FOREIGN CURRENCY DERIVATIVES

12 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FOREIGN CURRENCY DERIVATIVES

FOREIGN CURRENCY DERIVATIVES

The Company's foreign currency derivatives consist primarily of foreign currency forward exchange contracts, option contracts, and cross-currency swaps.  The derivatives expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the derivative instrument.  The Company's maximum exposure to loss due to credit risk that it would incur if parties to derivative contracts failed completely to perform according to the terms of the contracts was equal to the carrying value of the Company's derivative contracts as of March 31, 2013.  The Company seeks to mitigate such risk by limiting its counterparties to large financial institutions.  In addition, the Company monitors, on an ongoing basis, the potential risk of loss with any one counterparty resulting from this type of credit risk. Refer to Note 5, Fair Value Measurements, for disclosure of the Company's fair value hierarchy for its derivative instruments.

Non-Designated Hedges

As of March 31, 2013, the Company had foreign currency forward contracts denominated in EUR, GBP and Australian Dollars ("AUD"). These forward contracts hedge against a portion of the Company's foreign currency-denominated cash, accounts receivable, and accounts payable balances. The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar equivalent (“USD Equivalent”) at March 31, 2013:

	Local Currency	USD Equivalent		Position	Maturity
	(in thousands)	(in thousands)
EUR	19,000	$	24,371	Sell EUR	1 month
GBP	4,800	$	7,277	Sell GBP	1 month
AUD	2,500	$	2,598	Sell AUD	1 month

Foreign currency transactions, net of the effect of hedging activity on forward contracts, resulted in immaterial losses in fiscal year 2013 and immaterial gains in fiscal years 2012 and 2011, which are included in interest and other income (expense), net in the consolidated statements of operations.

Cash Flow Hedges

On a monthly basis, the Company enters into option contracts with a one-year term.  The Company does not purchase options for trading purposes.  As of March 31, 2013, the Company had foreign currency put and call option contracts of approximately €50.2 million and £19.9 million.  As of March 31, 2012, the Company had foreign currency put and call option contracts of approximately €63.7 million and £20.0 million.

In fiscal year 2013, a realized gain of $3.4 million on cash flow hedges was recognized in net revenues in the consolidated statement of operations. In fiscal years 2012 and 2011, a realized loss of $2.4 million and realized gains of $2.5 million, respectively, on cash flow hedges were recognized in net revenues in the consolidated statements of operations.  An immaterial gain, net of tax, in AOCI as of March 31, 2013 is expected to be reclassified to net revenues during the next 12 months due to the recognition of the hedged forecasted sales.

The Company hedges expenditures denominated in Mexican Peso (“MX$”), which are designated as cash flow hedges and are accounted for under the hedge accounting provisions of the Derivatives and Hedging Topic of the FASB ASC. The Company hedges a portion of the forecasted MX$ denominated expenditures with a cross-currency swap.  The effective portion of the hedge gain or loss is initially reported as a component of AOCI and subsequently reclassified into cost of revenues when the hedged exposure affects operations.  Any ineffective portion of related gains or losses is immediately recorded in the consolidated statements of operations. As of March 31, 2013 and 2012, the Company had foreign currency swap contracts of approximately MX$325.4 million and MX$317.5 million, respectively.

In fiscal years 2013, 2012, and 2011, there were no material realized gains or losses on MX$ cash flow hedges recognized in cost of revenues in the consolidated statements of operations and there were no material gains in AOCI as of March 31, 2013 to be recognized during the next 12 months due to the recognition of the hedged forecasted expenditures.

The following table summarizes the notional value of the Company's outstanding MX$ currency swaps and approximate USD Equivalent at March 31, 2013:

	Local Currency	USD Equivalent	Position	Maturity
	(in thousands)	(in thousands)
MX$	325,400	25,222	Buy MX$	Monthly over	12 months

The amounts in the tables below include fair value adjustments related to the Company’s own credit risk and counterparty credit risk.

Fair Value of Derivative Contracts

The fair value of derivative contracts under the Derivatives and Hedging Topic of the FASB ASC was as follows:

	Derivative Assets Reported in Other Current Assets				Derivative Liabilities Reported in Accrued Liabilities
(in thousands)	March 31, 2013		March 31, 2012		March 31, 2013		March 31, 2012
Foreign exchange contracts designated as cash flow hedges	$	1,665	$	2,658	$	294	$	721

Effect of Designated Derivative Contracts on Accumulated Other Comprehensive Income

The following table represents only the balance of designated derivative contracts under the Derivatives and Hedging Topic of the FASB ASC as of March 31, 2013 and 2012 and the pre-tax impact of designated derivative contracts on accumulated other comprehensive income ("OCI") for fiscal years ended March 31, 2013 and 2012:

(in thousands)	Gain (loss) included in AOCI as of March 31, 2012		Amount of gain (loss) recognized in AOCI (effective portion)		Amount of gain (loss) reclassified from AOCI to income (loss) (effective portion)		Gain (loss) included in AOCI as of March 31, 2013
Foreign exchange contracts designated as cash flow hedges	$	1,937	$	3,441	$	4,007	$	1,371

(in thousands)	Gain (loss) included in AOCI as of March 31, 2011			Amount of gain (loss) recognized in AOCI (effective portion)		Amount of gain (loss) reclassified from AOCI to income (loss) (effective portion)			Gain (loss) included in AOCI as of March 31, 2012
Foreign exchange contracts designated as cash flow hedges	$	(3,814	)	$	2,951	$	(2,800	)	$	1,937

Effect of Designated Derivative Contracts on the Consolidated Statements of Operations

The effect of designated derivative contracts under the Derivatives and Hedging Topic of the FASB ASC on results of operations recognized in interest and other income (expense), net in the consolidated statements of operations was as follows:

	Fiscal Year Ended March 31,
(in thousands)	2013		2012			2011
Gain (loss) on foreign exchange contracts designated as cash flow hedges	$	4,007	$	(2,800	)	$	2,917

Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations

The effect of non-designated derivative contracts under the Derivatives and Hedging Topic of the FASB ASC on results of operations recognized in interest and other income (expense), net in the consolidated statements of operations was as follows:

	Fiscal Year Ended March 31,
(in thousands)	2013		2012		2011
Gain (loss) on foreign exchange contracts	$	1,065	$	1,009	$	(1,800	)