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 September 28, 2018, the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $8.3 billion as summarized below:



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	2,258,000	—	$	328,494	$	—
EUR	74,296	38,747	87,302		45,635
HUF	27,835,000	—	101,026		—
ILS	179,000	5,250	49,890		1,463
MXN	4,590,000	—	242,508		—
MYR	405,700	45,000	98,135		10,885
RON	180,700	—	45,570		—
SGD	47,500	—	34,799		—
Other	N/A	N/A	37,295		5,436
			1,025,019		63,419
Other Foreign Currency Contracts
CAD	394,519	416,218	304,213		320,945
CNY	1,552,000	—	226,025		—
EUR	1,722,006	1,884,924	2,023,008		2,214,953
GBP	36,557	64,161	48,180		84,499
HUF	89,504,773	97,417,006	324,854		353,571
ILS	224,300	—	62,516		—
INR	5,735,497	8,205,341	79,226		113,127
MXN	2,611,896	2,050,476	137,997		108,335
MYR	643,720	341,430	155,710		82,589
SEK	467,158	546,573	52,141		62,010
SGD	88,850	49,740	65,092		36,440
Other	N/A	N/A	89,580		256,393
			3,568,542		3,632,862

Total Notional Contract Value in USD			$	4,593,561	$	3,696,281

As of September 28, 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 September 28, 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 $11.8 million as of September 28, 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	September 28, 2018		March 31, 2018		Balance Sheet Location	September 28, 2018		March 31, 2018
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	10,317	$	19,422	Other current liabilities	$	24,621	$	7,065

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	9,970	$	23,912	Other current liabilities	$	8,259	$	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.