FINANCIAL INSTRUMENTS

3 Months Ended

Jun. 28, 2013

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 28, 2013, the aggregate notional amount of the Company’s outstanding foreign currency forward and swap contracts was $4.1 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	3,257,900	—	$	529,998	$	—
EUR	9,345	11,182	12,154		14,961
HUF	12,438,000	—	54,603		—
ILS	24,400	—	6,707		—
MXN	1,692,900	—	128,531		—
MYR	271,700	—	84,800		—
SGD	40,250	—	31,587		—
Other	N/A	N/A	61,881		—
			910,261		14,961
Other Forward/Swap Contracts
BRL	113,500	73,500	51,874		33,592
CAD	110,256	126,644	105,564		121,281
CNY	1,605,223	4,900	260,725		797
EUR	535,510	612,755	697,845		797,023
GBP	32,857	57,351	50,317		87,728
HUF	14,272,300	15,997,600	62,656		70,230
JPY	8,472,067	5,145,773	86,546		52,538
MXN	1,339,160	844,290	101,674		64,102
MYR	189,515	35,630	59,149		11,120
SEK	581,969	754,807	86,808		112,181
SGD	35,511	10,039	27,867		7,878
Other	N/A	N/A	149,230		66,843
			1,740,255		1,425,313
Total Notional Contract Value in USD			$	2,650,516	$	1,440,274

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 28, 2013 and March 31, 2013, the Company also has included net deferred losses and gains, 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 losses and gains were not material, and the deferred losses as of June 28, 2013 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, 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 28, 2013		March 31, 2013		Balance Sheet Location	June 28, 2013		March 31, 2013
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	5,946	$	11,032	Other current liabilities	$	11,407	$	3,999
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	9,261	$	16,531	Other current liabilities	$	14,981	$	11,291

As of June 28, 2013, the Company did not have any master netting arrangements.  The asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets.  Accordingly, there are no offsetting amounts that net assets against liabilities.