FINANCIAL INSTRUMENTS

3 Months Ended

Jun. 29, 2012

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

6.  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 June 29, 2012, the aggregate notional amount of the Company’s outstanding foreign currency forward and swap contracts was $2.8 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	2,365,400	—	$	372,100	$	—
EUR	27,356	3,984	34,047		5,042
HUF	15,669,000	—	67,629		—
ILS	157,100	—	39,841		—
MXN	1,754,600	—	128,849		—
MYR	381,800	—	119,481		—
SGD	51,300	—	40,116		—
Other	N/A	N/A	61,695		1,840
			863,758		6,882
Other Forward/Swap Contracts
BRL	151,000	210,100	72,722		101,185
CAD	49,478	66,527	48,267		64,926
EUR	306,532	172,502	382,253		214,871
GBP	15,236	35,472	23,694		55,136
HUF	12,766,500	10,953,300	55,102		47,276
JPY	5,985,940	3,180,374	75,395		40,158
MXN	731,185	199,700	53,695		14,665
MYR	260,721	31,972	81,590		10,005
SEK	2,370,428	750,774	334,956		106,079
Other	N/A	N/A	110,275		37,943
			1,237,949		692,244
Total Notional Contract Value in USD			$	2,101,707	$	699,126

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 statements 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 June 29, 2012 and March 31, 2012, the Company also has included net deferred gains and losses, respectively, in 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. These deferred gains and losses were not material, and the deferred losses as of June 29, 2012 are expected to be recognized as a component of cost of sales in the condensed consolidated statements 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 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 fair value of the Company’s derivative instruments located on the condensed consolidated balance sheets utilized for foreign currency risk management purposes:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	June 29, 2012		March 31, 2012		Balance Sheet Location	June 29, 2012		March 31, 2012
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	4,619	$	10,105	Other current liabilities	$	13,611	$	1,905
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	8,155	$	10,894	Other current liabilities	$	7,606	$	6,200