Derivative Financial Instruments

12 Months Ended

Mar. 31, 2012

Derivative Financial Instruments

17. Derivative Financial Instruments

The Company enters into derivative financial instruments on a limited basis and does not use them for trading purposes. It does, however, use derivatives to manage well-defined foreign currency risks. The Company hedges material non-functional currency monetary asset and liability balances. Foreign exchange contract gains and losses are recognized at the end of each fiscal period in the Company’s results of operations. Such gains and losses are typically offset by the corresponding changes to the related underlying hedged item. Cash flows from derivative financial instruments are classified in the same category as the cash flows from the items hedged.

At March 31, 2012 and April 2, 2011, the Company had net forward exchange contracts to (sell) purchase foreign currencies totaling ($1.3) million and $5.6 million, respectively. In general, these contracts mature in less than six months and the counterparties are large, highly rated banks; therefore, the Company believes that the risk of loss as a result of nonperformance by the banks is minimal.

The table below summarizes, by currency, the notional amounts of forward exchange contracts in U.S. dollars as of March 31, 2012 and April 2, 2011. The “bought” amounts represent the net U.S. dollar equivalents of commitments to purchase foreign currencies, and the “sold” amounts represent the net U.S. dollar equivalents of commitments to sell foreign currencies. The foreign currency amounts have been translated into a U.S. dollar equivalent value using the exchange rates as of March 31, 2012 and April 2, 2011.

	Bought (Sold)
(In thousands)	2012			2011
Japanese Yen	$	6,893		$	11,360
Euro		192			1,825
Taiwan Dollar		(600	)		—
Korean Won		(1,438	)		(4,565	)
British Pound		(2,771	)		(3,064	)
Chinese Renminbi		(3,562	)		—
	$	(1,286	)	$	5,556