Advanced Drainage Systems (WMS) 10-Q 5 Aug 21 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2021	Jul. 28, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	ADVANCED DRAINAGE SYSTEMS, INC.
Entity Central Index Key	0001604028
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		70,561,388
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
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
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of each class	Common Stock, $0.01 par value per share
Trading Symbol(s)	WMS
Name of each exchange on which registered	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021
Current assets:
Cash	$ 142,833	$ 195,009
Receivables (less allowance for doubtful accounts of $6,452 and $5,323, respectively)	303,736	236,191
Inventories	330,713	300,961
Other current assets	18,314	10,817
Total current assets	795,596	742,978
Property, plant and equipment, net	518,229	504,275
Other assets:
Goodwill	599,255	599,072
Intangible assets, net	466,384	482,016
Other assets	95,154	85,491
Total assets	2,474,618	2,413,832
Current liabilities:
Current maturities of debt obligations	7,000	7,000
Current maturities of finance lease obligations	18,934	19,318
Accounts payable	229,300	171,098
Other accrued liabilities	124,081	116,151
Accrued income taxes	28,135	4,703
Total current liabilities	407,450	318,270
Long-term debt obligations (less unamortized debt issuance costs of $1,935 and $2,030, respectively)	780,565	782,220
Long-term finance lease obligations	35,241	32,964
Deferred tax liabilities	162,988	162,185
Other liabilities	62,480	54,767
Total liabilities	1,448,724	1,350,406
Commitments and contingencies (see Note 9)
Mezzanine equity:
Redeemable convertible preferred stock: $0.01 par value; 47,070 shares authorized; 44,170 shares issued; 18,282 and 19,275 shares outstanding, respectively	228,532	240,944
Deferred compensation – unearned ESOP shares	(8,942)	(11,033)
Total mezzanine equity	219,590	229,911
Stockholders’ equity:
Common stock; $0.01 par value: 1,000,000 shares authorized; 73,227 and 72,071 shares issued, respectively; 71,549 and 71,570 shares outstanding, respectively	11,589	11,578
Paid-in capital	950,963	918,587
Common stock in treasury, at cost	(139,313)	(10,959)
Accumulated other comprehensive loss	(22,794)	(24,220)
Retained deficit	(8,666)	(75,202)
Total ADS stockholders’ equity	791,779	819,784
Noncontrolling interest in subsidiaries	14,525	13,731
Total stockholders’ equity	806,304	833,515
Total liabilities, mezzanine equity and stockholders’ equity	$ 2,474,618	$ 2,413,832

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021
Allowance for doubtful accounts	$ 6,452	$ 5,323
Unamortized debt issuance costs	$ 1,935	$ 2,030
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	73,227,000	72,071,000
Common stock, shares outstanding	71,549,000	71,570,000
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	18,282,000	19,275,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net sales	$ 669,300	$ 508,639
Cost of goods sold	468,179	320,136
Gross profit	201,121	188,503
Operating expenses:
Selling, general and administrative	76,221	61,776
(Gain) loss on disposal of assets and costs from exit and disposal activities	(11)	1,647
Intangible amortization	15,645	17,982
Income from operations	109,266	107,098
Other expense:
Interest expense	7,907	9,970
Derivative gain and other income, net	(2,014)	(567)
Income before income taxes	103,373	97,695
Income tax expense	26,455	27,200
Equity in net income of unconsolidated affiliates	(205)	(173)
Net income	77,123	70,668
Less: net income attributable to noncontrolling interest	1,136	202
Net income attributable to ADS	$ 75,987	$ 70,466
Weighted average common shares outstanding:
Basic	71,534	69,380
Diluted	73,124	70,126
Net income per share:
Basic	$ 0.89	$ 0.83
Diluted	$ 0.87	$ 0.83

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 77,123	$ 70,668
Currency translation gain	2,041	3,150
Comprehensive income	79,164	73,818
Less: other comprehensive income attributable to noncontrolling interest	615	319
Less: net income attributable to noncontrolling interest	1,136	202
Total comprehensive income attributable to ADS	$ 77,413	$ 73,297

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities
Net income	$ 77,123	$ 70,668
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,656	35,781
Deferred income taxes	64	(2,357)
(Gain) loss on disposal of assets and costs from exit and disposal activities	(11)	1,647
ESOP and stock-based compensation	20,806	12,462
Amortization of deferred financing charges	95	98
Fair market value adjustments to derivatives	(675)	(1,082)
Equity in net income of unconsolidated affiliates	(205)	(173)
Other operating activities	450	269
Changes in working capital:
Receivables	(67,388)	(42,093)
Inventories	(28,985)	44,140
Prepaid expenses and other current assets	(7,442)	(3,520)
Accounts payable, accrued expenses, and other liabilities	75,860	17,893
Net cash provided by operating activities	104,348	133,733
Cash Flows from Investing Activities
Capital expenditures	(25,546)	(10,295)
Other investing activities	53	435
Net cash used in investing activities	(25,493)	(9,860)
Cash Flows from Financing Activities
Payments on syndicated Term Loan Facility	(1,750)	(1,750)
Payments on Credit Agreement		(50,000)
Payments on finance lease obligations	(5,379)	(5,700)
Repurchase of common stock	(102,013)
Cash dividends paid	(9,451)	(7,737)
Dividends paid to noncontrolling interest holder	(957)
Payment of withholding taxes on vesting of restricted stock units	(12,976)
Proceeds from exercise of stock options	1,336	2,239
Other financing activities	(131)
Net cash used in financing activities	(131,321)	(62,948)
Effect of exchange rate changes on cash	290	52
Net change in cash	(52,176)	60,977
Cash at beginning of period	195,009	174,233
Cash at end of period	142,833	235,210
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	2,605	(19)
Cash paid for interest	3,714	6,934
Non-cash operating, investing and financing activities:
Repurchases of common stock pending settlement	13,365
Acquisition of property, plant and equipment under finance lease and incurred lease obligations	9,382	1,278
Balance in accounts payable for the acquisition of property, plant and equipment	$ 6,578	$ 3,772

