Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WMS | |
Entity Registrant Name | ADVANCED DRAINAGE SYSTEMS, INC. | |
Entity Central Index Key | 1,604,028 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 57,275,218 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash | $ 19,758 | $ 17,587 |
Receivables (less allowance for doubtful accounts of $7,353 and $6,826, respectively) | 152,538 | 171,961 |
Inventories | 246,451 | 263,792 |
Other current assets | 7,641 | 5,113 |
Total current assets | 426,388 | 458,453 |
Property, plant and equipment, net | 402,819 | 399,381 |
Other assets: | ||
Goodwill | 102,423 | 103,017 |
Intangible assets, net | 38,554 | 44,437 |
Other assets | 36,856 | 37,954 |
Total assets | 1,007,040 | 1,043,242 |
Current liabilities: | ||
Current maturities of debt obligations | 26,165 | 26,848 |
Current maturities of capital lease obligations | 23,354 | 22,007 |
Accounts payable | 66,361 | 105,521 |
Other accrued liabilities | 67,567 | 60,560 |
Accrued income taxes | 6,608 | 6,307 |
Total current liabilities | 190,055 | 221,243 |
Long-term debt obligations (less unamortized debt issuance costs of $2,467 and $3,028, respectively) | 200,764 | 270,900 |
Long-term capital lease obligations | 63,541 | 59,963 |
Deferred tax liabilities | 35,472 | 32,304 |
Other liabilities | 22,220 | 25,023 |
Total liabilities | 512,052 | 609,433 |
Commitments and contingencies (see Note 10) | ||
Mezzanine equity: | ||
Redeemable convertible preferred stock: $0.01 par value; 47,070 shares authorized; 44,170 shares issued; 22,810 and 23,300 shares outstanding, respectively | 285,117 | 291,247 |
Deferred compensation – unearned ESOP shares | (182,980) | (190,168) |
Redeemable noncontrolling interest in subsidiaries | 8,471 | |
Total mezzanine equity | 102,137 | 109,550 |
Stockholders’ equity: | ||
Common stock; $0.01 par value: 1,000,000 shares authorized; 57,634 shares issued; 57,190 and 56,476 shares outstanding, respectively | 11,433 | 11,426 |
Paid-in capital | 383,300 | 364,908 |
Common stock in treasury, at cost | (9,117) | (8,277) |
Accumulated other comprehensive loss | (27,675) | (21,247) |
Retained earnings (deficit) | 22,017 | (39,214) |
Total ADS stockholders’ equity | 379,958 | 307,596 |
Noncontrolling interest in subsidiaries | 12,893 | 16,663 |
Total stockholders’ equity | 392,851 | 324,259 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 1,007,040 | $ 1,043,242 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Allowance for doubtful accounts | $ 7,353 | $ 6,826 |
Unamortized debt issuance costs | $ 2,467 | $ 3,028 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 57,634,000 | 57,634,000 |
Common stock, shares outstanding | 57,190,000 | 56,476,000 |
Redeemable Convertible Preferred Stock [Member] | ||
Mezzanine equity, par value | $ 0.01 | $ 0.01 |
Mezzanine equity, shares authorized | 47,070,000 | 47,070,000 |
Mezzanine equity, shares issued | 44,170,000 | 44,170,000 |
Mezzanine equity, shares outstanding | 22,810,000 | 23,300,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 318,113 | $ 320,832 | $ 1,112,515 | $ 1,080,240 |
Cost of goods sold | 245,714 | 243,006 | 845,052 | 825,874 |
Gross profit | 72,399 | 77,826 | 267,463 | 254,366 |
Operating expenses: | ||||
Selling | 23,260 | 22,903 | 72,156 | 70,348 |
General and administrative | 22,116 | 23,788 | 65,082 | 74,351 |
Loss on disposal of assets and costs from exit and disposal activities | 144 | 1,924 | 1,572 | 10,468 |
Intangible amortization | 1,976 | 2,012 | 5,945 | 6,071 |
Income from operations | 24,903 | 27,199 | 122,708 | 93,128 |
Other expense: | ||||
Interest expense | 5,695 | 3,086 | 14,028 | 12,620 |
Derivative loss (gains) and other expense (income), net | 634 | (963) | (86) | (4,456) |
Income before income taxes | 18,574 | 25,076 | 108,766 | 84,964 |
Income tax expense (benefit) | 2,490 | (7,371) | 28,968 | 15,812 |
Equity in net (income) loss of unconsolidated affiliates | (466) | (768) | 225 | (496) |
Net income | 16,550 | 33,215 | 79,573 | 69,648 |
Less: net income attributable to noncontrolling interest | 738 | 1,110 | 2,811 | 1,938 |
Net income attributable to ADS | $ 15,812 | $ 32,105 | $ 76,762 | $ 67,710 |
Weighted average common shares outstanding: | ||||
Basic | 57,180 | 55,917 | 56,925 | 55,497 |
Diluted | 57,685 | 56,459 | 57,482 | 56,124 |
Net income per share: | ||||
Basic | $ 0.25 | $ 0.52 | $ 1.22 | $ 1.09 |
Diluted | 0.25 | 0.51 | 1.20 | 1.08 |
Cash dividends declared per share | $ 0.08 | $ 0.07 | $ 0.24 | $ 0.21 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 16,550 | $ 33,215 | $ 79,573 | $ 69,648 |
Currency translation (loss) gain | (5,642) | (2,975) | (7,617) | 3,010 |
Comprehensive income | 10,908 | 30,240 | 71,956 | 72,658 |
Less: other comprehensive loss attributable to noncontrolling interest | (810) | (1,484) | (1,189) | (872) |
Less: net income attributable to noncontrolling interest | 738 | 1,110 | 2,811 | 1,938 |
Total comprehensive income attributable to ADS | $ 10,980 | $ 30,614 | $ 70,334 | $ 71,592 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net income | $ 79,573 | $ 69,648 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 52,912 | 55,793 |
Deferred income taxes | 2,316 | (12,738) |
Loss on disposal of assets and costs from exit and disposal activities | 1,572 | 10,468 |
ESOP and stock-based compensation | 16,142 | 13,086 |
Amortization of deferred financing charges | 561 | 746 |
Fair market value adjustments to derivatives | 1,976 | (1,988) |
Equity in net loss (income) of unconsolidated affiliates | 225 | (496) |
Other operating activities | (3,493) | 12,046 |
Changes in working capital: | ||
Receivables | 16,768 | (14,817) |
Inventories | 15,705 | 44,560 |
Prepaid expenses and other current assets | (2,562) | 2,105 |
Accounts payable, accrued expenses, and other liabilities | (33,673) | (39,504) |
Net cash provided by operating activities | 148,022 | 138,909 |
Cash Flows from Investing Activities | ||
Capital expenditures | (31,130) | (35,124) |
Cash paid for acquisitions, net of cash acquired | (1,990) | |
Proceeds from sale of corporate-owned life insurance | 5,959 | |
Other investing activities | 1,109 | (570) |
Net cash used in investing activities | (30,021) | (31,725) |
Cash Flows from Financing Activities | ||
Proceeds from Revolving Credit Facility | 331,600 | 397,450 |
Payments on Revolving Credit Facility | (376,600) | (431,950) |
Payments on Term Loan | (72,500) | |
Proceeds from Senior Notes | 75,000 | |
Payments on Senior Notes | (25,000) | (25,000) |
Debt issuance costs | (2,268) | |
Payments of notes, mortgages and other debt | (700) | (1,675) |
Payments on capital lease obligations | (17,791) | (18,176) |
Acquisition of noncontrolling interest in BaySaver | (8,821) | |
Cash dividends paid | (21,084) | (13,511) |
Proceeds from exercise of stock options | 3,937 | 7,606 |
Repurchase of common stock | (7,947) | |
Other financing activities | (920) | (1,558) |
Net cash used in financing activities | (115,379) | (94,529) |
Effect of exchange rate changes on cash | (451) | (698) |
Net change in cash | 2,171 | 11,957 |
Cash at beginning of period | 17,587 | 6,450 |
Cash at end of period | 19,758 | 18,407 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | 27,459 | 25,408 |
Cash paid for interest | 11,506 | 13,904 |
Non-cash operating, investing and financing activities: | ||
Acquisition of property, plant and equipment under capital lease and incurred lease obligations | 19,915 | 25,993 |
Balance in accounts payable for the acquisition of property, plant and equipment | $ 2,381 | 998 |
Payable recorded for business acquisition | 300 | |
Contribution of net accounts receivable to the South American Joint Venture | $ 2,785 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Mezzanine Equity - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Non-controlling Interest in Subsidiaries [Member] | Redeemable Convertible Preferred Stock [Member] | Deferred Compensation - Unearned ESOP Shares [Member] | Total Mezzanine Equity [Member] |
Beginning Balance, Value at Mar. 31, 2017 | $ 8,227 | $ 302,814 | $ (198,216) | $ 112,825 | |
Beginning Balance, Shares at Mar. 31, 2017 | 24,225 | 15,863 | |||
Net income | 773 | 773 | |||
Redeemable convertible preferred stock dividends | $ (1,310) | ||||
Common stock dividends | (11,729) | ||||
Dividend paid to non-controlling interest holder | (490) | ||||
Allocation of ESOP shares to participants for compensation | 1,910 | $ 6,036 | 6,036 | ||
Allocation of ESOP shares to participants for Compensation, Shares | (483) | ||||
Exercise of common stock options | 7,606 | ||||
Restricted stock awards | 2,150 | ||||
Reclassification of liability- classified awards | 13,714 | ||||
Equity classified stock-based compensation expense | 2,991 | ||||
ESOP distribution in common stock | $ (9,530) | (9,530) | |||
ESOP distribution in common stock, Shares | (762) | ||||
Common stock repurchases | (7,947) | ||||
Ending Balance, Value at Dec. 31, 2017 | 9,000 | $ 293,284 | $ (192,180) | 110,104 | |
Ending Balance, Shares at Dec. 31, 2017 | 23,463 | 15,380 | |||
Beginning Balance, Value at Mar. 31, 2018 | 109,550 | 8,471 | $ 291,247 | $ (190,168) | 109,550 |
Beginning Balance, Shares at Mar. 31, 2018 | 23,300 | 15,219 | |||
Net income | 832 | 832 | |||
Redeemable convertible preferred stock dividends | (1,442) | ||||
Common stock dividends | (13,751) | ||||
Dividend paid to non-controlling interest holder | (4,560) | (1,075) | (1,075) | ||
Allocation of ESOP shares to participants for compensation | 3,925 | $ 7,188 | 7,188 | ||
Allocation of ESOP shares to participants for Compensation, Shares | 575 | ||||
Exercise of common stock options | 3,173 | ||||
Restricted stock awards | 2,872 | ||||
Equity classified stock-based compensation expense | 2,084 | ||||
ESOP distribution in common stock | $ (6,130) | (6,130) | |||
ESOP distribution in common stock, Shares | (490) | ||||
Acquisition of noncontrolling interest in BaySaver | (963) | $ (8,228) | (8,228) | ||
Ending Balance, Value at Dec. 31, 2018 | $ 102,137 | $ 285,117 | $ (182,980) | $ 102,137 | |
Ending Balance, Shares at Dec. 31, 2018 | 22,810 | 14,644 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Paid-In Capital [Member] | Common Stock in Treasury [Member] | Accumulated Other Comprehensive Loss [Member] | Retained (Deficit) Earnings [Member] | Total ADS Stockholders' Equity [Member] | Non-controlling Interest in Subsidiaries [Member] |
Beginning Balance, Value at Mar. 31, 2017 | $ 237,610 | $ 12,393 | $ 755,787 | $ (436,984) | $ (24,815) | $ (83,678) | $ 222,703 | $ 14,907 |
Beginning Balance, Shares at Mar. 31, 2017 | 153,560 | 98,222 | ||||||
Net income | 68,875 | 67,710 | 67,710 | 1,165 | ||||
Other comprehensive income | 3,010 | 3,882 | 3,882 | (872) | ||||
Redeemable convertible preferred stock dividends | (1,310) | (1,310) | (1,310) | |||||
Common stock dividends | (11,729) | (11,729) | (11,729) | |||||
Dividend paid to non-controlling interest holder | (490) | (490) | ||||||
Allocation of ESOP shares to participants for compensation | 1,910 | 1,910 | 1,910 | |||||
Exercise of common stock options | 7,606 | $ 6 | 7,558 | $ 42 | 7,606 | |||
Exercise of common stock options, Shares | 559 | (2) | ||||||
Restricted stock awards | 2,150 | 1,801 | $ 349 | 2,150 | ||||
Restricted stock awards, Shares | 41 | (78) | ||||||
Reclassification of liability- classified awards | 13,714 | 13,714 | 13,714 | |||||
Equity classified stock-based compensation expense | 2,991 | 2,991 | 2,991 | |||||
ESOP distribution in common stock | 9,530 | $ 2 | 7,775 | $ 1,753 | 9,530 | |||
ESOP distributions in common stock, Shares | 192 | (394) | ||||||
Retirement of common stock held in treasury | $ (977) | (433,852) | $ 434,829 | |||||
Retirement of common stock held in treasury, Shares | 97,745 | 97,745 | ||||||
Retirement of common stock held in treasury, Shares | (97,745) | (97,745) | ||||||
Common stock repurchases | (7,947) | $ (7,900) | $ (7,947) | (7,947) | ||||
Common stock repurchases, Shares | 400 | (400) | ||||||
Ending Balance, Value at Dec. 31, 2017 | 325,920 | $ 11,424 | 357,684 | $ (7,958) | (20,933) | (29,007) | 311,210 | 14,710 |
Ending Balance, Shares at Dec. 31, 2017 | 56,607 | 403 | ||||||
Beginning Balance, Value at Mar. 31, 2018 | 324,259 | $ 11,426 | 364,908 | $ (8,277) | (21,247) | (39,214) | 307,596 | 16,663 |
Beginning Balance, Shares at Mar. 31, 2018 | 56,889 | 413 | ||||||
Net income | 78,741 | 76,762 | 76,762 | 1,979 | ||||
Other comprehensive income | (7,617) | (6,428) | (6,428) | (1,189) | ||||
