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Derivatives (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Primary Net Hedging Positions and Corresponding Fair Values The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of September 30, 2019 and December 31, 2018:
                 
 
September 30, 2019
 
Currency Hedged (Buy/Sell)
 
Gross
 
Notional
Value
   
Fair
 
Value
(1)
  
U.S. Dollar/Japanese Yen
  $
43,339
    $
(83
)
U.S. Dollar/South Korean Won
   
42,082
     
2,191
 
U.S. Dollar/Euro
   
31,689
     
1,326
 
U.S. Dollar/U.K. Pound Sterling
   
7,320
     
382
 
U.S. Dollar/Taiwan Dollar
   
18,359
     
108
 
                 
Total
  $
142,789
    $
3,924
 
                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                 
 
December 31, 2018
 
Currency Hedged (Buy/Sell)
 
Gross
 
Notional
Value
   
Fair
 
Value
(1)
  
U.S. Dollar/Japanese Yen
  $
43,770
    $
(478
 )
U.S. Dollar/South Korean Won
   
59,149
     
570
 
U.S. Dollar/Euro
   
23,515
     
688
 
U.S. Dollar/U.K. Pound Sterling
   
11,827
     
323
 
U.S. Dollar/Taiwan Dollar
   
21,133
     
214
 
                 
Total
  $
159,394
    $
1,317
 
                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Represents the receivable (payable) 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:
 
                 
 
September 30,
 
2019
   
December 31,
 
2018
 
Derivative assets:
   
     
 
Foreign exchange contracts
(1)
   $
4,232
    $
2,485
 
Interest rate hedge
(2)
    
—
     
6,083
 
Derivative liabilities:
   
     
 
Foreign exchange contracts
(1)
    
(308
)    
(1,168
 )
Interest rate hedge
(2)
    
(6,908
)    
—
 
 
  
                 
Total net derivative (liability)
asset designated as hedging
 
instruments
  $
(2,984
)   $
7,400
 
                 
 
 
 
 
(1)
The derivative assets of $4,232 and $2,485 as of September 30, 2019 and December 31, 2018, respectively, related to foreign exchange contracts and are classified in other current assets in the consolidated balance sheet. The derivative liabilities of $308 and $1,168 as of September 30, 2019 and December 31, 2018, respectively, 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 liability of $
6,908
as of September 30, 2019 is classified in other liabilities in the consolidated balance sheet. The interest rate hedge asset of $
6,083
as of December 31, 2018 is classified in other assets in the consolidated balance sheet
 
 
 
 
The net amount of existing gains as of September 30, 2019 that the Company expects to reclassify from OCI into earnings within the next twelve months is immaterial.
Summary of Gains (Losses) on Derivatives Designated as Cash Flow Hedging Instruments
The following table provides a summary of the gains (losses) 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
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Forward exchange contracts:
   
     
     
     
 
Net gain (loss) recognized in OCI
(1)
   $
(1,024
)   $
212
    $
(11,189
)   $
10,357
 
Net gain (loss) reclassified from accumulated OCI into income
(2)
   $
2,000
    $
306
    $
4,077
    $
(4,882
 )
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2019 and 2018. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial.
 
 
 
Summary of Losses on Derivatives Not Designated as Cash Flow Hedging Instruments
The following table provides a summary of the gain (loss) on derivatives not designated as hedging instruments:
                                 
 
Three Months
 
Ended
September 30,
   
Nine Months
 
Ended
September 30,
 
Derivatives Not Designated as Hedging Instruments
  
2019
   
2018
   
2019
   
2018
 
Forward exchange contracts:
   
     
     
     
 
Net gain (loss) recognized in income
(1)
   $
82
    $
(111
 )   $
(166
)   $
12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 other (expense) income.