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Derivative Instruments
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Derivative Instruments
The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. Currently, the Company enters into two types of hedges to manage this risk. The first are economic hedges which utilize foreign currency forward contracts with maturities of up to 45 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment. The second are cash flow hedges which utilize foreign currency forward contracts with maturities of up to 18 months to hedge specific forecasted transactions of the Company's foreign subsidiaries with the goal of protecting our budgeted revenues and expenses against foreign currency exchange rate changes compared to our budgeted rates. These cash flow hedges are designated as hedging instruments for hedge accounting treatment.
The Company had the following outstanding forward contracts (in thousands):
 
December 31, 2015
December 31, 2014
Currency
Notional Value

USD Equivalent

Notional Value

USD Equivalent

 
 
 
 
 
Derivatives Designated as Hedging Instruments:
 
 
 
United States Dollar
16,720

$
16,720

—

$
—

Japanese Yen
942,500

7,605

1,225,000

10,211

Hungarian Forint
547,000

1,893

803,000

3,099

Singapore Dollar
2,063

1,425

3,515

2,564

Canadian Dollar
41

37

758

688

British Pound
25

34

491

732

Derivatives Not Designated as Hedging Instruments:
Japanese Yen
700,000

$
5,800

345,000

$
2,878

British Pound
1,650

2,441

1,400

2,183

Korean Won
1,400,000

1,187

940,000

858

Singapore Dollar
1,525

1,074

1,225

922

Hungarian Forint
250,000

857

410,000

1,569

Taiwanese Dollar
26,425

800

28,000

883


Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
 
Asset Derivatives
 
Liability Derivatives
 
Balance
Sheet
Location     
 
Fair Value
 
Balance
Sheet
Location     
 
Fair Value
 
 
December 31, 2015
 
December 31, 2014
 
 
December 31, 2015
 
December 31, 2014
Derivatives Designated as Hedging Instruments:
Cash flow hedge forward contracts
Prepaid
expenses and
other current
assets
 
$
441

 
$
108

 
Accrued
expenses
 
$
201

 
$
84

Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contracts
Prepaid expenses and other current assets
 
$
9

 
$
5

 
Accrued expenses
 
$
43

 
$
13


The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):
Asset Derivatives
 
Liability Derivatives
 
 
December 31, 2015
 
December 31, 2014
 
 
 
December 31, 2015
 
December 31, 2014
Gross amounts of recognized assets
 
$
479

 
$
187

 
Gross amounts of recognized liabilities
 
$
279

 
$
149

Gross amounts offset
 
(29
)
 
(74
)
 
Gross amounts offset
 
(35
)
 
(52
)
Net amount of assets presented
 
$
450

 
$
113

 
Net amount of liabilities presented
 
$
244

 
$
97


Information regarding the effect of derivative instruments, net of the underlying exposure, on the consolidated financial statements was as follows (in thousands):
 
Location in Financial Statements
 
Year Ended December 31,
2015
 
2014
 
2013
Derivatives Designated as Hedging Instruments:
Gains (losses) recorded in shareholders' equity (effective portion)
Accumulated other comprehensive income (loss), net of tax
 
$
206

 
$
32

 
$
104

Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion)
Revenue
 
$
(387
)
 
$
(14
)
 
$
—

 
Research, development, and engineering expenses
 
14

 
(42
)
 
—

 
Selling, general, and administrative expenses
 
172

 
10

 
—

 
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations
 
$
(201
)
 
$
(46
)
 
$
—

Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives)
Foreign currency gain (loss)
 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations
Foreign currency gain (loss)

$
(13
)
 
$
247

 
$
(316
)

The following table presents the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands):
Balance as of December 31, 2014
$
32

Net unrealized loss on cash flow hedges
(27
)
Reclassification of net realized loss on cash flow hedges into current operations
201

Balance as of December 31, 2015
$
206


Net gains expected to be reclassified from accumulated other comprehensive income (loss), net of tax, into current operations within the next twelve months are $210,000.