Derivatives (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Primary Net Hedging Positions and Corresponding Fair Values

The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of March 31, 2017 and December 31, 2016:

	March 31, 2017
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value(1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	35,644	$	(493	)
U.S. Dollar/South Korean Won		45,972		(1,804	)
U.S. Dollar/Euro		20,150		(15	)
U.S. Dollar/U.K. Pound Sterling		6,599		(43	)
U.S. Dollar/Taiwan Dollar		16,594		(647	)
Total	$	124,959	$	(3,002	)

	December 31, 2016
Currency Hedged (Buy/Sell)	Gross Notional Value		Fair Value(1) Asset/(Liability)
U.S. Dollar/Japanese Yen	$	30,522	$	763
U.S. Dollar/South Korean Won		50,049		1,342
U.S. Dollar/Euro		18,040		156
U.S. Dollar/U.K. Pound Sterling		6,067		117
U.S. Dollar/Taiwan Dollar		15,530		64
Total	$	120,208	$	2,442

⁽¹⁾  Represents the fair value of the net (liability) asset amount included in the consolidated balance sheet.

Summary of Fair Value Amounts of Company's Derivative Instruments

The following table provides a summary of the fair value amounts of the Company’s derivative instruments:

Derivatives Designated as Hedging Instruments	March 31, 2017			December 31, 2016
Derivative assets:
Foreign exchange contracts(1)	$	664		$	2,985
Foreign currency options contracts(1)		14			4
Foreign currency interest rate hedge(2)		5,428			4,900
Derivative liabilities:
Foreign exchange contracts(1)		(3,666	)		(543	)
Foreign currency options contracts(1)		—			(16	)
Total net derivative assets designated as hedging instruments	$	2,440		$	7,330

⁽¹⁾  The derivative asset of $678 and derivative liability of $(3,666) related to the foreign exchange contracts and foreign currency option contracts are classified in other current assets and other current liabilities in the consolidated balance sheet as of March 31, 2017. The derivative asset of $2,989 and derivative liability of $(559) related to the foreign exchange contracts and foreign currency option contracts are classified in other current assets and other current liabilities in the consolidated balance sheet as of December 31, 2016. These foreign exchange contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet.

⁽²⁾  The foreign currency interest rate hedge assets of $5,428 and $4,900 are classified in other assets in the consolidated balance sheet as of March 31, 2017 and December 31, 2016, respectively,

Summary of (Losses) Gains on Derivatives Designated as Hedging Instruments

The following table provides a summary of the (losses) gains on derivatives designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Designated as Cash Flow Hedging Instruments	2017			2016
Forward exchange contracts:
Net loss recognized in OCI(1)	$	(6,978	)	$	(3,418	)
Net gain reclassified from accumulated OCI into income(2)	$	452		$	696

⁽¹⁾  Net change in the fair value of the effective portion classified in OCI.

⁽²⁾  Effective portion classified in cost of products for the three months ended March 31, 2017 and 2016. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial.

Summary of Losses on Derivatives Not Designated as Hedging Instruments

The following table provides a summary of the losses on derivatives not designated as hedging instruments:

	Three Months Ended March 31,
Derivatives Not Designated as Hedging Instruments	2017			2016
Forward exchange contracts:
Net loss recognized in income(1)	$	(1,463	)	$	(565	)

⁽¹⁾  The Company enters into foreign exchange contracts to hedge against changes in the balance sheet for certain subsidiaries and also enters into foreign currency option contracts to mitigate the risk associated with certain foreign currency transactions in the ordinary course of business. These derivatives are not designated as hedging instruments and gains or losses from these derivatives are recorded immediately in selling, general and administrative expenses.