Cover
Cover - shares | 9 Months Ended | |
Dec. 31, 2021 | Jan. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36557 | |
Entity Registrant Name | ADVANCED DRAINAGE SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
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 | |
Title of each class | Common Stock, $0.01 par value per share | |
Trading Symbol(s) | WMS | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 71,919,817 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001604028 | |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Current assets: | ||
Cash | $ 22,173 | $ 195,009 |
Receivables (less allowance for doubtful accounts of $8,122 and $5,323, respectively) | 303,140 | 236,191 |
Inventories | 465,518 | 300,961 |
Other current assets | 16,188 | 10,817 |
Total current assets | 807,019 | 742,978 |
Property, plant and equipment, net | 590,949 | 504,275 |
Other assets: | ||
Goodwill | 611,578 | 599,072 |
Intangible assets, net | 447,411 | 482,016 |
Other assets | 98,802 | 85,491 |
Total assets | 2,555,759 | 2,413,832 |
Current liabilities: | ||
Current maturities of debt obligations | 20,764 | 7,000 |
Current maturities of finance lease obligations | 5,167 | 19,318 |
Accounts payable | 195,471 | 171,098 |
Other accrued liabilities | 140,578 | 116,151 |
Accrued income taxes | 2,104 | 4,703 |
Total current liabilities | 364,084 | 318,270 |
Long-term debt obligations (less unamortized debt issuance costs of $1,744 and $2,030, respectively) | 931,765 | 782,220 |
Long-term finance lease obligations | 13,354 | 32,964 |
Deferred tax liabilities | 172,143 | 162,185 |
Other liabilities | 53,903 | 54,767 |
Total liabilities | 1,535,249 | 1,350,406 |
Commitments and contingencies (see Note 10) | ||
Mezzanine equity: | ||
Redeemable convertible preferred stock: $0.01 par value; 47,070 shares authorized; 44,170 shares issued; 16,871 and 19,275 shares outstanding, respectively | 210,888 | 240,944 |
Deferred compensation – unearned ESOP shares | (5,146) | (11,033) |
Total mezzanine equity | 205,742 | 229,911 |
Stockholders’ equity: | ||
Common stock; $0.01 par value: 1,000,000 shares authorized; 74,492 and 72,071 shares issued, respectively; 71,295 and 71,570 shares outstanding, respectively | 11,601 | 11,578 |
Paid-in capital | 1,008,610 | 918,587 |
Common stock in treasury, at cost | (316,049) | (10,959) |
Accumulated other comprehensive loss | (26,681) | (24,220) |
Retained earnings (deficit) | 121,918 | (75,202) |
Total ADS stockholders’ equity | 799,399 | 819,784 |
Noncontrolling interest in subsidiaries | 15,369 | 13,731 |
Total stockholders’ equity | 814,768 | 833,515 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 2,555,759 | $ 2,413,832 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Allowance for doubtful accounts | $ 8,122 | $ 5,323 |
Unamortized debt issuance costs | $ 1,744 | $ 2,030 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 74,492,000 | 72,071,000 |
Common stock, shares outstanding (in shares) | 71,295,000 | 71,570,000 |
Redeemable Convertible Preferred Stock | ||
Mezzanine equity, par value per share | $ 0.01 | $ 0.01 |
Mezzanine equity, shares authorized (in shares) | 47,070,000 | 47,070,000 |
Mezzanine equity, shares issued (in shares) | 44,170,000 | 44,170,000 |
Mezzanine equity, shares outstanding (in shares) | 16,871,000 | 19,275,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 715,357 | $ 486,145 | $ 2,091,128 | $ 1,538,971 |
Cost of goods sold | 506,380 | 317,640 | 1,480,973 | 976,106 |
Gross profit | 208,977 | 168,505 | 610,155 | 562,865 |
Operating expenses: | ||||
Selling, general and administrative | 80,059 | 66,606 | 230,231 | 194,083 |
Loss on disposal of assets and costs from exit and disposal activities | 3,466 | 980 | 2,554 | 3,254 |
Intangible amortization | 15,138 | 17,956 | 46,229 | 53,893 |
Income from operations | 110,314 | 82,963 | 331,141 | 311,635 |
Other expense: | ||||
Interest expense | 8,756 | 8,433 | 25,100 | 27,763 |
Derivative gains and other income, net | (979) | (165) | (2,791) | (883) |
Income before income taxes | 102,537 | 74,695 | 308,832 | 284,755 |
Income tax expense | 28,792 | 20,264 | 82,063 | 79,291 |
Equity in net (income) loss of unconsolidated affiliates | 717 | (390) | 1,128 | (150) |
Net income | 74,462 | 54,041 | 227,897 | 205,314 |
Less: net income attributable to noncontrolling interest | 784 | 267 | 2,873 | 838 |
Net income attributable to ADS | $ 73,678 | $ 53,774 | $ 225,024 | $ 204,476 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 71,267 | 70,450 | 71,087 | 69,893 |
Diluted (in shares) | 72,789 | 71,586 | 72,752 | 70,853 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.88 | $ 0.63 | $ 2.67 | $ 2.42 |
Diluted (in dollars per share) | $ 0.86 | $ 0.62 | $ 2.61 | $ 2.38 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 74,462 | $ 54,041 | $ 227,897 | $ 205,314 |
Currency translation (loss) gain | (860) | 7,440 | (2,225) | 12,996 |
Comprehensive income | 73,602 | 61,481 | 225,672 | 218,310 |
Less: other comprehensive (loss) income attributable to noncontrolling interest | (199) | 1,367 | 236 | 2,024 |
Less: net income attributable to noncontrolling interest | 784 | 267 | 2,873 | 838 |
Total comprehensive income attributable to ADS | $ 73,017 | $ 59,847 | $ 222,563 | $ 215,448 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 227,897 | $ 205,314 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 103,687 | 107,321 |
Deferred income taxes | 6,243 | (8,032) |
Gain on disposal of assets and costs from exit and disposal activities | 2,554 | 3,254 |
ESOP and stock-based compensation | 61,900 | 45,413 |
Amortization of deferred financing charges | 286 | 293 |
Fair market value adjustments to derivatives | 118 | (2,537) |
Equity in net (income) loss of unconsolidated affiliates | (1,128) | 150 |
Other operating activities | (9,898) | 6,162 |
Changes in working capital: | ||
Receivables | (59,821) | 12,502 |
Inventories | (161,878) | 46,809 |
Prepaid expenses and other current assets | (5,199) | (2,288) |
Accounts payable, accrued expenses, and other liabilities | 29,086 | 34,415 |
Net cash provided by operating activities | 193,847 | 448,776 |
Cash Flows from Investing Activities | ||
Capital expenditures | (100,367) | (57,675) |
Acquisition, net of cash acquired | (49,210) | 0 |
Other investing activities | (463) | 516 |
Net cash used in investing activities | (150,040) | (57,159) |
Cash Flows from Financing Activities | ||
Payments on syndicated Term Loan Facility | (5,250) | (205,250) |
Proceeds from Revolving Credit Agreement | 258,100 | 0 |
Payments on Revolving Credit Agreement | (124,600) | (100,000) |
Proceeds from Equipment Financing | 35,963 | 0 |
Payments on Equipment Financing | (1,177) | 0 |
Payments on finance lease obligations | (49,365) | (15,859) |
Repurchase of common stock | (292,000) | 0 |
Cash dividends paid | (27,826) | (24,507) |
Dividends paid to noncontrolling interest holder | (1,471) | 0 |
Proceeds from exercise of stock options | 4,274 | 3,989 |
Payment of withholding taxes on vesting of restricted stock units | (13,055) | 0 |
Other financing activities | (167) | (1,489) |
Net cash used in financing activities | (216,574) | (343,116) |
Effect of exchange rate changes on cash | (69) | 1,262 |
Net change in cash | (172,836) | 49,763 |
Cash at beginning of period | 195,009 | 174,233 |
Cash at end of period | 22,173 | 223,996 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | 81,028 | 64,344 |
Cash paid for interest | 20,080 | 25,305 |
Non-cash operating, investing and financing activities: | ||
Acquisition of property, plant and equipment under finance lease and incurred lease obligations | 16,258 | 4,299 |
Balance in accounts payable for the acquisition of property, plant and equipment | $ 16,313 | $ 3,443 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Convertible Preferred Stock | Total Mezzanine Equity | Cumulative Effect, Period of Adoption, Adjustment | Total ADS Stockholders' Equity | Total ADS Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Paid-In Capital | Common Stock in Treasury | Accumulated Other Comprehensive Loss | Retained (Deficit) Earnings | Retained (Deficit) EarningsCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interest in Subsidiaries |
Beginning balance (in shares) at Mar. 31, 2020 | 69,810 | 491 | |||||||||||
Beginning balance at Mar. 31, 2020 | $ 537,485 | $ (779) | $ 525,723 | $ (779) | $ 11,555 | $ 827,573 | $ (10,461) | $ (35,325) | $ (267,619) | $ (779) | $ 11,762 | ||
Ending balance (in shares) at Sep. 30, 2020 | 70,502 | 500 | |||||||||||
Ending balance at Sep. 30, 2020 | $ 709,510 | 696,520 | $ 11,562 | 859,254 | $ (10,859) | (30,426) | (133,011) | 12,990 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 69,810 | 491 | |||||||||||
Beginning balance at Mar. 31, 2020 | $ 537,485 | $ (779) | 525,723 | $ (779) | $ 11,555 | 827,573 | $ (10,461) | (35,325) | (267,619) | $ (779) | 11,762 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 205,314 | 204,476 | 204,476 | 838 | |||||||||
Other comprehensive income | 12,996 | 10,972 | 10,972 | 2,024 | |||||||||
Redeemable convertible preferred stock dividends | (3,983) | (3,983) | (3,983) | ||||||||||
Common stock dividends | (18,998) | (18,998) | (18,998) | ||||||||||
Dividends paid to noncontrolling interest holder | (1,470) | (1,470) | |||||||||||
Allocation of ESOP shares to participants for compensation | 21,026 | $ 8,480 | 21,026 | 21,026 | |||||||||
Exercise of common stock options (in shares) | 181 | ||||||||||||
Exercise of common stock options | 3,991 | 3,991 | $ 2 | 3,989 | |||||||||
Restricted stock awards (in shares) | 134 | 10 | |||||||||||
Restricted stock awards | (487) | (487) | $ 1 | $ (488) | |||||||||
Stock-based compensation expense | 15,908 | 15,908 | 15,908 | ||||||||||
ESOP distribution in common stock (in shares) | 864 | ||||||||||||
ESOP distribution in common stock | 14,038 | 14,038 | $ 9 | 14,029 | |||||||||
ESOP temporary equity stock distributed during period (in shares) | (1,123) | ||||||||||||
ESOP temporary equity stock distributed during period | $ 14,038 | 14,038 | |||||||||||
Other | 318 | 318 | 318 | ||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 70,989 | 501 | |||||||||||
Ending balance at Dec. 31, 2020 | 785,359 | 772,205 | $ 11,567 | 882,843 | $ (10,949) | (24,353) | (86,903) | 13,154 | |||||
Beginning balance (in shares) at Sep. 30, 2020 | 70,502 | 500 | |||||||||||
Beginning balance at Sep. 30, 2020 | 709,510 | 696,520 | $ 11,562 | 859,254 | $ (10,859) | (30,426) | (133,011) | 12,990 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 54,041 | 53,774 | 53,774 | 267 | |||||||||
Other comprehensive income | 7,440 | 6,073 | 6,073 | 1,367 | |||||||||
Redeemable convertible preferred stock dividends | (1,288) | (1,288) | (1,288) | ||||||||||
Common stock dividends | (6,378) | (6,378) | (6,378) | ||||||||||
Dividends paid to noncontrolling interest holder | (1,470) | (1,470) | |||||||||||
Allocation of ESOP shares to participants for compensation | 10,686 | 2,827 | 10,686 | 10,686 | |||||||||
Exercise of common stock options (in shares) | 29 | ||||||||||||
Exercise of common stock options | 714 | 714 | $ 0 | 714 | |||||||||
Restricted stock awards (in shares) | 4 | 1 | |||||||||||
Restricted stock awards | (90) | (90) | $ (90) | ||||||||||
Stock-based compensation expense | 4,813 | 4,813 | 4,813 | ||||||||||
ESOP distribution in common stock (in shares) | 454 | ||||||||||||
ESOP distribution in common stock | 7,381 | 7,381 | $ 5 | 7,376 | |||||||||
ESOP temporary equity stock distributed during period (in shares) | (591) | ||||||||||||
ESOP temporary equity stock distributed during period | $ 7,381 | 7,381 | |||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 70,989 | 501 | |||||||||||
Ending balance at Dec. 31, 2020 | 785,359 | 772,205 | $ 11,567 | 882,843 | $ (10,949) | (24,353) | (86,903) | 13,154 | |||||
Beginning balance (in shares) at Mar. 31, 2021 | 72,071 | 501 | |||||||||||
Beginning balance at Mar. 31, 2021 | 833,515 | 819,784 | $ 11,578 | 918,587 | $ (10,959) | (24,220) | (75,202) | 13,731 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 227,897 | 225,024 | 225,024 | 2,873 | |||||||||
Other comprehensive income | (2,225) | (2,461) | (2,461) | 236 | |||||||||
Redeemable convertible preferred stock dividends | (4,364) | (4,364) | (4,364) | ||||||||||
Common stock dividends | (23,540) | (23,540) | (23,540) | ||||||||||
Dividends paid to noncontrolling interest holder | $ (1,471) | (1,471) | |||||||||||
Share repurchases (in shares) | 2,600 | 2,574 | |||||||||||
Share repurchases | $ (292,000) | (292,000) | $ (292,000) | ||||||||||
Allocation of ESOP shares to participants for compensation | 37,502 | 5,887 | 37,502 | 37,502 | |||||||||
Exercise of common stock options (in shares) | 195 | ||||||||||||
Exercise of common stock options | 4,275 | 4,275 | $ 2 | 4,273 | |||||||||
Restricted stock awards (in shares) | 131 | 30 | |||||||||||
Restricted stock awards | (3,344) | (3,344) | $ 1 | $ (3,345) | |||||||||
Performance-based restricted stock units (in shares) | 245 | 92 | |||||||||||
Performance-based restricted stock units | (9,743) | (9,743) | $ 2 | $ (9,745) | |||||||||
Stock-based compensation expense | 18,511 | 18,511 | 18,511 | ||||||||||
ESOP distribution in common stock (in shares) | 1,850 | ||||||||||||
ESOP distribution in common stock | 30,056 | 30,056 | $ 18 | 30,038 | |||||||||
ESOP temporary equity stock distributed during period (in shares) | (2,404) | ||||||||||||
ESOP temporary equity stock distributed during period | $ 30,056 | 30,056 | |||||||||||
Other | (301) | (301) | (301) | ||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 74,492 | 3,197 | |||||||||||
Ending balance at Dec. 31, 2021 | 814,768 | 799,399 | $ 11,601 | 1,008,610 | $ (316,049) | (26,681) | 121,918 | 15,369 | |||||
Beginning balance (in shares) at Sep. 30, 2021 | 73,333 | 3,196 | |||||||||||
Beginning balance at Sep. 30, 2021 | 710,003 | 695,219 | $ 11,590 | 968,198 | $ (315,935) | (26,020) | 57,386 | 14,784 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 74,462 | 73,678 | 73,678 | 784 | |||||||||
Other comprehensive income | (860) | (661) | (661) | (199) | |||||||||
Redeemable convertible preferred stock dividends | (1,267) | (1,267) | (1,267) | ||||||||||
Common stock dividends | (7,879) | (7,879) | (7,879) | ||||||||||
Allocation of ESOP shares to participants for compensation | 15,353 | 1,868 | 15,353 | 15,353 | |||||||||
Exercise of common stock options (in shares) | 71 | ||||||||||||
Exercise of common stock options | 1,095 | 1,095 | $ 1 | 1,094 | |||||||||
Restricted stock awards (in shares) | 2 | 1 | |||||||||||
Restricted stock awards | (114) | (114) | $ (114) | ||||||||||
Stock-based compensation expense | 6,242 | 6,242 | 6,242 | ||||||||||
ESOP distribution in common stock (in shares) | 1,086 | ||||||||||||
ESOP distribution in common stock | 17,644 | 17,644 | $ 10 | 17,634 | |||||||||
ESOP temporary equity stock distributed during period (in shares) | (1,411) | ||||||||||||
ESOP temporary equity stock distributed during period | $ 17,644 | $ 17,644 | |||||||||||
Other | 89 | 89 | 89 | ||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 74,492 | 3,197 | |||||||||||
Ending balance at Dec. 31, 2021 | $ 814,768 | $ 799,399 | $ 11,601 | $ 1,008,610 | $ (316,049) | $ (26,681) | $ 121,918 | $ 15,369 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends per share | $ 0.11 | $ 0.09 | $ 0.33 | $ 0.27 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Mezzanine Equity - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Convertible Preferred Stock | Deferred Compensation - Unearned ESOP Shares | Total Mezzanine Equity |
Beginning Balance (in shares) at Mar. 31, 2020 | 21,562 | 1,850 | ||
Beginning Balance, Value at Mar. 31, 2020 | $ 269,529 | $ (22,432) | $ 247,097 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Allocation of ESOP shares to participants for compensation (in shares) | (678) | |||
Allocation of ESOP shares to participants for compensation | $ 21,026 | $ 8,480 | 8,480 | |
ESOP distribution in common stock, Shares | (1,123) | |||
ESOP distribution in common stock | $ (14,038) | (14,038) | ||
Ending Balance (in shares) at Dec. 31, 2020 | 20,439 | 1,172 | ||
Ending Balance, Value at Dec. 31, 2020 | $ 255,491 | $ (13,952) | 241,539 | |
Beginning Balance (in shares) at Sep. 30, 2020 | 21,030 | 1,398 | ||
