Derivative Financial Instruments

12 Months Ended

Dec. 26, 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 for accounting purposes. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. We record the fair value of these contracts as of the end of our reporting period to our Consolidated Balance Sheet with changes in fair value recorded within "Other income, net" in our Consolidated Statement of Operations for both realized and unrealized gains and losses.

As of December 26, 2015, there were three outstanding foreign exchange forward contracts, one contract to sell Japanese Yen and two contracts to buy Korean Won and Taiwan Dollars. The following tables provide information about our foreign currency forward contracts outstanding as of December 26, 2015 and December 27, 2014 (in thousands):

December 26, 2015		Contract Position	Contract Amount (Local Currency)		Contract Amount (U.S. Dollar)
			(In thousands)
Japanese Yen		Sell	3,328,268		$	27,635
Taiwan Dollar		Buy	(37,152	)	(1,136		)
Korean Won		Buy	(840,111	)	(718		)
	Total USD notional amount of outstanding foreign exchange contracts				$	25,781

December 27, 2014		Contract Position	Contract Amount (Local Currency)		Contract Amount (U.S. Dollar)
			(In thousands)
Japanese Yen		Sell	1,955,798		$	16,241
Taiwan Dollar		Buy	(30,886	)	(977		)
Korean Won		Buy	(1,763,054	)	(1,613		)
	Total USD notional amount of outstanding foreign exchange contracts				$	13,651

The contracts outstanding at December 26, 2015 were entered into on December 24, 2015 and matured on January 26, 2016 for the Japanese Yen, Korean Won and Taiwan Dollar. 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 December 26, 2015. Additionally, no gains or losses relating to the outstanding derivative contracts as of December 26, 2015 and December 27, 2014 were recorded during their respective fiscal periods.

The location and amount of gains (losses) related to non-designated derivative instruments that matured in fiscal 2015 and 2014 in the Consolidated Statements of Operations are as follows (in thousands):

		Fiscal Years Ended
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized on Derivatives	December 26, 2015			December 27, 2014
Foreign exchange forward contracts	Other Income, net	$	(310	)	$	1,768