FINANCIAL INSTRUMENTS

9 Months Ended

Dec. 31, 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 December 31, 2019, the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $8.5 billion as summarized below:



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	1,150,500	—	$	164,376	$	—
EUR	40,108	45,480	44,695		51,528
HUF	24,594,000	—	82,980		—
ILS	222,000	—	64,197		—
JPY	33,525,000	—	300,000		—
MXN	3,840,000	—	203,768		—
MYR	256,000	30,000	61,801		7,242
RON	177,000	—	41,309		—
Other	N/A	N/A	93,062		—
			1,056,188		58,770
Other Foreign Currency Contracts
BRL	—	1,030,000	—		253,982
CAD	61,635	35,624	47,100		27,223
CNY	3,531,534	140,048	500,586		20,000
EUR	1,891,736	2,090,728	2,109,548		2,329,869
GBP	48,512	63,795	63,479		83,458
HUF	60,687,931	58,055,222	204,760		195,877
ILS	111,600	47,600	32,272		13,765
INR	8,051,000	6,956,674	112,834		97,495
JPY	2,832,862	2,215,532	25,865		20,242
MXN	5,106,692	3,870,080	270,984		205,364
MYR	1,060,570	817,890	256,034		197,448
PLN	117,246	82,118	30,733		21,525
SEK	529,107	611,979	56,023		65,493
SGD	98,938	63,959	73,168		47,300
Other	N/A	N/A	41,622		26,027
			3,825,008		3,605,068

Total Notional Contract Value in USD			$	4,881,196	$	3,663,838

As of December 31, 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 December 31, 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 December 31, 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 December 31, 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	December 31, 2019		March 31, 2019		Balance Sheet Location	December 31, 2019		March 31, 2019
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	9,113	$	10,503	Other current liabilities	$	10,284	$	10,282
Foreign currency contracts	Other assets	$	9,782	$	—	Other liabilities	$	—	$	—

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	27,147	$	16,774	Other current liabilities	$	21,347	$	17,144

The Company has financial instruments subject to master netting arrangements, which provide 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.