Total Income tax expense | $ 86,382 | $ 14,092 | $ 30,049 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate and Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
ESOP stock appreciation, ESOP dividends and special dividend | 2.70% | (30.30%) | 3.20% |
Effect of tax rate of foreign subsidiaries | 0.50% | 0.60% | (0.30%) |
State and local taxes—net of federal income tax benefit | 3.90% | (1.70%) | 4.60% |
Uncertain tax position change | (0.50%) | 1.20% | (1.30%) |
Equity-based compensation | (1.40%) | 1.10% | (0.40%) |
Executive compensation | 1.50% | (0.80%) | 1.10% |
Net operating losses | 0.20% | 1.90% | |
Other | (0.20%) | (0.90%) | (1.00%) |
Effective rate | 27.70% | (7.90%) | 26.90% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Effective Tax Rate and Statutory Federal Income Tax Rate (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Line Items] | |||
Total stock-based compensation expense | $ 20,453 | $ 12,269 | $ 6,532 |
Employee Stock Ownership Plan (ESOP) [Member] | |||
Income Taxes [Line Items] | |||
Non-deductible stock appreciation and deductible dividends | $ 242,900 | ||
Decrease in effective tax rate | 28.40% | ||
Employee Stock Ownership Plan (ESOP) [Member] | Special Dividend [Member] | |||
Income Taxes [Line Items] | |||
Total stock-based compensation expense | $ 246,800 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jul. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Income Taxes [Line Items] | |||||
Deferred tax liabilities | $ 162,185,000 | $ 175,616,000 | |||
Undistributed earnings on foreign subsidiaries | 21,000,000 | ||||
Income tax benefit | (86,382,000) | (14,092,000) | $ (30,049,000) | ||
Unrecognized tax benefit that would decrease income tax expense | 1,686,000 | 3,343,000 | $ 5,681,000 | $ 7,593,000 | |
Decrease in unrecognized tax benefit related to income tax expense | 1,700,000 | ||||
Accrued interest and penalties related to unrecognized tax benefits | 500,000 | 800,000 | |||
Other Accrued Liabilities [Member] | |||||
Income Taxes [Line Items] | |||||
Short-term portion of unrecognized tax benefit | 300,000 | ||||
Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Increase in unrecognized tax benefits is reasonably possible | 300,000 | ||||
Canada [Member] | |||||
Income Taxes [Line Items] | |||||
Deferred tax liabilities | 0 | ||||
IWT [Member] | |||||
Income Taxes [Line Items] | |||||
Total purchase price | $ 132,400,000 | 132,400,000 | |||
Purchase price related to step up of GAAP basis for fair market valuations | 82,300,000 | ||||
Deferred tax liabilities acquired | 50,100,000 | ||||
Business combination, acquired federal net operating loss | 24,000,000 | ||||
IWT [Member] | State Credit Carryforward [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax benefit | 900,000 | 800,000 | |||
Valuation allowance | 300,000 | 500,000 | |||
IWT [Member] | State and Local Jurisdiction [Member] | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets related to state NOLs | 0 | 900,000 | |||
Valuation allowance | $ 100,000 | ||||
IWT [Member] | State and Local Jurisdiction [Member] | Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration term | 5 years | ||||
IWT [Member] | State and Local Jurisdiction [Member] | Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration term | 20 years | ||||
IWT [Member] | Foreign [Member] | |||||
Income Taxes [Line Items] | |||||
Valuation allowance | 100,000 | $ 100,000 | |||
Deferred tax assets related to foreign NOLs | $ 100,000 | $ 300,000 | |||
IWT [Member] | Foreign [Member] | Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration term | 20 years | 20 years | |||
IWT [Member] | Intangible Assets [Member] | |||||
Income Taxes [Line Items] | |||||
Purchase price related to step up of GAAP basis for fair market valuations | $ 80,200,000 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets: | ||
Inventory | $ 805 | $ 2,065 |
Stock-based compensation | 5,084 | 2,770 |
Worker’s compensation | 2,603 | 2,317 |
Net operating loss and credit carryforwards | 1,202 | 2,059 |
Operating lease liabilities | 7,403 | 6,160 |