Redeemable convertible preferred stock dividends | (1,442) | (1,442) | (1,442) | |||||
Common stock dividends | (13,751) | (13,751) | (13,751) | |||||
Dividend paid to non-controlling interest holder | (4,560) | (4,560) | ||||||
Allocation of ESOP shares to participants for compensation | 3,925 | 3,925 | 3,925 | |||||
Exercise of common stock options | 3,173 | $ 2 | 3,937 | $ (767) | 3,173 | |||
Exercise of common stock options, Shares | 277 | 28 | ||||||
Restricted stock awards | 2,872 | $ 1 | 2,945 | $ (73) | 2,872 | |||
Restricted stock awards, Shares | 93 | 3 | ||||||
Equity classified stock-based compensation expense | 2,084 | 2,084 | 2,084 | |||||
ESOP distribution in common stock | 6,130 | $ 4 | 6,126 | 6,130 | ||||
ESOP distributions in common stock, Shares | 375 | |||||||
Acquisition of noncontrolling interest in BaySaver | (963) | (625) | (338) | (963) | ||||
Common stock repurchases, Shares | 0 | |||||||
Ending Balance, Value at Dec. 31, 2018 | $ 392,851 | $ 11,433 | $ 383,300 | $ (9,117) | $ (27,675) | $ 22,017 | $ 379,958 | $ 12,893 |
Ending Balance, Shares at Dec. 31, 2018 | 57,634 | 444 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||||
Common stock dividend per share | $ 0.08 | $ 0.07 | $ 0.24 | $ 0.21 |
Background and Summary of Signi
Background and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Background and Summary of Significant Accounting Policies | 1. BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business - Advanced Drainage Systems, Inc. and subsidiaries (collectively referred to as “ADS” or the “Company”), incorporated in Delaware, designs, manufactures and markets high performance thermoplastic corrugated pipe and related water management products, primarily in North and South America and Europe. ADS’s broad product line includes corrugated high density polyethylene (or “HDPE”) pipe, polypropylene (or “PP”) pipe and related water management products. The Company is managed based primarily on the geographies in which it operates and reports results of operations in two reportable segments: Domestic and International. 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, 2018 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2018 (“Fiscal 2018 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, 2018 and the results of operations and cash flows for the three and nine months ended December 31, 2018. 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 2018 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 loss of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. Recent Accounting Guidance Recently Adopted Accounting Guidance Cloud Computing - On August 29, 2018, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard update (“ASU”) to provide guidance on implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. The ASU, which was released in response to a consensus reached by the EITF at its June 2018 meeting, aligns the accounting for such costs with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU includes in its scope implementation costs of a CCA that is a service contract and clarifies that a customer should apply CCA guidance to determine which implementation costs should be capitalized in such a CCA. The Company adopted this update effective July 1, 2018 on a prospective basis. The new standard did not have a material impact on the Condensed Consolidated Financial Statements. Revenue Recognition - In May 2014, the FASB issued an ASU which amends the guidance for revenue recognition. This amendment contains principles that will require an entity to recognize revenue to depict the transfer of goods and services to customers at an amount that an entity expects to be entitled to in exchange for goods or services. The amendment sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations and recognizing the revenue upon satisfaction of performance obligations. In August 2015, the FASB issued an additional ASU that deferred the effective date of the new revenue standard for public entities to periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date of periods beginning after December 15, 2016. There have also been various additional ASUs issued by the FASB in 2016 that further amend this new revenue standard. The updated standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted these standards on April 1, 2018 using the modified retrospective transition method. See “Note 3. Revenue Recognition” for further information on the adoption of the revenue recognition ASUs. Cash Flow Classification - In August 2016, the FASB issued an ASU which provides amended guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance and distributions received from equity method investees. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and early adoption is permitted. This amended guidance must be applied retrospectively to all periods presented but may be applied prospectively if retrospective application would be impracticable. The Company adopted this update effective April 1, 2018 using the retrospective method. The new standard did not have a material impact on the Condensed Consolidated Financial Statements. Goodwill Impairment - In January 2017, the FASB issued an ASU which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the standards update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for annual periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Definition of a Business - In January 2017, the FASB issued an ASU to clarify the definition of a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Stock-Based Compensation - In May 2017, the FASB issued an ASU to clarify when modification accounting should be applied for changes to the terms or conditions of share-based payment awards. The amendments clarify that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted Leases - In February 2016, the FASB issued an ASU which amends the guidance for leases. This standard contains principles that will require an entity to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability, unless the lease is a short-term lease that has an accounting lease term of twelve months or less. The standard also contains other changes to the current lease guidance that may result in changes to how entities determine which contractual arrangements qualify as a lease, the accounting for executory costs, such as property taxes and insurance, as well as which lease origination costs will be capitalizable. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption of this standard is permitted. The standard allows the use of the modified retrospective transition method, whereby the new guidance will be applied at the beginning of the earliest period presented in the financial statements of the period of adoption. The modified retrospective transition approach includes certain practical expedients that entities may elect to apply in transition. In July 2018, the FASB amended ASC 842 to provide another transition method, allowing a cumulative effect adjustment to the opening balance of retained earnings during the period of adoption. The Company has implemented a new software solution to improve the process of tracking and accounting for leases under the current and new standards. The Company will adopt this standard effective April 1, 2019 using the modified retrospective transition method which does not require adjustments to comparative periods or require modified disclosures for those periods. The Company expects to elect the transition relief practical expedients. The Company is continuing to evaluate the impact on its Condensed Consolidated Financial Statements. The Company currently does not expect the adoption of ASC 842 to have a material impact on the Statement of Operations or Statement of Cash Flows. The recording of right-of-use assets and lease liabilities is expected to have a material impact on the Company’s Condensed Consolidated Balance Sheet. Measurement of Credit Losses - In June 2016, the FASB issued an ASU which provides amended guidance on the measurement of credit losses on financial instruments, including trade receivables. This standard requires the use of an impairment model referred to as the current expected credit loss model. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, and early adoption is permitted for fiscal years beginning after December 15, 2018. The Company expects to adopt this standard effective April 1, 2020. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. Hedge Accounting – In August 2017, the FASB issued an ASU which expands an entity’s ability to apply hedge accounting for non-financial and financial risk components and provides a simplified approach for fair value hedging of interest rate risk. The standard also refines how entities assess hedge effectiveness. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and early adoption is permitted. The Company expects to adopt this standard effective April 1, 2019. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. Fair Value Measurement – In August 2018, the FASB issued an ASU that is intended to improve the effectiveness of disclosures in notes to financial statements. The standard removes, modifies and adds certain disclosure requirements related to fair value measurements. This standard is effective for fiscal years beginning after December 15, 2019. The standard requires the use of the retrospective transition method for specific amendments within the ASU and the prospective treatment of other amendments. Early adoption is permitted. The Company will early adopt this ASU, effective for the Company’s Annual Report on Form 10-K for the year ending March 31, 2019 . The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. With the exception of the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2018 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements. |
Loss on Disposal of Assets and
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | 9 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | 2. In fiscal 2018, the Company initiated restructuring activities (the “2018 Restructuring Plan”), which will continue throughout fiscal 2019, including closing underutilized manufacturing facilities, reducing headcount, optimizing product offerings and eliminating nonessential costs, designed to improve the Company’s cost structure. The Company closed one and three manufacturing facilities in the nine months ended December 31, 2018 and 2017, respectively. As additional restructuring opportunities may be identified, the Company does not have an estimated completion date or expected total cost estimate for the 2018 Restructuring Plan. The following table summarizes the activity included in Loss on disposal of assets and costs from exit and disposal activities recorded during the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Accelerated depreciation $ — $ — $ 430 $ 3,561 Plant severance 39 1,021 122 1,848 Headcount reduction 237 — 237 2,577 Product optimization 48 — 351 — Other restructuring activities 114 56 316 56 Total 2018 Restructuring Plan activities $ 438 $ 1,077 $ 1,456 $ 8,042 (Gain) loss on other disposals and partial disposals of property, plant and equipment (294 ) 847 116 2,426 Total loss on disposal of assets and costs from exit and disposal activities $ 144 $ 1,924 $ 1,572 $ 10,468 Approximately $0.3 million and $1.1 million of the total 2018 Restructuring Plan activities related to the Domestic reporting segment for the three and nine months ended December 31, 2018, respectively. Approximately $1.1 million and $8.0 million of the total 2018 restructuring Plan activities related to the Domestic reporting segment for the three and nine months ended December 31, 2017, respectively. There was $0.1 and $0.4 million of the total 2018 Restructuring Plan activities related to the International reporting segment for the three and nine months ended December 31, 2018, respectively. There were no 2018 Restructuring Plan activities for the three and nine months ended December 31, 2017 related to the International reporting segment, respectively. A reconciliation of the beginning and ending amounts of restructuring liability related to the 2018 Restructuring Plan at December 31, 2018 and 2017 is as follows: Nine Months Ended December 31, 2018 2017 (Amounts in thousands) (In thousands) Balance at the beginning of the period $ 3,901 $ — Expenses 316 56 Non-cash expenses 359 4,425 Payments (2,497 ) (1,621 ) Balance at the end of the period $ 2,079 $ 2,860 As of December 31, 2018, the Company had $0.7 million of long-term severance liability related to the restructuring activities recorded in other liabilities in the Condensed Consolidated Balance Sheet. The current portion of the restructuring liability is recorded in Other accrued liabilities in the Condensed Consolidated Balance Sheet. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. REVENUE RECOGNITION On April 1, 2018, the Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”), and all related amendments using the modified retrospective transition method. The adoption of ASC 606 did not impact the opening retained earnings balance or cause a material shift in the amount or timing of revenue recognition. Results for reporting periods beginning after April 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in a consistent manner with historical accounting policies. The Company generates revenue by selling pipe and related water management products primarily to distributors, retailers, buying groups and co-operative buying groups. Products are shipped predominately by the Company’s internal fleet, and the Company does not provide any additional revenue generating services after product delivery. Payment terms and conditions vary by contract. Revenue is recognized at the point in-time obligations under the terms of a contract with a customer are satisfied, which generally occurs upon the transfer of control of the promised goods. In substantially all of the Company’s contracts with customers, control is transferred to the customer upon delivery. The Company recognizes revenue in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue is presented in the Condensed Consolidated Statements of Operations net of allowances for returns, rebates, discounts, and taxes collected concurrently with revenue-producing activities. Refer to “Note 13. Business Segments Information” for the Company’s disaggregation of Net sales by reportable segment. The disclosure of Net sales by reportable segment is aligned by geographical region and product type and best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Significant Judgments - The Company’s performance obligation under contracts with customers is to sell and deliver pipe and related water management products. The Company’s contracts with customers may contain multiple performance obligations by promising to deliver multiple products to the customer. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company’s products are generally sold with a right of return, and the Company may provide credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Variable consideration is estimated at contract inception and updated at the end of each reporting period as additional information becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Contract Balances - The Company recognizes a contract asset representing the Company’s right to recover products upon the receipt of returned products and a contract liability for the customer refund. The adoption of this standard resulted in the Company recording a contract asset for estimated inventory returns. On April 1, 2018, the estimated inventory returns resulted in a $0.6 million decrease in Receivables, net and a $0.6 million increase in Other current assets on the Company’s Consolidated Balance Sheets. December 31, 2018 April 1, 2018 (In thousands) Contract asset - product returns $ 851 $ 577 Refund liability 1,847 1,468 Practical Expedients and Exemptions - The Company expenses incremental costs to obtain a contract (e.g. sales commissions) when incurred as the amortization period would have been one year or less. These costs are recorded within selling expenses on the Condensed Consolidated Statements of Operations. The Company has elected the accounting policy election permitted by ASC 606 to account for shipping and handling costs as activities to fulfill the promise to transfer the goods when these activities are performed after a customer obtains control of the goods. Revenue will be recognized at the point of shipment. The Company has elected the accounting policy to exclude from the transaction price all sales taxes that are assessed by a governmental authority and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer, for example, sales, use, value added, and some excise taxes. Further, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4 . Inventories as of the periods presented consisted of the following: December 31, 2018 March 31, 2018 (In thousands) Raw materials $ 48,488 $ 54,909 Finished goods 197,963 208,883 Total inventories $ 246,451 $ 263,792 There were no work-in-process inventories as of the periods presented. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 5 . 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, ADS uses industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves, foreign currency rates and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Generally, the fair value of Level 3 instruments is estimated as the net present value of expected future cash flows based on internal and external inputs. Recurring Fair Value Measurements - The assets and liabilities carried at fair value as of the periods presented were as follows: December 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 122 $ — $ 122 $ — Interest rate swaps 2,034 — 2,034 — Total assets at fair value on a recurring basis $ 2,156 $ — $ 2,156 $ — Liabilities: Derivative liabilities – diesel fuel contracts $ 851 $ — $ 851 $ — Contingent consideration for acquisitions 228 — — 228 Foreign exchange forward contracts 35 — 35 — Total liabilities at fair value on a recurring basis $ 1,079 $ — $ 851 $ 228 March 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 596 $ — $ 596 $ — Interest rate swaps 2,801 — 2,801 — Total assets at fair value on a recurring basis $ 3,397 $ — $ 3,397 $ — Liabilities: Derivative liability - diesel fuel contracts $ 116 $ — $ 116 $ — Contingent consideration for acquisitions 578 — — 578 Total liabilities at fair value on a recurring basis $ 694 $ — $ 116 $ 578 For the three and nine months ended December 31, 2018 and 2017, respectively, there were no transfers in or out of Levels 1, 2 or 3. Valuation of Contingent Consideration for Acquisitions - The fair values of the contingent consideration payables for acquisitions were calculated based on a discounted cash flow model, whereby the probability-weighted future payment value is discounted to the present value using a market discount rate. The method used to price these liabilities is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3) for the periods presented were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Balance at the beginning of the period $ 325 $ 735 $ 578 $ 1,348 Change in fair value 6 1 15 33 Payments of contingent consideration liability (103 ) (96 ) (365 ) (741 ) Balance at the end of the period $ 228 $ 640 $ 228 $ 640 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 carrying and fair value of the Company’s Senior Notes (discussed in “Note 12. Debt” in the Company’s Fiscal 2018 Form 10-K) were $100.0 million and $97.8 million, respectively, as of December 31, 2018 and $125.0 million and $122.3 million, respectively, at March 31, 2018. The fair value of the Senior Notes 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 Company believes the carrying amount on the remaining long-term debt, including the Secured Bank Term Loans, is not materially different from its fair value as the interest rates and terms of the borrowings are similar to currently available borrowings. The categorization of the framework used to evaluate this debt is considered Level 2. |
Derivative Transactions
Derivative Transactions | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Derivative Transactions | 6 . DERIVATIVE TRANSACTIONS The Company uses interest rate swaps, commodity options in the form of collars and swaps, and foreign currency forward contracts to manage its various exposures to interest rate, commodity price fluctuations and foreign currency exchange rate fluctuations. For the interest rate swap executed on June 28, 2017, gains and losses resulting from the difference between the spot rate and applicable base rate is recorded in Interest expense. For collars, commodity swaps and foreign currency forward contracts, contract settlement gains and losses are recorded in the Condensed Consolidated Statements of Operations in Derivative gains and other income, net. Gains and losses related to mark-to-market adjustments for changes in fair value of the derivative contracts are also recorded in the Condensed Consolidated Statements of Operations in Derivative gains and other income, net. The Company recorded net losses and net (gains) on mark-to-market adjustments for changes in the fair value of derivatives contracts as well as net losses and net (gains) on the settlement of derivative contracts as follows: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Diesel fuel option collars $ 1,067 $ (333 ) $ 1,209 $ (735 ) Interest rate swaps 1,810 (1,065 ) 767 (1,253 ) Foreign exchange forward contracts 35 — 35 — Total net unrealized mark-to-market loss (gains) $ 2,912 $ (1,398 ) $ 2,011 $ (1,988 ) Diesel fuel option collars (126 ) (203 ) (700 ) (204 ) Foreign exchange forward contracts (73 ) — (163 ) — Interest rate swaps (99 ) 138 (191 ) 286 Total net realized (gains) loss $ (298 ) $ (65 ) $ (1,054 ) $ 82 A summary of the fair value of derivatives is included in “Note 5. Fair Value Measurement.” |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 9 Months Ended |
Dec. 31, 2018 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Net Income Per Share and Stockholders' Equity | 7. 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 December 31, Nine Months Ended December 31, (In thousands, except per share data) 2018 2017 2018 2017 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 15,812 $ 32,105 $ 76,762 $ 67,710 Adjustments for: Dividends to redeemable convertible preferred stockholders (467 ) (456 ) (1,442 ) (1,415 ) Dividends paid to unvested restricted stockholders (25 ) (12 ) (55 ) (47 ) Net income available to common stockholders and participating securities 15,320 31,637 75,265 66,248 Undistributed income allocated to participating securities (1,027 ) (2,766 ) (6,048 ) (5,588 ) Net income available to common stockholders – Basic $ 14,293 $ 28,871 $ 69,217 $ 60,660 Weighted average number of common shares outstanding – Basic 57,180 55,917 56,925 55,497 Net income per common share – Basic $ 0.25 $ 0.52 $ 1.22 $ 1.09 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 14,293 $ 28,871 $ 69,217 $ 60,660 Weighted average number of common shares outstanding – Basic 57,180 55,917 56,925 55,497 Assumed exercise of stock options 505 542 557 627 Weighted average number of common shares outstanding – Diluted 57,685 56,459 57,482 56,124 Net income per common share – Diluted $ 0.25 $ 0.51 $ 1.20 $ 1.08 Potentially dilutive securities excluded as anti-dilutive 6,079 6,060 6,068 6,252 Stockholders’ Equity – During the nine months ended December 31, 2017, the Company repurchased 0.4 million shares of common stock at a cost of $7.9 million. The Company did not repurchase any shares of common stock during the three and nine months ended December 31, 2018. The repurchases were made under the Board of Directors’ authorization in February 2017 to repurchase up to $50 million of ADS common stock in accordance with applicable securities laws. As of December 31, 2018, approximately $42.1 million of common stock may be repurchased under the authorization. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or terminated at any time at the Company’s discretion |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. 