FINANCIAL INSTRUMENTS

Foreign Currency Contracts

The Company transacts business in various foreign countries and is therefore exposed to foreign currency exchange rate risk inherent in forecasted sales, cost of sales, and monetary assets and liabilities denominated in non-functional currencies. The Company has established risk management programs to protect against volatility in the value of non-functional currency denominated monetary assets and liabilities, and of future cash flows caused by changes in foreign currency exchange rates. The Company tries to maintain a partial or fully hedged position for certain transaction exposures, which are primarily, but not limited to, revenues, customer and vendor payments and inter-company balances in currencies other than the functional currency unit of the operating entity. 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 March 31, 2019, the aggregate notional amount of the Company's outstanding foreign currency derivative 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	2,207,000	—	$	328,349	$	—
EUR	48,763	700	55,445		788
HUF	34,401,000	—	120,981		—
ILS	181,000	—	49,833		—
MXN	4,123,000	—	212,987		—
MYR	286,100	30,200	70,276		7,418
PLN	144,500	—	37,841		—
RON	247,000	—	58,365		—
SGD	42,500	—	31,354		—
Other	N/A	N/A	17,853		7,089
			983,284		15,295
Other Foreign Currency Contracts
BRL	—	972,000	—		246,092
CAD	74,484	132,895	55,511		99,042
CNY	3,132,409	458,795	466,085		68,230
EUR	1,793,103	2,043,034	2,019,883		2,303,762
GBP	39,047	30,869	51,590		40,857
HUF	52,526,969	54,425,127	184,727		191,402
ILS	160,775	77,600	44,265		21,365
INR	3,921,500	10,356,508	56,930		150,312
MXN	2,969,832	2,078,128	153,416		107,352
MYR	455,920	255,210	111,989		62,688
SEK	706,435	755,275	76,470		81,479
SGD	83,800	50,280	61,822		37,093
Other	N/A	N/A	77,860		57,612
			3,360,548		3,467,286
Total Notional Contract Value in USD			$	4,343,832	$	3,482,581

As of March 31, 2019 and 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 consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company's exposure to monetary assets and liabilities denominated in non-functional currencies and are not accounted for as hedges under the accounting standards. Accordingly, changes in fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the consolidated statements of operations. As of March 31, 2019 and 2018, the Company also has included net deferred gains and losses, in accumulated other comprehensive loss, a component of shareholders' equity in the consolidated balance sheets, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. Deferred losses totaled $0.2 million as of March 31, 2019, and are expected to be recognized primarily as a component of cost of sales in the consolidated statement of operations over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal years presented and are included as a component of interest and other, net in the consolidated statements of operations.

The following table presents the fair value of the Company's derivative instruments utilized for foreign currency risk management purposes at March 31, 2019 and 2018:



	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	March 31, 2019		March 31, 2018		Balance Sheet Location	March 31, 2019		March 31, 2018
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	10,503	$	19,422	Other current liabilities	$	10,282	$	7,065
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	16,774	$	23,912	Other current liabilities	$	17,144	$	18,246

The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with the counterparty upon maturity. 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 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.