FINANCIAL INSTRUMENTS

Foreign Currency Contracts

The Company enters into forward contracts and foreign currency swap contracts primarily to manage the foreign currency risk associated with monetary accounts and anticipated foreign currency denominated transactions. The Company hedges committed exposures and does not engage in speculative transactions. As of June 30, 2017, the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.8 billion as summarized below:



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	1,311,000	—	$	192,834	$	—
EUR	26,612	102,211	30,241		116,798
HUF	18,375,520	—	67,488		—
INR	1,577,358	—	23,600		—
MXN	2,353,300	—	131,348		—
MYR	167,400	39,000	39,058		9,100
RON	103,510	—	25,844		—
SGD	29,800	—	21,554		—
Other	N/A	N/A	45,783		5,396
			577,750		131,294
Other Foreign Currency Contracts
BRL	—	415,000	—		125,537
CAD	19,008	33,755	14,551		25,840
CHF	8,450	31,056	8,800		32,343
CNY	1,533,318	—	224,000		—
DKK	180,600	158,800	27,596		24,265
EUR	1,024,136	1,383,812	1,162,529		1,570,311
GBP	35,834	65,131	46,370		84,278
HUF	20,442,171	19,619,207	75,078		72,055
INR	3,960,000	142,487	61,348		2,200
MXN	2,241,024	547,954	125,082		30,584
MYR	354,828	81,400	82,790		18,993
PLN	137,723	78,591	36,938		21,078
SEK	157,797	214,117	18,333		24,978
Other	N/A	N/A	82,219		57,243
			1,965,634		2,089,705

Total Notional Contract Value in USD			$	2,543,384	$	2,220,999

As of June 30, 2017, the fair value of the Company’s short-term foreign currency contracts was included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company’s exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the condensed consolidated statements of operations. As of June 30, 2017 and March 31, 2017, the Company also has included net deferred gains and losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed consolidated balance sheets, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred gains were $11.2 million as of June 30, 2017, and are expected to be recognized primarily as a component of cost of sales in the condensed consolidated statements of operations primarily over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal periods presented and are included as a component of interest and other, net in the condensed consolidated statements of operations.

The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes:



	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	June 30, 2017		March 31, 2017		Balance Sheet Location	June 30, 2017		March 31, 2017
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	11,411	$	11,936	Other current liabilities	$	2,624	$	1,814

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	10,668	$	10,086	Other current liabilities	$	8,411	$	9,928

The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with a single counterparty. The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets. The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented.