Derivative Financial Instruments | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE FINANCIAL INSTRUMENTS |
(4) 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 gain of $85,000 was recorded in the quarter and six months ended September 30, 2011. A
realized loss of $4,000 was recorded in the quarter and six months ended September 30, 2010. As
of September 30, 2011 and 2010, the notional amount of open foreign currency forward contracts
was $7,281,000 and $8,111,000, respectively. The related unrealized gain was $366,000 and
$3,000 at September 30, 2011 and 2010, respectively. There were no open foreign currency
forward contracts as of March 31, 2011. The Company believes that it does not have significant
counterparty credit risks as of September 30, 2011.
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 as of
September 30, 2011 and 2010 (in thousands):
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