Derivative Financial Instruments

6 Months Ended

Jun. 27, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities. Under this program, our strategy is to have increases or decreases in our foreign currency exposures offset by gains or losses on the foreign currency forward contracts to mitigate the risks and volatility associated with foreign currency transaction gains or losses. We do not use derivative financial instruments for speculative or trading purposes. Our derivative instruments are not designated as hedging instruments. We record the fair value of these contracts as of the end of our reporting period to our Condensed Consolidated Balance Sheet with changes in fair value recorded within “Other income (expense), net” in our Condensed Consolidated Statements of Operations for both realized and unrealized gains and losses.

The following table provides information about our foreign currency forward contracts outstanding as of June 27, 2015 (in thousands): 

Currency	Contract Position	Contract Amount (Local Currency)		Contract Amount (U.S. Dollars)
Japanese Yen	Sell	3,132,118		$	25,267
Taiwan Dollar	Buy	(22,744	)	(736		)
Korean Won	Buy	(1,816,520	)	(1,648		)
Total USD notional amount of outstanding foreign exchange contracts				$	22,883

The contracts were entered into on June 26, 2015 and matured on July 24, 2015. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. There was no change in the value of these contracts as of June 27, 2015. Additionally, no gains or losses relating to the outstanding derivative contracts were recorded in the three and six months endedJune 27, 2015.

The location and amount of gains (losses) related to non-designated derivative instruments that matured in the three and six months endedJune 27, 2015 and June 28, 2014 in the Condensed Consolidated Statements of Operations are as follows (in thousands):

		Amount of Gain (Loss) Recognized on Derivatives
		Three Months Ended					Six Months Ended
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized on Derivatives	June 27, 2015		June 28, 2014				June 27, 2015		June 28, 2014
Foreign exchange forward contracts	Other income (expense), net	$	847	$	(101	)		$	685	$	(275	)