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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES NetScout operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The exposures result from costs that are denominated in currencies other than the U.S. Dollar, primarily the Euro, British Pound, Canadian Dollar, and Indian Rupee. The Company manages its foreign cash flow risk by hedging forecasted cash flows for operating expenses denominated in foreign currencies for up to twelve months, within specified guidelines through the use of forward contracts. The Company enters into foreign currency exchange contracts to hedge cash flow exposures from costs that are denominated in currencies other than the U.S. Dollar. These hedges are designated as cash flow hedges at inception. NetScout also periodically enters into forward contracts to manage exchange rate risks associated with certain third-party transactions and for which the Company does not elect hedge accounting treatment as there is no difference in the timing of gain or loss recognition on the hedging instrument and the hedged item. All of the Company's derivative instruments are utilized for risk management purposes, and the Company does not use derivatives for speculative trading purposes. These contracts will mature over the next twelve months and are expected to impact earnings on or before maturity. The notional amounts and fair values of derivative instruments in the consolidated balance sheets at September 30, 2024 and March 31, 2024 were as follows (in thousands):
| Notional Amounts (a) |  | Prepaid Expenses and Other Current Assets |  | Accrued Other
| September 30, 2024 |  | March 31, 2024 |  | September 30, 2024 |  | March 31, 2024 |  | September 30, 2024 |  | March 31, 2024
Derivatives Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |  |
Forward contracts | $ | 10,222 |  |  | $ | 11,676 |  |  | $ | 132 |  |  | $ | 11 |  |  | $ | 6 |  |  | $ | 74 |
Derivatives Not Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |  |
Forward contracts |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
|  |  |  |  | $ | 132 |  |  | $ | 11 |  |  | $ | 6 |  |  | $ | 74 |
(a) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the three months ended September 30, 2024 and 2023 (in thousands):
| Gain (Loss) Recognized in OCI on Derivative (a) |  | Gain (Loss) Reclassified from Accumulated OCI into Income (b) |  |
September 30, 2024 |  | September 30, 2023 |  | Location |  | September 30, 2024 |  | September 30, 2023 |  |  |  |  |  |
Forward contracts | $ | 275 |  |  | $ | (349) |  |  | Research and development |  | $ | 3 |  |  | $ | (3) |  |  |  |  |  |  |
|  |  |  |  | Sales and marketing |  | (18) |  |  | (38) |  |  |  |  |  |  |
| $ | 275 |  |  | $ | (349) |  |  |  |  | $ | (15) |  |  | $ | (41) |  |  |  |  |  |  |
(a)The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b)The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the six months ended September 30, 2024 and 2023 (in thousands):
| Gain (Loss) Recognized in OCI on Derivative (a) |  | Gain (Loss) Reclassified from Accumulated OCI into Income (b) |  |
September 30, 2024 |  | September 30, 2023 |  | Location |  | September 30, 2024 |  | September 30, 2023 |  |  |  |  |  |
Forward contracts | $ | 159 |  |  | $ | (139) |  |  | Research and development |  | $ | 4 |  |  | $ | (2) |  |  |  |  |  |  |
|  |  |  |  | Sales and marketing |  | 40 |  |  | (113) |  |  |  |  |  |  |
| $ | 159 |  |  | $ | (139) |  |  |  |  | $ | 44 |  |  | $ | (115) |  |  |  |  |  |  |
The following table provides the effect that foreign exchange forward contracts not designated as hedging instruments had on the Company's results of operations for the six months ended September 30, 2024 and 2023 (in thousands):
|  |  | Gain Recognized in Income (a) |  |
|  |  |  | Location |  | September 30, 2024 |  | September 30, 2023 |  |  |  |  |  |
Forward contracts |  |  |  |  | General and administrative |  | $ | — |  |  | $ | 60 |  |  |  |  |  |  |
|  |  |  |  |  |  | $ | — |  |  | $ | 60 |  |  |  |  |  |  |
(a)The amount represents the change in fair value of derivative contracts due to changes in spot rates.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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