FINANCIAL INSTRUMENTS

12 Months Ended

Mar. 31, 2014

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

8. 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 counterparty financial institution were not material.

        As of March 31, 2014, the aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts was $4.5 billion as summarized below:

	Foreign Currency Amount				Notional Contract Value in USD
Currency	Buy		Sell		Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY		3,521,000		—	$	566,733	$	—
EUR		7,832		45,485		10,767		62,231
HUF		11,459,000		—		50,699		—
MXN		1,726,500		—		131,898		—
MYR		279,180		—		84,857		—
Other		N/A		N/A		65,272		550
						910,226		62,781
Other Forward/Swap Contracts
BRL		46,000		343,000		20,372		151,904
CAD		124,451		113,476		112,392		102,563
CNY		870,314		682,984		140,842		110,000
EUR		491,950		727,495		675,990		999,693
GBP		30,148		55,101		50,092		91,562
HUF		17,044,300		19,714,600		75,411		87,225
JPY		7,179,535		4,274,776		70,261		41,834
MXN		1,252,670		700,850		95,699		53,542
MYR		232,953		28,675		70,806		8,716
SEK		413,618		684,395		63,854		105,507
Other		N/A		N/A		204,306		154,186
						1,580,025		1,906,732
Total Notional Contract Value in USD					$	2,490,251	$	1,969,513

        As of March 31, 2014 and 2013, 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, net in the consolidated statements of operations. As of March 31, 2014 and 2013, the Company also has included net deferred losses and gains, respectively, in accumulated other comprehensive 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 losses and gains were not material, and the deferred losses as of March 31, 2014 are expected to be recognized primarily as a component of cost of sales in the consolidated statement of operations 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, net in the consolidated statements of operations.

        The following table presents the fair value of the Company's derivative instruments utilized for foreign currency risk management purposes at March 31, 2014 and 2013:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	March 31, 2014		March 31, 2013		Balance Sheet Location	March 31, 2014		March 31, 2013
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	3,464	$	11,032	Other current liabilities	$	10,457	$	3,999
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	4,722	$	16,531	Other current liabilities	$	6,949	$	11,291

        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 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.