v2.4.0.6
Derivatives and Hedging Activities
 6 Months Ended
Oct. 26, 2012
Derivatives and Hedging Activities

11.  Derivatives and Hedging Activities

We use derivative instruments to manage exposures to foreign currency risk. The maximum length of time over which forecasted foreign currency denominated revenues are hedged is six months. The notional value of our outstanding foreign currency forward purchase contracts that were entered into to hedge forecasted foreign denominated sales and our foreign currency denominated monetary asset and liability exposures consisted of the following (in millions):

 

     October 26,
2012		      April 27,
2012		  

Cash Flow Hedges

      

Euro

    $ 142.4       $ 96.9   

British Pound Sterling

      39.6         29.8   

Balance Sheet Contracts

      

Euro

      179.0         267.4   

British Pound Sterling

      76.2         86.4   

Australian Dollar

      95.4         38.5   

Canadian Dollar

      30.4         54.3   

Swiss Franc

      24.8         7.3   

Israeli Shekel

      24.4         17.2   

Other

      45.1         44.0   

The fair value of our short-term foreign currency contracts was not material as of October 26, 2012 and April 27, 2012. We did not recognize any gains and losses in earnings due to hedge ineffectiveness for any period presented.

 

The effect of derivative instruments designated as cash flow hedges recognized in net revenues on our condensed consolidated statements of operations was as follows (in millions):

 

     Three Months Ended October 26, 2012      Three Months Ended October 28, 2011  

Derivatives in Cash Flow Hedging Relationships

    Loss
     Recognized in    
AOCI		      Loss
     Reclassified from    
AOCI into
Income		      Gain
     Recognized    
in AOCI		      Gain
     Reclassified from    
AOCI into
Income		  

Foreign exchange forward purchase contracts

    $ 5.5       $ 2.6       $ 5.9       $ 5.8   

 

     Six Months Ended October 26, 2012      Six Months Ended October 28, 2011  

Derivatives in Cash Flow Hedging Relationships

    Gain
     Recognized in    
AOCI		      Gain
     Reclassified from    
AOCI into
Income		      Gain
     Recognized    
in AOCI		      Gain
     Reclassified from    
AOCI into
Income		  

Foreign exchange forward purchase contracts

    $ 0.9       $ 1.9       $ 10.3       $ 7.6   

The effect of derivative instruments not designated as hedges recognized in other income (expense), net on our condensed consolidated statements of operations was as follows (in millions):

 

     Three Months Ended      Six Months Ended  
     October 26, 2012     October 28, 2011      October 26, 2012      October 28, 2011  

Derivatives Not Designated as Hedging Instruments

    Gain (Loss) Recognized into Income      Gain Recognized into Income  

Foreign exchange forward purchase contracts

    $ (9.7 )    $ 7.9       $ 6.2       $ 14.1