FINANCIAL INSTRUMENTS

9 Months Ended

Dec. 31, 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 December 31, 2012, the aggregate notional amount of the Company’s outstanding foreign currency forward and swap contracts was $4.2 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	2,861,000	—	$	458,795	$	—
EUR	16,023	4,300	21,228		5,697
HUF	11,150,000	—	50,800		—
ILS	119,000	—	31,938		—
MXN	1,477,900	—	113,974		—
MYR	350,100	—	114,393		—
SGD	36,900	—	30,199		—
Other	N/A	N/A	56,367		1,350
			877,694		7,047
Other Forward/Swap Contracts
BRL	152,600	314,100	74,723		153,805
CAD	101,692	110,264	102,512		111,203
CNY	125,225	—	20,000		—
EUR	586,095	642,895	774,857		849,907
GBP	30,647	49,291	49,488		79,737
HUF	7,446,700	6,471,000	33,927		29,482
JPY	7,617,639	4,454,641	88,929		52,670
MXN	1,298,860	882,855	100,167		68,085
MYR	206,930	17,376	67,613		5,678
SEK	1,054,161	1,705,383	162,100		262,050
SGD	38,792	5,788	31,748		4,737
Other	N/A	N/A	143,278		68,135
			1,649,342		1,685,489
Total Notional Contract Value in USD			$	2,527,036	$	1,692,536

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 December 31, 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 December 31, 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 Location	December 31, 2012		March 31, 2012		Balance Sheet Location	December 31, 2012		March 31, 2012
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	15,145	$	10,075	Other current liabilities	$	1,132	$	1,905
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	9,644	$	10,894	Other current liabilities	$	14,162	$	6,200