Derivative Financial Instruments

9 Months Ended

Dec. 31, 2012

Derivative Financial Instruments [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

(6) 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, net as offsets of gains and losses resulting from the underlying hedged transactions. Realized losses of $50,000 and $56,000 were recorded in the three and nine months ended December 31, 2012. Realized gains of $38,000 and $123,000 were recorded in the three and nine months ended December 31, 2011. As of December 31, 2012 and 2011, the notional amount of open foreign currency forward contracts was $5,230,000 and $3,599,000, respectively. The related unrealized loss was $13,000 at December 31, 2012 and the related unrealized gain was $17,000 at December 31, 2011. The Company believes that it does not have significant counterparty credit risks as of December 31, 2012.

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 December 31, 2012 and 2011 (in thousands):

	Fair Value of Derivative Instruments
		Fair Value
	Balance Sheet Location	December 31, 2012		December 31, 2011
Foreign currency forward contracts	Other current liabilities	$	13	$	0
Foreign currency forward contracts	Other current assets		0		17