Beginning Balance, Value at Sep. 30, 2020 | $ 262,872 | $ (16,779) | 246,093 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Allocation of ESOP shares to participants for compensation (in shares) | (226) | |||
Allocation of ESOP shares to participants for compensation | 10,686 | $ 2,827 | 2,827 | |
ESOP distribution in common stock, Shares | (591) | |||
ESOP distribution in common stock | $ (7,381) | (7,381) | ||
Ending Balance (in shares) at Dec. 31, 2020 | 20,439 | 1,172 | ||
Ending Balance, Value at Dec. 31, 2020 | $ 255,491 | $ (13,952) | 241,539 | |
Beginning Balance (in shares) at Mar. 31, 2021 | 19,275 | 966 | ||
Beginning Balance, Value at Mar. 31, 2021 | 229,911 | $ 240,944 | $ (11,033) | 229,911 |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Allocation of ESOP shares to participants for compensation (in shares) | (471) | |||
Allocation of ESOP shares to participants for compensation | 37,502 | $ 5,887 | 5,887 | |
ESOP distribution in common stock, Shares | (2,404) | |||
ESOP distribution in common stock | $ (30,056) | (30,056) | ||
Ending Balance (in shares) at Dec. 31, 2021 | 16,871 | 495 | ||
Ending Balance, Value at Dec. 31, 2021 | 205,742 | $ 210,888 | $ (5,146) | 205,742 |
Beginning Balance (in shares) at Sep. 30, 2021 | 18,282 | 644 | ||
Beginning Balance, Value at Sep. 30, 2021 | $ 228,532 | $ (7,014) | 221,518 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Allocation of ESOP shares to participants for compensation (in shares) | (149) | |||
Allocation of ESOP shares to participants for compensation | 15,353 | $ 1,868 | 1,868 | |
ESOP distribution in common stock, Shares | (1,411) | |||
ESOP distribution in common stock | $ (17,644) | (17,644) | ||
Ending Balance (in shares) at Dec. 31, 2021 | 16,871 | 495 | ||
Ending Balance, Value at Dec. 31, 2021 | $ 205,742 | $ 210,888 | $ (5,146) | $ 205,742 |
Background and Summary of Signi
Background and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Background and Summary of Significant Accounting Policies | 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 waste water 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 non-residential, infrastructure and agriculture applications. The Company is managed and reports results of operations in three reportable segments: Pipe, Infiltrator Water Technologies Ultimate Holdings, Inc ("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 December 31, 2021 and the results of operations for the three and nine months ended December 31, 2021 and cash flows for the nine months ended December 31, 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. |
Acquisitions
Acquisitions | 9 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Jet - On December 3, 2021, the Company completed its acquisition of Jet Polymer Recycling, Inc., The Traylor Group, Inc. and certain assets of EAT Properties, L.L.C. (collectively "Jet"). Jet was a privately-owned recycling company located in the southeastern United States. The acquisition of Jet expands the Company's plastic recycling capabilities to support future growth. Jet is currently the largest supplier of recycled polypropylene plastic for Infiltrator. The total fair value of consideration transferred was $49.4 million. The following table summarizes the consideration transferred and the preliminary purchase price allocation of assets acquired and liabilities assumed. The purchase price allocation for assets acquired and liabilities assumed is preliminary and will be finalized when valuations are complete and final assessments of the fair value of acquired assets and assumed liabilities are completed. Such finalizations may result in material changes from the preliminary purchase price allocations. The Company's estimates and assumptions are subject to change during the measurement period (up to one year from the closing date), as the Company continues to finalize the valuations of assets acquired and liabilities assumed. (Amounts in thousands) Initial Amount Cash $ 160 Total current assets, excluding cash 12,993 Property, plant and equipment 22,495 Goodwill 12,597 Intangible assets 11,500 Other assets 158 Total current liabilities (5,750) Deferred tax liabilities (2,999) Other liabilities (1,784) Total fair value of consideration transferred $ 49,370 The preliminary goodwill of $12.6 million represents the excess of consideration transferred over the preliminary fair value of assets acquired and liabilities assumed and is attributable to expected operating efficiencies. The goodwill is not deductible for income tax purposes and is assigned to the Pipe segment. The preliminary purchase price excludes transaction costs. During the three months ended December 31, 2021, the Company incurred $2.6 million of transaction costs related to the acquisition such as legal, accounting, valuation and other professional services. These costs are included in selling, general and administrative expenses in the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income. The identifiable intangible assets recorded in connection with the closing of the acquisition of Jet are based on preliminary valuations including supplier and customer relationships, tradename and non-compete agreements totaling $11.5 million. (Amounts in thousands) Preliminary fair value Supplier and customer relationships $ 10,500 Other 1,000 Total identifiable intangible assets $ 11,500 The Company has excluded certain disclosures required under ASC 805, Business Combinations as they are not material to the financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 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 13. 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: December 31, March 31, (In thousands) Contract asset - product returns $ 1,052 $ 694 Refund liability 2,508 1,801 |
Leases
Leases | 9 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 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 Schedule 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 Schedule have an initial capacity of $62.5 million denominated in USD and $2.5 million denominated in CAD. 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. In November 2021, the Company purchased all material handling equipment, trucks and trailers previously classified as finance leases under a master lease agreement with its previous service provider. The outstanding lease obligation as of March 31, 2021 was $36.6 million. The purchase was funded with debt through the Master Lease Agreement and Interim Funding Agreement with Fifth Third. As of December 31, 2021, the Company had financings of $43.0 million outstanding under the agreements, including $36.0 million of Equipment Financing (as defined and further discussed in "Note 9. Debt"). |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories as of the periods presented consisted of the following: December 31, March 31, (In thousands) Raw materials $ 170,049 $ 75,294 Finished goods 295,469 225,667 Total inventories $ 465,518 $ 300,961 |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Transactions | 9 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Transactions | FAIR VALUE MEASUREMENTS AND DERIVATIVE TRANSACTIONS 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: December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 1,240 — $ 1,240 — Total assets at fair value on a recurring basis $ 1,240 — $ 1,240 — Liabilities: Derivative liabilities – diesel fuel contracts $ 195 — $ 195 — Total liabilities at fair value on a recurring basis $ 195 — $ 195 — 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 nine months ended December 31, 2021 and 2020, respectively, 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 Nine Months Ended 2021 2020 2021 2020 (In thousands) Diesel fuel option collars $ 564 $ (1,082) $ 118 $ (2,537) Total net unrealized mark-to-market loss (gains) $ 564 $ (1,082) $ 118 $ (2,537) Diesel fuel option collars (749) 261 (2,016) 1,578 Total net realized (gain) loss $ (749) $ 261 $ (2,016) $ 1,578 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 and Equipment Financing (as defined below and further discussed in “Note 9. Debt”) for the periods presented: December 31, 2021 March 31, 2021 Fair Value Carrying Value Fair Value Carrying Value (In thousands) Senior Notes $ 362,614 $ 350,000 $ 367,633 $ 350,000 Equipment Financing $ 33,300 $ 34,773 $ — $ — Total fair value $ 395,914 $ 384,773 $ 367,633 $ 350,000 The fair value of the Senior Notes was determined based on a quoted market data for the Company’s Senior Notes. The fair value of the Equipment Financing was determined based on a comparison of the interest rate and terms of such borrowings to the rates and terms of similar debt available for the period. The categorization of the framework |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 9 Months Ended |
