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Commitments and Contingencies | 6 Months Ended
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Jun. 29, 2018
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation The Company is subject to litigation arising from time to time in the ordinary course of its business. The Company does not expect that the ultimate resolution of any pending legal actions will have a material effect on its consolidated results of operations, financial position, or cash flows. However, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action, which the Company currently believes to be immaterial, will not become material in the future. (10.) COMMITMENTS AND CONTINGENCIES (Continued) In April 2013, the Company commenced an action against AVX Corporation and AVX Filters Corporation (collectively “AVX”) alleging that AVX had infringed on the Company’s patents by manufacturing and selling filtered feedthrough assemblies used in implantable pacemakers and cardioverter defibrillators that incorporate the Company’s patented technology. On January 26, 2016, a jury in the U.S. District Court for the District of Delaware returned a verdict finding that AVX infringed two Integer patents and awarded Integer $37.5 million in damages. Following a second trial in August 2017, a jury found that AVX infringed an additional Integer patent. On March 30, 2018, the U.S. District Court for the District of Delaware vacated the original damage award and ordered a retrial on damages, which is scheduled for January 2019. The Company has recorded no gains in connection with this litigation as no cash has been received. Product Warranties The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. The Company does not expect future product warranty claims will have a material effect on its condensed consolidated results of operations, financial position, or cash flows. However, there can be no assurance that any future customer complaints or negative regulatory actions regarding the Company’s products, which the Company currently believes to be immaterial, does not become material in the future. The change in product warranty liability was comprised of the following (in thousands):
December 29, 2017 | $ | 2,820 |
Additions to warranty reserve | 555 |
Warranty claims settled | (78 | )
June 29, 2018 | $ | 3,297 |
Foreign Currency Contracts The Company periodically enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate fluctuations in its international operations. The Company has designated these foreign currency forward contracts as cash flow hedges. Accordingly, the effective portions of the unrealized gains and losses on these contracts are reported in Accumulated Other Comprehensive Income in the Condensed Consolidated Balance Sheets and are reclassified to earnings in the same periods during which the hedged transactions affect earnings. The estimated Accumulated Other Comprehensive Income related to the Company’s foreign currency contracts that is expected to be reclassified into earnings within the next twelve months is a $0.7 million gain. The impact to the Company’s results of operations from its forward contract hedges is as follows (in thousands):
| Three Months Ended |  | Six Months Ended
| June 29, 2018 |  | June 30, 2017 |  | June 29, 2018 |  | June 30, 2017
Increase (decrease) in sales | $ | (141 | ) |  | $ | 163 |  |  | $ | (2 | ) |  | $ | 139 |
Increase (decrease) in cost of sales | (159 | ) |  | (179 | ) |  | (595 | ) |  | 883 |
Ineffective portion of change in fair value | — |  |  | — |  |  | — |  |  | — |
Information regarding outstanding foreign currency contracts designated as cash flow hedges as of June 29, 2018 is as follows (dollars in thousands):
Aggregate Notional Amount |  | Start Date |  | End Date |  | $/Foreign Currency |  | Fair Value |  | Balance Sheet Location
$ | 3,000 |  |  | Jul 2018 |  | Dec 2018 |  | 0.0500 |  | Peso |  | $ | (16 | ) |  | Accrued expenses
15,199 |  |  | Jan 2018 |  | Dec 2018 |  | 0.0507 |  | Peso |  | (313 | ) |  | Accrued expenses
12,300 |  |  | Jan 2018 |  | Dec 2018 |  | 1.2059 |  | Euro |  | (333 | ) |  | Accrued expenses

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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