Derivatives and Hedging Activities

3 Months Ended

Jul. 25, 2014

Derivatives and Hedging Activities

9.  Derivatives and Hedging Activities

We use derivative instruments to manage exposures to foreign currency risk. All contracts have a maturity of less than six months. The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions):

	July 25, 2014		April 25, 2014
Cash Flow Hedges
Forward contracts purchased	$	116.1	$	122.6
Balance Sheet Contracts
Forward contracts sold		167.6		155.5
Forward contracts purchased		270.6		389.9

We have master netting arrangements in place to mitigate the credit risk of our counterparties and to potentially reduce our losses due to counterparty nonperformance. We present our derivative instruments as net amounts in our condensed consolidated balance sheets. The gross and net fair value amounts of such instruments were not material as of July 25, 2014 and April 25, 2014. We did not recognize any gains and losses in earnings due to hedge ineffectiveness for any period presented.

The effect of derivative instruments designated as cash flow hedges recognized in net revenues on our condensed consolidated statements of operations is presented in the condensed consolidated statements of comprehensive income and Note 8.

The effect of derivative instruments not designated as hedging instruments recognized in other income, net on our condensed consolidated statements of operations was as follows (in millions):

	Three Months Ended
	July 25, 2014			July 26, 2013
	Gain (Loss) Recognized into Income
Foreign exchange forward contracts	$	(0.8	)	$	0.2