FINANCIAL INSTRUMENTS

12 Months Ended

Mar. 31, 2013

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

7. 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 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 were not material.

        As of March 31, 2013, the aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts was $4.8 billion as summarized below:

	Foreign Currency Amount				Notional Contract Value in USD
Currency	Buy		Sell		Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY		3,000,150		—	$	482,766	$	—
HUF		12,088,000		—		50,873		—
MXN		1,336,500		—		108,211		—
MYR		336,600		—		108,633		—
SGD		51,400		—		41,392		—
Other		N/A		N/A		74,656		19,274
						866,531		19,274
Other Forward/Swap Contracts
BRL		246,600		357,600		122,461		177,584
CAD		96,882		110,148		95,217		108,227
CNY		2,859,783		2,761,232		457,942		444,296
EUR		429,846		507,592		552,066		651,993
GBP		37,697		53,424		57,085		80,774
HUF		15,445,300		15,731,600		65,003		66,208
JPY		9,228,849		6,257,347		97,870		66,686
MXN		1,474,585		1,193,310		119,391		96,617
MYR		168,093		23,037		54,250		7,435
SEK		1,186,018		1,285,135		181,993		197,289
Other		N/A		N/A		176,996		77,142
						1,980,274		1,974,251
Total Notional Contract Value in USD					$	2,846,805	$	1,993,525

        As of March 31, 2013 and 2012, 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 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 expense, net in the consolidated statements of operations. As of March 31, 2013 and 2012, the Company also has included net deferred gains and losses, respectively, in accumulated other comprehensive income (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. These deferred gains and losses were not material, and any deferred losses as of March 31, 2013 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 statements of operations.

        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, 2013 and 2012:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	March 31, 2013		March 31, 2012		Balance Sheet Location	March 31, 2013		March 31, 2012
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	11,032	$	10,075	Other current liabilities	$	3,999	$	1,905
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	16,531	$	10,894	Other current liabilities	$	11,291	$	6,200