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - 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, 2020	$ 537,485	$ (779)	$ 11,555	$ 827,573	$ (10,461)	$ (35,325)	$ (267,619)	$ (779)	$ 525,723	$ (779)	$ 11,762
Beginning Balance, Shares at Mar. 31, 2020			69,810		491
Accounting Standards [Update Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Net income	$ 70,668						70,466		70,466		202
Other comprehensive income	3,150					2,831			2,831		319
Redeemable convertible preferred stock dividends	(1,366)						(1,366)		(1,366)
Common stock dividends	(6,371)						(6,371)		(6,371)
Allocation of ESOP shares to participants for compensation	4,036			4,036					4,036
Exercise of common stock options	2,240		$ 1	2,239					2,240
Exercise of common stock options, Shares			93
Restricted stock awards	(391)		$ 1		$ (392)				(391)
Restricted stock awards, Shares			70		9
Stock-based compensation expense	5,599			5,599					5,599
Other	318			318					318
Ending Balance, Value at Jun. 30, 2020	614,589		$ 11,557	839,765	$ (10,853)	(32,494)	(205,669)		602,306		12,283
Ending Balance, Shares at Jun. 30, 2020			69,973		500
Beginning Balance, Value at Mar. 31, 2021	$ 833,515		$ 11,578	918,587	$ (10,959)	(24,220)	(75,202)		819,784		13,731
Beginning Balance, Shares at Mar. 31, 2021			72,071		501
Accounting Standards [Update Extensible List]	us-gaap:AccountingStandardsUpdate201912Member
Net income	$ 77,123						75,987		75,987		1,136
Other comprehensive income	2,041					1,426			1,426		615
Redeemable convertible preferred stock dividends	(1,550)						(1,550)		(1,550)
Common stock dividends	(7,901)						(7,901)		(7,901)
Dividends paid to noncontrolling interest holder	(957)										(957)
Share repurchases	(115,378)				$ (115,378)				(115,378)
Share repurchases, Shares					1,056
Allocation of ESOP shares to participants for compensation	12,064			12,064					12,064
Exercise of common stock options	1,336			1,336					1,336
Exercise of common stock options, Shares			48
Restricted stock awards	(3,230)		$ 1		$ (3,231)				(3,230)
Restricted stock awards, Shares			99		29
Performance-based restricted stock units	(9,743)		$ 2		$ (9,745)				(9,743)
Performance-based restricted stock units, Shares			245		92
Stock-based compensation expense	6,651			6,651					6,651
ESOP distribution in common stock	12,412		$ 8	12,404					12,412
ESOP distribution in common stock, Shares			764
Other	(79)			(79)					(79)
Ending Balance, Value at Jun. 30, 2021	$ 806,304		$ 11,589	$ 950,963	$ (139,313)	$ (22,794)	$ (8,666)		$ 791,779		$ 14,525
Ending Balance, Shares at Jun. 30, 2021			73,227		1,678

Condensed Consolidated Statem_5

Condensed 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]
Beginning Balance, Value at Mar. 31, 2020		$ 269,529	$ (22,432)	$ 247,097
Beginning Balance, Shares at Mar. 31, 2020		21,562	1,850
Other comprehensive income	$ 3,150
Redeemable convertible preferred stock dividends	(1,366)
Common stock dividends	(6,371)
Allocation of ESOP shares to participants for compensation	4,036		$ 2,827	2,827
Allocation of ESOP shares to participants for Compensation, Shares			(226)
Exercise of common stock options	2,240
Restricted stock awards	(391)
Stock-based compensation expense	5,599
Other	318
Ending Balance, Value at Jun. 30, 2020		$ 269,529	$ (19,605)	249,924
Ending Balance, Shares at Jun. 30, 2020		21,562	1,624
Beginning Balance, Value at Mar. 31, 2021	229,911	$ 240,944	$ (11,033)	229,911
Beginning Balance, Shares at Mar. 31, 2021		19,275	966
Other comprehensive income	2,041
Redeemable convertible preferred stock dividends	(1,550)
Common stock dividends	(7,901)
Dividends paid to noncontrolling interest holder	(957)
Share repurchases	(115,378)
Allocation of ESOP shares to participants for compensation	12,064		$ 2,091	2,091
Allocation of ESOP shares to participants for Compensation, Shares			(167)
Exercise of common stock options	1,336
Restricted stock awards	(3,230)
Performance-based restricted stock units	(9,743)
Stock-based compensation expense	6,651
ESOP distribution in common stock		$ (12,412)		(12,412)
ESOP distribution in common stock, Shares		(993)
Other	(79)
Ending Balance, Value at Jun. 30, 2021	$ 219,590	$ 228,532	$ (8,942)	$ 219,590
Ending Balance, Shares at Jun. 30, 2021		18,282	799

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Statement Of Stockholders Equity [Abstract]
Common stock dividends per share	$ 0.11	$ 0.09

