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Derivative Financial Instruments
 12 Months Ended
Apr. 01, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company in its normal course of business enters into transactions with foreign suppliers and seeks to minimize risks related to certain forecasted inventory purchases by using forward foreign currency exchange contracts. The Company only enters into derivative instruments with highly credit-rated counterparties. The Company does not enter into derivative contracts for trading or speculative purposes.
The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of April 1, 2017 and April 2, 2016 (in millions):
 
 
 
 
 
Fair Values
 
Notional Amounts
 
Current Assets (1)
 
Current Liabilities (2)
 
April 1,
2017
 
April 2,
2016
 
April 1,
2017
 
April 2,
2016
 
April 1,
2017
 
April 2,
2016
Designated forward foreign currency exchange contracts
$
167.5

 
$
174.1

 
$
4.7

 
$
0.1

 
$
0.4

 
$
5.1

Undesignated forward foreign currency exchange contracts
—

 
30.0

 
—

 
—

 
—

 
0.4

Total
$
167.5

 
$
204.1

 
$
4.7

 
$
0.1

 
$
0.4

 
$
5.5

 
 
(1) 
Recorded within prepaid expenses and other current assets in the Company’s audited consolidated balance sheets.
(2) 
Recorded within accrued expenses and other current liabilities in the Company’s audited consolidated balance sheets.
The Company records and presents the fair values of all of its derivative assets and liabilities in its consolidated balance sheet on a gross basis as shown in the above table. However, the Company has derivative assets and liabilities of $4.7 million and $0.3 million, respectively, which are subject to master netting arrangements. If the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to setoff amounts for similar transactions denominated in the same currencies, derivative net assets and net liabilities as of April 1, 2017 would be $4.5 million and $0.2 million, respectively. The Company's master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. The Company’s derivative financial instruments were not subject to master netting arrangements in prior fiscal years.
Changes in the fair value of the effective portion of the Company’s forward foreign currency exchange contracts that are designated as accounting hedges are recorded in equity as a component of accumulated other comprehensive income, and are reclassified from accumulated other comprehensive income into earnings when the items underlying the hedged transactions are recognized into earnings, as a component of cost of sales within the Company’s consolidated statements of operations and comprehensive income. The following table summarizes the impact of the effective portion of gains and losses on the forward contracts designated as hedges (in millions):
 
 
Fiscal Year Ended April 1, 2017
 
Fiscal Year Ended April 2, 2016
 
Fiscal Year Ended March 28, 2015
 
Pre-Tax
Gain
Recognized
in OCI
 
Pre-tax Gain
Reclassified from
Accumulated OCI
into Earnings
 
Pre-Tax
Loss
Recognized
in OCI
 
Pre-tax Gain
Reclassified from
Accumulated OCI
into Earnings
 
Pre-Tax
Gain
Recognized in OCI
 
Pre-tax Gain
Reclassified from
Accumulated OCI into Earnings
Designated hedges
$
10.2

 
$
0.4

 
$
(25.2
)
 
$
10.9

 
$
36.6

 
$
2.1


Amounts related to ineffectiveness were not material during all periods presented. The Company expects that substantially all of the amounts currently recorded in accumulated other comprehensive loss will be reclassified into earnings during the next twelve months, based upon the timing of inventory purchases and turnover. These amounts are subject to fluctuations in the applicable currency exchange rates.
During Fiscal 2017, Fiscal 2016 and Fiscal 2015, the Company recognized net gains of $2.6 million, losses of $2.1 million and gains of $1.5 million respectively, related to the change in the fair value of undesignated forward currency exchange contracts within foreign currency loss in the Company’s consolidated statements of operations and comprehensive income.