DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

7. DERIVATIVE FINANCIAL INSTRUMENTS

The following table provides information of fair values of derivative financial instruments:

	Asset				Liability
	Noncurrent*		Current*		Noncurrent*		Current*
As of June 30, 2018
Designated as hedging instruments under Cash Flow Hedges
Foreign exchange forward contracts	$	-	$	-	$	335	$	498
Total	$	-	$	-	$	335	$	498
As of March 31, 2018
Designated as hedging instruments under Cash Flow Hedges
Foreign exchange forward contracts	$	46	$	194	$	17	$	127
	$	46	$	194	$	17	$	127

The noncurrent and current portions of derivative assets are included in ‘Other assets’ and ‘Prepaid expenses and other current assets,’ respectively, and the noncurrent and current portions of derivative liabilities are included in ‘Other liabilities’ and ‘Accrued expenses and other current liabilities,’ respectively, in the consolidated balance sheet.

Cash Flow Hedges and Other Derivatives

We use foreign currency forward contracts and par forward contracts to hedge our risks associated with foreign currency fluctuations related to certain commitments and forecasted transactions. The use of hedging instruments is governed by our policies which are approved by our Board of Directors. We designate these hedging instruments as cash flow hedges. Derivative financial instruments we enter into that are not designated as hedging instruments in hedge relationships are classified as financial instruments at fair value in the statement of operations.

The aggregate contracted USD notional amounts of the Group’s foreign exchange forward contracts (sell) outstanding amounted to $28,000 and $18,250 as of June 30, 2018 and March 31, 2018, respectively. The aggregate contracted Great Britain Pound (“GBP”) notional amounts of the Group’s foreign exchange forward contracts (sell) outstanding amounted to GBP 825 and GBP 1,155 as of June 30, 2018 and March 31, 2018, respectively.

The outstanding forward contracts as of June 30, 2018 mature between one month and 36 months. As of June 30, 2018, the Group estimates that $(591), net of tax, of the net gains related to derivatives designated as cash flow hedges recorded in accumulated other comprehensive income (loss) is expected to be reclassified into earnings within the next 36 months.

The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities.

The following table provides information on the amounts of pre-tax gains/(losses) recognized in and reclassified from Accumulated Other Comprehensive Income “AOCI” of derivative instruments designated as cash flow hedges:

	Amount of Gain/(Loss) recognized in AOCI (effective portion)			Amount of Gain/(Loss) reclassified from AOCI to Statement of Operations (Revenue)
For the three months ended June 30, 2018
Foreign exchange forward contracts	$	(991	)	$	61
Total	$	(991	)	$	61
For the three months ended June 30, 2017
Foreign exchange forward contracts	$	(14	)	$	(21	)
Total	$	(14	)	$	(21	)