Derivatives And Hedging Activities (Tables)

The aggregate U.S. dollar notional amounts of forward and option contracts entered into for these purposes during the three-month periods in fiscal years 2027 and 2026 was as follows:


	Three Months Ended June 30,
(in millions of dollars)	2026		2025

Tobacco purchases	$	82.1	$	42.2
Processing costs	14.6		8.3

Operating costs	12.4		—
Total	$	109.1	$	50.5

The table below outlines the effects of the Company’s use of derivative financial instruments on the consolidated statements of income:


	Three Months Ended June 30,
(in thousands of dollars)	2026		2025

Cash Flow Hedges - Interest Rate Swap Agreements
Derivative
Effective Portion of Hedge
Gain (loss) recorded in accumulated other comprehensive loss	$	4,131	$	(1,693)
Gain (loss) reclassified from accumulated other comprehensive loss into earnings	$	70	$	692
Gain on terminated interest rate swaps amortized from accumulated other comprehensive loss into earnings	$	(98)	$	688
Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings	Interest expense
Ineffective Portion of Hedge
Gain (loss) recognized in earnings	$	—	$	—
Location of gain (loss) recognized in earnings	Selling, general and administrative expenses
Hedged Item
Description of hedged item	Floating rate interest payments on term loans

Cash Flow Hedges - Foreign Currency Exchange Contracts
Derivative
Effective Portion of Hedge
Gain (loss) recorded in accumulated other comprehensive loss	$	(2,930)	$	952
Gain (loss) reclassified from accumulated other comprehensive loss into earnings	$	(96)	$	(212)
Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings	Cost of goods sold
Ineffective Portion and Early De-designation of Hedges
Gain (loss) recognized in earnings	$	—	$	—
Location of gain (loss) recognized in earnings	Selling, general and administrative expenses
Hedged Item
Description of hedged item	Forecast purchases of tobacco and sales of crop inputs in Brazil

Derivatives Not Designated as Hedges - Foreign Currency Exchange Contracts
Gain (loss) recognized in earnings	$	(281)	$	830
Location of gain (loss) recognized in earnings	Selling, general and administrative expenses

The table below outlines the effects of the Company’s derivative financial instruments on the consolidated balance sheets at June 30, 2026 and 2025, and March 31, 2026:


	Derivatives in a Fair Value Asset Position							Derivatives in a Fair Value Liability Position
	Balance Sheet Location	Fair Value as of						Balance Sheet Location	Fair Value as of
(in thousands of dollars)		June 30, 2026		June 30, 2025		March 31, 2026			June 30, 2026		June 30, 2025		March 31, 2026

Derivatives Designated as Hedging Instruments
Interest rate swap agreements	Other non-current assets	$	5,014	$	—	$	953	Other long-term liabilities	$	—	$	602	$	—

Foreign currency exchange contracts	Other current assets	—		1,840		307		Accounts payable and accrued expenses	3,026		1,297		321
Total		$	5,014	$	1,840	$	1,260		$	3,026	$	1,899	$	321

Derivatives Not Designated as Hedging Instruments
Foreign currency exchange contracts	Other current assets	$	144	$	947	$	458	Accounts payable and accrued expenses	$	1,196	$	634	$	273
Total		$	144	$	947	$	458		$	1,196	$	634	$	273