Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

As of September 30, 2017, the Company had reserves for product returns of $28.4 million, discounts and promotions of $20.0 million and price protection of $3.2 million. As of December 31, 2016, the Company had reserves for product returns of $27.7 million, discounts and promotions of $21.9 million and price protection of $1.5 million.

Basic and Diluted Net Income Per Share

The following table presents the calculation of both basic and diluted net income per share:



	Three Months Ended				Nine Months Ended
	(In thousands, except per share amounts)
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net income	$	22,082	$	19,512	$	46,343	$	28,258
Basic weighted-average shares outstanding	27,739		27,237		27,520		27,878
Dilutive effect of employee stock options and restricted shares	1,177		541		1,199		545
Diluted weighted-average shares outstanding	28,916		27,778		28,719		28,423
Basic income per share	$	0.80	$	0.72	$	1.68	$	1.01
Diluted income per share	$	0.76	$	0.70	$	1.61	$	0.99

Fair Value Assets Measured on Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2017, were as follows:



	Fair Value Measurements as of September 30, 2017
	Level 1		Level 2 (1)		Level 3
	(In thousands)
Description
Assets:
Cash and cash equivalents
Money market funds	$	10,998	$	—	$	—
Short term investments
Corporate and government bonds	—		36,442		—
Other current assets
Derivative instruments (Note 6)	—		849		—
Total assets measured at fair value	$	10,998	$	37,291	$	—

Liabilities:
Accrued expenses
Derivative instruments (Note 6)	$	—	$	315	$	—
Total liabilities measured at fair value	$	—	$	315	$	—

The Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016, were as follows:



	Fair Value Measurements as of December 31, 2016
	Level 1		Level 2 (1)		Level 3
	(In thousands)
Description
Assets:
Cash and cash equivalents
Money market funds	$	156,980	$	—	$	—
Short term investments
Corporate and government bonds	—		39,930		—
Other current assets
Derivative instruments (Note 6)	—		180		—
Total assets measured at fair value	$	156,980	$	40,110	$	—

Liabilities:
Accrued expenses
Derivative instruments (Note 6)	$	—	$	43	$	—
Total liabilities measured at fair value	$	—	$	43	$	—


(1)	Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.