5. FINANCIAL INSTRUMENTS

Due to their short-term nature, the carrying amount of the Company's cash and cash equivalents, accounts receivable and accounts payable approximates fair value. The Company's cash equivalents are comprised of cash and bank deposits and money market accounts, and are valued using level two inputs. The amount invested in any single issuer or fund may not exceed 20% of the issuer's or the fund's total assets measured at the time of purchase or $10 million, whichever is greater.

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 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 forward and swap 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 forward and swap 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 forward and swap contracts is minimized since the contracts are with large financial institutions and accordingly, fair value adjustments related to the credit risk of the counter-party financial institution was not material.

As of March 31, 2011, the aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts was $2.4 billion as summarized below:

Currency	Buy/Sell	Foreign Currency Amount		Notional Contract Value in USD
(In thousands)
Cash Flow Hedges
CNY	Buy	1,654,600	$	252,383
EUR	Buy	21,953		30,792
EUR	Sell	20,317		28,086
HUF	Buy	14,159,000		74,627
ILS	Buy	141,800		40,387
MXN	Buy	1,510,500		126,644
MYR	Buy	389,700		128,750
SGD	Buy	67,500		53,470
Other	Buy	N/A		74,517
				809,656
Other Forward/Swap Contracts
CAD	Buy	51,118		52,590
CAD	Sell	61,811		63,567
EUR	Buy	153,312		215,730
EUR	Sell	226,074		318,043
GBP	Buy	12,375		19,949
GBP	Sell	10,505		16,879
HKD	Buy	215,222		27,645
HUF	Buy	6,761,700		35,639
HUF	Sell	7,385,500		38,926
JPY	Buy	4,707,868		56,736
JPY	Sell	2,401,836		29,032
MXN	Buy	695,510		58,313
MXN	Sell	278,100		23,317
SEK	Buy	2,033,746		320,674
SEK	Sell	946,678		149,263
Other	Buy	N/A		98,466
Other	Sell	N/A		49,880
				1,574,649
Total Notional Contract Value in USD			$	2,384,305

As of March 31, 2011 and 2010, the fair value of the Company's short-term foreign currency contracts was not material and included in other current assets or other current liabilities, as applicable, in the consolidated balance sheet. 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 fair value of these instruments are recognized in earnings during the period of change as a component of interest and other expense, net in the consolidated statement of operations. As of March 31, 2011 and 2010, the Company also has included net deferred gains and losses, respectively, in other comprehensive income, a component of shareholders' equity in the consolidated balance sheet, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred gains and losses were not material, and the deferred losses as of March 31, 2011 are expected to be recognized as a component of cost of sales in the consolidated statement 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 years presented and are included as a component of interest and other expense, net in the consolidated statement of operations.

The following table presents the Company's assets and liabilities related to foreign currency contracts measured at fair value on a recurring basis as of March 31, 2011 and 2010, aggregated by level in the fair-value hierarchy within which those measurements fall:


	As of March 31, 2011
	Level 1	Level 2	Level 3	Total
	(In thousands)
Assets:
Foreign currency contracts	$ -	$ 24,071	$ -	$ 24,071

Liabilities:
Foreign currency contracts	-	(6,900)	-	(6,900)
Total:	$ -	$ 17,171	$ -	$ 17,171


	As of March 31, 2010
	Level 1	Level 2	Level 3	Total
	(In thousands)
Assets:
Foreign currency contracts	$ -	$ 15,671	$ -	$ 15,671

Liabilities:
Foreign currency contracts	-	(9,535)	-	(9,535)
Total:	$ -	$ 6,136	$ -	$ 6,136

There were no transfers between levels in the fair value hierarchy during the twelve-month period ended March 31, 2011 and 2010. The Company's foreign currency forward contracts are measured on a recurring basis at fair value based on foreign currency spot and forward rates quoted by banks or foreign currency dealers.

The following table presents the fair value of the Company's derivative instruments located on the Consolidated Balance Sheets utilized for foreign currency risk management purposes at March 31, 2011 and 2010:


	As of March 31, 2011
	Fair Values of Derivative Information
	Asset Derivatives		Liability Derivatives
	Balance Sheet	Fair	Balance Sheet	Fair
	Location	Value	Location	Value
	(In thousands)

Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$ 19,579	Other current liabilities	$ (778)

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$ 4,492	Other current liabilities	$ (6,122)



	As of March 31, 2010
	Fair Values of Derivative Information
	Asset Derivatives		Liability Derivatives
	Balance Sheet	Fair	Balance Sheet	Fair
	Location	Value	Location	Value
	(In thousands)

Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$ 8,559	Other current liabilities	$ (2,425)

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$ 7,112	Other current liabilities	$ (7,110)

Interest Rate Swap Agreements

The Company is exposed to variability in cash flows associated with changes in short-term interest rates primarily on borrowings under its revolving credit facility and Term Loan Agreement. During fiscal years 2009 and 2008, the Company entered into interest rate swap agreements to mitigate the exposure to interest rate risk resulting from unfavorable changes in interest rates resulting from the Term Loan Agreement. All of the interest rate swap agreements expired by January 2011.

The Company's interest rate swap agreements were accounted for as cash flow hedges, and no portion of the swaps were considered ineffective. For fiscal years 2011, 2010 and 2009, the net amount recorded as interest expense from these swaps was not material. At March 31, 2010, the fair value of the Company's interest rate swaps were not material and were included in other current liabilities in the consolidated balance sheet, with a corresponding decrease in other comprehensive income. The deferred losses included in other comprehensive income were released through earnings as the Company made fixed, and received variable, interest payments over the term of the swaps.