Dec. 31, 2021 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Net Income Per Share and Stockholders' Equity | 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 Nine Months Ended (In thousands, except per share data) 2021 2020 2021 2020 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 73,678 $ 53,774 $ 225,024 $ 204,476 Adjustments for: Dividends to participating securities (1,357) (1,288) (4,633) (3,985) Net income available to common stockholders and participating securities 72,321 52,486 220,391 200,491 Undistributed income allocated to participating securities (9,457) (7,798) (30,870) (31,699) Net income available to common stockholders – Basic $ 62,864 $ 44,688 $ 189,521 $ 168,792 Weighted average number of common shares outstanding – Basic 71,267 70,450 71,087 69,893 Net income per common share – Basic $ 0.88 $ 0.63 $ 2.67 $ 2.42 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 62,864 $ 44,688 $ 189,521 $ 168,792 Weighted average number of common shares outstanding – Basic 71,267 70,450 71,087 69,893 Assumed restricted stock - nonparticipating 236 886 245 745 Assumed exercise of stock options 854 250 904 215 Assumed performance units 432 — 516 — Weighted average number of common shares outstanding – Diluted 72,789 71,586 72,752 70,853 Net income per common share – Diluted $ 0.86 $ 0.62 $ 2.61 $ 2.38 Potentially dilutive securities excluded as anti-dilutive 12,271 14,347 13,240 14,807 Stockholders’ Equity – During the nine months ended December 31, 2021, the Company repurchased 2.6 million shares of common stock at a cost of $292.0 million. The repurchases were made under the Board of Directors’ authorization in May 2021 to repurchase up to an additional $250 million of ADS Common Stock, in addition to the $42 million previously authorized, in accordance with applicable securities laws. As of December 31, 2021, the Company has utilized all of the common stock repurchase 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 | 9 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS 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 December 31, 2021 and March 31, 2021, there were $1.5 million and no borrowings, respectively, 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 December 31, 2021. The maximum borrowings permitted under the South American Joint Venture’s credit facility are $22.0 million. The Company does not anticipate any required contributions related to the balance of this credit arrangement. As of December 31, 2021 and March 31, 2021, the outstanding principal balances of the credit facility including letters of credit were $9.2 million and $10.0 million, respectively. As of December 31, 2021, there were no U.S. dollar denominated loans. The weighted average interest rate as of December 31, 2021 was 4.3% on Chilean peso denominated loans. |
Debt
Debt | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt as of the periods presented consisted of the following: December 31, March 31, (In thousands) Term Loan Facility $ 436,000 $ 441,250 Senior Notes 350,000 350,000 Revolving Credit Facility 133,500 — Equipment Financing 34,773 — Total 954,273 791,250 Unamortized debt issuance costs (1,744) (2,030) Current maturities (20,764) (7,000) Long-term debt obligations $ 931,765 $ 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 nine months ended December 31, 2021, the Company received proceeds of $258.1 million from the Revolving Credit Facility and repaid $5.25 million of the Term Loan Facility and $124.6 million of the Revolving Credit Facility. Letters of credit outstanding at December 31, 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. Equipment Financing – In November 2021, the Company purchased material handling equipment, trucks and trailers previously leased under a master lease agreement and classified as finance leases. The purchase was funded with debt through the Master Lease Agreement and Interim Funding Schedule with Fifth Third. The assets acquired are titled to the Company and included in Property, plant and equipment, net on the Company's Condensed Consolidated Balance Sheet. The equipment financing has a term of between 12 and 84 months, based on the life of the equipment, and bears a weighted average interest of 1.4%. The current portion of the equipment financing is $13.8 million and the long-term portion is $21.0 million at December 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 December 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 December 31, 2021 and 2020, the Company utilized an effective tax rate of 28.1% and 27.1%, 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 December 31, 2021 and 2020. For the nine months ended December 31, 2021 and 2020, the Company utilized an effective tax rate of 26.6% and 27.8%, respectively, to calculate its provision for income taxes. State and local income taxes and the Company’s ESOP increased the effective rate for the nine months ended December 31, 2021 and 2020. Additionally, discrete income tax benefits related to the stock-based compensation windfall and other items decreased the rate for the nine months ended December 31, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options, performance-based restricted stock units and restricted stock. Equity-classified restricted stock awards are measured based on the grant-date estimated fair value of each award. 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 Nine Months Ended 2021 2020 2021 2020 (In thousands) Component of income before income taxes: Cost of goods sold $ 700 $ 510 $ 2,019 $ 1,476 Selling, general and administrative expenses 5,542 4,303 16,492 14,432 Total stock-based compensation expense $ 6,242 $ 4,813 $ 18,511 $ 15,908 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In thousands) Stock-based compensation expense: Stock Options $ 793 $ 623 $ 2,406 $ 2,254 Restricted Stock 1,480 1,214 4,359 3,975 Performance-based Restricted Stock Units 3,471 2,622 10,432 8,676 Non-Employee Directors 498 354 1,314 1,003 Total stock-based compensation expense $ 6,242 $ 4,813 $ 18,511 $ 15,908 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 5.0 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 and nine months ended December 31, 2021, the Company granted less than 0.1 million shares and 0.1 million shares of restricted stock with a grant date fair value of $0.9 million and $8.2 million, respectively. Performance-based Restricted Stock Units (" Performance Units") – During the nine months ended December 31, 2021, the Company granted 0.1 million performance share units at a grant date fair value of $5.3 million. Options - During the nine months ended December 31, 2021, The Company granted 0.1 million nonqualified stock options under the 2017 Incentive Plan with 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: Nine Months Ended 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 | 9 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments Information | BUSINESS SEGMENTS INFORMATION 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, 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 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 December 31, 2021 December 31, 2020 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 400,027 $ (3,332) $ 396,695 $ 254,209 $ (1,311) $ 252,898 Infiltrator 148,677 (26,314) 122,363 98,409 (17,188) 81,221 International International - Pipe 41,156 (5,700) 35,456 33,729 (2,970) 30,759 International - Allied Products & Other 14,687 — 14,687 11,648 — 11,648 Total International 55,843 (5,700) 50,143 45,377 (2,970) 42,407 Allied Products & Other 147,476 (1,320) 146,156 109,619 — 109,619 Intersegment Eliminations (36,666) 36,666 — (21,469) 21,469 — Total Consolidated $ 715,357 $ — $ 715,357 $ 486,145 $ — $ 486,145 Nine Months Ended December 31, 2021 December 31, 2020 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 1,158,558 $ (7,903) $ 1,150,655 $ 819,994 $ (4,793) $ 815,201 Infiltrator 421,330 (67,763) 353,567 306,548 (53,948) 252,600 International International - Pipe 142,135 (13,784) 128,351 96,271 (3,866) 92,405 International - Allied Products & Other 42,648 — 42,648 34,233 — 34,233 Total International 184,783 (13,784) 170,999 130,504 (3,866) 126,638 Allied Products & Other 420,231 (4,324) 415,907 344,532 — 344,532 Intersegment Eliminations (93,774) 93,774 — (62,607) 62,607 — Total Consolidated $ 2,091,128 $ — $ 2,091,128 $ 1,538,971 $ — $ 1,538,971 The following sets forth certain financial information attributable to the reportable segments for the periods presented: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In thousands) Segment Adjusted Gross Profit Pipe $ 92,066 $ 78,651 $ 258,681 $ 269,746 Infiltrator 60,546 48,518 178,795 149,551 International 13,240 12,986 49,695 38,976 Allied Products & Other 72,785 55,158 204,063 176,006 Intersegment Eliminations (44) (932) 1,421 (918) Total $ 238,593 $ 194,381 $ 692,655 $ 633,361 Depreciation and Amortization Pipe $ 12,534 $ 11,298 $ 36,595 $ 34,201 Infiltrator 3,551 3,132 10,362 9,270 International 1,403 1,402 4,151 4,002 Allied Products & Other (a) 17,349 19,930 52,579 59,848 Total $ 34,837 $ 35,762 $ 103,687 $ 107,321 Capital Expenditures Pipe $ 18,657 $ 4,095 $ 41,296 $ 12,237 Infiltrator 15,614 22,651 50,774 40,630 International 735 556 2,249 1,303 Allied Products & Other (a) 1,597 1,414 6,048 3,505 Total $ 36,603 $ 28,716 $ 100,367 $ 57,675 (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 Nine Months Ended 2021 2020 2021 2020 (In thousands) Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 208,977 $ 168,505 $ 610,155 $ 562,865 Depreciation and Amortization 18,042 16,432 52,824 49,318 ESOP and stock-based compensation expense 11,574 9,444 29,676 20,981 COVID-19 related costs (a) — — — 197 Total Segment Adjusted Gross Profit $ 238,593 $ 194,381 $ 692,655 $ 633,361 (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 | 9 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Common Stock Dividend - During the fourth quarter of fiscal 2022, the Company declared a quarterly cash dividend of $0.11 per share of common stock. The dividend is payable on March 15, 2022 to stockholders of record at the close of business on March 1, 2022. Share Repurchase Program - In February 2022, the Company announced that the Board approved a $1.0 billion stock repurchase program (the "Repurchase Program") of ADS common stock in accordance with applicable securities laws. The Repurchase Program replaces the previously established share repurchase program, which has no remaining available capacity. 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. Employee Stock Ownership Plan - On February 2, 2022 the ADS Board of Directors passed a resolution authorizing a $0.3 million Company cash contribution to the the Advanced Drainage Systems, Inc. ESOP (the “ESOP”) for the ESOP to repay the remaining balance of its ESOP loan on March 31, 2022. Effective March 31, 2022, the remaining balance on the Company's ESOP loan will be repaid in full, and the remaining shares of unallocated preferred stock will be allocated to participants of the ESOP. Within thirty days following this ESOP loan repayment, the 16.1 million shares of preferred stock outstanding as of January 27, 2022 will convert to 12.4 million shares of common stock. For additional information on the Company's ESOP, please refer to "Note 16. Employee Benefit Plans" included in “Item 8. Financial Statements and Supplementary Data” of the Fiscal 2021 Form 10-K. |
Background and Summary of Sig_2
Background and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - |
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. |
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 Schedule 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 Schedule have an initial capacity of $62.5 million denominated in USD and $2.5 million denominated in CAD. 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. In November 2021, the Company purchased all material handling equipment, trucks and trailers previously classified as finance leases under a master lease agreement with its previous service provider. The outstanding lease obligation as of March 31, 2021 was $36.6 million. The purchase was funded with debt through the Master Lease Agreement and Interim Funding Agreement with Fifth Third. As of December 31, 2021, the Company had financings of $43.0 million outstanding under the agreements, including $36.0 million of Equipment Financing (as defined and further discussed in "Note 9. Debt"). |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Consideration Transferred and Preliminary Purchase Price Allocation of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred and the preliminary purchase price allocation of assets acquired and liabilities assumed. The purchase price allocation for assets acquired and liabilities assumed is preliminary and will be finalized when valuations are complete and final assessments of the fair value of acquired assets and assumed liabilities are completed. Such finalizations may result in material changes from the preliminary purchase price allocations. The Company's estimates and assumptions are subject to change during the measurement period (up to one year from the closing date), as the Company continues to finalize the valuations of assets acquired and liabilities assumed. (Amounts in thousands) Initial Amount Cash $ 160 Total current assets, excluding cash 12,993 Property, plant and equipment 22,495 Goodwill 12,597 Intangible assets 11,500 Other assets 158 Total current liabilities (5,750) Deferred tax liabilities (2,999) Other liabilities (1,784) Total fair value of consideration transferred $ 49,370 |
Summary of Identifiable Intangible Assets | The identifiable intangible assets recorded in connection with the closing of the acquisition of Jet are based on preliminary valuations including supplier and customer relationships, tradename and non-compete agreements totaling $11.5 million. (Amounts in thousands) Preliminary fair value Supplier and customer relationships $ 10,500 Other 1,000 Total identifiable intangible assets $ 11,500 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 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 the periods presented: December 31, March 31, (In thousands) Contract asset - product returns $ 1,052 $ 694 Refund liability 2,508 1,801 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of the periods presented consisted of the following: December 31, March 31, (In thousands) Raw materials $ 170,049 $ 75,294 Finished goods 295,469 225,667 Total inventories $ 465,518 $ 300,961 |
Fair Value Measurement and Deri
Fair Value Measurement and Derivative Transactions (Tables) | 9 Months Ended |
Dec. 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 periods presented were as follows: December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 1,240 — $ 1,240 — Total assets at fair value on a recurring basis $ 1,240 — $ 1,240 — Liabilities: Derivative liabilities – diesel fuel contracts $ 195 — $ 195 — Total liabilities at fair value on a recurring basis $ 195 — $ 195 — 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 Derivative Instruments Included in Trading Activities | 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 Nine Months Ended 2021 2020 2021 2020 (In thousands) Diesel fuel option collars $ 564 $ (1,082) $ 118 $ (2,537) Total net unrealized mark-to-market loss (gains) $ 564 $ (1,082) $ 118 $ (2,537) Diesel fuel option collars (749) 261 (2,016) 1,578 Total net realized (gain) loss $ (749) $ 261 $ (2,016) $ 1,578 |
Summary of Carrying And Fair Value of Senior Notes | The following table presents the carrying and fair value of the Company’s Senior Notes and Equipment Financing (as defined below and further discussed in “Note 9. Debt”) for the periods presented: December 31, 2021 March 31, 2021 Fair Value Carrying Value Fair Value Carrying Value (In thousands) Senior Notes $ 362,614 $ 350,000 $ 367,633 $ 350,000 Equipment Financing $ 33,300 $ 34,773 $ — $ — Total fair value $ 395,914 $ 384,773 $ 367,633 $ 350,000 |
