FINANCIAL INSTRUMENTS

3 Months Ended

Jun. 27, 2014

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 June 27, 2014, 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	3,302,000	—	$	529,650	$	—
EUR	15,113	29,518	20,598		40,120
HUF	10,532,000	—	46,767		—
PLN	83,000	—	27,316		—
MXN	1,935,600	—	148,749		—
MYR	294,850	—	91,449		—
SGD	34,230	—	27,382		—
Other	N/A	N/A	31,373		450
			923,284		40,570
Other Forward/Swap Contracts
BRL	—	348,000	—		157,694
CAD	138,591	120,959	128,472		112,374
CNY	666,823	—	106,943		—
EUR	485,286	654,488	661,247		891,706
GBP	29,972	55,750	50,857		94,535
HUF	18,963,300	20,835,600	84,206		92,520
JPY	5,490,146	2,172,817	53,897		21,324
MXN	1,217,840	712,520	93,590		54,757
MYR	211,344	21,655	65,549		6,716
SEK	486,657	852,268	72,314		126,916
Other	N/A	N/A	176,694		140,468
			1,493,769		1,699,010
Total Notional Contract Value in USD			$	2,417,053	$	1,739,580

As of June 27, 2014, the fair value of the Company’s short-term foreign currency contracts was not material and is included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. 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.  As of June 27, 2014 and March 31, 2014, the Company also has included net deferred losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed consolidated balance sheets, relating to the effective portion of changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred losses were not material as of June 27, 2014, 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 utilized for foreign currency risk management purposes:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	June 27, 2014		March 31, 2014		Balance Sheet Location	June 27, 2014		March 31, 2014
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	6,007	$	3,464	Other current liabilities	$	6,763	$	10,457
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	3,574	$	4,722	Other current liabilities	$	4,077	$	6,949

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 period presented.