Foreign Currency Exchange Contracts and Hedging

6 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Exchange Contracts and Hedging

Foreign Currency Exchange Contracts and Hedging

At September 30, 2016, the Company had foreign currency exchange contracts designated as cash flow hedges with notional amounts totaling approximately $71,000, held by seven counterparties, which will mature at various dates over the next six months. In addition, the Company had non-designated derivative foreign currency exchange contracts with notional amounts of approximately $30,000, held by four counterparties, which will mature at various dates over the next six months. During the three and six months ended September 30, 2016, the Company settled foreign currency exchange contracts designated as cash flow hedges with notional amounts totaling approximately $41,000 and $44,000, respectively, that had been entered into in previous periods. During the three and six months ended September 30, 2016, the Company entered into and settled non-designated derivative contracts with total notional amounts of approximately $61,000 and $124,000, respectively.

The nonperformance risk of the Company and the counterparties did not have a material impact on the fair value of the derivatives. During the three and six months ended September 30, 2016, the designated hedges remained effective. The effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of September 30, 2016, the amount of unrealized gains on foreign currency hedging reflected in accumulated other comprehensive loss (see Note 10 “Accumulated Other Comprehensive Loss”) is expected to be reclassified into income within the next 9 months.

The following table summarizes the effect of foreign currency exchange contracts designated as cash flow hedging relationships:

	Six Months Ended   September 30,
	2016	2015
Derivatives in designated cash flow hedging relationships	Foreign currency exchange contracts	Foreign currency exchange contracts
Amount of gain (loss) recognized in other comprehensive income on derivatives (effective portion)	$4,903	$(1,498)
Location of amount reclassified from accumulated other comprehensive income into income (effective portion)	Net sales	Net sales
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (effective portion)	$1,676	$(794)
Location of amount excluded from effectiveness testing	Selling, general and administrative expenses	Selling, general and administrative expenses
Amount of gain excluded from effectiveness testing	$355	$66

The following table summarizes the effect of foreign currency exchange contracts not designated as hedging instruments:

	Six Months Ended   September 30,
	2016	2015
Derivatives not designated as hedging instruments	Foreign currency exchange contracts	Foreign currency exchange contracts
Location of amount recognized in income on derivatives	Selling, general and administrative expenses	Selling, general and administrative expenses
Amount of loss recognized in income on derivatives	$(881)	$(461)

Subsequent to September 30, 2016, the Company entered into non-designated derivative foreign currency exchange contracts with notional amounts totaling approximately $48,000, which are expected to mature over the next three months. Hedging contracts held as of November 9, 2016 were held by a total of nine counterparties.