FINANCIAL INSTRUMENTS

6 Months Ended

Sep. 28, 2012

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

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 September 28, 2012, the aggregate notional amount of the Company’s outstanding foreign currency forward and swap contracts was $3.2 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	2,904,030	—	$	460,789	$	—
EUR	20,599	9,729	26,479		12,420
HUF	13,818,000	—	62,350		—
ILS	153,600	—	39,089		—
MXN	1,499,900	—	116,774		—
MYR	386,600	—	125,662		—
SGD	46,700	—	38,026		—
Other	N/A	N/A	63,918		500
			933,087		12,920
Other Forward/Swap Contracts
BRL	34,900	54,200	17,140		26,618
CAD	34,417	44,470	35,095		45,449
CNY	932,472	931,248	148,000		148,000
EUR	388,999	198,361	500,165		254,416
GBP	14,536	34,690	23,443		56,187
HUF	5,394,500	5,502,300	24,341		24,828
JPY	6,412,466	3,371,577	82,528		43,192
MXN	701,555	216,920	54,619		16,888
MYR	187,020	40,250	60,790		13,083
SEK	2,371,420	756,283	360,346		114,776
SGD	31,163	4,385	25,375		3,571
Other	N/A	N/A	111,576		35,227
			1,443,418		782,235
Total Notional Contract Value in USD			$	2,376,505	$	795,155

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 (income), 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 September 28, 2012 and March 31, 2012, the Company also has included net deferred gains and losses, respectively, in accumulated 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 gains as of September 28, 2012 are expected to be recognized primarily 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 (income), 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	September 28,		March 31,		Balance Sheet	September 28,		March 31,
	Location	2012		2012		Location	2012		2012
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	16,631	$	10,075	Other current liabilities	$	1,563	$	1,905
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	7,711	$	10,894	Other current liabilities	$	5,367	$	6,200