Derivative Financial Instruments (Tables)

9 Months Ended

Jun. 29, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Outstanding Forward Contracts

As of June 29, 2019 and September 30, 2018, we had outstanding forward contracts with notional amounts equivalent to the following:

Currency Hedged	June 29, 2019		September 30, 2018
	(in thousands)
Canadian / U.S. Dollar	10,095		7,334
Euro / U.S. Dollar	328,802		297,730
British Pound / U.S. Dollar	4,530		7,074
Israeli Sheqel / U.S. Dollar	8,641		9,778
Japanese Yen / U.S. Dollar	35,350		37,456
Swiss Franc / U.S. Dollar	9,364		11,944
Danish Kroner/ U.S. Dollar	3,600		1,902
Swedish Kronor / U.S. Dollar	17,893		18,207
Chinese Yuan offshore / U.S. Dollar	3,921		116
Singapore Dollar / U.S. Dollar	33,380		1,314
Chinese Renminbi / U.S. Dollar	9,217		9,010
All other	6,746		4,091
Total	$	471,539	$	405,956

As of June 29, 2019 and September 30, 2018, we had outstanding forward contracts designated as cash flow hedges with notional amounts equivalent to the following:

Currency Hedged	June 29, 2019		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 June 29, 2019 and September 30, 2018, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following:

Currency Hedged	June 29, 2019		September 30, 2018
	(in thousands)
Euro / U.S. Dollar	$	217,202	$	—
Total	$	217,202	$	—

Net Gains and Losses on Foreign Currency Exposures

The following table shows the effect of our non-designated hedges in the Consolidated Statements of Operations for the three and nine months ended June 29, 2019 and June 30, 2018:

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					Nine months ended
		June 29, 2019		June 30, 2018			June 29, 2019			June 30, 2018
		(in thousands)
Forward Contracts	Other income (expense), net	$	1,735	$	(9,392	)	$	(1,004	)	$	(6,370	)

The following table shows the effect of our derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the three and nine months ended June 29, 2019 and June 30, 2018 (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
	June 29, 2019		June 30, 2018			June 29, 2019		June 30, 2018				June 29, 2019		June 30, 2018
Forward Contracts	$	—	$	4,468	Total software revenue	$	—	$	(277	)	Other income (expense), net	$	—	$	52
	Nine months ended					Nine months ended						Nine months ended
	June 29, 2019		June 30, 2018			June 29, 2019		June 30, 2018				June 29, 2019		June 30, 2018
Forward Contracts	$	187	$	1,086	Total software revenue	$	627	$	(2,659	)	Other income (expense), net	$	—	$	17

The following table shows the effect of our derivative instruments designated as net investment hedges in the Consolidated Statements of Operations for the three and nine months ended June 29, 2019 and June 30, 2018 (in thousands):

Derivatives Designated as Hedging Instruments	Gain or (Loss) Recognized in OCI-Effective Portion					Location of Gain or (Loss) Reclassified from OCI -Effective Portion	Gain or (Loss) Reclassified from OCI-Effective Portion					Location of Gain or (Loss) Excluded from Effectiveness Testing	Gain or (Loss) Recognized-Excluded Portion
	Three months ended						Three months ended						Three months ended
	June 29, 2019			June 30, 2018			June 29, 2019			June 30, 2018			June 29, 2019		June 30, 2018
Forward Contracts	$	(7,258	)	$	—	Accumulated other comprehensive loss	$	(4,132	)	$	—	Other income (expense), net	$	1,562	$	—
	Nine months ended						Nine months ended						Nine months ended
	June 29, 2019			June 30, 2018			June 29, 2019			June 30, 2018			June 29, 2019		June 30, 2018
Forward Contracts	$	(6,490	)	$	—	Accumulated other comprehensive loss	$	(5,172	)	$	—	Other income (expense), net	$	3,155	$	—

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
	June 29, 2019		September 30, 2018		June 29, 2019		September 30, 2018
	(in thousands)
Derivative assets (1):
Forward Contracts	$	—	$	440	$	4,202	$	2,449
Derivative liabilities (2):
Forward Contracts	$	3,336	$	—	$	2,061	$	3,419

(1) As of June 29, 2019 and September 30, 2018, current derivative assets of $4.2 million and $2.9 million, respectively, are recorded in other current assets in the Consolidated Balance Sheets.

(2)

As of June 29, 2019 and September 30, 2018, current derivative liabilities of $5.4 million and $3.4 million, 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 June 29, 2019:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
As of June 29, 2019	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	$	4,202	$	—	$	4,202	$	(4,202	)	$	—	$	—

Offsetting Liabilities

The following table sets forth the offsetting of derivative liabilities as of June 29, 2019:

	Gross Amounts Offset in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
As of June 29, 2019	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	$	5,397	$	—	$	5,397	$	(4,202	)	$	—	$	1,195