7. FINANCIAL INSTRUMENTS

Foreign Currency Contracts

The Company enters into forward contracts and foreign currency swap contracts to manage the foreign currency risk associated with monetary accounts and anticipated foreign currency denominated transactions. The Company hedges committed exposures and does not engage in speculative transactions. As of July 1, 2011, the aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts was $2.7 billion as summarized below:

Currency	Buy/Sell	Foreign Currency Amount		Notional Contract Value in USD
		(In thousands)
Cash Flow Hedges
CNY	Buy	1,503,500	$	232,610
EUR	Buy	25,374		36,692
EUR	Sell	16,359		23,111
HUF	Buy	13,891,000		75,713
ILS	Buy	163,200		47,782
MXN	Buy	1,534,900		130,722
MYR	Buy	376,950		124,839
SGD	Buy	71,200		57,957
Other	Buy	N/A		72,981
				802,407
Other Forward/Swap Contracts
BRL	Buy	47,400		30,268
BRL	Sell	108,200		69,093
CAD	Buy	46,690		47,790
CAD	Sell	71,925		73,488
EUR	Buy	143,237		207,416
EUR	Sell	232,426		336,655
GBP	Buy	13,924		22,427
GBP	Sell	35,777		57,279
HUF	Buy	6,441,100		35,107
HUF	Sell	8,387,800		45,718
JPY	Buy	5,025,027		62,475
JPY	Sell	2,915,946		36,133
MXN	Buy	758,110		64,566
MXN	Sell	247,020		21,038
MYR	Buy	152,853		50,622
SEK	Buy	2,458,189		388,344
SEK	Sell	1,181,001		186,750
Other	Buy	N/A		109,740
Other	Sell	N/A		54,971
				1,899,880
Total Notional Contract Value in USD.			$	2,702,287

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 expense, net in the Condensed Consolidated Statement of Operations. Gains or losses from fair value adjustments for these instruments are designed to offset losses and gains from the Company's revaluation of monetary assets and liabilities denominated in a non-functional currency. As of July 1, 2011 and March 31, 2011, the Company also has included net deferred gains and losses, respectively, in other comprehensive income, 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. These deferred gains and losses were not material, and the deferred losses as of July 1, 2011 are expected to be recognized as a component of cost of sales over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal periods presented and are included as a component of Interest and other expense, net in the Condensed Consolidated Statements 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 July 1, 2011, aggregated by level in the fair-value hierarchy within which those measurements fall:


	Level 1	Level 2	Level 3	Total
	(In thousands)
Assets:
Foreign currency contracts	$ -	$ 26,485	$ -	$ 26,485

Liabilities:
Foreign currency contracts	-	(11,104)	-	(11,104)
Total:	$ -	$ 15,381	$ -	$ 15,381

There were no transfers between levels in the fair value hierarchy during the three-month period ended July 1, 2011. 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 Condensed Consolidated Balance Sheet utilized for foreign currency risk management purposes at July 1, 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	$ 15,351	Other current liabilities	$ (1,317)

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$ 11,134	Other current liabilities	$ (9,787)