Net Income Per Share and Stoc_2
Net Income Per Share and Stockholders' Equity (Tables) | 9 Months Ended |
Dec. 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 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 Nine Months Ended (In thousands, except per share data) 2021 2020 2021 2020 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 73,678 $ 53,774 $ 225,024 $ 204,476 Adjustments for: Dividends to participating securities (1,357) (1,288) (4,633) (3,985) Net income available to common stockholders and participating securities 72,321 52,486 220,391 200,491 Undistributed income allocated to participating securities (9,457) (7,798) (30,870) (31,699) Net income available to common stockholders – Basic $ 62,864 $ 44,688 $ 189,521 $ 168,792 Weighted average number of common shares outstanding – Basic 71,267 70,450 71,087 69,893 Net income per common share – Basic $ 0.88 $ 0.63 $ 2.67 $ 2.42 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 62,864 $ 44,688 $ 189,521 $ 168,792 Weighted average number of common shares outstanding – Basic 71,267 70,450 71,087 69,893 Assumed restricted stock - nonparticipating 236 886 245 745 Assumed exercise of stock options 854 250 904 215 Assumed performance units 432 — 516 — Weighted average number of common shares outstanding – Diluted 72,789 71,586 72,752 70,853 Net income per common share – Diluted $ 0.86 $ 0.62 $ 2.61 $ 2.38 Potentially dilutive securities excluded as anti-dilutive 12,271 14,347 13,240 14,807 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt as of the periods presented consisted of the following: December 31, March 31, (In thousands) Term Loan Facility $ 436,000 $ 441,250 Senior Notes 350,000 350,000 Revolving Credit Facility 133,500 — Equipment Financing 34,773 — Total 954,273 791,250 Unamortized debt issuance costs (1,744) (2,030) Current maturities (20,764) (7,000) Long-term debt obligations $ 931,765 $ 782,220 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [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 Nine Months Ended 2021 2020 2021 2020 (In thousands) Component of income before income taxes: Cost of goods sold $ 700 $ 510 $ 2,019 $ 1,476 Selling, general and administrative expenses 5,542 4,303 16,492 14,432 Total stock-based compensation expense $ 6,242 $ 4,813 $ 18,511 $ 15,908 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In thousands) Stock-based compensation expense: Stock Options $ 793 $ 623 $ 2,406 $ 2,254 Restricted Stock 1,480 1,214 4,359 3,975 Performance-based Restricted Stock Units 3,471 2,622 10,432 8,676 Non-Employee Directors 498 354 1,314 1,003 Total stock-based compensation expense $ 6,242 $ 4,813 $ 18,511 $ 15,908 |
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: Nine Months Ended 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) | 9 Months Ended |
Dec. 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 periods presented: Three Months Ended December 31, 2021 December 31, 2020 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 400,027 $ (3,332) $ 396,695 $ 254,209 $ (1,311) $ 252,898 Infiltrator 148,677 (26,314) 122,363 98,409 (17,188) 81,221 International International - Pipe 41,156 (5,700) 35,456 33,729 (2,970) 30,759 International - Allied Products & Other 14,687 — 14,687 11,648 — 11,648 Total International 55,843 (5,700) 50,143 45,377 (2,970) 42,407 Allied Products & Other 147,476 (1,320) 146,156 109,619 — 109,619 Intersegment Eliminations (36,666) 36,666 — (21,469) 21,469 — Total Consolidated $ 715,357 $ — $ 715,357 $ 486,145 $ — $ 486,145 Nine Months Ended December 31, 2021 December 31, 2020 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 1,158,558 $ (7,903) $ 1,150,655 $ 819,994 $ (4,793) $ 815,201 Infiltrator 421,330 (67,763) 353,567 306,548 (53,948) 252,600 International International - Pipe 142,135 (13,784) 128,351 96,271 (3,866) 92,405 International - Allied Products & Other 42,648 — 42,648 34,233 — 34,233 Total International 184,783 (13,784) 170,999 130,504 (3,866) 126,638 Allied Products & Other 420,231 (4,324) 415,907 344,532 — 344,532 Intersegment Eliminations (93,774) 93,774 — (62,607) 62,607 — Total Consolidated $ 2,091,128 $ — $ 2,091,128 $ 1,538,971 $ — $ 1,538,971 |
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 Nine Months Ended 2021 2020 2021 2020 (In thousands) Segment Adjusted Gross Profit Pipe $ 92,066 $ 78,651 $ 258,681 $ 269,746 Infiltrator 60,546 48,518 178,795 149,551 International 13,240 12,986 49,695 38,976 Allied Products & Other 72,785 55,158 204,063 176,006 Intersegment Eliminations (44) (932) 1,421 (918) Total $ 238,593 $ 194,381 $ 692,655 $ 633,361 Depreciation and Amortization Pipe $ 12,534 $ 11,298 $ 36,595 $ 34,201 Infiltrator 3,551 3,132 10,362 9,270 International 1,403 1,402 4,151 4,002 Allied Products & Other (a) 17,349 19,930 52,579 59,848 Total $ 34,837 $ 35,762 $ 103,687 $ 107,321 Capital Expenditures Pipe $ 18,657 $ 4,095 $ 41,296 $ 12,237 Infiltrator 15,614 22,651 50,774 40,630 International 735 556 2,249 1,303 Allied Products & Other (a) 1,597 1,414 6,048 3,505 Total $ 36,603 $ 28,716 $ 100,367 $ 57,675 (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 Nine Months Ended 2021 2020 2021 2020 (In thousands) Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 208,977 $ 168,505 $ 610,155 $ 562,865 Depreciation and Amortization 18,042 16,432 52,824 49,318 ESOP and stock-based compensation expense 11,574 9,444 29,676 20,981 COVID-19 related costs (a) — — — 197 Total Segment Adjusted Gross Profit $ 238,593 $ 194,381 $ 692,655 $ 633,361 (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) | 9 Months Ended |
Dec. 31, 2021segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 03, 2021 | Dec. 31, 2021 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 611,578 | $ 599,072 | |
Jet | |||
Business Acquisition [Line Items] | |||
Total fair value of consideration transferred | $ 49,400 | ||
Goodwill | 12,597 | ||
Transaction costs related to Acquisition | $ 2,600 | ||
Intangible assets | $ 11,500 |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Transferred and Preliminary Purchase Price Allocation of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 03, 2021 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 611,578 | $ 599,072 | |
Jet | |||
Business Acquisition [Line Items] | |||
Cash | $ 160 | ||
Total current assets, excluding cash | 12,993 | ||
Property, plant and equipment | 22,495 | ||
Goodwill | 12,597 | ||
Intangible assets | 11,500 | ||
Other assets | 158 | ||
Total current liabilities | (5,750) | ||
Deferred tax liabilities | (2,999) | ||
Other liabilities | (1,784) | ||
Total fair value of consideration transferred | $ 49,370 |
Acquisitions - Summary of Ident
Acquisitions - Summary of Identifiable Intangible Assets (Detail) - Jet $ in Thousands | Dec. 03, 2021USD ($) |
Business Acquisition [Line Items] | |
Total identifiable intangible assets, Preliminary fair value | $ 11,500 |
Supplier and customer relationships | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets, Preliminary fair value | 10,500 |
Other | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets, Preliminary fair value | $ 1,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract asset - product returns | $ 1,052 | $ 694 |
Refund liability | $ 2,508 | $ 1,801 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions, $ in Millions | 9 Months Ended | |||
Dec. 31, 2021USD ($) | May 31, 2021USD ($) | May 31, 2021CAD ($) | Mar. 31, 2021USD ($) | |
Lessee Lease Description [Line Items] | ||||
Unused borrowing capacity of lease | $ 62.5 | $ 2.5 | ||
Line of credit | $ 43 | |||
Equipment Financing | ||||
Lessee Lease Description [Line Items] | ||||
Line of credit | $ 36 | |||
Element Fleet Management, Inc. | ||||
Lessee Lease Description [Line Items] | ||||
Lease obligation | $ 36.6 | |||
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Leases remaining term | 1 year | |||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Leases remaining term | 30 years | |||
Maximum | Yard | ||||
Lessee Lease Description [Line Items] | ||||
