FINANCIAL INSTRUMENTS

9 Months Ended

Dec. 31, 2013

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

8.  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, 2013, the aggregate notional amount of the Company’s outstanding foreign currency forward and swap contracts was $4.0 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	3,301,000	—	$	544,567	$	—
EUR	7,825	58,593	10,808		80,396
HUF	11,797,000	—	54,998		—
ILS	5,300	—	1,524		—
MXN	1,633,300	—	124,935		—
MYR	282,880	—	85,864		—
SGD	33,419	—	26,368		—
Other	N/A	N/A	47,924		400
			896,988		80,796
Other Forward/Swap Contracts
BRL	80,300	71,300	34,015		30,203
CAD	118,254	110,482	111,283		103,856
CNY	886,290	—	145,631		—
EUR	446,780	603,079	615,804		830,322
GBP	32,540	56,956	53,726		93,910
HUF	17,616,300	19,921,600	82,127		92,875
JPY	9,193,270	6,440,830	87,561		61,709
MXN	1,674,690	1,108,520	128,101		84,793
MYR	233,391	51,354	70,843		15,588
SEK	248,048	407,204	38,546		63,257
SGD	38,950	9,629	30,733		7,598
Other	N/A	N/A	154,559		111,177
			1,552,929		1,495,288
Total Notional Contract Value in USD			$	2,449,917	$	1,576,084

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, 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, 2013 and March 31, 2013, the Company also has included net deferred gains 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 were not material as of December 31, 2013, and 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, 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, 2013		March 31, 2013		Balance Sheet Location	December 31, 2013		March 31, 2013
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	9,396	$	11,032	Other current liabilities	$	2,718	$	3,999
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	8,591	$	16,531	Other current liabilities	$	14,159	$	11,291

The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with a single counterparty.  The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets.  The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented.