XML 38 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivatives (Tables)
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Primary Net Hedging Positions and Corresponding Fair Values

$120,208, respectively. The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of September 30, 2017 and December 31, 2016:

 

     September 30, 2017  

Currency Hedged (Buy/Sell)

    Gross Notional
Value		      Fair Value(1)
Asset/(Liability)		  

U.S. Dollar/Japanese Yen

    $ 29,929      $ (1 ) 

U.S. Dollar/South Korean Won

      24,663        (324 ) 

U.S. Dollar/Euro

      14,979        (1,052 ) 

U.S. Dollar/U.K. Pound Sterling

      5,272        (315 ) 

U.S. Dollar/Taiwan Dollar

      11,374        (273 ) 
  

 

 

     

 

 

  

Total

    $ 86,217      $ (1,965 ) 
  

 

 

     

 

 

  
     December 31, 2016  

Currency Hedged (Buy/Sell)

    Gross Notional
Value		      Fair Value(1)
Asset/(Liability)		  

U.S. Dollar/Japanese Yen

    $ 30,522      $ 763  

U.S. Dollar/South Korean Won

      50,049        1,342  

U.S. Dollar/Euro

      18,040        156  

U.S. Dollar/U.K. Pound Sterling

      6,067        117  

U.S. Dollar/Taiwan Dollar

      15,530        64  
  

 

 

     

 

 

  

Total

    $ 120,208      $ 2,442  
  

 

 

     

 

 

  

 

(1)  Represents the fair value of the net (liability) asset amount included in the consolidated balance sheet.
Summary of Fair Value Amounts of Company's Derivative Instruments

The following table provides a summary of the fair value amounts of the Company’s derivative instruments:

 

Derivatives Designated as Hedging Instruments

   September 30,
2017		     December 31,
2016		  

Derivative assets:

    

Foreign exchange contracts(1)

   $ 425     $ 2,985  

Interest rate hedge(2)

     4,362       4,900  

Derivative liabilities:

    

Foreign exchange contracts(1)

     (2,390 )      (543 ) 
 

 

 

    

 

 

  

Total net derivative assets designated as hedging instruments

   $ 2,397     $ 7,342  
 

 

 

    

 

 

  

 

(1) The derivative asset of $425 and $2,985 as of September 30, 2017 and December 31, 2016, respectively, related to foreign exchange contracts are classified in other current assets in the consolidated balance sheet. The derivative liability of $(2,390) and $(543) as of September 30, 2017 and December 31, 2016 are classified in other current liabilities in the consolidated balance sheet. These foreign exchange contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet.
(2) The interest rate hedge assets of $4,362 and $4,900 as of September 30, 2017 and December 31, 2016, respectively, are classified in other assets in the consolidated balance sheet.
Summary of (Losses) Gains on Derivatives Designated as Cash Flow Hedging Instruments

The following table provides a summary of the (losses) gains on derivatives designated as cash flow hedging instruments:

 

    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  

Derivatives Designated as Cash Flow Hedging Instruments

   2017     2016     2017     2016  

Forward exchange contracts:

        

Net (loss) gain recognized in OCI(1)

   $ (220 )    $ 326     $ (4,462 )    $ (3,107 ) 

Net (loss) gain reclassified from accumulated OCI into income(2)

   $ (1,360 )    $ (764 )    $ (1,842 )    $ 487  

 

(1) Net change in the fair value of the effective portion classified in OCI.
(2) Effective portion classified in cost of products for the three and nine months ended September 30, 2017 and 2016. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial.
Summary of Losses on Derivatives Not Designated as Hedging Instruments

The following table provides a summary of the losses on derivatives not designated as hedging instruments:

 

    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  

Derivatives Not Designated as Hedging Instruments

   2017     2016     2017     2016  

Forward exchange contracts:

        

Net loss recognized in income(1)

   $ (877 )    $ (339 )    $ (2,559 )    $ (1,283 ) 

 

(1) The Company enters into foreign exchange contracts to hedge against changes in the balance sheet for certain subsidiaries to mitigate the risk associated with certain foreign currency transactions in the ordinary course of business. These derivatives are not designated as hedging instruments and gains or losses from these derivatives are recorded immediately in selling, general and administrative expenses.