Background and Summary of Signi

Background and Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 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” or the “Company”), incorporated in Delaware, designs, manufactures and markets innovative water management solutions in the stormwater and on-site septic wastewater industries, providing superior drainage solutions for use in the construction and agriculture marketplace. ADS’s products are used across a broad range of end markets and applications, including residential, non-residential, infrastructure and agriculture applications. 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 and Other. Historically, sales of the Company’s products have been higher in the first and second quarters of each fiscal year due to favorable weather and longer daylight conditions accelerating construction activity during these periods. Seasonal variations in operating results may also be impacted by inclement weather conditions, such as cold or wet weather, which can delay projects. Basis of Presentation - The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Condensed Consolidated Balance Sheet as of March 31, 2021 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2021 (“Fiscal 2021 Form 10-K”). The accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as of June 30, 2021 and the results of operations for the three months ended June 30, 2021 and cash flows for the three months ended June 30, 2021. The interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, filed in the Company’s Fiscal 2021 Form 10-K. Principles of Consolidation - The Condensed 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 Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net income of unconsolidated affiliates in the Condensed 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 2022 presentation. Recent Accounting Guidance Recently Adopted Accounting Guidance Standard Adoption ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for 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, Income Taxes and improve the comparability of financial statements. The Company adopted this standard effective April 1, 2021. The Company’s adoption of the standard had no impact on the Company’s Condensed 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 2021 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Jun. 30, 2021
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2 . REVENUE RECOGNITION Revenue Disaggregation - 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 12. Business Segments Information” for the Company’s disaggregation of Net sales by reportable segment. 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 following table presents the balance of the Company’s contract asset and liability as of the periods presented: June 30, 2021 March 31, 2021 (In thousands) Contract asset - product returns $ 991 $ 694 Refund liability 2,425 1,801

Leases

Leases	3 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Leases	3 . LEASES 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 yard leases include an option to extend the leases for up to five years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities. Master Lease Agreement – In May 2021, the Company entered into a Master Lease Agreement and an Interim Funding Agreement with Fifth Third Bank, National Association, (“Fifth Third”) to finance its procurement of material handling equipment, trucks and trailers (the “Master Lease Agreement”). The Master Lease Agreement and Interim Funding Agreement have a combined initial capacity of $65.0 million. Financings will either bear interest at a fixed rental amount or at a rate based on the London Interbank Offered Rate plus the applicable margin. As of June 30, 2021, the Company had lease financings of $1.4 million

Inventories

Inventories	3 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Inventories	4 . Inventories as of the periods presented consisted of the following: June 30, 2021 March 31, 2021 (In thousands) Raw materials $ 93,061 $ 75,294 Finished goods 237,652 225,667 Total inventories $ 330,713 $ 300,961

Fair Value Measurement and Deri

Fair Value Measurement and Derivative Transactions	3 Months Ended
	Jun. 30, 2021
Fair Value And Derivative Instruments And Hedging Activities Disclosures [Abstract]
Fair Value Measurement and Derivative Transactions	5 . The Company uses commodity options in the form of collars and swaps and has previously used interest rate swaps and foreign currency forward contracts to manage its various exposures to interest rate, commodity price fluctuations and foreign currency exchange rate fluctuations. Mark-to-market adjustments for changes in fair value and contract settlement gains and losses for collars, commodity swaps and foreign currency forward contracts are recorded in the Condensed Consolidated Statements of Operations in Derivative gains and other income, net. 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 periods 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, the Company 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. Recurring Fair Value Measurements - The assets and liabilities carried at fair value as of the periods presented were as follows: June 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 1,940 $ — $ 1,940 $ — Total assets at fair value on a recurring basis $ 1,940 $ — $ 1,940 $ — Liabilities: Derivative liabilities – diesel fuel contracts $ 103 $ — $ 103 $ — Total liabilities at fair value on a recurring basis $ 103 $ — $ 103 $ — March 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) 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 liabilities - diesel fuel contracts $ 32 $ — $ 32 $ — Total liabilities at fair value on a recurring basis $ 32 $ — $ 32 $ — For the three months ended June 30, 2021 and 2020, there were no transfers in or out of Levels 1, 2 or 3. The Company recorded net (gains) and net losses on mark-to-market adjustments for changes in the fair value of derivatives contracts as well as net (gains) and net losses on the settlement of derivative contracts as follows: Three Months Ended June 30, 2021 2020 (In thousands) Diesel fuel option collars $ (675 ) $ (1,082 ) Total net unrealized mark-to-market gain $ (675 ) $ (1,082 ) Diesel fuel option collars (514 ) 840 Total net realized (gain) loss $ (514 ) $ 840 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 8. Debt”) for the periods presented: June 30, 2021 March 31, 2021 Fair Value Carrying Value Fair Value Carrying Value (In thousands) (In thousands) Senior Notes $ 364,903 $ 350,000 $ 367,633 $ 350,000

Net Income Per Share and Stockh

Net Income Per Share and Stockholders' Equity	3 Months Ended
	Jun. 30, 2021
Net Income Per Share And Stockholders Equity [Abstract]
Net Income Per Share and Stockholders' Equity	6 . NET INCOME PER SHARE AND STOCKHOLDERS’ EQUITY The Company is required 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 following table presents information necessary to calculate net income per share for the periods presented, 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: Three Months Ended June 30, (In thousands, except per share data) 2021 2020 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 75,987 $ 70,466 Adjustments for: Dividends paid to participating securities (1,635 ) (1,368 ) Net income available to common stockholders and participating securities 74,352 69,098 Undistributed income allocated to participating securities (10,933 ) (11,242 ) Net income available to common stockholders – Basic $ 63,419 $ 57,856 Weighted average number of common shares outstanding – Basic 71,534 69,380 Net income per common share – Basic $ 0.89 $ 0.83 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 63,419 $ 57,856 Weighted average number of common shares outstanding – Basic 71,534 69,380 Assumed restricted stock - nonparticipating 282 173 Assumed exercise of stock options 941 573 Assumed performance units 367 — Weighted average number of common shares outstanding – Diluted 73,124 70,126 Net income per common share – Diluted $ 0.87 $ 0.83 Potentially dilutive securities excluded as anti-dilutive 14,102 15,161 Stockholders’ Equity – During the three months ended June 30, 2021, the Company repurchased 1.1 million shares of common stock at a cost of $115.4 million. The repurchases were made under the Board of Directors’ authorization in May 2021 to repurchase up to an additional $250 million, in addition to the $42 million previously authorized, of ADS common stock in accordance with applicable securities laws. As of June 30, 2021, approximately $176.7 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.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	7 . ADS Mexicana - ADS conducts business in Mexico and Central America through its joint venture ADS Mexicana, S.A. de C.V. (together with its affiliate ADS Corporativo, S.A. de C.V., “ADS Mexicana”). ADS owns 51% of the outstanding stock of ADS Mexicana and consolidates ADS Mexicana for financial reporting purposes. On June 22, 2018, the Company and ADS Mexicana entered into 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 June 30, 2021 and March 31, 2021, there were no borrowings outstanding under the Intercompany Note. South American Joint Venture - The Tuberias Tigre - ADS Limitada joint venture (the “South American Joint Venture”) manufactures and sells HDPE corrugated pipe in certain South American markets. ADS owns 50% of the South American Joint Venture. ADS is the guarantor of 50% of the South American Joint Venture’s credit arrangement, and the debt guarantee is shared equally with the joint venture partner. The Company’s maximum potential obligation under this guarantee is $ 11.0 million as of June 30, 2021. The maximum borrowings permitted under the South American Joint Venture’s credit arrangement are $ 22.0 million. The Company does not anticipate any required contributions related to the balance of this credit arrangement . As of June 30, 2021 and March 31, 2021 , the outstanding principal balances of the credit arrangement including letters of credit were $ 9.9 million and $ 10.0 million, respectively. As of June 30, 2021 , there were no U.S. dollar denominated loans. The weighted average interest rate as of June 30, 2021 was 3.5 % on Chilean peso denominated loans.

Debt

Debt	3 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt	8 . Long-term debt as of the periods presented consisted of the following: June 30, 2021 March 31, 2021 (In thousands) Term Loan Facility $ 439,500 $ 441,250 Senior Notes 350,000 350,000 Revolving Credit Facility — — Total 789,500 791,250 Unamortized debt issuance costs (1,935 ) (2,030 ) Current maturities (7,000 ) (7,000 ) Long-term debt obligations $ 780,565 $ 782,220 Senior Secured Credit Facilities – In July 2019, the Company entered into the 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. In September 2019, the Company amended the Base Credit Agreement (as amended the “Senior Secured Credit Facility”). 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 the three months ended June 30, 2021, the Company repaid $1.8 million of the Term Loan Facility. The Company did not make any payments on the Revolving Credit Facility for the three months ended June 30, 2021. Letters of credit outstanding at June 30, 2021 and March 31, 2021 amount to $12.5 million and $11.0 million, respectively, and reduced the availability of the Revolving Credit Facility. Senior Notes – 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.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9 . 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 one 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 June 30, 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.

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	1 0 . INCOME TAXES The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related tax rates in jurisdictions where it operates and other one-time charges, as well as the occurrence of discrete events. For the three months ended June 30, 2021 and 27.8%, respectively, to calculate its provision for income taxes. State and local income taxes and the Company’s Employee Stock Ownership Plan (“ESOP”) increased the effective rate for the three months ended June 30, 2021 and 2020. Additionally, discrete income tax benefits related to the stock-based compensation windfall decreased the rate for the three months ended June 30, 2021

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	1 1 . ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options and restricted stock. Equity-classified restricted stock awards are measured based on the grant-date estimated fair value of each award. The fair value of restricted stock is based on the fair value of the Company’s common stock. 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. The Company accounts for all restricted stock granted to Directors as equity-classified awards. The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended June 30, 2021 2020 (In thousands) Component of income before income taxes: Cost of goods sold $ 634 $ 401 Selling, general and administrative expenses 6,017 5,198 Total stock-based compensation expense $ 6,651 $ 5,599 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended June 30, 2021 2020 (In thousands) Stock-based compensation expense: Stock Options $ 753 $ 881 Restricted Stock 1,359 1,417 Performance-based Restricted Stock Units 4,188 2,984 Non-Employee Directors 351 317 Total stock-based compensation expense $ 6,651 $ 5,599 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. On July 22, 2021, the Company’s stockholders approved issuance of an additional 1.5 million shares. After the additional shares are registered, the 2017 Incentive Plan will provide for the issuance of a maximum of 5.0 million shares of the Company’s common stock for awards made thereunder. 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. Restricted Stock - During the three months ended June 30, 2021, the Company granted 0.1 million shares restricted stock with a grant date fair value of $5.3 million. Performance-based Restricted Stock Units (“performance units”) – During the three months ended June 30, 2021, the Company granted 0.1 million shares at a grant date fair value of $5.3 million. Stock Options - During the three months ended June 30, 2021, the Company granted 0.1 million of nonqualified stock options under the 2017 Incentive Plan at a grant date fair value of $4.2 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used to estimate the fair value of stock-options during the periods presented: Three Months Ended June 30, 2021 Common stock price $105.82 Expected stock price volatility 41.0% Risk-free interest rate 1.1% Weighted-average expected option life (years) 6.0 Dividend yield 0.3%

Business Segments Information

Business Segments Information	3 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Business Segments Information	12. The Company 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. The Chief Operating Decision Maker (the “CODM”) evaluates segment reporting based on Net Sales and Segment Adjusted Gross Profit. The Company calculated Segment Adjusted Gross Profit as net sales less costs of goods sold, depreciation and amortization, stock-based compensation and non-cash charges. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources. 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 United States. 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 leach field 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 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 our broad line of Allied Products. Allied Products & Other –Allied Products and Other manufactures and markets products throughout the United States. Products include StormTech, Nyloplast, ARC Septic Chambers, Inserta Tee, BaySaver filters and water quality 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 United States. 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 periods presented: Three Months Ended June 30, 2021 June 30, 2020 Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 374,010 $ (1,903 ) $ 372,107 $ 273,652 $ (1,845 ) $ 271,807 Infiltrator 126,742 (19,037 ) 107,705 102,153 (18,068 ) 84,085 International International - Pipe 50,838 (2,914 ) 47,924 26,950 — 26,950 International - Allied Products & Other 14,528 — 14,528 8,879 — 8,879 Total International 65,366 (2,914 ) 62,452 35,829 — 35,829 Allied Products & Other 127,036 — 127,036 116,918 — 116,918 Intersegment Eliminations (23,854 ) 23,854 — (19,913 ) 19,913 — Total Consolidated $ 669,300 $ — $ 669,300 $ 508,639 $ — $ 508,639 The following sets forth certain financial information attributable to the reportable segments for the periods presented: Three Months Ended June 30, 2021 2020 (In thousands) Segment adjusted gross profit Pipe $ 84,143 $ 90,599 Infiltrator 59,402 47,928 International 21,378 11,408 Allied Products & Other 63,299 60,468 Intersegment Eliminations (14 ) (358 ) Total $ 228,208 $ 210,045 Depreciation and amortization Pipe $ 12,035 $ 11,360 Infiltrator 3,436 3,133 International 1,458 1,298 Allied Products & Other (a) 17,727 19,990 Total $ 34,656 $ 35,781 Capital expenditures Pipe $ 9,830 $ 4,231 Infiltrator 13,026 4,198 International 250 450 Allied Products & Other (a) 2,440 1,416 Total $ 25,546 $ 10,295 (a) Includes depreciation, 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 Three Months Ended June 30, 2021 2020 (In thousands) Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 201,121 $ 188,503 Depreciation and amortization 17,532 16,423 ESOP and stock-based compensation expense 9,555 4,939 COVID-19 related costs (a) — 180 Total Segment Adjusted Gross Profit $ 228,208 $ 210,045 (a) Includes expenses directly related to our response to the COVID-19 pandemic, including adjustments to our pandemic pay program and expenses associated with our third-party crisis management vendor.

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	1 3 . Common Stock Dividend - During the second quarter of fiscal 2022, the Company declared a quarterly cash dividend of $0.11 per share of common stock. The dividend is payable on September 15, 2021 to stockholders of record at the close of business on September 1, 2021. Stock Repurchase Program – During the second quarter of fiscal 2022, 1.0 million shares of common stock at a cost of $120.5 million were repurchased under the Board of Directors’ authorization in May 2021

Background and Summary of Sig_2

Background and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Condensed Consolidated Balance Sheet as of March 31, 2021 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2021 (“Fiscal 2021 Form 10-K”). The accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as of June 30, 2021 and the results of operations for the three months ended June 30, 2021 and cash flows for the three months ended June 30, 2021. The interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, filed in the Company’s Fiscal 2021 Form 10-K.
Principles of Consolidation	Principles of Consolidation - The Condensed 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 Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net income of unconsolidated affiliates in the Condensed 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 2022 presentation.
Recent Accounting Guidance	Recent Accounting Guidance Recently Adopted Accounting Guidance Standard Adoption ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for 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, Income Taxes and improve the comparability of financial statements. The Company adopted this standard effective April 1, 2021. The Company’s adoption of the standard had no impact on the Company’s Condensed 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 2021 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements.
Leases	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 yard leases include an option to extend the leases for up to five years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities. – In May 2021, the Company entered into a Master Lease Agreement and an Interim Funding Agreement with Fifth Third Bank, National Association, (“Fifth Third”) to finance its procurement of material handling equipment, trucks and trailers (the “Master Lease Agreement”). The Master Lease Agreement and Interim Funding Agreement have a combined initial capacity of $65.0 million. Financings will either bear interest at a fixed rental amount or at a rate based on the London Interbank Offered Rate plus the applicable margin. As of June 30, 2021, the Company had lease financings of $1.4 million

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Jun. 30, 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 the periods presented: June 30, 2021 March 31, 2021 (In thousands) Contract asset - product returns $ 991 $ 694 Refund liability 2,425 1,801

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories as of the periods presented consisted of the following: June 30, 2021 March 31, 2021 (In thousands) Raw materials $ 93,061 $ 75,294 Finished goods 237,652 225,667 Total inventories $ 330,713 $ 300,961

Fair Value Measurement and De_2

Fair Value Measurement and Derivative Transactions (Tables)	3 Months Ended
	Jun. 30, 2021
Fair Value And Derivative Instruments And Hedging Activities Disclosures [Abstract]
Summary of Assets and Liabilities Carried at Fair Value	The assets and liabilities carried at fair value as of the periods presented were as follows: June 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 1,940 $ — $ 1,940 $ — Total assets at fair value on a recurring basis $ 1,940 $ — $ 1,940 $ — Liabilities: Derivative liabilities – diesel fuel contracts $ 103 $ — $ 103 $ — Total liabilities at fair value on a recurring basis $ 103 $ — $ 103 $ — March 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) 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 liabilities - diesel fuel contracts $ 32 $ — $ 32 $ — Total liabilities at fair value on a recurring basis $ 32 $ — $ 32 $ —
Schedule of Cash Settlements and Net (Gains) and Net Losses on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts	The Company recorded net (gains) and net losses on mark-to-market adjustments for changes in the fair value of derivatives contracts as well as net (gains) and net losses on the settlement of derivative contracts as follows: Three Months Ended June 30, 2021 2020 (In thousands) Diesel fuel option collars $ (675 ) $ (1,082 ) Total net unrealized mark-to-market gain $ (675 ) $ (1,082 ) Diesel fuel option collars (514 ) 840 Total net realized (gain) loss $ (514 ) $ 840
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 8. Debt”) for the periods presented: June 30, 2021 March 31, 2021 Fair Value Carrying Value Fair Value Carrying Value (In thousands) (In thousands) Senior Notes $ 364,903 $ 350,000 $ 367,633 $ 350,000

Net Income Per Share and Stoc_2

Net Income Per Share and Stockholders' Equity (Tables)	3 Months Ended
	Jun. 30, 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 periods presented, 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: Three Months Ended June 30, (In thousands, except per share data) 2021 2020 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 75,987 $ 70,466 Adjustments for: Dividends paid to participating securities (1,635 ) (1,368 ) Net income available to common stockholders and participating securities 74,352 69,098 Undistributed income allocated to participating securities (10,933 ) (11,242 ) Net income available to common stockholders – Basic $ 63,419 $ 57,856 Weighted average number of common shares outstanding – Basic 71,534 69,380 Net income per common share – Basic $ 0.89 $ 0.83 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 63,419 $ 57,856 Weighted average number of common shares outstanding – Basic 71,534 69,380 Assumed restricted stock - nonparticipating 282 173 Assumed exercise of stock options 941 573 Assumed performance units 367 — Weighted average number of common shares outstanding – Diluted 73,124 70,126 Net income per common share – Diluted $ 0.87 $ 0.83 Potentially dilutive securities excluded as anti-dilutive 14,102 15,161

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Long-Term Debt	Long-term debt as of the periods presented consisted of the following: June 30, 2021 March 31, 2021 (In thousands) Term Loan Facility $ 439,500 $ 441,250 Senior Notes 350,000 350,000 Revolving Credit Facility — — Total 789,500 791,250 Unamortized debt issuance costs (1,935 ) (2,030 ) Current maturities (7,000 ) (7,000 ) Long-term debt obligations $ 780,565 $ 782,220

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-based Compensation Expense	The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended June 30, 2021 2020 (In thousands) Component of income before income taxes: Cost of goods sold $ 634 $ 401 Selling, general and administrative expenses 6,017 5,198 Total stock-based compensation expense $ 6,651 $ 5,599 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended June 30, 2021 2020 (In thousands) Stock-based compensation expense: Stock Options $ 753 $ 881 Restricted Stock 1,359 1,417 Performance-based Restricted Stock Units 4,188 2,984 Non-Employee Directors 351 317 Total stock-based compensation expense $ 6,651 $ 5,599
Summary of Assumption Used to Estimate Fair Value of Stock Options	The following table summarizes the assumptions used to estimate the fair value of stock-options during the periods presented: Three Months Ended June 30, 2021 Common stock price $105.82 Expected stock price volatility 41.0% Risk-free interest rate 1.1% Weighted-average expected option life (years) 6.0 Dividend yield 0.3%

Business Segments Information (

Business Segments Information (Tables)	3 Months Ended
	Jun. 30, 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 periods presented: Three Months Ended June 30, 2021 June 30, 2020 Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 374,010 $ (1,903 ) $ 372,107 $ 273,652 $ (1,845 ) $ 271,807 Infiltrator 126,742 (19,037 ) 107,705 102,153 (18,068 ) 84,085 International International - Pipe 50,838 (2,914 ) 47,924 26,950 — 26,950 International - Allied Products & Other 14,528 — 14,528 8,879 — 8,879 Total International 65,366 (2,914 ) 62,452 35,829 — 35,829 Allied Products & Other 127,036 — 127,036 116,918 — 116,918 Intersegment Eliminations (23,854 ) 23,854 — (19,913 ) 19,913 — Total Consolidated $ 669,300 $ — $ 669,300 $ 508,639 $ — $ 508,639
Schedule of Financial Information Attributable to Reportable Segments	The following sets forth certain financial information attributable to the reportable segments for the periods presented: Three Months Ended June 30, 2021 2020 (In thousands) Segment adjusted gross profit Pipe $ 84,143 $ 90,599 Infiltrator 59,402 47,928 International 21,378 11,408 Allied Products & Other 63,299 60,468 Intersegment Eliminations (14 ) (358 ) Total $ 228,208 $ 210,045 Depreciation and amortization Pipe $ 12,035 $ 11,360 Infiltrator 3,436 3,133 International 1,458 1,298 Allied Products & Other (a) 17,727 19,990 Total $ 34,656 $ 35,781 Capital expenditures Pipe $ 9,830 $ 4,231 Infiltrator 13,026 4,198 International 250 450 Allied Products & Other (a) 2,440 1,416 Total $ 25,546 $ 10,295 (a) Includes depreciation, 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 Three Months Ended June 30, 2021 2020 (In thousands) Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 201,121 $ 188,503 Depreciation and amortization 17,532 16,423 ESOP and stock-based compensation expense 9,555 4,939 COVID-19 related costs (a) — 180 Total Segment Adjusted Gross Profit $ 228,208 $ 210,045 (a) Includes expenses directly related to our response to the COVID-19 pandemic, including adjustments to our pandemic pay program and expenses associated with our third-party crisis management vendor.

