Derivative Financial Instruments

9 Months Ended

Dec. 27, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

4.     Derivative Financial Instruments

Our primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk.

Currency Exchange Rate Risk

We are exposed to currency exchange rate risk and generally hedge our exposures with currency forward contracts.  Substantially all of our revenue is transacted in U.S. dollars.  However, a portion of our operating expenditures are incurred in or exposed to other currencies, primarily the British pound.  We have established a forecasted transaction currency risk management program to protect against fluctuations in the volatility of the functional currency equivalent of future cash flows caused by changes in exchange rates.  This program may reduce, but not eliminate, the impact of currency exchange movements. 

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

The fair value of our derivative instruments at the end of each period were as follows (in thousands):

	Other Accrued Liabilities
	December 27,		March 29,
	2014		2014
Currency forwards	$	233	$	-

Changes in the fair value of derivative instruments as well as recognized gains / losses are included in the line item “Other expense” in the consolidated condensed statements of income.