Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018 are summarized as follows:



Derivative Assets	Balance Sheet Location	March 31, 2019		December 31, 2018		Balance Sheet Location	March 31, 2019		December 31, 2018
		(In thousands)					(In thousands)
Derivative assets not designated as hedging instruments	Prepaid expenses and other current assets	$	841	$	784	Other accrued liabilities	$	140	$	331
Derivative assets designated as hedging instruments	Prepaid expenses and other current assets	18		2		Other accrued liabilities	25		37
Total		$	859	$	786		$	165	$	368

Schedule of Offsetting of Derivative Assets

The following tables set forth the offsetting of derivative assets as of March 31, 2019 and December 31, 2018:



As of March 31, 2019							Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
As of March 31, 2019	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Condensed Consolidated Balance Sheets		Net Amounts Of Assets Presented on the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
	(In thousands)
J.P. Morgan Chase	$	429	$	—	$	429	$	(110	)	$	—	$	319
Bank of America	156		—		156		—			—		156
Wells Fargo	274		—		274		(55		)	—		219
Total	$	859	$	—	$	859	$	(165	)	$	—	$	694



As of December 31, 2018							Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
As of December 31, 2018	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Condensed Consolidated Balance Sheets		Net Amounts Of Assets Presented on the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
	(In thousands)
Bank of America	$	323	$	—	$	323	$	(64	)	$	—	$	259
Wells Fargo	463		—		463		(298		)	—		165
Total	$	786	$	—	$	786	$	(362	)	$	—	$	424

Schedule of Offsetting of Derivative Liabilities

The following tables set forth the offsetting of derivative liabilities as of March 31, 2019 and December 31, 2018:



As of March 31, 2019							Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
As of March 31, 2019	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Condensed Consolidated Balance Sheets		Net Amounts Of Liabilities Presented on the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
	(In thousands)
J.P. Morgan Chase	$	110	$	—	$	110	$	(110	)	$	—	$	—
Wells Fargo	55		—		55		(55		)	—		—
Total	$	165	$	—	$	165	$	(165	)	$	—	$	—



As of December 31, 2018							Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
As of December 31, 2018	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Condensed Consolidated Balance Sheets		Net Amounts Of Liabilities Presented on the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
	(In thousands)
J.P. Morgan Chase	$	6	$	—	$	6	$	—		$	—	$	6
Bank of America	64		—		64		(64		)	—		—
Wells Fargo	298		—		298		(298		)	—		—
Total	$	368	$	—	$	368	$	(362	)	$	—	$	6

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 March 31, 2019 and April 1, 2018 are summarized as follows:



	Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
	Three Months Ended March 31, 2019
	Net revenue		Cost of revenue			Research and development			Sales and marketing			General and administrative
	(In thousands)
Statements of operations	$	249,082	$	167,074		$	18,832		$	35,855		$	13,117
Gains (losses) on cash flow hedge	$	414	$	(2	)	$	(26	)	$	(69	)	$	(11	)



	Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
	Three Months Ended April 1, 2018
	Net revenue			Cost of revenue		Research and development		Sales and marketing		General and administrative
	(In thousands)
Statements of operations	$	245,201		$	168,882	$	21,191	$	37,874	$	15,761
Gains (losses) on cash flow hedge	$	(1,702	)	$	6	$	99	$	230	$	41

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 in OCI and the unaudited condensed consolidated statement of operations for the three months ended March 31, 2019 and April 1, 2018 are summarized as follows:



Derivatives Designated as Hedging Instruments	Three Months Ended March 31, 2019
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	$	329	Net revenue	$	414
Foreign currency forward contracts	—		Cost of revenue	(2		)
Foreign currency forward contracts	—		Research and development	(26		)
Foreign currency forward contracts	—		Sales and marketing	(69		)
Foreign currency forward contracts	—		General and administrative	(11		)
Total	$	329		$	306

_________________________

⁽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 April 1, 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	$	(634	)	Net revenue	$	(1,702	)
Foreign currency forward contracts	—			Cost of revenue	6
Foreign currency forward contracts	—			Research and development	99
Foreign currency forward contracts	—			Sales and marketing	230
Foreign currency forward contracts	—			General and administrative	41
Total	$	(634	)		$	(1,326	)

_______________________

⁽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 months ended March 31, 2019 and April 1, 2018 are as follows:



Derivatives Not Designated as Hedging Instruments	Location of Gains (Losses) Recognized in Income on Derivative	Three Months Ended
Derivatives Not Designated as Hedging Instruments		March 31, 2019		April 1, 2018
		(In thousands)
Foreign currency forward contracts	Other income (expense), net	$	602	$	(1,855	)