Background and Summary of Sig_3

Background and Summary of Significant Accounting Policies - Additional Information (Detail) - Segment	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Accounting Policies [Abstract]
Number of reportable segments	3
Change in Accounting Principle, Accounting Standards Update, Adopted	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Apr. 1, 2021
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect	true
Accounting Standards [Update Extensible List]	us-gaap:AccountingStandardsUpdate201912Member	us-gaap:AccountingStandardsUpdate201613Member

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021
Contract With Customer Asset And Liability [Abstract]
Contract asset - product returns	$ 991	$ 694
Refund liability	$ 2,425	$ 1,801

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2021	May 31, 2021
Fifth Third Bank [Member] | Master Lease Agreement and Interim Funding Agreement [Member]
Lessee Lease Description [Line Items]
Lease agreement initial capacity		$ 65,000,000
Lease financings outstanding	$ 1,400,000
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] | Yard [Member]
Lessee Lease Description [Line Items]
Leases options to extend	5 years

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 93,061	$ 75,294
Finished goods	237,652	225,667
Total inventories	$ 330,713	$ 300,961

Fair Value Measurement and De_3

Fair Value Measurement and Derivative Transactions - Summary of Assets and Liabilities Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a recurring basis	$ 1,940	$ 1,194
Total liabilities at fair value on a recurring basis	103	32
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	1,940	1,194
Total liabilities at fair value on a recurring basis	103	32
Diesel Fuel Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,940	1,194
Derivative liabilities	103	32
Diesel Fuel Contracts [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,940	1,194
Derivative liabilities	$ 103	$ 32

Fair Value Measurement and De_4

Fair Value Measurement and Derivative Transactions - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Fair Value And Derivative Instruments And Hedging Activities Disclosures [Abstract]
Fair value of assets and liabilities, additional transfers	$ 0	$ 0

Fair Value Measurement and De_5

Fair Value Measurement and Derivative Transactions - Schedule of Cash Settlements and Net (Gains) and Net Losses on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Derivatives, Fair Value [Line Items]
Total net unrealized mark-to-market gain	$ (675)	$ (1,082)
Total net realized (gain) loss	(514)	840
Diesel Fuel Option Collars [Member]
Derivatives, Fair Value [Line Items]
Total net unrealized mark-to-market gain	(675)	(1,082)
Total net realized (gain) loss	$ (514)	$ 840

Fair Value Measurement and De_6

Fair Value Measurement and Derivative Transactions - Summary of Carrying And Fair Value of Senior Notes (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 364,903	$ 367,633
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 350,000	$ 350,000

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	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
NET INCOME PER SHARE—BASIC:
Net income attributable to ADS	$ 75,987	$ 70,466
Dividends paid to participating securities	(1,635)	(1,368)
Net income available to common stockholders and participating securities	74,352	69,098
Undistributed income allocated to participating securities	(10,933)	(11,242)
Net income available to common stockholders – Basic	$ 63,419	$ 57,856
Weighted average number of common shares outstanding – Basic	71,534	69,380
Net income per common share – Basic	$ 0.89	$ 0.83
NET INCOME PER SHARE—DILUTED:
Net income available to common stockholders – Diluted	$ 63,419	$ 57,856
Weighted average number of common shares outstanding – Basic	71,534	69,380
Weighted average number of common shares outstanding – Diluted	73,124	70,126
Net income per common share – Diluted	$ 0.87	$ 0.83
Potentially dilutive securities excluded as anti-dilutive	14,102	15,161
Restricted Stock - Nonparticipating [Member]
NET INCOME PER SHARE—DILUTED:
Dilutive securities	282	173
Exercise of Stock Options [Member]
NET INCOME PER SHARE—DILUTED:
Dilutive securities	941	573
Performance Units [Member]
NET INCOME PER SHARE—DILUTED:
Dilutive securities	367

Net Income Per Share and Stoc_4

Net Income Per Share and Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2021	May 31, 2021
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program amount authorized		$ 250
Stock repurchase program amount previously authorized		$ 42
Common Stock [Member]
Equity Class Of Treasury Stock [Line Items]
Common stock repurchases, Shares	1,100,000
Common stock repurchases, Value	$ 115.4
Stock repurchase program amount authorized	$ 176.7

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2021	Mar. 31, 2021
South American Joint Venture [Member]
Related Party Transaction [Line Items]
Maximum borrowings permitted under credit arrangement	$ 22,000,000
Percentage of debt guarantee	50.00%
Company's ownership percentage	50.00%
Maximum potential payment under guarantee	$ 11,000,000
Outstanding principal balance including letters of credit	9,900,000	$ 10,000,000
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%
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
Related Party Transaction [Line Items]
Maximum borrowings permitted under credit arrangement	$ 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
ADS Mexicana [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
Related Party Transaction [Line Items]
Percentage of ownership in joint venture	49.00%
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ADS Mexicana [Member]
Related Party Transaction [Line Items]
Company's ownership percentage	51.00%

Debt - Long-Term Debt (Detail)

Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021
Debt Instrument [Line Items]
Long-term debt , Gross	$ 789,500	$ 791,250
Unamortized debt issuance costs	(1,935)	(2,030)
Current maturities	(7,000)	(7,000)
Long-term debt obligations	780,565	782,220
Term Loan Facility [Member]
Debt Instrument [Line Items]
Long-term debt , Gross	439,500	441,250
Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt , Gross	$ 350,000	$ 350,000

Debt (Senior Secured Credit Fac

Debt (Senior Secured Credit Facility) - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Sep. 30, 2019
Debt Instrument [Line Items]
Repayment of borrowings		$ 50,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowings permitted under credit arrangement				$ 350,000,000
Repayment of borrowings	$ 0
Outstanding letters of credit	12,500,000		$ 11,000,000
Letter of Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowings permitted under credit arrangement				50,000,000
Sublimit of Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowings permitted under credit arrangement				50,000,000
Term Loan Facility [Member]
Debt Instrument [Line Items]
Aggregate principal amount				$ 700,000,000
Repayment of borrowings	$ 1,800,000

