Derivative Financial Instruments (Tables)

3 Months Ended

Dec. 29, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Outstanding Forward Contracts

As of December 29, 2018 and September 30, 2018, we had outstanding forward contracts designated as cash flow hedges with notional amounts equivalent to the following:

Currency Hedged	December 29, 2018		September 30, 2018
	(in thousands)
Euro / U.S. Dollar	$	—	$	8,495
Japanese Yen / U.S. Dollar	—		2,193
Swedish Kronor / U.S. Dollar	—		1,708
Total	$	—	$	12,396

As of December 29, 2018 and September 30, 2018, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following:

Currency Hedged	December 29, 2018		September 30, 2018
	(in thousands)
Euro / U.S. Dollar	$	140,492	$	—
Total	$	140,492	$	—

As of December 29, 2018 and September 30, 2018, we had outstanding forward contracts with notional amounts equivalent to the following:

Currency Hedged	December 29, 2018		September 30, 2018
	(in thousands)
Canadian / U.S. Dollar	7,195		7,334
Euro / U.S. Dollar	249,703		297,730
British Pound / U.S. Dollar	7,616		7,074
Israeli Sheqel / U.S. Dollar	7,424		9,778
Japanese Yen / U.S. Dollar	27,810		37,456
Swiss Franc / U.S. Dollar	12,875		11,944
Danish Kroner/ U.S. Dollar	3,067		1,902
Swedish Kronor / U.S. Dollar	13,562		18,207
Chinese Renminbi / U.S. Dollar	8,981		9,010
All other	9,282		5,521
Total	$	347,515	$	405,956

Net Gains and Losses on Foreign Currency Exposures

The following table shows the effect of our derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the three months ended December 29, 2018 and December 30, 2017 (in thousands):

Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI-Effective Portion					Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion	Gain or (Loss) Reclassified from OCI into Income-Effective Portion					Location of Gain or (Loss) Recognized-Ineffective Portion	Gain or (Loss) Recognized-Ineffective Portion
	Three months ended						Three months ended						Three months ended
	December 29, 2018		December 30, 2017				December 29, 2018		December 30, 2017				December 29, 2018		December 30, 2017
Forward Contracts	$	187	$	(1,044	)	Total software revenue	$	627	$	(655	)	Interest income and other expense, net	$	—	$	(19	)

The following table shows the effect of our non-designated hedges in the Consolidated Statements of Operations for the three months ended December 29, 2018 and December 30, 2017:

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income	Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged)
		Three months ended
		December 29, 2018			December 30, 2017
		(in thousands)
Forward Contracts	Interest income and other expense, net	$	(987	)	$	587

The following table shows the effect of our derivative instruments designated as net investment hedges in the Consolidated Statements of Operations for the three months ended December 29, 2018 and December 30, 2017 (in thousands):

Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI-Effective Portion					Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion	Gain or (Loss) Reclassified from OCI into Income-Effective Portion				Location of Gain or (Loss) Excluded from Effectiveness Testing	Gain or (Loss) Recognized-Ineffective Portion
	Three months ended						Three months ended					Three months ended
	December 29, 2018			December 30, 2017			December 29, 2018		December 30, 2017			December 29, 2018		December 30, 2017
Forward Contracts	$	(698	)	$	—	Accumulated other comprehensive income (loss)	$	773	$	—	Interest income and other expense, net	$	486	$	—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:

	Fair Value of Derivatives Designated As Hedging Instruments				Fair Value of Derivatives Not Designated As Hedging Instruments
	December 29, 2018		September 30, 2018		December 29, 2018		September 30, 2018
	(in thousands)				(in thousands)
Derivative assets (1):
Forward Contracts	$	5	$	440	$	1,211	$	2,449
Derivative liabilities (2):
Forward Contracts	$	217	$	—	$	367	$	3,419
(1) As of December 29, 2018 and September 30, 2018, $1,216 thousand and $2,889 thousand, current derivative assets, respectively, are recorded in other current assets, in the Consolidated Balance Sheets.
(2) As of December 29, 2018 and September 30, 2018 $584 thousand and $3,419 thousand current derivative liabilities, respectively, are recorded in accrued expenses and other current liabilities in the Consolidated Balance Sheets.

Offsetting Assets

The following table sets forth the offsetting of derivative assets as of December 29, 2018:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
As of December 29, 2018	Gross Amount of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received		Net Amount
	(in thousands)
Forward Contracts	$	1,216	$	—	$	1,216	$	(584	)	$	—	$	632

Offsetting Liabilities

The following table sets forth the offsetting of derivative liabilities as of December 29, 2018:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
As of December 29, 2018	Gross Amount of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Amount
	(in thousands)
Forward Contracts	$	584	$	—	$	584	$	(584	)	$	—	$	—