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. ADS Mexicana’s Revolving Credit Facility expired on June 22, 2018 and was replaced by an Intercompany Revolving Credit Promissory Note (the “Intercompany Note”) with a borrowing capacity of $12.0 million. The Intercompany Note matures on June 22, 2022. The other joint venture partner indemnifies the Company 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, 2018, there were no borrowings 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. The South American Joint Venture operates within Argentina, which on July 1, 2018, was identified for high inflationary accounting. The Company has determined the effect of a change in the exchange rate under high inflationary accounting is not expected to have a material effect on the Company’s results in any interim or annual period. ADS owns 50% of the South American Joint Venture. The Company has concluded that it is appropriate to account for these investments using the equity method, whereby the Company’s share of the income or loss of the joint venture is reported in the Condensed Consolidated Statements of Operations under Equity in net loss (income) of unconsolidated affiliates and the Company’s investment in the joint venture is included in Other assets in the Condensed Consolidated Balance Sheets. ADS is the guarantor of 50% of the South American Joint Venture’s credit facility, 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, 2018. The maximum borrowings permitted under the South American Joint Venture’s credit facility are $22.0 million. This credit facility allows borrowings in either Chilean pesos or US dollars at a fixed interest rate determined at inception of each draw on the facility. The guarantee of the South American Joint Venture’s debt expires on December 31, 2020. ADS does not anticipate any required contributions related to the balance of this credit facility. As of December 31, 2018 and March 31, 2018, the outstanding principal balances of the credit facility including letters of credit were $12.6 million and $14.5 million, respectively. As of December 31, 2018, there were no U.S. dollar denominated loans. The weighted average interest rate as of December 31, 2018 was 5.6% on Chilean peso denominated loans. ADS and the South American Joint Venture have shared services arrangements in order to execute the joint venture services. In addition, the South American Joint Venture has entered into agreements for pipe sales to ADS and its other related parties, which totaled $0.4 million and $1.1million for the three and nine months ended December 31, 2018, respectively, and $0.6 million and $1.4 million for the three and nine months ended December 31, 2017, respectively. ADS pipe sales to the South American Joint Venture were $0.3 million and $0.1 million for the three months ended December 31, 2018 and 2017, respectively, and $0.8 million and $0.3 million for the nine months ended December 31, 2018 and 2017, respectively. BaySaver - BaySaver Technologies LLC (“BaySaver”) was a joint venture that was established to produce and distribute water quality filters and separators used in the removal of sediment and pollution from storm water. During the third quarter, ADS purchased the remaining 35% ownership interest in BaySaver for a purchase price of $8.8 million. The purchase of the remaining 35% ownership interest was reflected as a reduction in the Redeemable noncontrolling interest in subsidiary in the Condensed Consolidated Balance Sheets and as a financing activity in the Condensed Consolidated Statement of Cash Flows. Additionally, resulting from this transaction, the Company recorded a non-cash adjustment to deferred taxes. BaySaver in now a wholly-owned subsidiary of ADS. ADS and BaySaver were parties to a shared services arrangement, prior to the acquisition, which provided for the provision of certain joint venture services. Included within this arrangement was the lease of a plant and adjacent yard used to conduct business and operating expenses related to the leased facility. Tigre-ADS USA - Tigre-ADS USA was a joint venture established to manufacture and sell polyvinyl chloride (“PVC”) fittings for waterworks, plumbing, and HVAC applications primarily in the United States and Canadian markets. In April 2018, the Company and the joint venture partner agreed to exchange the Company’s shares of Tigre-ADS USA for a release from the existing debt guarantees. Following the exchange, the Company no longer has an ownership interest in Tigre-ADS USA. ADS purchased $0.3 million and $0.5 million of Tigre-ADS USA manufactured products for use in the production of ADS products during the three months ended December 31, 2018 and 2017, respectively, and $1.5 million and $1.6 million during the nine months ended December 31, 2018 and 2017, respectively. |
Debt
Debt | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 9. Long-term debt as of the periods presented consisted of the following: December 31, 2018 March 31, 2018 (In thousands) Secured Bank Term Loans: Revolving Credit Facility — ADS $ 126,500 $ 171,500 Revolving Credit Facility — ADS Mexicana — — Senior Notes payable 100,000 125,000 Industrial revenue bonds 240 940 Equipment financing 2,656 3,336 Total 229,396 300,776 Unamortized debt issuance costs (2,467 ) (3,028 ) Current maturities (26,165 ) (26,848 ) Long-term debt obligation $ 200,764 $ 270,900 Letters of credit outstanding at December 31, 2018 and March 31, 2018 amounted to $8.6 million and $13.0 million, respectively, and reduce the availability of the Revolving Credit Facilities. Events Related to the Secured Bank Term Loans - On June 22, 2018, the Company’s $12.0 million Revolving Credit Facility – ADS Mexicana matured. At June 22, 2018, there were no borrowings under the Revolving Credit Facility – ADS Mexicana. Refer to “Note 8. Related Party Transactions” for additional information on the Intercompany Note which replaced the Revolving Credit Facility – ADS Mexicana. Fiscal 2019 Amendment to the Secured Bank Term Loans – On July 9, 2018, the Company amended the Second Amended and Restated Credit Agreement (the “Credit Agreement”) and the Second Amended and Restated Private Shelf Agreement (the “Private Shelf Agreement”) to amend the definition of Consolidated EBITDA and changed the timing of the quarterly rate adjustments. In addition, the amendment to the Credit Agreement clarified the process of a transition to replace LIBOR which is being phased out. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Purchase Commitments – The Company secures supplies of resin raw material by agreeing to purchase quantities during a future given period at a fixed price. These purchase contracts typically range from 1 to 12 months and occur in the ordinary course of business. Under such non-cancelable purchase contracts in place at December 31, 2018, the Company has agreed to purchase resin over the period January 2019 through December 2019 at a committed purchase cost of $23.5 million. Litigation and Other Proceedings – As previously disclosed in the Company’s Fiscal 2018 Form 10-K, the Company’s historical accounting practices were the subject of an investigation by SEC’s Division of Enforcement (the “Enforcement Division”), which began in August 2015. That matter was resolved on July 10, 2018 via a settlement between the Company and the SEC. Pursuant to the settlement, the Company consented to the entry of an administrative order without admitting or denying the findings therein. The order required the Company to cease and desist from committing or causing any violations and any future violations of certain provisions of the federal securities laws and the rules promulgated thereunder and to pay a civil monetary penalty of $1.0 million, which payment has been made. The Company previously accrued an expense for the penalty amount during Fiscal 2018 On July 29, 2015, a putative stockholder class action, Christopher Wyche, individually and on behalf of all others similarly situated v. Advanced Drainage Systems, Inc., et al. (Case No. 1:15-cv-05955-KPF), was commenced in the U.S. District Court for the Southern District of New York (the “District Court”), naming the Company, along with Joseph A. Chlapaty, the Company’s former Chief Executive Officer, and Mark B. Sturgeon, the Company’s former Chief Financial Officer, as defendants and alleging violations of the federal securities laws. An amended complaint was filed on April 28, 2016. The amended complaint alleged that the Company made material misrepresentations and/or omissions of material fact in its public disclosures during the period from July 25, 2014 through March 29, 2016, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. On March 10, 2017, the District Court dismissed plaintiff’s claims against all defendants in their entirety and with prejudice. Plaintiff appealed to the United States Court of Appeals for the Second Circuit, and on October 13, 2017 the District Court’s judgment was affirmed by the Second Circuit. On October 27, 2017, plaintiff filed a petition for rehearing with the Second Circuit. The Second Circuit denied the petition for rehearing on November 28, 2017. On November 27, 2018, the plaintiff filed a motion for relief from final judgment and for leave to file an amended complaint with the District Court. The defendants have opposed the plaintiff’s motion and are awaiting a decision by the District Court. While it is reasonably possible that this matter ultimately could be decided unfavorably to the Company, the Company is currently unable to estimate the range of the possible losses, but it could be material. 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate income tax rate from 35% to 21%, full expensing on qualified property, eliminates the domestic manufacturing deduction and implements a territorial tax system. The 21% U.S. corporate income tax rate was effective January 1, 2018. The Company previously recognized the provisional tax impacts related to revaluation of deferred tax assets and liabilities and deemed repatriated earnings and included these amounts in its financial statements for the year ended March 31, 2018. During the three months ended December 31, 2018, the Company finalized the accounting for the Tax Act. During the three and nine months ended December 31, 2018, the Company did not make any material adjustments to its provisional amounts included in its consolidated financial statements for the year ended March 31, 2018. The Company recognized a provisional amount for revaluing its deferred tax attributes resulting in a $16.0 million tax benefit that was recorded for the fiscal year ended March 31, 2018. On the basis of revised computations in filing the U.S. federal tax return during the third quarter, the Company recognized an additional measurement-period adjustment of $0.4 million to deferred tax expense for the three and nine months ended December 31, 2018. A total deferred tax benefit of $15.6 million was recorded. The Company’s accounting for its deferred tax attributes is now complete. The Company had $26.5 million of undistributed earnings on its foreign subsidiaries subject to the deemed mandatory repatriation. The Company recognized a provisional amount of $5.2 million of income tax expense that was recorded for the fiscal year ended March 31, 2018. After the utilization of existing foreign tax credits, the Company expected to pay additional U.S. federal taxes of approximately $1.0 million as of the fiscal year ended March 31, 2018. On the basis of revised computations in filing the U.S. federal tax return during the third quarter, the Company recognized an additional measurement-period adjustment of $0.6 million to income tax benefit for the three and nine months ended December 31, 2018. A total transition tax expense of $4.6 million was recorded. After the utilization of existing foreign tax credits, the Company paid an additional U.S. federal taxes of $0.7 million. The Company’s accounting for the deemed mandatory repatriation tax is now complete. 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 discrete events. For the three months ended December 31, 2018 and 2017, the Company utilized an effective tax rate of 13.4% and (29.4)%, respectively, to calculate its provision for income taxes. For the nine months ended December 31, 2018 and 2017, the Company utilized an effective tax rate of 26.6% and 18.6%, respectively, to calculate its provision for income taxes. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options and restricted stock. Equity-classified restricted stock awards are measured based on the grant-date estimated fair value of each award. The 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 three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Component of income before income taxes: Cost of goods sold $ 84 $ 45 $ 228 $ 135 Selling expenses 48 27 134 79 General and administrative expenses 1,526 1,568 4,667 4,926 Total stock-based compensation expense $ 1,658 $ 1,640 $ 5,029 $ 5,140 The following table summarizes stock-based compensation expense by award type for the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Stock-based compensation expense: Equity-classified Stock Options $ 516 $ 898 $ 2,084 $ 2,991 Restricted Stock 863 430 2,169 1,158 Non-Employee Directors 279 312 776 991 Total stock-based compensation expense $ 1,658 $ 1,640 $ 5,029 $ 5,140 2017 Omnibus Plan On May 24, 2017, the Board of Directors approved the 2017 Omnibus Incentive Plan (the “2017 Incentive Plan”) which was approved by the Company’s stockholders on July 17, 2017. The 2017 Incentive Plan provides for the issuance of a maximum of 3.5 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards. During the nine months ended December 31, 2018, the Company granted 0.1 million shares of restricted stock with a grant date fair value of $3.6 million. Performance Units - Options – During the nine months ended December 31, 2018, the Company granted 0.2 million nonqualified stock options under the 2017 Incentive Plan. The grant date fair value of the nonqualified stock options was $2.0 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used in estimate the fair value of stock-options during the nine months ended December 31, 2018: Nine Months Ended December 31, Common stock price 25.75 Expected stock price volatility 30.5 Risk-free interest rate 2.9 Weighted-average expected option life (years) 6.0 Dividend yield 1.2% |