Debt (Senior Notes) - Additiona

Debt (Senior Notes) - Additional Information (Detail) - 5.0% Senior Notes due 2027 [Member] $ in Millions	Sep. 23, 2019USD ($)
Debt Instrument [Line Items]
Aggregate principal amount	$ 350
Debt instrument, interest rate	5.00%

Commitments and Contingencies (

Commitments and Contingencies (Purchase Commitments) - Additional Information (Detail) - Inventory [Member]	3 Months Ended
	Jun. 30, 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

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate	25.60%	27.80%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 6,651	$ 5,599
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	753	881
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,359	1,417
Performance-based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	4,188	2,984
Non-Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	351	317
Cost of Goods Sold [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	634	401
Selling, General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 6,017	$ 5,198

Stock-Based Compensation (2017

Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jul. 22, 2021	May 24, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock awards	$ (3,230)	$ (391)
2017 Omnibus Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock awards, Shares	100,000
Restricted stock awards	$ 5,300
Number of stock options granted, Value	$ 4,200
2017 Omnibus Plan [Member] | Performance-based Restricted Stock Units [Member] | IWT [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of performance units granted	100,000
Number of performance units granted, Value	$ 5,300
2017 Omnibus Plan [Member] | Subsequent Event [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock approved for issuance			1,500,000
2017 Omnibus Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock approved for issuance				3,500,000
Number of nonqualified stock options granted	100,000
2017 Omnibus Plan [Member] | Maximum [Member] | Subsequent Event [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock approved for issuance			5,000,000

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Assumption Used to Estimate Fair Value of Stock Options (Detail)	3 Months Ended
	Jun. 30, 2021$ / shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Common stock price	$ 105.82
Expected stock price volatility	41.00%
Risk-free interest rate	1.10%
Weighted-average expected option life (years)	6 years
Dividend yield	0.30%

Business Segments Information -

Business Segments Information - Additional Information (Detail)	3 Months Ended
	Jun. 30, 2021Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Business Segments Information_2

Business Segments Information - Schedule of Revenue from Reportable Segments by Product Type (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Net Sales	$ 669,300	$ 508,639
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	669,300	508,639
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net Sales	(23,854)	(19,913)
Pipe Segment [Member]
Segment Reporting Information [Line Items]
Net Sales	372,107	271,807
Pipe Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	374,010	273,652
Pipe Segment [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net Sales	(1,903)	(1,845)
Infiltrator Segment [Member]
Segment Reporting Information [Line Items]
Net Sales	107,705	84,085
Infiltrator Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	126,742	102,153
Infiltrator Segment [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net Sales	(19,037)	(18,068)
International Segment [Member]
Segment Reporting Information [Line Items]
Net Sales	62,452	35,829
International Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	65,366	35,829
International Segment [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net Sales	(2,914)
International Segment [Member] | Pipe [Member]
Segment Reporting Information [Line Items]
Net Sales	47,924	26,950
International Segment [Member] | Pipe [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	50,838	26,950
International Segment [Member] | Pipe [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net Sales	(2,914)
International Segment [Member] | Allied Products and Other [Member]
Segment Reporting Information [Line Items]
Net Sales	14,528	8,879
International Segment [Member] | Allied Products and Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	14,528	8,879
Allied Products and Other [Member]
Segment Reporting Information [Line Items]
Net Sales	127,036	116,918
Allied Products and Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 127,036	$ 116,918

Business Segments Information_3

Business Segments Information - Schedule of Financial Information Attributable to Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Segment adjusted gross profit	$ 228,208	$ 210,045
Depreciation and amortization	34,656	35,781
Capital expenditures	25,546	10,295
Operating Segments [Member] | Pipe Segment [Member]
Segment Reporting Information [Line Items]
Segment adjusted gross profit	84,143	90,599
Depreciation and amortization	12,035	11,360
Capital expenditures	9,830	4,231
Operating Segments [Member] | Infiltrator Segment [Member]
Segment Reporting Information [Line Items]
Segment adjusted gross profit	59,402	47,928
Depreciation and amortization	3,436	3,133
Capital expenditures	13,026	4,198
Operating Segments [Member] | International Segment [Member]
Segment Reporting Information [Line Items]
Segment adjusted gross profit	21,378	11,408
Depreciation and amortization	1,458	1,298
Capital expenditures	250	450
Operating Segments [Member] | Allied Products and Other [Member]
Segment Reporting Information [Line Items]
Segment adjusted gross profit	63,299	60,468
Depreciation and amortization	17,727	19,990
Capital expenditures	2,440	1,416
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Segment adjusted gross profit	$ (14)	$ (358)

Business Segments Information_4

Business Segments Information - Reconciliation of Gross Profit to Segment Adjusted Gross Profit (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting [Abstract]
Gross profit	$ 201,121	$ 188,503
Depreciation and amortization	17,532	16,423
ESOP and stock-based compensation expense	9,555	4,939
COVID-19 related costs		180
Total Segment Adjusted Gross Profit	$ 228,208	$ 210,045

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Subsequent Event [Line Items]
Cash dividend declared		$ 0.11	$ 0.09
Scenario Forecast [Member]
Subsequent Event [Line Items]
Cash dividend declared	$ 0.11
Dividend payable date	Sep. 15, 2021
Dividend payable, date of record	Sep. 1, 2021
Common stock repurchases, Shares	1,000,000
Common stock repurchases, Value	$ 120.5