v3.25.1
Fair Value Measurements
 12 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Recurring Fair Value Measurements
The financial instruments measured at fair value on a recurring basis in the accompanying consolidated balance sheets consist of the following:
Recurring Fair Value Measurements
as of March 31, 2025
Level 1Level 2Total
Assets:
Current derivative instruments (1)
$— $1 $1 
Long term deferred compensation plan asset (2)
35 — 35 
Total Assets$35 $1 $36 
Liabilities:
Current derivative instruments (1)
— 1 1 
Long-term derivative instruments (1)
— 2 2 
Long term deferred compensation plan liability (2)
35 — 35 
Total Liabilities$35 $3 $38 
Recurring Fair Value Measurements
as of March 31, 2024
Level 1Level 2Total
Assets:
Current derivative instruments (1)
$— $9 $9 
Long-term derivative instruments (1)
— 1 1 
Long term deferred compensation plan asset (2)
$29 $— $29 
Total Assets$29 $10 $39 
Liabilities:
Long term deferred compensation plan liability (2)
29 — 29 
Total liabilities$29 $— $29 
(1) The Company’s interest rate swaps are considered over-the-counter derivatives which are recorded in the consolidated balance sheet on a gross basis at estimated fair value. Fair value is estimated based on the present value of future cash flows using a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. See Note 11, “Derivatives,” to the consolidated financial statements for further information on the Company’s derivative instruments designated as cash flow hedges.
(2) Investments in this category consist primarily of mutual funds whose fair values are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. These assets are recorded in other long-term assets and represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan, which is recorded in other long-term liabilities on our consolidated balance sheets.
The Company did not have any Level 3 assets or liabilities as of March 31, 2025 or March 31, 2024.
Cash, Cash Equivalents and Marketable Securities
The fair value of the Company's cash and cash equivalents, which are Level 1 inputs, approximated its carrying values at March 31, 2025 and 2024. The Company’s cash and cash equivalent balances presented on the accompanying consolidated balance sheets include $802 million and $193 million of marketable securities in money market funds as of March 31, 2025 and 2024, respectively.
Long-term Debt
The Company's long-term debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair values of debt are determined using quoted prices or other market information obtained from recent trading activity of the debt in markets that are not active (Level 2 inputs). The fair value is corroborated by prices derived from the interest rate spreads of recently completed leveraged loan transactions of a similar credit profile, industry, and terms to that of the Company. The fair value of the Senior Notes are determined using quoted prices or other market information obtained from recent trading activity in the high-yield bond market (Level 2 inputs). The carrying amount and estimated fair value of debt consists of the following:
March 31, 2025March 31, 2024
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Term Loan A$1,526 $1,521 $1,588 $1,582 
3.875% Senior Notes due 2028
700 666 700 657 
4.000% Senior Notes due 2029
500 471 500 465 
5.950% Senior Notes due 2033
650 651 650 673 
5.950% Senior Notes due 2035
650 645 — — 
Nonrecurring Fair Value Measurements
As of March 31, 2025 and March 31, 2024, the total of our investments that are accounted for at fair value on a non-recurring basis under the measurement alternative were $85 million and $37 million, respectively. While these assets are not measured at fair value on an ongoing basis, they are subject to fair value adjustments in certain circumstances (e.g., observable price changes or impairment). We did not have any material measurement adjustments during the year ended March 31, 2025, with the exception of the assets and liabilities acquired through our acquisitions (see Note 5, “Acquisitions and Divestitures,” to the consolidated financial statements).