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Derivative Instruments | 9 Months Ended
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Sep. 30, 2018
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 the Company's budgeted revenues and expenses against foreign currency exchange rate changes compared to its 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):
| September 30, 2018 |  | December 31, 2017
Currency | Notional Value |  | USD Equivalent |  | Notional Value |  | USD Equivalent
Derivatives Not Designated as Hedging Instruments: |  |  |  |
Euro | 19,500 |  |  | $ | 22,602 |  |  | — |  |  | $ | — |
Japanese Yen | 455,000 |  |  | 4,018 |  |  | 455,000 |  |  | 4,049 |
British Pound | 2,100 |  |  | 2,742 |  |  | 1,650 |  |  | 2,232 |
Hungarian Forint | 700,000 |  |  | 2,513 |  |  | 545,000 |  |  | 2,110 |
Korean Won | 2,050,000 |  |  | 1,847 |  |  | 1,825,000 |  |  | 1,708 |
Taiwanese Dollar | 49,000 |  |  | 1,615 |  |  | 37,725 |  |  | 1,278 |
Canadian Dollar | 800 |  |  | 616 |  |  | — |  |  | — |
Singapore Dollar | 760 |  |  | 557 |  |  | — |  |  | — |
Swiss Franc | — |  |  | — |  |  | 1,365 |  |  | 1,401 |
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
| Asset Derivatives |  | Liability Derivatives
| Balance |  | Fair Value |  | Balance |  | Fair Value
| Sheet Location |  | September 30, 2018 |  | December 31, 2017 |  | Sheet Location |  | September 30, 2018 |  | December 31, 2017
Derivatives Not Designated as Hedging Instruments: |  |  |  |  |  |
Economic hedge forward contracts | Prepaid expenses and other current assets |  | $ | 21 |  |  | $ | 16 |  |  | Accrued expenses |  | $ | 91 |  |  | $ | 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
|  | September 30, 2018 |  | December 31, 2017 |  |  |  | September 30, 2018 |  | December 31, 2017
Gross amounts of recognized assets |  | $ | 21 |  |  | $ | 16 |  |  | Gross amounts of recognized liabilities |  | $ | 91 |  |  | $ | 13 |
Gross amounts offset |  | — |  |  | — |  |  | Gross amounts offset |  | — |  |  | — |
Net amount of assets presented |  | $ | 21 |  |  | $ | 16 |  |  | Net amount of liabilities presented |  | $ | 91 |  |  | $ | 13 |
Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):
| Location in Financial Statements |  | Three-months Ended |  | Nine-months Ended
|  | September 30, 2018 |  | October 1, 2017 |  | September 30, 2018 |  | October 1, 2017
Derivatives Designated as Hedging Instruments: |  |  |
Gains (losses) recorded in shareholders' equity (effective portion) | Accumulated other comprehensive income (loss), net of tax |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | Revenue |  | $ | — |  |  | $ | 56 |  |  | $ | — |  |  | $ | 10 |
| Research, development, and engineering expenses |  | — |  |  | — |  |  | — |  |  | 3 |
| Selling, general, and administrative expenses |  | — |  |  | — |  |  | — |  |  | 8 |
| Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations |  | $ | — |  |  | $ | 56 |  |  | $ | — |  |  | $ | 21 |
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) |  | $ | 299 |  |  | $ | 43 |  |  | $ | (366 | ) |  | $ | 139 |

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- References No definition available. + Details
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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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