Business Segments Information
Business Segments Information | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments Information | 13. The Company operates its business in two distinct operating and reportable segments based on the markets it serves: “Domestic” and “International.” The Chief Operating Decision Maker (“CODM”) evaluates segment reporting based on Net sales and Segment Adjusted EBITDA. The Company calculates Segment Adjusted EBITDA as net income or loss before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other expenses. Beginning April 1, 2018, the Company revised its allocation of allowances for returns, rebates, and discounts between Pipe and Allied Products for segment reporting purposes. Prior to April 1, 2018, the Company allocated substantially all returns, rebates, and discounts to Pipe net sales. These changes did not impact the Company’s previously reported consolidated financial results. The prior period segment results and related disclosures have been recast to conform to the current year presentation under the new allocation methodology. 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, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Domestic Pipe $ 196,675 $ 198,713 $ 688,025 $ 683,512 Allied Products 82,504 78,159 284,921 264,741 Total domestic 279,179 276,872 972,946 948,253 International Pipe 29,580 33,231 108,036 101,560 Allied Products 9,354 10,729 31,533 30,427 Total international 38,934 43,960 139,569 131,987 Total Net sales $ 318,113 $ 320,832 $ 1,112,515 $ 1,080,240 The following sets forth certain additional financial information attributable to the reportable segments for the periods presented: Domestic International Total (In thousands) For the three months ended December 31, 2018 Net sales $ 279,179 $ 38,934 $ 318,113 Segment Adjusted EBITDA 42,460 5,974 48,434 Interest expense 5,621 74 5,695 Income tax expense 1,885 605 2,490 Depreciation and amortization 15,690 1,859 17,549 Equity in net loss (income) of unconsolidated affiliates — (466 ) (466 ) Capital expenditures 10,720 1,111 11,831 For the three months ended December 31, 2017 Net sales $ 276,872 $ 43,960 $ 320,832 Segment Adjusted EBITDA 48,790 7,209 55,999 Interest expense 3,007 79 3,086 Income tax (benefit) expense (9,117 ) 1,746 (7,371 ) Depreciation and amortization 15,804 2,048 17,852 Equity in net loss (income) of unconsolidated affiliates 952 (1,720 ) (768 ) Capital expenditures 7,820 269 8,089 Domestic International Total (In thousands) For the nine months ended December, 2018 Net sales $ 972,946 $ 139,569 $ 1,112,515 Segment Adjusted EBITDA 175,831 19,267 195,098 Interest expense 13,812 216 14,028 Income tax expense 26,660 2,308 28,968 Depreciation and amortization 47,281 5,631 52,912 Equity in net loss of unconsolidated affiliates — 225 225 Capital expenditures 28,211 2,919 31,130 For the nine months ended December, 2017 Net sales $ 948,253 $ 131,987 $ 1,080,240 Segment Adjusted EBITDA 167,352 15,876 183,228 Interest expense 12,363 257 12,620 Income tax expense 12,583 3,229 15,812 Depreciation and amortization 49,725 6,068 55,793 Equity in net loss (income) of unconsolidated affiliates 1,607 (2,103 ) (496 ) Capital expenditures 33,601 1,523 35,124 The following sets forth certain additional financial information attributable to the reportable segments as of the periods presented: December 31, 2018 March 31, 2018 (In thousands) Investments in unconsolidated affiliates International $ 10,007 $ 12,343 Total $ 10,007 $ 12,343 Total identifiable assets Domestic $ 892,658 $ 904,718 International 126,474 142,822 Eliminations (12,092 ) (4,298 ) Total $ 1,007,040 $ 1,043,242 The following reconciles net income to segment adjusted EBITDA for the periods presented: For the Three Months Ended December 31, 2018 2017 Domestic International Domestic International (In thousands) Reconciliation of Segment Adjusted EBITDA: Net income $ 13,333 $ 3,217 $ 29,755 $ 3,460 Depreciation and amortization 15,690 1,859 15,804 2,048 Interest expense 5,621 74 3,007 79 Income tax expense (benefit) 1,885 605 (9,117 ) 1,746 Segment EBITDA 36,529 5,755 39,449 7,333 Derivative fair value adjustments 1,067 — (145 ) — Foreign currency transaction gains — (423 ) — (430 ) Loss (gain) on disposal of assets and costs from exit and disposal activities 89 55 1,940 (16 ) Unconsolidated affiliates interest, tax, depreciation and amortization (a) — 587 315 322 Contingent consideration remeasurement (8 ) — 1 — Stock-based compensation expense 1,658 — 1,640 — ESOP deferred stock-based compensation 2,724 — 2,737 — Executive retirement expense 50 — 73 — Restatement-related costs (b) (742 ) — 888 — Legal settlement — — 1,800 — Transaction costs (c) 83 — 92 — Strategic growth and operational improvement initiatives (d) 1,010 — — — Segment Adjusted EBITDA $ 42,460 $ 5,974 $ 48,790 $ 7,209 For the Nine Months Ended December 31, 2018 2017 Domestic International Domestic International (In thousands) Reconciliation of Segment Adjusted EBITDA: Net income $ 70,539 $ 9,034 $ 61,837 $ 7,811 Depreciation and amortization 47,281 5,631 49,725 6,068 Interest expense 13,812 216 12,363 257 Income tax expense (benefit) 26,660 2,308 12,583 3,229 Segment EBITDA 158,292 17,189 136,508 17,365 Derivative fair value adjustments 1,209 — (735 ) — Foreign currency transaction (gains) losses — 224 — (2,878 ) Loss on disposal of assets and costs from exit and disposal activities 961 611 10,253 215 Unconsolidated affiliates interest, tax, depreciation and amortization (a) — 1,237 886 1,174 Contingent consideration remeasurement (15 ) — 33 — Stock-based compensation expense 5,029 — 5,140 — ESOP deferred stock-based compensation 11,113 — 7,946 — Executive retirement (benefit) expense (228 ) — 982 — Restatement-related (benefit) costs (b) (1,938 ) — 3,390 — Legal settlement — — 1,800 — Transaction costs (c) 398 6 1,149 — Strategic growth and operational improvement initiatives (d) 1,010 — — — Segment Adjusted EBITDA $ 175,831 $ 19,267 $ 167,352 $ 15,876 (a) Includes the proportional share of interest, income taxes, depreciation and amortization related to the South American Joint Venture and the former Tigre-ADS USA joint venture, which are accounted for under the equity method of accounting. (b) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the restatement of the prior period financial statements as reflected in the fiscal year 2015 Form 10-K and fiscal year 2016 Form 10-K/A. The benefit recognized in fiscal 2019 is the result of insurance proceeds received in fiscal 2019. (c) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the debt refinancing and potential asset acquisitions and dispositions. (d) Represents professional fees incurred in connection with the Company’s strategic growth and operational improvement initiatives, which include various market feasibility assessments and acquisition strategies, along with operational improvement initiatives, which include evaluation of the Company’s manufacturing network and improvement initiatives. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Dividends on Common Stock - During the fourth quarter of fiscal 2019, the Company declared a quarterly cash dividend of $0.08 per share of common stock. The dividend is payable on March 15, 2019 to stockholders of record at the close of business on March 1, 2019. |
Background and Summary of Sig_2
Background and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Condensed Consolidated Balance Sheet as of March 31, 2018 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2018 (“Fiscal 2018 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, 2018 and the results of operations and cash flows for the three and nine months ended December 31, 2018. 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 2018 Form 10-K. |
Principles of Consolidation | Principles of Consolidation - The Condensed Consolidated Financial Statements include the Company, its wholly-owned subsidiaries, its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net loss of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. |
Recent Accounting Guidance | Recent Accounting Guidance Recently Adopted Accounting Guidance Cloud Computing - On August 29, 2018, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard update (“ASU”) to provide guidance on implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. The ASU, which was released in response to a consensus reached by the EITF at its June 2018 meeting, aligns the accounting for such costs with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU includes in its scope implementation costs of a CCA that is a service contract and clarifies that a customer should apply CCA guidance to determine which implementation costs should be capitalized in such a CCA. The Company adopted this update effective July 1, 2018 on a prospective basis. The new standard did not have a material impact on the Condensed Consolidated Financial Statements. Revenue Recognition - In May 2014, the FASB issued an ASU which amends the guidance for revenue recognition. This amendment contains principles that will require an entity to recognize revenue to depict the transfer of goods and services to customers at an amount that an entity expects to be entitled to in exchange for goods or services. The amendment sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations and recognizing the revenue upon satisfaction of performance obligations. In August 2015, the FASB issued an additional ASU that deferred the effective date of the new revenue standard for public entities to periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date of periods beginning after December 15, 2016. There have also been various additional ASUs issued by the FASB in 2016 that further amend this new revenue standard. The updated standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted these standards on April 1, 2018 using the modified retrospective transition method. See “Note 3. Revenue Recognition” for further information on the adoption of the revenue recognition ASUs. Cash Flow Classification - In August 2016, the FASB issued an ASU which provides amended guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance and distributions received from equity method investees. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and early adoption is permitted. This amended guidance must be applied retrospectively to all periods presented but may be applied prospectively if retrospective application would be impracticable. The Company adopted this update effective April 1, 2018 using the retrospective method. The new standard did not have a material impact on the Condensed Consolidated Financial Statements. Goodwill Impairment - In January 2017, the FASB issued an ASU which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the standards update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for annual periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Definition of a Business - In January 2017, the FASB issued an ASU to clarify the definition of a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Stock-Based Compensation - In May 2017, the FASB issued an ASU to clarify when modification accounting should be applied for changes to the terms or conditions of share-based payment awards. The amendments clarify that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted Leases - In February 2016, the FASB issued an ASU which amends the guidance for leases. This standard contains principles that will require an entity to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability, unless the lease is a short-term lease that has an accounting lease term of twelve months or less. The standard also contains other changes to the current lease guidance that may result in changes to how entities determine which contractual arrangements qualify as a lease, the accounting for executory costs, such as property taxes and insurance, as well as which lease origination costs will be capitalizable. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption of this standard is permitted. The standard allows the use of the modified retrospective transition method, whereby the new guidance will be applied at the beginning of the earliest period presented in the financial statements of the period of adoption. The modified retrospective transition approach includes certain practical expedients that entities may elect to apply in transition. In July 2018, the FASB amended ASC 842 to provide another transition method, allowing a cumulative effect adjustment to the opening balance of retained earnings during the period of adoption. The Company has implemented a new software solution to improve the process of tracking and accounting for leases under the current and new standards. The Company will adopt this standard effective April 1, 2019 using the modified retrospective transition method which does not require adjustments to comparative periods or require modified disclosures for those periods. The Company expects to elect the transition relief practical expedients. The Company is continuing to evaluate the impact on its Condensed Consolidated Financial Statements. The Company currently does not expect the adoption of ASC 842 to have a material impact on the Statement of Operations or Statement of Cash Flows. The recording of right-of-use assets and lease liabilities is expected to have a material impact on the Company’s Condensed Consolidated Balance Sheet. Measurement of Credit Losses - In June 2016, the FASB issued an ASU which provides amended guidance on the measurement of credit losses on financial instruments, including trade receivables. This standard requires the use of an impairment model referred to as the current expected credit loss model. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, and early adoption is permitted for fiscal years beginning after December 15, 2018. The Company expects to adopt this standard effective April 1, 2020. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. Hedge Accounting – In August 2017, the FASB issued an ASU which expands an entity’s ability to apply hedge accounting for non-financial and financial risk components and provides a simplified approach for fair value hedging of interest rate risk. The standard also refines how entities assess hedge effectiveness. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and early adoption is permitted. The Company expects to adopt this standard effective April 1, 2019. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. Fair Value Measurement – In August 2018, the FASB issued an ASU that is intended to improve the effectiveness of disclosures in notes to financial statements. The standard removes, modifies and adds certain disclosure requirements related to fair value measurements. This standard is effective for fiscal years beginning after December 15, 2019. The standard requires the use of the retrospective transition method for specific amendments within the ASU and the prospective treatment of other amendments. Early adoption is permitted. The Company will early adopt this ASU, effective for the Company’s Annual Report on Form 10-K for the year ending March 31, 2019 . The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. With the exception of the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2018 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements. |
Loss on Disposal of Assets an_2
Loss on Disposal of Assets and Costs from Exit and Disposal Activities (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Loss on Disposal of Assets and Costs from Exit and Disposal Activities | The following table summarizes the activity included in Loss on disposal of assets and costs from exit and disposal activities recorded during the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Accelerated depreciation $ — $ — $ 430 $ 3,561 Plant severance 39 1,021 122 1,848 Headcount reduction 237 — 237 2,577 Product optimization 48 — 351 — Other restructuring activities 114 56 316 56 Total 2018 Restructuring Plan activities $ 438 $ 1,077 $ 1,456 $ 8,042 (Gain) loss on other disposals and partial disposals of property, plant and equipment (294 ) 847 116 2,426 Total loss on disposal of assets and costs from exit and disposal activities $ 144 $ 1,924 $ 1,572 $ 10,468 |
Schedule of Reconciliation of Restructuring Liability | A reconciliation of the beginning and ending amounts of restructuring liability related to the 2018 Restructuring Plan at December 31, 2018 and 2017 is as follows: Nine Months Ended December 31, 2018 2017 (Amounts in thousands) (In thousands) Balance at the beginning of the period $ 3,901 $ — Expenses 316 56 Non-cash expenses 359 4,425 Payments (2,497 ) (1,621 ) Balance at the end of the period $ 2,079 $ 2,860 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and April 1, 2018: December 31, 2018 April 1, 2018 (In thousands) Contract asset - product returns $ 851 $ 577 Refund liability 1,847 1,468 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of the periods presented consisted of the following: December 31, 2018 March 31, 2018 (In thousands) Raw materials $ 48,488 $ 54,909 Finished goods 197,963 208,883 Total inventories $ 246,451 $ 263,792 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
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, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 122 $ — $ 122 $ — Interest rate swaps 2,034 — 2,034 — Total assets at fair value on a recurring basis $ 2,156 $ — $ 2,156 $ — Liabilities: Derivative liabilities – diesel fuel contracts $ 851 $ — $ 851 $ — Contingent consideration for acquisitions 228 — — 228 Foreign exchange forward contracts 35 — 35 — Total liabilities at fair value on a recurring basis $ 1,079 $ — $ 851 $ 228 March 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 596 $ — $ 596 $ — Interest rate swaps 2,801 — 2,801 — Total assets at fair value on a recurring basis $ 3,397 $ — $ 3,397 $ — Liabilities: Derivative liability - diesel fuel contracts $ 116 $ — $ 116 $ — Contingent consideration for acquisitions 578 — — 578 Total liabilities at fair value on a recurring basis $ 694 $ — $ 116 $ 578 |
Summary of Changes in Fair Value of Recurring Fair Value Measurements Using Unobservable Inputs | Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3) for the periods presented were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Balance at the beginning of the period $ 325 $ 735 $ 578 $ 1,348 Change in fair value 6 1 15 33 Payments of contingent consideration liability (103 ) (96 ) (365 ) (741 ) Balance at the end of the period $ 228 $ 640 $ 228 $ 640 |
Derivative Transactions (Tables
Derivative Transactions (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash Settlements and Net Losses and Net (Gains) on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts | The Company recorded net losses and net (gains) on mark-to-market adjustments for changes in the fair value of derivatives contracts as well as net losses and net (gains) on the settlement of derivative contracts as follows: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Diesel fuel option collars $ 1,067 $ (333 ) $ 1,209 $ (735 ) Interest rate swaps 1,810 (1,065 ) 767 (1,253 ) Foreign exchange forward contracts 35 — 35 — Total net unrealized mark-to-market loss (gains) $ 2,912 $ (1,398 ) $ 2,011 $ (1,988 ) Diesel fuel option collars (126 ) (203 ) (700 ) (204 ) Foreign exchange forward contracts (73 ) — (163 ) — Interest rate swaps (99 ) 138 (191 ) 286 Total net realized (gains) loss $ (298 ) $ (65 ) $ (1,054 ) $ 82 |
Net Income Per Share and Stoc_2
Net Income Per Share and Stockholders' Equity (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
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 December 31, Nine Months Ended December 31, (In thousands, except per share data) 2018 2017 2018 2017 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 15,812 $ 32,105 $ 76,762 $ 67,710 Adjustments for: Dividends to redeemable convertible preferred stockholders (467 ) (456 ) (1,442 ) (1,415 ) Dividends paid to unvested restricted stockholders (25 ) (12 ) (55 ) (47 ) Net income available to common stockholders and participating securities 15,320 31,637 75,265 66,248 Undistributed income allocated to participating securities (1,027 ) (2,766 ) (6,048 ) (5,588 ) Net income available to common stockholders – Basic $ 14,293 $ 28,871 $ 69,217 $ 60,660 Weighted average number of common shares outstanding – Basic 57,180 55,917 56,925 55,497 Net income per common share – Basic $ 0.25 $ 0.52 $ 1.22 $ 1.09 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 14,293 $ 28,871 $ 69,217 $ 60,660 Weighted average number of common shares outstanding – Basic 57,180 55,917 56,925 55,497 Assumed exercise of stock options 505 542 557 627 Weighted average number of common shares outstanding – Diluted 57,685 56,459 57,482 56,124 Net income per common share – Diluted $ 0.25 $ 0.51 $ 1.20 $ 1.08 Potentially dilutive securities excluded as anti-dilutive 6,079 6,060 6,068 6,252 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt as of the periods presented consisted of the following: December 31, 2018 March 31, 2018 (In thousands) Secured Bank Term Loans: Revolving Credit Facility — ADS $ 126,500 $ 171,500 Revolving Credit Facility — ADS Mexicana — — Senior Notes payable 100,000 125,000 Industrial revenue bonds 240 940 Equipment financing 2,656 3,336 Total 229,396 300,776 Unamortized debt issuance costs (2,467 ) (3,028 ) Current maturities (26,165 ) (26,848 ) Long-term debt obligation $ 200,764 $ 270,900 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-based Compensation Expense | The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Component of income before income taxes: Cost of goods sold $ 84 $ 45 $ 228 $ 135 Selling expenses 48 27 134 79 General and administrative expenses 1,526 1,568 4,667 4,926 Total stock-based compensation expense $ 1,658 $ 1,640 $ 5,029 $ 5,140 The following table summarizes stock-based compensation expense by award type for the three and nine months ended December 31, 2018 and 2017: Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Stock-based compensation expense: Equity-classified Stock Options $ 516 $ 898 $ 2,084 $ 2,991 Restricted Stock 863 430 2,169 1,158 Non-Employee Directors 279 312 776 991 Total stock-based compensation expense $ 1,658 $ 1,640 $ 5,029 $ 5,140 |
Summary of Assumption Used in Estimate Fair Value of Stock Options | The following table summarizes the assumptions used in estimate the fair value of stock-options during the nine months ended December 31, 2018: Nine Months Ended December 31, Common stock price 25.75 Expected stock price volatility 30.5 Risk-free interest rate 2.9 Weighted-average expected option life (years) 6.0 Dividend yield 1.2% |
Business Segments Information (
Business Segments Information (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
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, Nine Months Ended December 31, 2018 2017 2018 2017 (In thousands) Domestic Pipe $ 196,675 $ 198,713 $ 688,025 $ 683,512 Allied Products 82,504 78,159 284,921 264,741 Total domestic 279,179 276,872 972,946 948,253 International Pipe 29,580 33,231 108,036 101,560 Allied Products 9,354 10,729 31,533 30,427 Total international 38,934 43,960 139,569 131,987 Total Net sales $ 318,113 $ 320,832 $ 1,112,515 $ 1,080,240 |
