XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivative and Hedgiing Activities Derivative and Hedging Activities | 9 Months Ended
--- | ---
Sep. 28, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure | DERIVATIVES AND HEDGING ACTIVITIES The Company uses forward contracts to manage exposures to foreign currency exchange rates. The Company’s primary objective in holding derivative instruments is to reduce the volatility of earnings and cash flows associated with fluctuations in foreign currency exchange rates and the Company does not use derivative instruments for trading purposes. The use of derivative instruments exposes the Company to credit risk to the extent that the counterparties may be unable to meet their contractual obligations. As such, the potential risk of loss with any one counterparty is closely monitored by the Company. Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges) The Company’s balance sheet hedges consist of foreign currency forward contracts that generally mature within three months, are carried at fair value, and are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and inter-company receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other expense, net” in the Condensed Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged. Gains (losses) on the non-designated derivative instruments recognized during the periods presented were as follows (in thousands):
|  |  | Three months ended | Nine months ended
| Financial Statement Location |  | September 28, 2018 |  | September 29, 2017 | September 28, 2018 |  | September 29, 2017
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Gains (losses) recognized in income | Other expense, net |  | $ | (30 | ) |  | $ | 119 |  | $ | (1,412 | ) |  | $ | (66 | )
The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts, including the Euro, British pound, Israeli shekel and Japanese yen, are summarized as follows (in thousands):
|  | September 28, 2018 |  | December 31, 2017
Derivatives not designated as hedging instruments: |  |  |  |
Purchase |  | $ | 28,782 |  |  | $ | 12,875 |
Sell |  | $ | — |  |  | $ | 1,509 |
The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets are as follows (in thousands):
|  |  |  | Asset Derivatives |  |  |  | Derivative Liabilities
|  | Balance Sheet Location |  | September 28, 2018 |  | December 31, 2017 |  | Balance Sheet Location |  | September 28, 2018 |  | December 31, 2017
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | Prepaid expenses and other current assets |  | $ | 5 |  |  | $ | 33 |  |  | Accrued and other current liabilities |  | $ | 195 |  |  | $ | 4 |
Total derivatives |  |  |  | $ | 5 |  |  | $ | 33 |  |  |  |  | $ | 195 |  |  | $ | 4 |
Offsetting of Derivative Assets and Liabilities The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. However, the arrangements with its counterparties allows for net settlement, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of September 28, 2018, information related to the offsetting arrangements was as follows (in thousands):
|  | Gross Amounts of Derivatives |  | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |  | Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets
Derivative assets |  | $ | 5 |  |  | — |  |  | $ | 5 |
Derivative liabilities |  | $ | 195 |  |  | — |  |  | $ | 195 |
In connection with foreign currency derivatives entered in Israel, the Company’s subsidiaries in Israel are required to maintain a compensating balance with their bank at the end of each month. The compensating balance arrangements do not legally restrict the use of cash. As of September 28, 2018, the total compensating balance maintained was $1.0 million.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration