Derivative Financial Instruments

9 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

The Company enters into foreign currency forward contracts in order to reduce the impact of certain foreign currency fluctuations on sales denominated in a foreign currency. Derivatives are not used for trading or speculative activities. Firmly committed transactions and the related receivables may be hedged with forward exchange contracts. Gains and losses arising from foreign currency forward contracts are recorded in other income, net as offsets of gains and losses resulting from the underlying hedged transactions. A realized gain of $51,000 and $65,000 was recorded in the three- and nine months ended December 31, 2016, respectively. A realized gain of $133,000 and $142,000 was recorded in the three- and nine months ended December 31, 2015. As of December 31, 2016 and 2015, the notional amount of open foreign currency forward contracts was $1,668,000 and $1,464,000, respectively. The related unrealized gain was de minimis at December 31, 2016 and $2,000 at December 31, 2015. The Company believes it does not have significant counterparty credit risks as of December 31, 2016.

The following table shows the fair value of the foreign currency forward contracts designated as hedging instruments and included in the Company’s condensed consolidated balance sheet (in thousands):

		Fair Value of Derivative Instruments
		Fair Value
	Balance Sheet Location	December 31, 2016		December 31, 2015
Foreign currency forward contracts	Other current assets	$	—	$	2