Derivative Instruments

9 Months Ended

Sep. 29, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. Currently, the Company enters into economic hedges to manage this risk. The economic hedges utilize foreign currency forward contracts with maturities of up to 45 days to manage the exposure

to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.

The Company had the following outstanding forward contracts (in thousands):

	September 29, 2019			December 31, 2018
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:
Euro	18,000	$	19,697	23,000	$	26,330
Japanese Yen	600,000	5,563		380,000	3,459
Mexican Peso	90,000	4,560		—	—
British Pound	2,550	3,149		2,500	3,204
Korean Won	3,660,000	3,053		3,125,000	2,808
Hungarian Forint	840,000	2,739		750,000	2,685
Taiwanese Dollar	45,700	1,478		55,000	1,807
Canadian Dollar	1,100	830		990	726
Singapore Dollar	—	—		700	514

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):

	Asset Derivatives					Liability Derivatives
	Balance	Fair Value				Balance	Fair Value
	Sheet Location	September 29, 2019		December 31, 2018		Sheet Location	September 29, 2019		December 31, 2018
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contracts	Prepaid expenses and other current assets	$	19	$	1	Accrued expenses	$	70	$	106

The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):

Asset Derivatives					Liability Derivatives
	September 29, 2019		December 31, 2018			September 29, 2019		December 31, 2018
Gross amounts of recognized assets	$	19	$	1	Gross amounts of recognized liabilities	$	70	$	106
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	19	$	1	Net amount of liabilities presented	$	70	$	106

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):

	Location in Financial Statements	Three-months Ended				Nine-months Ended
		September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	469	$	299	$	535	$	(366	)