Leases options to extend | 5 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 170,049 | $ 75,294 |
Finished goods | 295,469 | 225,667 |
Total inventories | $ 465,518 | $ 300,961 |
Fair Value Measurement and De_2
Fair Value Measurement and Derivative Transactions - Summary of Assets and Liabilities Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
ASSETS | ||
Total assets at fair value on a recurring basis | $ 1,240 | $ 1,194 |
Liabilities [Abstract] | ||
Total liabilities at fair value on a recurring basis | 195 | 32 |
Level 2 | ||
ASSETS | ||
Total assets at fair value on a recurring basis | 1,240 | 1,194 |
Liabilities [Abstract] | ||
Total liabilities at fair value on a recurring basis | 195 | 32 |
Diesel Fuel Contracts | ||
ASSETS | ||
Derivative assets – diesel fuel contracts | 1,240 | 1,194 |
Liabilities [Abstract] | ||
Derivative liabilities – diesel fuel contracts | 195 | 32 |
Diesel Fuel Contracts | Level 2 | ||
ASSETS | ||
Derivative assets – diesel fuel contracts | 1,240 | 1,194 |
Liabilities [Abstract] | ||
Derivative liabilities – diesel fuel contracts | $ 195 | $ 32 |
Fair Value Measurement and De_3
Fair Value Measurement and Derivative Transactions - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Fair value of assets and liabilities, additional transfers | $ 0 | $ 0 |
Fair Value Measurement and De_4
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 | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | ||||
Total net unrealized mark-to-market loss (gains) | $ 564 | $ (1,082) | $ 118 | $ (2,537) |
Total net realized (gain) loss | (749) | 261 | (2,016) | 1,578 |
Diesel fuel option collars | ||||
Derivatives, Fair Value [Line Items] | ||||
Total net unrealized mark-to-market loss (gains) | 564 | (1,082) | 118 | (2,537) |
Total net realized (gain) loss | $ (749) | $ 261 | $ (2,016) | $ 1,578 |
Fair Value Measurement and De_5
Fair Value Measurement and Derivative Transactions - Summary of Carrying And Fair Value of Senior Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior notes and equipment financing | $ 395,914 | $ 367,633 |
Estimate of Fair Value Measurement | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior notes and equipment financing | 362,614 | 367,633 |
Estimate of Fair Value Measurement | Equipment Financing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior notes and equipment financing | 33,300 | 0 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior notes and equipment financing | 384,773 | 350,000 |
Reported Value Measurement | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior notes and equipment financing | 350,000 | 350,000 |
Reported Value Measurement | Equipment Financing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior notes and equipment financing | $ 34,773 | $ 0 |
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 | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
NET INCOME PER SHARE—BASIC: | ||||
Net income attributable to ADS | $ 73,678 | $ 53,774 | $ 225,024 | $ 204,476 |
Adjustments for: | ||||
Dividends to participating securities | (1,357) | (1,288) | (4,633) | (3,985) |
Net income available to common stockholders and participating securities | 72,321 | 52,486 | 220,391 | 200,491 |
Undistributed income allocated to participating securities | (9,457) | (7,798) | (30,870) | (31,699) |
Net income available to common stockholders – Basic | $ 62,864 | $ 44,688 | $ 189,521 | $ 168,792 |
Weighted average number of common shares outstanding – Basic (in shares) | 71,267 | 70,450 | 71,087 | 69,893 |
Net income per common share - Basic (in dollars per share) | $ 0.88 | $ 0.63 | $ 2.67 | $ 2.42 |
NET INCOME PER SHARE—DILUTED: | ||||
Net income available to common stockholders – Diluted | $ 62,864 | $ 44,688 | $ 189,521 | $ 168,792 |
Weighted average number of common shares outstanding – Basic (in shares) | 71,267 | 70,450 | 71,087 | 69,893 |
Weighted average number of common shares outstanding – Diluted (in shares) | 72,789 | 71,586 | 72,752 | 70,853 |
Net income per common share - Diluted (in dollars per share) | $ 0.86 | $ 0.62 | $ 2.61 | $ 2.38 |
Potentially dilutive securities excluded as anti-dilutive (in shares) | 12,271 | 14,347 | 13,240 | 14,807 |
Assumed restricted stock - nonparticipating | ||||
NET INCOME PER SHARE—DILUTED: | ||||
Dilutive securities (in shares) | 236 | 886 | 245 | 745 |
Assumed exercise of stock options | ||||
NET INCOME PER SHARE—DILUTED: | ||||
Dilutive securities (in shares) | 854 | 250 | 904 | 215 |
Assumed performance units | ||||
NET INCOME PER SHARE—DILUTED: | ||||
Dilutive securities (in shares) | 432 | 0 | 516 | 0 |
Net Income Per Share and Stoc_4
Net Income Per Share and Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 9 Months Ended | |
May 31, 2021 | Dec. 31, 2021 | Apr. 30, 2021 | |
Net Income Per Share And Stockholders Equity [Abstract] | |||
Share repurchases (in shares) | 2.6 | ||
Share repurchases | $ (292,000) | ||
Stock repurchase program, additional amount authorized | $ 250,000 | ||
Stock repurchase program, authorized amount | $ 42,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Outstanding principal balance including letters of credit | $ 43,000,000 | |
South American Joint Venture | ||
Related Party Transaction [Line Items] | ||
Maximum borrowings permitted under credit facility | $ 22,000,000 | |
Company's ownership percentage | 50.00% | |
Percentage of debt guarantee | 50.00% | |
Maximum potential payment under guarantee | $ 11,000,000 | |
Outstanding principal balance including letters of credit | 9,200,000 | $ 10,000,000 |
South American Joint Venture | US Dollar Denominated Loans | ||
Related Party Transaction [Line Items] | ||
Outstanding principal balance including letters of credit | $ 0 | |
South American Joint Venture | Chilean Peso Denominated Loans | ||
Related Party Transaction [Line Items] | ||
Weighted average interest rate | 4.30% | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Related Party Transaction [Line Items] | ||
Revolving credit facility maturity date | Jun. 22, 2018 | |
Maximum borrowings permitted under credit facility | $ 12,000,000 | |
Debt, expiration date | Jun. 22, 2022 | |
Maximum borrowings permitted under credit facility | $ 1,500,000 | $ 0 |
ADS Mexicana | Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership in joint venture | 49.00% | |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ADS Mexicana | ||
Related Party Transaction [Line Items] | ||
Company's ownership percentage | 51.00% |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt , gross | $ 954,273 | $ 791,250 |
Unamortized debt issuance costs | (1,744) | (2,030) |
Current maturities | (20,764) | (7,000) |
Long-term debt obligations | 931,765 | 782,220 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 133,500 | 0 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 436,000 | 441,250 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 350,000 | 350,000 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 34,773 | $ 0 |
Current maturities | (13,800) | |
Long-term debt obligations | $ 21,000 |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Detail) - USD ($) | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||
Proceeds from Revolving Credit Agreement | $ 258,100,000 | $ 0 | |
Repayment of borrowings | 124,600,000 | $ 100,000,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowings permitted under credit facility | 350,000,000 | ||
Proceeds from Revolving Credit Agreement | 258,100,000 | ||
Repayment of borrowings | 124,600,000 | ||
Outstanding letters of credit | 12,500,000 | $ 11,000,000 | |
Letter of Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowings permitted under credit facility | 50,000,000 | ||
Sublimit of Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowings permitted under credit facility | 50,000,000 | ||
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | 700,000,000 | ||
Repayment of borrowings | $ 5,250,000 |
Debt - Senior Notes (Detail)
Debt - Senior Notes (Detail) - 5.0% Senior Notes due 2027 $ in Millions | Sep. 23, 2019USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 350 |
Debt instrument, interest rate | 5.00% |
Debt - Equipment Financing (Det
