Derivative Financial Instruments

3 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 expense (income), net as offsets of gains and losses resulting from the underlying hedged transactions. A realized loss of $19,000 was recorded in the three months ended June 30, 2017 and a realized gain of $2,000 was recorded in the three months ended June 30, 2016. As of June 30, 2017 and 2016, the notional amount of open foreign currency forward contracts was $1,636,000 and $1,464,000, respectively. The related unrealized loss was $35,000 at June 30, 2017 and the related unrealized gain was $8,000 at June 30, 2016. The Company believes it does not have significant counterparty credit risks as of June 30, 2017.

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



		Fair Value of Derivative Instruments
		Fair Value
	Balance Sheet Location	June 30, 2017		June 30, 2016
Foreign currency forward contracts	Other current liabilities	$	35	$	—
Foreign currency forward contracts	Other current assets	$	—	$	8