Derivative Financial Instruments (Tables)

The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheet to which they were recorded as of September 29, 2013, and December 31, 2012, are summarized as follows (in thousands):



Derivative Assets	Balance Sheet Location	Fair Value at September 29, 2013		Balance Sheet Location	Fair Value at December 31, 2012
Derivative assets not designated as hedging instruments	Prepaid expenses and other current assets	$	219	Prepaid expenses and other current assets	$	1,142
Derivative assets designated as hedging instruments	Prepaid expenses and other current assets	9		Prepaid expenses and other current assets	2
Total		$	228		$	1,144



Derivative Liabilities	Balance Sheet Location	Fair Value at September 29, 2013			Balance Sheet Location	Fair Value at December 31, 2012
Derivative liabilities not designated as hedging instruments	Other accrued liabilities	$	(1,464	)	Other accrued liabilities	$	(1,616	)
Derivative liabilities designated as hedging instruments	Other accrued liabilities	(149		)	Other accrued liabilities	(3		)
Total		$	(1,613	)		$	(1,619	)

The following tables set forth the offsetting of derivative assets as of September 29, 2013 and December 31, 2012 (in thousands):



As of September 29, 2013							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of September 29, 2013	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
Barclays	$	159	$	—	$	159	$	(159	)	$	—	$	—
Wells Fargo Bank	69		—		69		(69		)	—		—
Total	$	228	$	—	$	228	$	(228	)	$	—	$	—



As of December 31, 2012							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of December 31, 2012	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
Barclays	$	1,107	$	—	$	1,107	$	(1,107	)	$	—	$	—
Wells Fargo Bank	37		—		37		(37		)	—		—
Total	$	1,144	$	—	$	1,144	$	(1,144	)	$	—	$	—

The following tables set forth the offsetting of derivative liabilities as of September 29, 2013 and December 31, 2012 (in thousands):



As of September 29, 2013							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of September 29, 2013	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
Barclays	$	711	$	—	$	711	$	(159	)	$	—	$	552
Wells Fargo Bank	902		—		902		(69		)	—		833
Total	$	1,613	$	—	$	1,613	$	(228	)	$	—	$	1,385



As of December 31, 2012							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of December 31, 2012	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
Barclays	$	1,401	$	—	$	1,401	$	(1,107	)	$	—	$	294
Wells Fargo Bank	218		—		218		(37		)	—		181
Total	$	1,619	$	—	$	1,619	$	(1,144	)	$	—	$	475

The effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three and nine months ended September 29, 2013, and September 30, 2012, are summarized as follows (in thousands):



Derivatives Designated as Hedging Instruments	Three Months Ended September 29, 2013
Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI - Effective Portion (a)			Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion	Gain or (Loss) Reclassified from OCI into Income - Effective Portion (a)			Location of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing	Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing
Cash flow hedges:
Foreign currency forward contracts	$	(173	)	Net revenue	$	2		Other income, net	$	(35	)
Foreign currency forward contracts	—			Cost of revenue	(2		)	Other income, net	—
Foreign currency forward contracts	—			Operating expenses	42			Other income, net	—
Total	$	(173	)		$	42			$	(35	)



Derivatives Designated as Hedging Instruments	Nine Months Ended September 29, 2013
Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI - Effective Portion (a)		Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion	Gain or (Loss) Reclassified from OCI into Income - Effective Portion (a)			Location of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing	Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing
Cash flow hedges:
Foreign currency forward contracts	$	319	Net revenue	$	522		Other income, net	$	(83	)
Foreign currency forward contracts	—		Cost of revenue	(5		)	Other income, net	—
Foreign currency forward contracts	—		Operating expenses	(52		)	Other income, net	—
Total	$	319		$	465			$	(83	)



Derivatives Designated as Hedging Instruments	Three Months Ended September 30, 2012
Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI - Effective Portion (a)			Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion	Gain or (Loss) Reclassified from OCI into Income - Effective Portion (a)			Location of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing	Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing
Cash flow hedges:
Foreign currency forward contracts	$	(411	)	Net revenue	$	(253	)	Other income, net	$	(26	)
Foreign currency forward contracts	—			Cost of revenue	5			Other income, net	—
Foreign currency forward contracts	—			Operating expenses	140			Other income, net	—
Total	$	(411	)		$	(108	)		$	(26	)



Derivatives Designated as Hedging Instruments	Nine Months Ended September 30, 2012
Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI - Effective Portion (a)		Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion	Gain or (Loss) Reclassified from OCI into Income - Effective Portion (a)			Location of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing	Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing
Cash flow hedges:
Foreign currency forward contracts	$	142	Net revenue	$	431		Other income, net	$	(134	)
Foreign currency forward contracts	—		Cost of revenue	(2		)	Other income, net	—
Foreign currency forward contracts	—		Operating expenses	(100		)	Other income, net	—
Total	$	142		$	329			$	(134	)


(a)	Refer to Note 10, Stockholders' Equity, which summarizes the cumulative other comprehensive income activity related to derivatives.

The effects of the Company’s derivatives not designated as hedging instruments in other income, net in the unaudited condensed consolidated statements of operations for the three and nine months ended September 29, 2013 and September 30, 2012, are as follows (in thousands):



Derivatives Not Designated as Hedging Instruments	Location of Gains or (Losses) Recognized in Income on Derivative	Amount of Gains or (Losses) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments		Three Months Ended September 29, 2013			Nine Months Ended September 29, 2013
Foreign currency forward contracts	Other income, net	$	(1,421	)	$	464



Derivatives Not Designated as Hedging Instruments	Location of Gains or (Losses) Recognized in Income on Derivative	Amount of Gains or (Losses) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments		Three Months Ended September 30, 2012			Nine Months Ended September 30, 2012
Foreign currency forward contracts	Other income, net	$	(564	)	$	(515	)