Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Consolidated Balance Sheets

The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of September 30, 2018 and December 31, 2017 are summarized as follows:



Derivative Assets	Balance Sheet Location	September 30, 2018		December 31, 2017		Balance Sheet Location	September 30, 2018		December 31, 2017
		(In thousands)					(In thousands)
Derivative assets not designated as hedging instruments	Prepaid expenses and other current assets	$	995	$	1,314	Other accrued liabilities	$	189	$	7,128
Derivative assets designated as hedging instruments	Prepaid expenses and other current assets	33		485		Other accrued liabilities	20		1,064
Total		$	1,028	$	1,799		$	209	$	8,192

Schedule of Offsetting of Derivative Assets

The following tables set forth the offsetting of derivative assets as of September 30, 2018 and December 31, 2017:



As of September 30, 2018							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of September 30, 2018	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
	(In thousands)
HSBC	$	272	$	—	$	272	$	(59	)	$	—	$	213
Bank of America	62		—		62		(10		)	—		52
Wells Fargo	694		—		694		(140		)	—		554
Total	$	1,028	$	—	$	1,028	$	(209	)	$	—	$	819



As of December 31, 2017							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of December 31, 2017	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
	(In thousands)
Bank of America	$	1,664	$	—	$	1,664	$	(1,664	)	$	—	$	—
Wells Fargo	135		—		135		(135		)	—		—
Total	$	1,799	$	—	$	1,799	$	(1,799	)	$	—	$	—

Schedule of Offsetting of Derivative Liabilities

The following tables set forth the offsetting of derivative liabilities as of September 30, 2018 and December 31, 2017:



As of September 30, 2018							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of September 30, 2018	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
	(In thousands)
HSBC	$	59	$	—	$	59	$	(59	)	$	—	$	—
Bank of America	$	10	$	—	$	10	$	(10	)	$	—	$	—
Wells Fargo	140		—		140		(140		)	—		—
Total	$	209	$	—	$	209	$	(209	)	$	—	$	—



As of December 31, 2017							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
As of December 31, 2017	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
	(In thousands)
Bank of America	$	7,815	$	—	$	7,815	$	(1,664	)	$	—	$	6,151
Wells Fargo	377		—		377		(135		)	—		242
Total	$	8,192	$	—	$	8,192	$	(1,799	)	$	—	$	6,393

Schedule of Effects and Locations of Gains or Losses Recognized in Income

The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the three months ended September 30, 2018 are summarized as follows:



	Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
	Three Months Ended September 30, 2018
	Net revenue		Cost of revenue			Research and development		Sales and marketing			General and administrative
	(In thousands)
Statements of operations	$	400,586	$	276,394		$	35,253	$	49,005		$	23,268
Gains (losses) on cash flow hedge	$	1,031	$	(7	)	$	2	$	(138	)	$	(41	)

The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the nine months ended September 30, 2018 are summarized as follows:



	Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
	Nine Months Ended September 30, 2018
	Net revenue		Cost of revenue			Research and development		Sales and marketing			General and administrative
	(In thousands)
Statements of operations	$	1,112,379	$	774,510		$	95,571	$	139,646		$	60,354
Gains (losses) on cash flow hedge	$	246	$	(8	)	$	88	$	(65	)	$	(50	)

Schedule of Company's Derivative Instruments on Other Comprehensive Income and the Consolidated Statement of Operations

The pre-tax 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 30, 2018 and October 1, 2017 are summarized as follows:



Derivatives Designated as Hedging Instruments	Three Months Ended September 30, 2018
Derivatives Designated as Hedging Instruments	Gains (Losses) Recognized in OCI - Effective Portion		Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion	Gains (Losses) Reclassified from OCI into Income - Effective Portion⁽¹⁾
	(In thousands)
Cash flow hedges:
Foreign currency forward contracts	$	895	Net revenue	$	1,031
Foreign currency forward contracts	—		Cost of revenue	(7		)
Foreign currency forward contracts	—		Research and development	2
Foreign currency forward contracts	—		Sales and marketing	(138		)
Foreign currency forward contracts	—		General and administrative	(41		)
Total	$	895		$	847

_________________________

⁽¹⁾Refer to Note 11, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.



Derivatives Designated as Hedging Instruments	Nine Months Ended September 30, 2018
Derivatives Designated as Hedging Instruments	Gains (Losses) Recognized in OCI - Effective Portion		Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion	Gains (Losses) Reclassified from OCI into Income - Effective Portion⁽¹⁾
	(In thousands)
Cash flow hedges:
Foreign currency forward contracts	$	1,075	Net revenue	$	246
Foreign currency forward contracts	—		Cost of revenue	(8		)
Foreign currency forward contracts	—		Research and development	88
Foreign currency forward contracts	—		Sales and marketing	(65		)
Foreign currency forward contracts	—		General and administrative	(50		)
Total	$	1,075		$	211

_________________________

⁽¹⁾Refer to Note 11, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.



Derivatives Designated as Hedging Instruments	Three Months Ended October 1, 2017
Derivatives Designated as Hedging Instruments	Gains (Losses) Recognized in OCI - Effective Portion			Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion	Gains (Losses) Reclassified from OCI into Income - Effective Portion⁽¹⁾
	(In thousands)
Cash flow hedges:
Foreign currency forward contracts	$	(3,538	)	Net revenue	$	(4,401	)
Foreign currency forward contracts	—			Cost of revenue	19
Foreign currency forward contracts	—			Research and development	84
Foreign currency forward contracts	—			Sales and marketing	629
Foreign currency forward contracts	—			General and administrative	109
Total	$	(3,538	)		$	(3,560	)

_______________________

⁽¹⁾Refer to Note 11, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.



Derivatives Designated as Hedging Instruments	Nine Months Ended October 1, 2017
Derivatives Designated as Hedging Instruments	Gains (Losses) Recognized in OCI - Effective Portion			Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion	Gains (Losses) Reclassified from OCI into Income - Effective Portion⁽¹⁾
	(In thousands)
Cash flow hedges:
Foreign currency forward contracts	$	(10,590	)	Net revenue	$	(3,374	)
Foreign currency forward contracts	—			Cost of revenue	5
Foreign currency forward contracts	—			Research and development	10
Foreign currency forward contracts	—			Sales and marketing	380
Foreign currency forward contracts	—			General and administrative	67
Total	$	(10,590	)		$	(2,912	)

_______________________

⁽¹⁾Refer to Note 11, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.

Schedule of Derivatives not Designated as Hedging Instruments

The effects of the Company’s non-designated hedge included in Other income (expense), net in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and October 1, 2017 are as follows:



Derivatives Not Designated as Hedging Instruments	Location of Gains (Losses) Recognized in Income on Derivative	Three Months Ended					Nine Months Ended
Derivatives Not Designated as Hedging Instruments		September 30, 2018		October 1, 2017			September 30, 2018		October 1, 2017
		(In thousands)
Foreign currency forward contracts	Other income (expense), net	$	934	$	(1,925	)	$	3,963	$	(6,171	)