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 December 31, 2017, the aggregate notional amount of the Company’s outstanding foreign currency contracts was $8.2 billion as summarized below:



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	1,724,000	—	$	262,937	$	—
EUR	53,756	109,351	63,973		128,767
HUF	19,654,800	—	75,314		—
ILS	73,700	—	21,233		—
INR	1,392,540	—	21,200		—
MXN	3,072,680	—	154,955		—
MYR	173,000	39,500	42,318		9,662
PLN	87,890	—	24,963		—
RON	117,780	—	30,124		—
SGD	29,900	—	22,335		—
Other	N/A	N/A	12,567		5,017
			731,919		143,446
Other Foreign Currency Contracts
BRL	—	871,000	—		263,229
CAD	267,328	289,019	211,126		228,257
CHF	16,327	28,889	16,527		29,245
CNY	2,832,338	—	427,268		—
EUR	1,958,706	2,306,257	2,329,926		2,744,141
GBP	35,355	63,776	47,390		85,505
HUF	18,783,285	22,480,502	71,975		86,142
INR	6,222,378	1,252,331	96,829		19,200
MXN	2,254,587	1,374,623	113,699		69,322
MYR	456,260	247,030	111,607		60,427
RON	88,521	81,054	22,641		20,731
SGD	78,855	48,690	58,904		36,371
Other	N/A	N/A	114,386		81,631
			3,622,278		3,724,201

Total Notional Contract Value in USD			$	4,354,197	$	3,867,647

As of December 31, 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 December 31, 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 $7.2 million as of December 31, 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	December 31, 2017		March 31, 2017		Balance Sheet Location	December 31, 2017		March 31, 2017
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	6,627	$	11,936	Other current liabilities	$	15,057	$	1,814

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	14,376	$	10,086	Other current liabilities	$	10,273	$	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.