FINANCIAL INSTRUMENTS

3 Months Ended

Jun. 28, 2019

Derivative Instruments and Hedges, Assets [Abstract]

Foreign Currency Contracts

The Company enters into short-term and long-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 28, 2019, the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $8.1 billion as summarized below:



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	1,741,500	—	$	252,923	$	—
EUR	45,320	—	51,279		—
HUF	34,791,000	—	122,360		—
ILS	191,000	—	53,226		—
JPY	33,525,000	—	300,000		—
MXN	4,564,000	—	238,323		—
MYR	265,000	43,000	63,940		10,375
PLN	162,000	—	43,262		—
RON	247,000	—	59,518		—
Other	N/A	N/A	42,325		3,640
			1,227,156		14,015
Other Foreign Currency Contracts
BRL	—	721,000	—		187,448
CAD	76,286	53,135	58,052		40,435
CNY	3,294,464	553,285	477,927		80,355
EUR	1,793,083	2,068,220	2,038,027		2,348,603
GBP	38,873	51,524	49,287		65,328
HUF	59,355,877	56,809,178	208,756		199,799
ILS	162,500	25,400	45,284		7,078
INR	8,058,300	7,262,247	116,523		104,995
JPY	3,006,895	4,989,750	27,880		46,307
MXN	3,059,758	2,119,949	159,774		110,699
MYR	724,260	386,510	174,752		93,259
SEK	399,558	457,749	42,538		49,440
SGD	57,378	34,869	42,402		25,768
Other	N/A	N/A	59,544		41,126
			3,500,746		3,400,640

Total Notional Contract Value in USD			$	4,727,902	$	3,414,655

As of June 28, 2019, 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 28, 2019, and March 31, 2019, 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 gains were immaterial as of June 28, 2019, 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, except for the USD JPY cross currency swap, which is further discussed below.

The Company entered into a USD JPY cross currency swap to hedge the foreign currency risk on the JPY term loan due April 2024, and the fair value of the cross currency swap was included in other assets as of June 28, 2019. The changes in fair value of the USD JPY cross currency swap are reported in accumulated other comprehensive loss, with the impact of the excluded component reported in interest and other, net. In addition, a corresponding amount is reclassified out of accumulated other comprehensive loss to interest and other, net to offset the remeasurement of the underlying JPY loan principal which also impacts the same line.

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 28, 2019		March 31, 2019		Balance Sheet Location	June 28, 2019		March 31, 2019
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	7,720	$	10,503	Other current liabilities	$	14,291	$	10,282
Foreign currency contracts	Other assets	$	18,454	$	—	Other liabilities	$	—	$	—

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	20,883	$	16,774	Other current liabilities	$	20,405	$	17,144

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.