Foreign Currency Derivatives (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments Measured at Gross Fair Value as Reflected in Consolidated Balance Sheets

The following table shows the Company’s derivative instruments measured at gross fair value as reflected in the condensed consolidated balance sheets as of the periods presented (in thousands):

	Fair Value of Derivatives Designated as Hedge Instruments				Fair Value of Derivatives Not Designated as Hedge Instruments
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Derivative assets (a):
Foreign exchange contracts	$	5,122	$	4,457	$	5,332	$	2,291
Derivative liabilities (b):
Foreign exchange contracts	$	3,281	$	4,235	$	1,981	$	2,545

(a) All derivative assets are recorded in “Prepaid and other current assets” in the condensed consolidated balance sheets.

(b) All derivative liabilities are recorded in “Other accrued liabilities” in the condensed consolidated balance sheets.

Offsetting of Derivative Assets

The following table sets forth the offsetting of derivative assets (in thousands):

							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
	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
As of September 30, 2014:
Foreign exchange contracts	$	10,454	$	—	$	10,454	$	(5,259	)	$	—	$	5,195
As of December 31, 2013:
Foreign exchange contracts	$	6,748	$	—	$	6,748	$	(5,643	)	$	—	$	1,105

Offsetting of Derivative Liabilities

The following table sets forth the offsetting of derivative liabilities (in thousands):

							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
	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
As of September 30, 2014:
Foreign exchange contracts	$	5,262	$	—	$	5,262	$	(5,259	)	$	—	$	3
As of December 31, 2013:
Foreign exchange contracts	$	6,780	$	—	$	6,780	$	(5,643	)	$	—	$	1,137

Cash Flow Hedging

Schedule of Notional Amount of Foreign Currency

The following table summarizes the Company’s notional position by currency, and approximate U.S. dollar equivalent of the outstanding cash flow hedges at September 30, 2014 (in thousands):

	Original Maturities of 360 Days or Less					Original Maturities of Greater than 360 Days
	Foreign Currency		USD Equivalent		Positions	Foreign Currency		USD Equivalent		Positions
Chinese Yuan		119,271	$	18,931	Buy		—	$	—	—
Euro		25,966	$	34,655	Buy		—		—		—
Euro		62,368	$	83,220	Sell		—		—		—
British Pound		21,054	$	34,737	Buy		—		—		—
British Pound		25,028	$	41,308	Sell		—		—		—
Israeli Shekel		82,564	$	23,359	Buy		—		—		—

Effect of Derivative Instruments in Consolidated Statements of Operations

The following tables show the effect of the Company’s derivative instruments designated as cash flow hedges in the condensed consolidated statements of operations for the following periods (in thousands):

	Gain or (Loss) Recognized in OCI-Effective Portion					Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion	Gain or (Loss) Reclassified from OCI into Income-Effective Portion						Location of Gain or (Loss) Recognized-Ineffective Portion and Amount Excluded from Effectiveness Testing	Gain or (Loss) Recognized-Ineffective Portion and Amount Excluded from Effectiveness Testing (a)
	Three Months Ended						Three Months Ended							Three Months Ended
	September 30, 2014		September 30, 2013				September 30, 2014			September 30, 2013				September 30, 2014			September 30, 2013
Foreign exchange contracts	$	2,573	$	(570	)	Product revenues	$	1,222		$	716		Interest and other income (expense), net	$	49		$	113
						Cost of revenues		17			90
						Sales and marketing		(60	)		34
						Research and    development		3			423
						General and    administrative		160			(33	)
	$	2,573	$	(570	)		$	1,342		$	1,230			$	49		$	113
	Nine Months Ended						Nine Months Ended							Nine Months Ended
	September 30, 2014		September 30, 2013				September 30, 2014			September 30, 2013				September 30, 2014			September 30, 2013
Foreign exchange contracts	$	2,574	$	1,793		Product revenues	$	(3,052	)	$	1,190		Interest and other income (expense), net	$	(3	)	$	273
						Cost of revenues		879			138
						Sales and marketing		1,737			(73	)
						Research and    development		695			1,075
						General and    administrative		526			26
	$	2,574	$	1,793			$	785		$	2,356			$	(3	)	$	273

(a)There were no gains or losses recognized in income due to ineffectiveness in the periods presented.

Not Designated as Hedging Instrument

Schedule of Notional Amount of Foreign Currency

The following table summarizes the Company’s notional position by currency, and approximate U.S. dollar equivalent of the outstanding non-designated hedges at September 30, 2014 (in thousands):

	Original Maturities of 360 Days or Less					Original Maturities of Greater than 360 Days
	Foreign Currency		USD Equivalent		Positions	Foreign Currency		USD Equivalent		Positions
Brazilian Real		10,508	$	4,287	Buy		—	$	—	—
Brazilian Real		19,975	$	8,487	Sell		—		—	—
Chinese Yuan		132,129	$	21,457	Buy		—	$	—	—
Chinese Yuan		128,938	$	20,724	Sell		—	$	—	—
Euro		21,287	$	27,031	Buy		6,400	$	8,629	Buy
Euro		50,325	$	65,702	Sell		20,800	$	28,043	Sell
British Pound		22,223	$	36,504	Buy		6,600	$	10,551	Buy
British Pound		19,126	$	31,426	Sell		7,800	$	12,469	Sell
Israeli Shekel		18,043	$	4,923	Buy		30,900	$	8,706	Buy
Israeli Shekel		41,125	$	11,305	Sell		—	$	—	—
Japanese Yen		514,868	$	4,694	Buy		—	$	—	—
Japanese Yen		930,002	$	8,745	Sell		—	$	—	—
Mexican Peso		14,129	$	1,052	Buy		—	$	—	—
Mexican Peso		24,673	$	1,861	Sell		—	$	—	—

Effect of Derivative Instruments in Consolidated Statements of Operations

The following table shows the effect of the Company’s non-designated hedges in the condensed consolidated statements of operations for the following periods (in thousands):

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		Three Months Ended
		September 30, 2014		September 30, 2013
Foreign exchange contracts	Interest and other income (expense), net	$	3,991	$	(1,783	)
		Nine Months Ended
		September 30, 2014		September 30, 2013
Foreign exchange contracts	Interest and other income (expense), net	$	4,290	$	(182	)