Other | 7,878 | 6,684 |
Total deferred tax assets | 24,975 | 22,055 |
Less: valuation allowance | (405) | (941) |
Total net deferred tax assets | 24,570 | 21,114 |
Deferred tax liabilities: | ||
Intangible assets | 106,012 | 121,276 |
Property, plant and equipment | 66,546 | 63,649 |
Operating lease assets | 7,365 | 6,147 |
Goodwill | 5,686 | 4,527 |
Other | 568 | 600 |
Total deferred tax liabilities | 186,177 | 196,199 |
Net deferred tax liabilities | $ 161,607 | $ 175,085 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Net non-current deferred tax liabilities | $ 162,185 | $ 175,616 |
Other Assets [Member] | ||
Net non-current deferred tax assets | $ 578 | $ 531 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 3,343 | $ 5,681 | $ 7,593 |
Tax positions taken in current year | 164 | ||
Decreases in tax positions for prior years | (1,398) | (198) | |
Increases in tax positions for prior years | 105 | 1,907 | 136 |
Settlements | (284) | (124) | (200) |
Lapse of statute of limitations | (1,640) | (2,589) | (1,595) |
Increase in foreign translation adjustment | 162 | ||
Decrease in foreign translation adjustment | (134) | (219) | |
Balance at end of year | $ 1,686 | $ 3,343 | $ 5,681 |
Net Income Per Share and Stoc_3
Net Income Per Share and Stockholders' Equity - Summary of Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
NET INCOME (LOSS) PER SHARE — BASIC: | |||
Net income (loss) attributable to ADS | $ 224,230 | $ (193,174) | $ 77,772 |
Dividends paid to participating securities | (5,591) | (11,544) | (2,116) |
Net income available to common stockholders and participating securities | 218,639 | (204,718) | 75,656 |
Undistributed income allocated to participating securities | (33,251) | (5,474) | |
Net income available to common stockholders — Basic | $ 185,388 | $ (204,718) | $ 70,182 |
Weighted average number of common shares outstanding — Basic | 70,155 | 63,820 | 57,025 |
Net income (loss) per common share — Basic | $ 2.64 | $ (3.21) | $ 1.23 |
NET INCOME (LOSS) PER SHARE — DILUTED: | |||
Net income (loss) available to common stockholders — Diluted | $ 185,388 | $ (204,718) | $ 70,182 |
Weighted average number of common shares outstanding — Basic | 70,155 | 63,820 | 57,025 |
Weighted average number of common shares outstanding — Diluted | 71,566 | 63,820 | 57,611 |
Net income (loss) per common share —Diluted | $ 2.59 | $ (3.21) | $ 1.22 |
Potentially dilutive securities excluded as anti-dilutive | 14,594 | 14,449 | 5,966 |
Restricted Stock - Nonparticipating [Member] | |||
NET INCOME (LOSS) PER SHARE — DILUTED: | |||
Dilutive securities | 247 | 39 | |
Performance Shares [Member] | |||
NET INCOME (LOSS) PER SHARE — DILUTED: | |||
Dilutive securities | 320 | ||
Exercise of Stock Options [Member] | |||
NET INCOME (LOSS) PER SHARE — DILUTED: | |||
Dilutive securities | 844 | 547 |
Net Income Per Share and Stoc_4
Net Income Per Share and Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Sep. 10, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Feb. 28, 2017 |
Equity Class Of Treasury Stock [Line Items] | |||||
Common stock, par value | $ 0.01 | $ 0.01 | |||
Proceeds from issuance of common stock after deducting underwriting discounts and commissions and offering expenses | $ 300,000 | $ 293,648 | |||
Stock repurchase program amount authorized | $ 50,000 | ||||
Cash dividend declared | $ 0.09 | ||||
Dividend payment | $ 81,600 | ||||
Additional stock-based compensation expense | 20,453 | $ 12,269 | $ 6,532 | ||
Cost of Goods Sold - ESOP special dividend compensation and Selling, General and Administrative Expenses [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Additional stock-based compensation expense | $ 246,800 | ||||
ESOP [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Number of redeemable convertible preferred stock allocated to ESOP participants | 11,600,000 | ||||
Amount of dividend from unallocated redeemable convertible preferred stock held in the ESOP trust to repay ESOP loan | $ 12,000 | ||||
Special Dividend [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Cash dividend declared | $ 1 | $ 1 | |||