Debt - Equipment Financing (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||
Current maturities of debt obligations | $ 20,764 | $ 7,000 |
Long-term debt obligations | $ 931,765 | $ 782,220 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of equipment financing | 1.40% | |
Current maturities of debt obligations | $ 13,800 | |
Long-term debt obligations | $ 21,000 | |
Minimum | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Equipment financing term | 12 months | |
Maximum | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Equipment financing term | 84 months |
Commitments and Contingencies (
Commitments and Contingencies (Purchase Commitments) - Additional Information (Detail) - Inventory | 9 Months Ended |
Dec. 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 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 28.10% | 27.10% | 26.60% | 27.80% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | $ 6,242 | $ 4,813 | $ 18,511 | $ 15,908 |
Non-Employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 498 | 354 | 1,314 | 1,003 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 793 | 623 | 2,406 | 2,254 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 1,480 | 1,214 | 4,359 | 3,975 |
Performance-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 3,471 | 2,622 | 10,432 | 8,676 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 700 | 510 | 2,019 | 1,476 |
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | $ 5,542 | $ 4,303 | $ 16,492 | $ 14,432 |
Stock-Based Compensation (2017
Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | May 24, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock awards | $ (114) | $ (90) | $ (3,344) | $ (487) | |
2017 Omnibus Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock awards (in shares) (less than) | 100,000 | 100,000 | |||
Restricted stock awards | $ 900 | $ 8,200 | |||
2017 Omnibus Plan | Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of performance units granted, value | $ 5,300 | ||||
2017 Omnibus Plan | Performance Shares | IWT | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of performance units granted (in shares) | 100,000 | ||||
2017 Omnibus Plan | Assumed exercise of stock options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock options granted (in shares) | 100,000 | ||||
Number of stock options granted, value | $ 4,200 | ||||
2017 Omnibus Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock approved for issuance (in shares) | 5,000,000 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Assumption Used to Estimate Fair Value of Stock Options (Detail) | 9 Months Ended |
Dec. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Expected stock price volatility | 41.00% |
Risk-free interest rate | 1.10% |
Weighted-average expected option life (years) | 6 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Common stock price (in dollars per share) | $ 105.82 |
Dividend yield | 0.30% |
Business Segments Information -
Business Segments Information - Additional Information (Detail) | 9 Months Ended |
Dec. 31, 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 | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 715,357 | $ 486,145 | $ 2,091,128 | $ 1,538,971 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (36,666) | (21,469) | (93,774) | (62,607) |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 36,666 | 21,469 | 93,774 | 62,607 |
Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 396,695 | 252,898 | 1,150,655 | 815,201 |
Pipe | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 400,027 | 254,209 | 1,158,558 | 819,994 |
Pipe | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (3,332) | (1,311) | (7,903) | (4,793) |
Infiltrator | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 122,363 | 81,221 | 353,567 | 252,600 |
Infiltrator | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 148,677 | 98,409 | 421,330 | 306,548 |
Infiltrator | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (26,314) | (17,188) | (67,763) | (53,948) |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 50,143 | 42,407 | 170,999 | 126,638 |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 55,843 | 45,377 | 184,783 | 130,504 |
International | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (5,700) | (2,970) | (13,784) | (3,866) |
International | International - Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 35,456 | 30,759 | 128,351 | 92,405 |
International | International - Pipe | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 41,156 | 33,729 | 142,135 | 96,271 |
International | International - Pipe | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (5,700) | (2,970) | (13,784) | (3,866) |
International | International - Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 14,687 | 11,648 | 42,648 | 34,233 |
International | International - Allied Products & Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 14,687 | 11,648 | 42,648 | 34,233 |
Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 146,156 | 109,619 | 415,907 | 344,532 |
Allied Products & Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 147,476 | 109,619 | 420,231 | 344,532 |
Allied Products & Other | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ (1,320) | $ 0 | $ (4,324) | $ 0 |
Business Segments Information_3
Business Segments Information - Schedule of Financial Information Attributable to Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Segment adjusted gross profit | $ 238,593 | $ 194,381 | $ 692,655 | $ 633,361 |
Depreciation and amortization | 34,837 | 35,762 | 103,687 | 107,321 |
Capital expenditures | 36,603 | 28,716 | 100,367 | 57,675 |
Operating Segments | Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Segment adjusted gross profit | 92,066 | 78,651 | 258,681 | 269,746 |
Depreciation and amortization | 12,534 | 11,298 | 36,595 | 34,201 |
Capital expenditures | 18,657 | 4,095 | 41,296 | 12,237 |
Operating Segments | Infiltrator | ||||
Segment Reporting Information [Line Items] | ||||
Segment adjusted gross profit | 60,546 | 48,518 | 178,795 | 149,551 |
Depreciation and amortization | 3,551 | 3,132 | 10,362 | 9,270 |
Capital expenditures | 15,614 | 22,651 | 50,774 | 40,630 |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Segment adjusted gross profit | 13,240 | 12,986 | 49,695 | 38,976 |
Depreciation and amortization | 1,403 | 1,402 | 4,151 | 4,002 |
Capital expenditures | 735 | 556 | 2,249 | 1,303 |
Operating Segments | Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment adjusted gross profit | 72,785 | 55,158 | 204,063 | 176,006 |
Depreciation and amortization | 17,349 | 19,930 | 52,579 | 59,848 |
Capital expenditures | 1,597 | 1,414 | 6,048 | 3,505 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Segment adjusted gross profit | $ (44) | $ (932) | $ 1,421 | $ (918) |
Business Segments Information_4
Business Segments Information - Reconciliation of Gross Profit to Segment Adjusted Gross Profit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||||
Gross profit | $ 208,977 | $ 168,505 | $ 610,155 | $ 562,865 |
Depreciation and Amortization | 18,042 | 16,432 | 52,824 | 49,318 |
ESOP and stock-based compensation expense | 11,574 | 9,444 | 29,676 | 20,981 |
COVID-19 related costs | 0 | 0 | 0 | 197 |
Total Segment Adjusted Gross Profit | $ 238,593 | $ 194,381 | $ 692,655 | $ 633,361 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 02, 2022 | Apr. 30, 2022 | Feb. 03, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 27, 2022 | Apr. 30, 2021 |
Subsequent Event [Line Items] | |||||||||
Common stock dividends per share | $ 0.11 | $ 0.09 | $ 0.33 | $ 0.27 | |||||
Stock repurchase program, authorized amount | $ 42 | ||||||||
Scenario Forecast | |||||||||
Subsequent Event [Line Items] | |||||||||
Period post ESOP loan repayment | 30 days | ||||||||
Common stock issuable upon conversion of preferred stock (in shares) | 12.4 | ||||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock dividends per share | $ 0.11 | ||||||||
Dividend payable date | Mar. 15, 2022 | ||||||||
Dividend payable, date of record | Mar. 1, 2022 | ||||||||
Stock repurchase program, authorized amount | $ 1,000 | ||||||||
Cash contributions to ESOP | $ 0.3 | ||||||||
Preferred stock outstanding (in shares) | 16.1 |