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 September 29, 2017, the aggregate notional amount of the Company’s outstanding foreign currency contracts was $7.8 billion as summarized below:



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	1,966,000	—	$	295,973	$	—
EUR	27,750	104,595	32,555		121,947
HUF	18,773,250	—	70,800		—
INR	1,577,172	—	24,000		—
MXN	2,906,280	—	160,501		—
MYR	134,500	51,000	32,088		12,167
RON	104,130	—	26,573		—
SGD	31,300	—	23,033		—
Other	N/A	N/A	45,734		5,206
			711,257		139,320
Other Foreign Currency Contracts
BRL	—	706,000	—		221,407
CAD	233,429	246,916	188,706		199,609
CHF	13,160	31,378	13,502		32,192
CNY	1,554,257	—	234,000		—
DKK	187,600	158,800	29,576		25,036
EUR	1,926,154	2,309,322	2,261,811		2,713,000
GBP	34,051	63,058	45,574		84,125
HUF	18,465,506	20,671,489	69,639		77,959
ILS	162,700	97,800	45,932		27,610
INR	4,090,000	277,061	62,243		4,200
MXN	2,968,175	1,906,930	163,920		105,312
MYR	387,400	56,450	92,423		13,467
SEK	173,247	263,957	21,487		32,355
Other	N/A	N/A	93,599		59,170
			3,322,412		3,595,442

Total Notional Contract Value in USD			$	4,033,669	$	3,734,762

As of September 29, 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 September 29, 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 losses were $2.2 million as of September 29, 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	September 29, 2017		March 31, 2017		Balance Sheet Location	September 29, 2017		March 31, 2017
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	8,422	$	11,936	Other current liabilities	$	7,691	$	1,814

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	28,151	$	10,086	Other current liabilities	$	25,777	$	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.