Foreign Currency Exchange Contracts and Hedging

3 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Exchange Contracts and Hedging

Foreign Currency Exchange Rate Contracts and Hedging

Certain of the Company's foreign currency exchange rate forward contracts are designated cash flow hedges of forecasted sales (Designated Derivative Contracts) and are subject to foreign currency exchange rate risk. These contracts allow the Company to sell Euros and British Pounds in exchange for US dollars at specified contract rates. Forward contracts are used to hedge forecasted sales over specific quarters. The Company may also enter into foreign currency exchange rate contracts that are not designated as hedging instruments (Non-Designated Derivative Contracts), and these contracts are generally entered into to offset the gains and losses on certain intercompany balances until the expected time of repayment. The fair value of the notional amount of both the Designated and Non-Designated Derivative Contracts are recorded in other current assets or other accrued expenses in the condensed consolidated balance sheets. Changes in the fair value of Designated Derivative Contracts are recognized as a component of accumulated other comprehensive income (loss) (OCI) within stockholders' equity, and are recognized in the condensed consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding third-party sales occur.

As of June 30, 2017, the Company had total notional value of $155,444 for foreign currency exchange rate forward contracts, which included the following:

	Designated Derivative Contracts	Non-Designated Derivative Contracts
Notional amount	$121,625	$33,819
Fair value recorded in other current assets	—	204
Fair value recorded in other current liabilities	(4,192)	(1,807)

As of June 30, 2017, the Company had Designated Derivative Contracts with four counterparties and Non-Designated Derivative Contracts with three counterparties. As of June 30, 2017, the Company had Designated Derivative Contracts with various maturity dates within the next three to nine months, and Non-Designated Derivative Contracts that mature within six months. No contracts were settled during the three months ended June 30, 2017.

The non-performance risk of the Company and the counterparties did not have a material impact on the fair value of the derivative instruments. During the three months ended June 30, 2017, the designated hedges remained effective. The effective portion of the gain or loss on the derivative instrument is recognized in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of June 30, 2017, the amount of unrealized gains on foreign currency exchange rate hedges recognized in accumulated OCI (see Note 10, "Accumulated Other Comprehensive Loss", for additional information) is expected to be reclassified into income within the next 12 months.

The following table summarizes the effect of Designated Derivative Contracts:

	Three Months Ended June 30,
	2017	2016
Amount of (loss) gain recognized in other comprehensive (loss) income on derivative instruments (effective portion)	$(5,890)	$4,464
Location of amount reclassified from accumulated other comprehensive loss into income (effective portion)	Net Sales	Net Sales
Amount of loss reclassified from accumulated other comprehensive loss into income (effective portion)	$—	$(175)
Location of amount excluded from effectiveness testing	Selling, general and administrative expenses	Selling, general and administrative expenses
Amount of gain excluded from effectiveness testing	$333	$192

The following table summarizes the effect of Non-Designated Derivative Contracts:

	Three Months Ended June 30,
	2017	2016
Location of amount recognized in income on derivative instruments	Selling, general and administrative expenses	Selling, general and administrative expenses
Amount of loss recognized in income on derivative instruments	$(1,603)	$(591)

Subsequent to June 30, 2017, the Company entered into Non-Designated Derivative Contracts with notional amounts totaling $17,077, which are expected to mature over the next nine months, and no Designated Derivative Contracts. All hedging contracts at August 9, 2017 were held by a total of six counterparties.