FINANCIAL INSTRUMENTS

3 Months Ended

Jul. 01, 2016

Derivative Instruments and Hedges, Assets [Abstract]

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

Foreign Currency Contracts

The Company primarily enters into forward contracts and foreign currency swap contracts to manage the foreign currency risk associated with monetary accounts and anticipated foreign currency denominated transactions. The Company hedges committed exposures and does not engage in speculative transactions. As of July 1, 2016, the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.1 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	912,000	—	$	137,283	$	—
EUR	38,380	131,471	42,616		149,493
HUF	15,656,000	—	54,854		—
ILS	101,600	—	26,359		—
INR	1,200,326	—	17,300		—
MXN	1,596,000	—	86,154		—
MYR	184,000	10,000	45,590		2,478
RON	71,600	—	17,567		—
Other	N/A	N/A	35,075		—
			462,798		151,971
Other Foreign Currency Contracts
BRL	—	387,000	—		119,618
CHF	7,341	24,799	7,493		25,317
CNY	889,314	—	133,700		—
DKK	198,100	157,200	29,573		23,468
EUR	827,266	1,019,015	919,695		1,133,079
GBP	33,926	59,056	46,021		80,247
HUF	44,240,000	40,598,000	155,005		142,244
ILS	128,800	124,420	33,416		32,280
INR	5,510,229	13,599	81,695		200
MXN	1,578,370	353,640	85,202		19,090
MYR	348,847	33,900	86,434		8,399
PLN	107,804	59,773	27,076		15,013
RON	102,172	85,811	25,068		21,054
SEK	450,235	817,956	53,085		96,704
Other	N/A	N/A	57,985		26,215
			1,741,448		1,742,928
Total Notional Contract Value in USD			$	2,204,246	$	1,894,899

As of July 1, 2016, the fair value of the Company’s short-term foreign currency contracts was not material and is included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company’s exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the condensed consolidated statements of operations. As of July 1, 2016 and March 31, 2016, the Company also has included net deferred gains and losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed consolidated balance sheets, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred gains were $1.6 million as of July 1, 2016, and are expected to be recognized primarily as a component of cost of sales in the condensed consolidated statements of operations primarily over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal periods presented and are included as a component of interest and other, net in the condensed consolidated statements of operations.

The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	July 1, 2016		March 31, 2016		Balance Sheet Location	July 1, 2016		March 31, 2016
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	6,645	$	5,510	Other current liabilities	$	4,424	$	2,446
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	10,744	$	17,138	Other current liabilities	$	7,434	$	18,645

The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with a single counterparty. The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets. The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented.