In the normal course of business, these risks are managed through a variety of strategies, including the use of derivative instruments. Commodity forward contracts are periodically used to hedge forecasted purchases of certain commodities, foreign currency exchange contracts are used to hedge forecasted transactions denominated in a foreign currency, and ATK periodically uses interest rate swaps to hedge forecasted interest payments and the risk associated with variable interest rates on long-term debt.

ATK entered into forward contracts for copper and zinc during fiscal 2011 and 2010 and for lead during fiscal 2009. The contracts essentially establish a fixed price for the underlying commodity and are designated and qualify as effective cash flow hedges of purchases of the commodity. Ineffectiveness is calculated as the amount by which the change in the fair value of the derivatives exceeds the change in the fair value of the anticipated commodity purchases. The fair value of these contracts is recorded within other assets or liabilities, as appropriate, and the effective portion is reflected in accumulated OCI in the financial statements. The gains or losses on these contracts are recorded in inventory as the commodities are purchased. As of March 31, 2011, ATK had the following outstanding commodity forward contracts that were entered into to hedge forecasted purchases:

ATK entered into foreign currency forward contracts during fiscal 2011 and 2010. These contracts are used to hedge forecasted inventory purchases and subsequent payments, or customer receivables, denominated in Euros and Canadian dollars and are designated and qualify as effective cash flow hedges. Ineffectiveness with respect to forecasted inventory purchases is calculated based on changes in the forward rate until the anticipated purchase occurs; ineffectiveness of the hedge of the accounts payable is evaluated based on the change in fair value of its anticipated settlement. The fair value of these contracts is recorded within other assets or liabilities and the effective portion is reflected in accumulated OCI in the financial statements. The gains or losses on these contracts are recorded in earnings when the related inventory is sold. As of March 31, 2011, ATK had the following outstanding foreign currency forward contracts in place:

The table below presents the fair value and location of ATK's derivative instruments designated as hedging instruments in the condensed consolidated balance sheet as of March 31, 2011 and 2010.

		Asset Derivatives Fair value as of				Liability Derivatives Fair value as of

	Location	March 31, 2011		March 31, 2010		March 31, 2011		March 31, 2010
Commodity forward contracts	Other current assets	$	36,398	$	38,610	$	—	$	—
Commodity forward contracts	Deferred charges and other non-current assets		12,619		27,744		—		—
Foreign currency forward contracts	Other current assets/ accrued liabilities		390		—		—		772

Total		$	49,407	$	66,354	$	—	$	772

Due to the nature of ATK's business, the benefits associated with the commodity contracts may be passed on to the customer and not realized by ATK.

For the periods presented below, the derivative gains and losses in the consolidated income statements related to commodity forward contracts and foreign currency forward contracts were as follows:

		Pretax amount of gain (loss) recognized in Other Comprehensive Income (Loss)			Pretax amount of gain (loss) reclassified from Accumulated Other Comprehensive Income (Loss)			Gain or (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)

		Amount			Location	Amount		Location	Amount
Fiscal year ended March 31, 2011
	Commodity forward contracts	$	49,017		Cost of Sales	$	26,491	Cost of Sales	$	—
	Foreign currency forward contracts		390		Cost of Sales		—	Cost of Sales		—
Fiscal year ended March 31, 2010
	Commodity forward contracts	$	66,354		Cost of Sales	$	13,849	Cost of Sales	$	—
	Foreign currency forward contract		(772	)	Cost of Sales		—	Cost of Sales		—

All derivatives used by ATK during fiscal 2011 and 2010 were designated as hedging instruments.

There was no ineffectiveness recognized in earnings for these contracts during the fiscal 2011, 2010, or 2009. ATK expects that any unrealized losses will be realized and reported in cost of sales as the cost of the commodities is included in cost of sales. Estimated and actual gains or losses will change as market prices change.