XML 30 R16.htm IDEA: XBRL DOCUMENT v3.20.2
FINANCIAL INSTRUMENTS
 3 Months Ended
Jun. 26, 2020
Derivative Instruments and Hedges, Assets [Abstract]  
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS
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 26, 2020, the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $9.5 billion as summarized below: 
 Foreign Currency AmountNotional Contract Value in USD
CurrencyBuySellBuySell
 (In thousands)
Cash Flow Hedges   
CNY1,405,500  —  $198,674  $—  
JPY33,525,000  —  300,000  —  
MXN4,416,000  —  195,603  —  
OtherN/AN/A341,318  34,874  
   1,035,595  34,874  
Other Foreign Currency Contracts
BRL—  814,000  —  154,865  
CNY6,248,223  2,609,172  880,450  368,858  
EUR2,068,053  2,262,983  2,327,007  2,541,864  
GBP62,624  82,744  77,883  102,857  
HUF63,675,232  63,537,453  204,053  203,611  
ILS403,491  64,100  117,427  18,655  
INR5,500,000  6,495,390  72,630  85,722  
MXN3,885,763  2,446,456  172,117  108,364  
MYR1,163,860  934,940  272,222  218,679  
SEK652,526  734,086  68,873  78,835  
OtherN/AN/A213,584  147,837  
   4,406,246  4,030,147  
Total Notional Contract Value in USD  $5,441,841  $4,065,021  
As of June 26, 2020, 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 26, 2020 and March 31, 2020, 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 immaterial as of June 26, 2020, 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 26, 2020. 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 DerivativesLiability Derivatives
  Fair Value Fair Value
 Balance Sheet
Location		June 26,
2020		March 31,
2020		Balance Sheet
Location		June 26,
2020		March 31,
2020
 (In thousands)
Derivatives designated as hedging instruments      
Foreign currency contractsOther current assets$16,150  $7,257  Other current liabilities$16,983  $46,645  
Foreign currency contractsOther assets$15,314  $13,849  Other liabilities$—  $—  
Derivatives not designated as hedging instruments      
Foreign currency contractsOther current assets$29,816  $83,086  Other current liabilities$31,291  $102,709  
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.