Fair Value and Derivative Instruments (Tables)

9 Months Ended

Sep. 26, 2020

Fair Value Disclosures [Abstract]

Fair Value Assets Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): 

September 26, 2020	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	71,663	$	—	$	—	$	71,663
Marketable securities:
U.S. treasuries	34,198		—		—		34,198
Certificates of deposit	—		2,428		—		2,428
U.S. agency securities	—		2,083		—		2,083
Corporate bonds	—		17,391		—		17,391
	34,198		21,902		—		56,100
Foreign exchange derivative contracts	—		470		—		470
Total assets	$	105,861	$	22,372	$	—	$	128,233
Liabilities:
Interest rate swap derivative contracts	$	—	$	(271)	$	—	$	(271)
Contingent consideration	—		—		(2,966)		(2,966)
Total liabilities	$	—	$	(271)	$	(2,966)	$	(3,237)

December 28, 2019	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	17,056	$	—	$	—	$	17,056
Marketable securities:
U.S. treasuries	10,468		—		—		10,468
Certificates of deposit	—		3,590		—		3,590
U.S. agency securities	—		24,430		—		24,430
Corporate bonds	—		33,928		—		33,928
Commercial paper	—		3,911		—		3,911
	10,468		65,859		—		76,327
Foreign exchange derivative contracts	—		41		—		41
Interest rate swap derivative contracts	—		26		—		26
Total assets	$	27,524	$	65,926	$	—	$	93,450
Liabilities:
Foreign exchange derivative contracts	$	—	$	(240)	$	—	$	(240)
Contingent consideration	—		—		(5,364)		(5,364)
Total liabilities	$	—	$	(240)	$	(5,364)	$	(5,604)

Schedule of the Impact of Cash Flow Hedges on Consolidated Financial Statements

The impact of the interest rate swaps on our Condensed Consolidated Statements of Income was as follows (in thousands):

	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)		Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
Three Months Ended September 26, 2020	$	(53)	Interest expense	$	(38)	Interest expense	$	—
Three Months Ended September 28, 2019	$	12	Interest expense	$	113	Interest expense	$	—
Nine Months Ended September 26, 2020	$	(323)	Interest expense	$	(26)	Interest expense	$	—
Nine Months Ended September 28, 2019	$	(78)	Interest expense	$	496	Interest expense	$	—

Schedule of Foreign Currency Forward Contracts

The following table provides information about our foreign currency forward contracts outstanding as of September 26, 2020 (in thousands):

Currency	Contract Position	Contract Amount (Local Currency)	Contract Amount (U.S. Dollars)
Euro Dollar	Buy	(10,341)	(11,591)
Euro Dollar	Sell	9,835	11,447
Japanese Yen	Sell	2,119,658	20,070
Korean Won	Buy	(3,259,002)	(2,785)
Total USD notional amount of outstanding foreign exchange contracts			$	17,141

The impact of foreign exchange derivative contracts designated as cash flow hedges on our Condensed Consolidated Statements of Income was as follows (in thousands):

	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivative		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
Three Months Ended September 26, 2020	$	(553)	Cost of revenues	$	150
			Research and development	23
			Selling, general and administrative	63
				$	236
Three Months Ended September 28, 2019	$	(642)	Cost of revenues	$	(126)
			Research and development	(23)
			Selling, general and administrative	(58)
				$	(207)
Nine Months Ended September 26, 2020	$	427	Cost of revenues	$	109
			Research and development	11
			Selling, general and administrative	16
				$	136
Nine Months Ended September 28, 2019	$	(1,096)	Cost of revenues	$	(297)
			Research and development	(42)
			Selling, general and administrative	(109)
				$	(448)

Schedule of Gains and Losses Related to Non-designated Derivative Instruments

The impact of foreign exchange derivative contracts not designated as cash flow hedges on our Condensed Consolidated Statements of Income was as follows (in thousands):

		Amount of Gain (Loss) Recognized on Derivatives
		Three Months Ended				Nine Months Ended
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized on Derivatives	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Foreign exchange forward contracts	Other income, net	$	529	$	(76)	$	878	$	198