Dividend payable date | Jun. 14, 2019 | ||||
Dividend payable, date of record | Jun. 3, 2019 | ||||
Special Dividend [Member] | ESOP [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Additional stock-based compensation expense | $ 246,800 | ||||
Common Stock [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Aggregate shares of common stock issued and sold | 10,350,000 | ||||
Common stock repurchases, Shares | 0 | 0 | |||
Stock repurchase program amount authorized | $ 42,100 | ||||
Common Stock Offering [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Aggregate shares of common stock issued and sold | 10,350,000 | ||||
Common stock, par value | $ 0.01 | ||||
Shares price per share | $ 29.75 | ||||
Proceeds from issuance of common stock after deducting underwriting discounts and commissions and offering expenses | $ 293,600 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |||
Accrued compensation and benefits | [1] | $ 42,075 | $ 33,215 |
Accrued rebate liability | [2] | 16,834 | 14,479 |
Lease liability - Operating leases | 8,995 | 7,757 | |
Self-insurance accruals | 11,257 | 12,486 | |
Other | 36,990 | 33,179 | |
Total accrued liabilities | $ 116,151 | $ 101,116 | |
[1] | Accrued compensation and benefits is primarily comprised of accrued payroll, bonuses and commissions. | ||
[2] | Accrued rebate liability represents the Company’s estimated rebates to be paid to customers. |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information _2
Business Segment Information - Schedule of Revenue from Reportable Segments by Product Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net Sales | $ 1,982,780 | $ 1,673,805 | $ 1,384,733 |
Pipe Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,052,920 | 952,603 | 868,805 |
Infiltrator Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 329,144 | 169,348 | |
International Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 158,269 | 148,581 | 160,602 |
International Segment [Member] | Pipe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 114,879 | 108,624 | 122,836 |
International Segment [Member] | Allied Products and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 43,390 | 39,957 | 37,766 |
Allied Products and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 442,447 | 403,273 | 355,326 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,982,780 | 1,673,805 | 1,384,733 |
Operating Segments [Member] | Pipe Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,059,200 | 954,633 | 868,805 |
Operating Segments [Member] | Infiltrator Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 397,813 | 211,005 | |
Operating Segments [Member] | International Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 164,858 | 148,581 | 160,602 |
Operating Segments [Member] | International Segment [Member] | Pipe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 121,468 | 108,624 | 122,836 |
Operating Segments [Member] | International Segment [Member] | Allied Products and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 43,390 | 39,957 | 37,766 |
Operating Segments [Member] | Allied Products and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 442,447 | 403,273 | $ 355,326 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (81,538) | (43,687) | |
Intersegment Eliminations [Member] | Pipe Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (6,280) | (2,030) | |
Intersegment Eliminations [Member] | Infiltrator Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (68,669) | $ (41,657) | |
Intersegment Eliminations [Member] | International Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (6,589) | ||
Intersegment Eliminations [Member] | International Segment [Member] | Pipe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | $ (6,589) |
Business Segment Information _3
Business Segment Information - Schedule of Financial Information Attributable to Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Segment adjusted gross profit | $ 788,479 | $ 574,086 | $ 396,922 |
Depreciation and amortization | 145,586 | 124,940 | 71,900 |
Capital expenditures | 78,757 | 67,677 | 43,412 |
Operating Segments [Member] | Pipe Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment adjusted gross profit | 322,846 | 239,531 | 191,002 |
Depreciation and amortization | 46,078 | 46,611 | 49,419 |
Capital expenditures | 17,135 | 33,629 | 34,878 |
Operating Segments [Member] | Infiltrator Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment adjusted gross profit | 191,163 | 98,245 | |
Depreciation and amortization | 12,468 | 7,159 | |
Capital expenditures | 54,024 | 24,917 | |
Operating Segments [Member] | International Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment adjusted gross profit | 49,921 | 36,999 | 37,191 |
Depreciation and amortization | 5,430 | 6,013 | 5,938 |
Capital expenditures | 1,627 | 2,623 | 3,765 |
Operating Segments [Member] | Allied Products and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment adjusted gross profit | 225,052 | 201,206 | 168,729 |
Depreciation and amortization | 81,610 | 65,157 | 16,543 |
Capital expenditures | 5,971 | 6,508 | $ 4,769 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment adjusted gross profit | $ (503) | $ (1,895) |
Business Segment Information _4
Business Segment Information - Reconciliation of Gross Profit to Segment Adjusted Gross Profit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Gross profit | $ 690,082 | $ 316,479 | $ 326,967 |
Depreciation and amortization | 66,408 | 62,225 | 59,164 |
ESOP and stock-based compensation expense | 31,792 | 14,319 | 10,791 |
ESOP special dividend compensation | 168,610 | ||
COVID-19 related expenses | 197 | 4,573 | |
Inventory step up related to Infiltrator acquisition | 7,880 | ||
Total Segment Adjusted Gross Profit | $ 788,479 | 574,086 | $ 396,922 |
Infiltrator [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Inventory step up related to Infiltrator acquisition | $ 7,880 |
Business Segment Information _5
Business Segment Information - Net Sales and Long-Lived Asset by Geographic Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,982,780 | $ 1,673,805 | $ 1,384,733 |
Long-Lived Assets | 523,151 | 497,375 | |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,966,947 | 1,655,219 | 1,366,470 |
Long-Lived Assets | 511,290 | 488,125 | |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 15,833 | 18,586 | $ 18,263 |
Long-Lived Assets | $ 11,861 | $ 9,250 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Supplemental Disclosures Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest | $ 37,614 | $ 41,290 | $ 15,679 |
Income taxes | 97,636 | 8,710 | 29,841 |
Redeemable convertible preferred stock dividend | 349 | 359 | 134 |
Purchases of plant, property, and equipment included in accounts payable | 6,754 | 1,588 | 1,255 |
ESOP distributions in common stock | 28,585 | 13,109 | 8,609 |
Lease obligation retired upon disposition of leased assets | $ 1,940 | $ 799 | $ 578 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Feb. 28, 2017 | |
Subsequent Event [Line Items] | |||||
Cash dividend declared | $ 0.36 | $ 1.36 | $ 0.32 | ||
Stock repurchase program amount authorized | $ 50 | ||||
Scenario Forecast [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend declared | $ 0.11 | ||||
Dividend payable date | Jun. 15, 2021 | ||||
Dividend payable, date of record | Jun. 1, 2021 | ||||
Stock repurchase program amount authorized | $ 250 | ||||
Stock repurchase program, outstanding amount under previous authorization | $ 42 |
Schedule II - Consolidated Va_2
Schedule II - Consolidated Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |||
Balance at beginning of period | $ 5,035 | $ 7,653 | $ 6,826 |
Charged to costs and expenses | 1,338 | (24) | 1,154 |
CECL Adoption | 779 | ||
Charged to other accounts | 99 | (234) | (65) |
Deductions | (1,928) | (2,360) | (262) |
Balance at end of period | $ 5,323 | $ 5,035 | $ 7,653 |
Schedule II - Consolidated Va_3
Schedule II - Consolidated Valuation and Qualifying Accounts (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation allowances and reserves, due to acquisition | $ 0.4 |