Schedule of Additional Financial Information Attributable to Reportable Segments | The following sets forth certain additional financial information attributable to the reportable segments for the periods presented: Domestic International Total (In thousands) For the three months ended December 31, 2018 Net sales $ 279,179 $ 38,934 $ 318,113 Segment Adjusted EBITDA 42,460 5,974 48,434 Interest expense 5,621 74 5,695 Income tax expense 1,885 605 2,490 Depreciation and amortization 15,690 1,859 17,549 Equity in net loss (income) of unconsolidated affiliates — (466 ) (466 ) Capital expenditures 10,720 1,111 11,831 For the three months ended December 31, 2017 Net sales $ 276,872 $ 43,960 $ 320,832 Segment Adjusted EBITDA 48,790 7,209 55,999 Interest expense 3,007 79 3,086 Income tax (benefit) expense (9,117 ) 1,746 (7,371 ) Depreciation and amortization 15,804 2,048 17,852 Equity in net loss (income) of unconsolidated affiliates 952 (1,720 ) (768 ) Capital expenditures 7,820 269 8,089 Domestic International Total (In thousands) For the nine months ended December, 2018 Net sales $ 972,946 $ 139,569 $ 1,112,515 Segment Adjusted EBITDA 175,831 19,267 195,098 Interest expense 13,812 216 14,028 Income tax expense 26,660 2,308 28,968 Depreciation and amortization 47,281 5,631 52,912 Equity in net loss of unconsolidated affiliates — 225 225 Capital expenditures 28,211 2,919 31,130 For the nine months ended December, 2017 Net sales $ 948,253 $ 131,987 $ 1,080,240 Segment Adjusted EBITDA 167,352 15,876 183,228 Interest expense 12,363 257 12,620 Income tax expense 12,583 3,229 15,812 Depreciation and amortization 49,725 6,068 55,793 Equity in net loss (income) of unconsolidated affiliates 1,607 (2,103 ) (496 ) Capital expenditures 33,601 1,523 35,124 The following sets forth certain additional financial information attributable to the reportable segments as of the periods presented: December 31, 2018 March 31, 2018 (In thousands) Investments in unconsolidated affiliates International $ 10,007 $ 12,343 Total $ 10,007 $ 12,343 Total identifiable assets Domestic $ 892,658 $ 904,718 International 126,474 142,822 Eliminations (12,092 ) (4,298 ) Total $ 1,007,040 $ 1,043,242 |
Schedule of Reconciliation of Segment Adjusted EBITDA to Net Income | The following reconciles net income to segment adjusted EBITDA for the periods presented: For the Three Months Ended December 31, 2018 2017 Domestic International Domestic International (In thousands) Reconciliation of Segment Adjusted EBITDA: Net income $ 13,333 $ 3,217 $ 29,755 $ 3,460 Depreciation and amortization 15,690 1,859 15,804 2,048 Interest expense 5,621 74 3,007 79 Income tax expense (benefit) 1,885 605 (9,117 ) 1,746 Segment EBITDA 36,529 5,755 39,449 7,333 Derivative fair value adjustments 1,067 — (145 ) — Foreign currency transaction gains — (423 ) — (430 ) Loss (gain) on disposal of assets and costs from exit and disposal activities 89 55 1,940 (16 ) Unconsolidated affiliates interest, tax, depreciation and amortization (a) — 587 315 322 Contingent consideration remeasurement (8 ) — 1 — Stock-based compensation expense 1,658 — 1,640 — ESOP deferred stock-based compensation 2,724 — 2,737 — Executive retirement expense 50 — 73 — Restatement-related costs (b) (742 ) — 888 — Legal settlement — — 1,800 — Transaction costs (c) 83 — 92 — Strategic growth and operational improvement initiatives (d) 1,010 — — — Segment Adjusted EBITDA $ 42,460 $ 5,974 $ 48,790 $ 7,209 For the Nine Months Ended December 31, 2018 2017 Domestic International Domestic International (In thousands) Reconciliation of Segment Adjusted EBITDA: Net income $ 70,539 $ 9,034 $ 61,837 $ 7,811 Depreciation and amortization 47,281 5,631 49,725 6,068 Interest expense 13,812 216 12,363 257 Income tax expense (benefit) 26,660 2,308 12,583 3,229 Segment EBITDA 158,292 17,189 136,508 17,365 Derivative fair value adjustments 1,209 — (735 ) — Foreign currency transaction (gains) losses — 224 — (2,878 ) Loss on disposal of assets and costs from exit and disposal activities 961 611 10,253 215 Unconsolidated affiliates interest, tax, depreciation and amortization (a) — 1,237 886 1,174 Contingent consideration remeasurement (15 ) — 33 — Stock-based compensation expense 5,029 — 5,140 — ESOP deferred stock-based compensation 11,113 — 7,946 — Executive retirement (benefit) expense (228 ) — 982 — Restatement-related (benefit) costs (b) (1,938 ) — 3,390 — Legal settlement — — 1,800 — Transaction costs (c) 398 6 1,149 — Strategic growth and operational improvement initiatives (d) 1,010 — — — Segment Adjusted EBITDA $ 175,831 $ 19,267 $ 167,352 $ 15,876 (a) Includes the proportional share of interest, income taxes, depreciation and amortization related to the South American Joint Venture and the former Tigre-ADS USA joint venture, which are accounted for under the equity method of accounting. (b) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the restatement of the prior period financial statements as reflected in the fiscal year 2015 Form 10-K and fiscal year 2016 Form 10-K/A. The benefit recognized in fiscal 2019 is the result of insurance proceeds received in fiscal 2019. (c) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the debt refinancing and potential asset acquisitions and dispositions. (d) Represents professional fees incurred in connection with the Company’s strategic growth and operational improvement initiatives, which include various market feasibility assessments and acquisition strategies, along with operational improvement initiatives, which include evaluation of the Company’s manufacturing network and improvement initiatives. |
Background and Summary of Sig_3
Background and Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Dec. 31, 2018Segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 2 |
Loss on Disposal of Assets an_3
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018USD ($)Facility | Dec. 31, 2017USD ($)Facility | Dec. 31, 2018USD ($)Facility | Dec. 31, 2017USD ($)Facility | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Number of manufacturing facilities closed | Facility | 1 | 3 | 1 | 3 |
Restructuring plan activities | $ 438,000 | $ 1,077,000 | $ 1,456,000 | $ 8,042,000 |
Other Accrued Liabilities and Other Liabilities [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Severance liability related to restructuring plan | 700,000 | 700,000 | ||
2018 Restructuring Plan [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Restructuring plan activities | 316,000 | 56,000 | ||
Domestic [Member] | 2018 Restructuring Plan [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Restructuring plan activities | 300,000 | 1,100,000 | 1,100,000 | 8,000,000 |
International Segment [Member] | 2018 Restructuring Plan [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Restructuring plan activities | $ 100,000 | $ 0 | $ 400,000 | $ 0 |
Loss on Disposal of Assets an_4
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Summary of Loss on Disposal of Assets and Costs from Exit and Disposal Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | ||||
Accelerated depreciation | $ 430 | $ 3,561 | ||
Plant severance | $ 39 | $ 1,021 | 122 | 1,848 |
Headcount reduction | 237 | 237 | 2,577 | |
Product optimization | 48 | 351 | ||
Other restructuring activities | 114 | 56 | 316 | 56 |
Total 2018 Restructuring Plan activities | 438 | 1,077 | 1,456 | 8,042 |
(Gain) loss on other disposals and partial disposals of property, plant and equipment | (294) | 847 | 116 | 2,426 |
Total loss on disposal of assets and costs from exit and disposal activities | $ 144 | $ 1,924 | $ 1,572 | $ 10,468 |
Loss on Disposal of Assets an_5
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Expenses | $ 438 | $ 1,077 | $ 1,456 | $ 8,042 |
2018 Restructuring Plan [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Balance at the beginning of the period | 3,901 | |||
Expenses | 316 | 56 | ||
Non-cash expenses | 359 | 4,425 | ||
Payments | (2,497) | (1,621) | ||
Balance at the end of the period | $ 2,079 | $ 2,860 | $ 2,079 | $ 2,860 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables | $ 152,538 | $ 171,961 | |
Other current assets | $ 7,641 | $ 5,113 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables | $ (600) | ||
Other current assets | $ 600 |
Schedule of Contract Asset and
Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 01, 2018 |
Contract With Customer Asset And Liability [Abstract] | ||
Contract asset - product returns | $ 851 | $ 577 |
Refund liability | $ 1,847 | $ 1,468 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 48,488 | $ 54,909 |
Finished goods | 197,963 | 208,883 |
Total inventories | $ 246,451 | $ 263,792 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Work-in-process inventories | $ 0 | $ 0 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Assets and Liabilities Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 2,156 | $ 3,397 |
Contingent consideration for acquisitions | 228 | 578 |
Total liabilities at fair value on a recurring basis | 1,079 | 694 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 2,156 | 3,397 |
Total liabilities at fair value on a recurring basis | 851 | 116 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisitions | 228 | 578 |
Total liabilities at fair value on a recurring basis | 228 | 578 |
Diesel Fuel Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 122 | 596 |
Derivative liability | 851 | 116 |
Diesel Fuel Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 122 | 596 |
Derivative liability | 851 | 116 |
Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,034 | 2,801 |
Interest Rate Swaps [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,034 | $ 2,801 |
Foreign Exchange Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 35 | |
Foreign Exchange Forward Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 35 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of assets and liabilities, additional transfers | $ 0 | $ 0 | $ 0 | $ 0 | |
Senior Notes Payable [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior notes | 100,000,000 | 100,000,000 | $ 125,000,000 | ||
Senior notes, fair value | $ 97,800,000 | $ 97,800,000 | $ 122,300,000 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Changes in Fair Value of Recurring Fair Value Measurements Using Unobservable Inputs (Detail) - Contingent Consideration [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance beginning | $ 325 | $ 735 | $ 578 | $ 1,348 |
Change in fair value | 6 | 1 | 15 | 33 |
Payments of contingent consideration liability | (103) | (96) | (365) | (741) |
Balance ending | $ 228 | $ 640 | $ 228 | $ 640 |
Derivative Transactions - Sched
Derivative Transactions - Schedule of Cash Settlements and Net Losses and Net (Gains) on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | ||||
Total net unrealized mark-to-market loss (gains) | $ 2,912 | $ (1,398) | $ 2,011 | $ (1,988) |
Total net realized (gains) loss | (298) | (65) | (1,054) | 82 |
Diesel Fuel Option Collars [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Total net unrealized mark-to-market loss (gains) | 1,067 | (333) | 1,209 | (735) |
Total net realized (gains) loss | (126) | (203) | (700) | (204) |
Interest Rate Swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Total net unrealized mark-to-market loss (gains) | 1,810 | (1,065) | 767 | (1,253) |
Total net realized (gains) loss | (99) | $ 138 | (191) | $ 286 |
Foreign Exchange Forward Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Total net unrealized mark-to-market loss (gains) | 35 | 35 | ||
Total net realized (gains) loss | $ (73) | $ (163) |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
NET INCOME PER SHARE—BASIC: | ||||
Net income attributable to ADS | $ 15,812 | $ 32,105 | $ 76,762 | $ 67,710 |
Dividends to redeemable convertible preferred stockholders | (467) | (456) | (1,442) | (1,415) |
Dividends paid to unvested restricted stockholders | (25) | (12) | (55) | (47) |
Net income available to common stockholders and participating securities | 15,320 | 31,637 | 75,265 | 66,248 |
Undistributed income allocated to participating securities | (1,027) | (2,766) | (6,048) | (5,588) |
Net income available to common stockholders – Basic | $ 14,293 | $ 28,871 | $ 69,217 | $ 60,660 |
Weighted average number of common shares outstanding – Basic | 57,180 | 55,917 | 56,925 | 55,497 |
Net income per common share – Basic | $ 0.25 | $ 0.52 | $ 1.22 | $ 1.09 |
NET INCOME PER SHARE—DILUTED: | ||||
Net income available to common stockholders – Diluted | $ 14,293 | $ 28,871 | $ 69,217 | $ 60,660 |
Weighted average number of common shares outstanding – Basic | 57,180 | 55,917 | 56,925 | 55,497 |
Assumed exercise of stock options | 505 | 542 | 557 | 627 |
Weighted average number of common shares outstanding – Diluted | 57,685 | 56,459 | 57,482 | 56,124 |
Net income per common share – Diluted | $ 0.25 | $ 0.51 | $ 1.20 | $ 1.08 |
Potentially dilutive securities excluded as anti-dilutive | 6,079 | 6,060 | 6,068 | 6,252 |
Net Income Per Share and Stoc_4
Net Income Per Share and Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Repurchases of common stock | $ 7,947 | |||
Stock repurchase program amount authorized | $ 50,000 | |||
Common Stock [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock repurchases, Shares | 0 | 0 | 0.4 | |
Repurchases of common stock | $ 7,900 | |||
Stock repurchase program amount authorized | $ 42,100 | $ 42,100 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
BaySaver, purchase price | $ 8,821,000 | ||||
South American Joint Venture [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum borrowings permitted under credit facility | $ 22,000,000 | ||||
Debt, expiration date | Dec. 31, 2020 | ||||
Percentage of debt guarantee | 50.00% | ||||
Company's ownership percentage | 50.00% | ||||
Maximum potential payment under guarantee | $ 11,000,000 | ||||
Outstanding letters of credit | 12,600,000 | $ 14,500,000 | |||
Sales with related parties | $ 400,000 | $ 600,000 | 1,100,000 | $ 1,400,000 | |
Sale with joint ventures | 300,000 | 100,000 | 800,000 | 300,000 | |
South American Joint Venture [Member] | US Dollar Denominated Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Outstanding letters of credit | $ 0 | ||||
South American Joint Venture [Member] | Chilean Peso Denominated Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Weighted average interest rate | 5.60% | ||||
Tigre-ADS USA [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 300,000 | $ 500,000 | $ 1,500,000 | $ 1,600,000 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum borrowings permitted under credit facility | $ 12,000,000 | ||||
Revolving credit facility maturity date | Jun. 22, 2018 | ||||
Debt, expiration date | Jun. 22, 2022 | ||||
Remaining borrowing capacity | $ 0 | ||||
ADS Mexicana [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in joint venture | 49.00% | ||||
BaySaver [Member] | |||||
Related Party Transaction [Line Items] | |||||
Company's ownership percentage | 35.00% | ||||
BaySaver, purchase price | $ 8,800,000 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ADS Mexicana [Member] | |||||
Related Party Transaction [Line Items] | |||||
Company's ownership percentage | 51.00% |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) | Dec. 31, 2018 | Jun. 22, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | |||
Total | $ 229,396,000 | $ 300,776,000 | |
Unamortized debt issuance costs | (2,467,000) | (3,028,000) | |
Current maturities | (26,165,000) | (26,848,000) | |
Long-term debt obligation | 200,764,000 | 270,900,000 | |
Revolving Credit Facility [Member] | ADS Mexicana [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 0 | ||
Equipment Financing [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 2,656,000 | 3,336,000 | |
ADS [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 126,500,000 | 171,500,000 | |
Senior Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 100,000,000 | 125,000,000 | |
Industrial Revenue Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Industrial revenue bonds | $ 240,000 | $ 940,000 |
Debt (Secured Bank Term Loans)
Debt (Secured Bank Term Loans) - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($) | Dec. 31, 2018 | Jun. 22, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | |||
Outstanding letters of credit | $ 8,600,000 | $ 13,000,000 | |
ADS Mexicana [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility matured amount | $ 12,000,000 | ||
Outstanding letters of credit | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Purchase Commitments) - Additional Information (Detail) - Inventory [Member] $ in Millions | 9 Months Ended |
Dec. 31, 2018USD ($) | |
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 | $ 23.5 |
Commitments and Contingencies_2
Commitments and Contingencies (Litigation and Other Proceedings) - Additional Information (Detail) $ in Millions | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Federal Securities Laws Violation [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Payment of penalties for legal fees and expenses | $ 1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||
Change in corporate income taxes | 21.00% | 35.00% | |||||
Deferred tax expense (benefit) | $ 400 | $ 400 | $ (16,000) | ||||
Total deferred tax benefit | 15,600 | ||||||
Undistributed earnings on foreign subsidiaries | 26,500 | 26,500 | $ 26,500 | ||||
Provisional income tax expense | 2,490 | $ (7,371) | 28,968 | $ 15,812 | 5,200 | ||
U.S federal taxes | 700 | $ 1,000 | |||||
Income tax benefit | $ 600 | 600 | |||||
Transition tax expense | $ 4,600 | ||||||
Effective income tax rate | 13.40% | (29.40%) | 26.60% | 18.60% | |||
Discrete income tax benefit | $ 1,800 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 1,658 | $ 1,640 | $ 5,029 | $ 5,140 |
Non-Employee Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 279 | 312 | 776 | 991 |
Equity-Classified Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 516 | 898 | 2,084 | 2,991 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 863 | 430 | 2,169 | 1,158 |
Cost of Goods Sold [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 84 | 45 | 228 | 135 |
Selling Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 48 | 27 | 134 | 79 |
General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 1,526 | $ 1,568 | $ 4,667 | $ 4,926 |
Stock-Based Compensation (2017
Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | May 24, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted stock awards | $ 2,872 | $ 2,150 | |
2017 Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted stock awards, Shares | 100,000 | ||
Restricted stock awards | $ 3,600 | ||
Share-based compensation award description | the performance units, 50% of the award is based upon the achievement of certain levels of Return on Invested Capital for the performance period and 50% is based upon the achievement of certain levels of Free Cash Flow for the performance period. | ||
Performance awards performance period | 3 years | ||
Number of nonqualified stock options granted | 200,000 | ||
Number of stock options granted, Value | $ 2,000 | ||
2017 Omnibus Plan [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Number of performance units granted | 100,000 | ||
Number of performance units granted, Value | $ 3,000 | ||
2017 Omnibus Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Common stock approved for issuance | 3,500,000 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Assumption Used in Estimate Fair Value of Stock Options (Detail) | 9 Months Ended |
Dec. 31, 2018$ / shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Common stock price | $ 25.75 |
Expected stock price volatility | 30.50% |
Risk-free interest rate | 2.90% |
Weighted-average expected option life (years) | 6 years |
Dividend yield | 1.20% |
Business Segments Information -
Business Segments Information - Additional Information (Detail) | 9 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 318,113 | $ 320,832 | $ 1,112,515 | $ 1,080,240 |
Domestic [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 279,179 | 276,872 | 972,946 | 948,253 |
Domestic [Member] | Pipe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 196,675 | 198,713 | 688,025 | 683,512 |
Domestic [Member] | Allied Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 82,504 | 78,159 | 284,921 | 264,741 |
International Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 38,934 | 43,960 | 139,569 | 131,987 |
International Segment [Member] | Pipe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 29,580 | 33,231 | 108,036 | 101,560 |
International Segment [Member] | Allied Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 9,354 | $ 10,729 | $ 31,533 | $ 30,427 |
Business Segments Information_3
Business Segments Information - Schedule of Additional Financial Information Attributable to Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 318,113 | $ 320,832 | $ 1,112,515 | $ 1,080,240 | |
Segment Adjusted EBITDA | 48,434 | 55,999 | 195,098 | 183,228 | |
Interest expense | 5,695 | 3,086 | 14,028 | 12,620 | |
Income tax expense (benefit) | 2,490 | (7,371) | 28,968 | 15,812 | $ 5,200 |
Depreciation and amortization | 17,549 | 17,852 | 52,912 | 55,793 | |
Equity in net loss (income) of unconsolidated affiliates | (466) | (768) | 225 | (496) | |
Capital expenditures | 11,831 | 8,089 | 31,130 | 35,124 | |
Investments in unconsolidated affiliates | 10,007 | 10,007 | 12,343 | ||
Total identifiable assets | 1,007,040 | 1,007,040 | 1,043,242 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total identifiable assets | (12,092) | (12,092) | (4,298) | ||
Domestic [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 279,179 | 276,872 | 972,946 | 948,253 | |
Segment Adjusted EBITDA | 42,460 | 48,790 | 175,831 | 167,352 | |
Interest expense | 5,621 | 3,007 | 13,812 | 12,363 | |
Income tax expense (benefit) | 1,885 | (9,117) | 26,660 | 12,583 | |
Depreciation and amortization | 15,690 | 15,804 | 47,281 | 49,725 | |
Equity in net loss (income) of unconsolidated affiliates | 952 | 1,607 | |||
Capital expenditures | 10,720 | 7,820 | 28,211 | 33,601 | |
Total identifiable assets | 892,658 | 892,658 | 904,718 | ||
International Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 38,934 | 43,960 | 139,569 | 131,987 | |
Segment Adjusted EBITDA | 5,974 | 7,209 | 19,267 | 15,876 | |
Interest expense | 74 | 79 | 216 | 257 | |
Income tax expense (benefit) | 605 | 1,746 | 2,308 | 3,229 | |
Depreciation and amortization | 1,859 | 2,048 | 5,631 | 6,068 | |
Equity in net loss (income) of unconsolidated affiliates | (466) | (1,720) | 225 | (2,103) | |
Capital expenditures | 1,111 | $ 269 | 2,919 | $ 1,523 | |
Investments in unconsolidated affiliates | 10,007 | 10,007 | 12,343 | ||
Total identifiable assets | $ 126,474 | $ 126,474 | $ 142,822 |
Business Segments Information_4
Business Segments Information - Schedule of Reconciliation of Segment Adjusted EBITDA to Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Net income attributable to ADS | $ 15,812 | $ 32,105 | $ 76,762 | $ 67,710 | |
Interest expense | 5,695 | 3,086 | 14,028 | 12,620 | |
Income tax expense (benefit) | 2,490 | (7,371) | 28,968 | 15,812 | $ 5,200 |
Derivative fair value adjustments | 2,912 | (1,398) | 2,011 | (1,988) | |
Loss (gain) on disposal of assets and costs from exit and disposal activities | (144) | (1,924) | (1,572) | (10,468) | |
Stock-based compensation expense | 1,658 | 1,640 | 5,029 | 5,140 | |
Domestic [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Net income attributable to ADS | 13,333 | 29,755 | 70,539 | 61,837 | |
Depreciation and amortization | 15,690 | 15,804 | 47,281 | 49,725 | |
Interest expense | 5,621 | 3,007 | 13,812 | 12,363 | |
Income tax expense (benefit) | 1,885 | (9,117) | 26,660 | 12,583 | |
Segment EBITDA | 36,529 | 39,449 | 158,292 | 136,508 | |
Derivative fair value adjustments | 1,067 | (145) | 1,209 | (735) | |
Loss (gain) on disposal of assets and costs from exit and disposal activities | 89 | 1,940 | 961 | 10,253 | |
Unconsolidated affiliates interest, tax, depreciation and amortization | 315 | 886 | |||
Contingent consideration remeasurement | (8) | 1 | (15) | 33 | |
Stock-based compensation expense | 1,658 | 1,640 | 5,029 | 5,140 | |
ESOP deferred stock-based compensation | 2,724 | 2,737 | 11,113 | 7,946 | |
Executive retirement (benefit) expense | 50 | 73 | (228) | 982 | |
Restatement-related (benefit) costs | (742) | 888 | (1,938) | 3,390 | |
Legal settlement | 1,800 | 1,800 | |||
Transaction costs | 83 | 92 | 398 | 1,149 | |
Strategic growth and operational improvement initiatives | 1,010 | 1,010 | |||
Segment Adjusted EBITDA | 42,460 | 48,790 | 175,831 | 167,352 | |
International Segment [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Net income attributable to ADS | 3,217 | 3,460 | 9,034 | 7,811 | |
Depreciation and amortization | 1,859 | 2,048 | 5,631 | 6,068 | |
Interest expense | 74 | 79 | 216 | 257 | |
Income tax expense (benefit) | 605 | 1,746 | 2,308 | 3,229 | |
Segment EBITDA | 5,755 | 7,333 | 17,189 | 17,365 | |
Foreign currency transaction (gains) losses | (423) | (430) | 224 | (2,878) | |
Loss (gain) on disposal of assets and costs from exit and disposal activities | 55 | (16) | 611 | 215 | |
Unconsolidated affiliates interest, tax, depreciation and amortization | 587 | 322 | 1,237 | 1,174 | |
Transaction costs | 6 | ||||
Segment Adjusted EBITDA | $ 5,974 | $ 7,209 | $ 19,267 | $ 15,876 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 9 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | |
Subsequent Event [Line Items] | ||
Dividend payable date | Mar. 15, 2019 | |
Dividend payable, date of record | Mar. 1, 2019 | |
Common Stock [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Cash dividend declared | $ 0.08 |