FINANCIAL INSTRUMENTS

Foreign Currency Contracts

The Company enters into short-term foreign currency derivatives contracts, including forward, swap, and options contracts to hedge only those currency exposures associated with certain assets and liabilities, primarily accounts receivable and accounts payable, and cash flows denominated in non-functional currencies. Gains and losses on the Company's derivative contracts are designed to offset losses and gains on the assets, liabilities and transactions hedged, and accordingly, generally do not subject the Company to risk of significant accounting losses. The Company hedges committed exposures and does not engage in speculative transactions. The credit risk of these derivative contracts is minimized since the contracts are with large financial institutions and accordingly, fair value adjustments related to the credit risk of the counterparty financial institution were not material.

As of June 29, 2018, the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $8.0 billion as summarized below:



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	2,861,000	—	$	433,268	$	—
EUR	69,596	71,597	81,596		83,601
HUF	26,081,080	—	92,453		—
ILS	180,070	10,500	49,447		2,883
MXN	4,842,800	—	241,956		—
MYR	396,800	39,000	98,876		9,718
RON	163,150	—	40,664		—
SGD	45,950	—	33,688		—
Other	N/A	N/A	44,590		7,994
			1,116,538		104,196
Other Foreign Currency Contracts
BRL	—	596,000	—		155,172
CAD	378,908	389,644	285,129		293,208
CNY	2,879,061	1,365,680	438,131		206,927
EUR	1,657,947	1,855,760	1,923,257		2,153,525
GBP	35,446	63,881	46,615		84,113
HUF	29,643,799	31,298,908	105,083		110,950
INR	3,767,477	1,353,258	55,634		19,751
MXN	2,403,304	2,017,270	120,074		100,787
MYR	541,260	287,330	134,873		71,598
SGD	86,283	48,930	63,257		35,872
Other	N/A	N/A	182,696		151,951
			3,354,749		3,383,854

Total Notional Contract Value in USD			$	4,471,287	$	3,488,050

As of June 29, 2018, 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 29, 2018, and March 31, 2018, 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. Deferred losses were $33.3 million as of June 29, 2018, 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 29, 2018		March 31, 2018		Balance Sheet Location	June 29, 2018		March 31, 2018
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	3,539	$	19,422	Other current liabilities	$	37,996	$	7,065

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	12,110	$	23,912	Other current liabilities	$	20,252	$	18,246

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.