Derivative Financial Instruments (Tables)
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6 Months Ended |
Jul. 01, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Consolidated Balance Sheets |
The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of July 1, 2018 and December 31, 2017 are summarized as follows:
| | | | | | | | | | | | | | | | | | | | | | Derivative Assets | | Balance Sheet Location | | July 1, 2018 | | December 31, 2017 | | Balance Sheet Location | | July 1, 2018 | | December 31, 2017 | | | | | (In thousands) | | | | (In thousands) | Derivative assets not designated as hedging instruments | | Prepaid expenses and other current assets | | $ | 3,824 |
| | $ | 1,314 |
| | Other accrued liabilities | | $ | 458 |
| | $ | 7,128 |
| Derivative assets designated as hedging instruments | | Prepaid expenses and other current assets | | — |
| | 485 |
| | Other accrued liabilities | | 49 |
| | 1,064 |
| Total | | | | $ | 3,824 |
| | $ | 1,799 |
| | | | $ | 507 |
| | $ | 8,192 |
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Schedule of Offsetting of Derivative Assets |
The following tables set forth the offsetting of derivative assets as of July 1, 2018 and December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | As of July 1, 2018 | | | | | | | | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | | | | Gross Amounts of Recognized Assets | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Pledged | | Net Amount | | | (In thousands) | Bank of America | | 2,181 |
| | — |
| | 2,181 |
| | (318 | ) | | — |
| | 1,863 |
| Wells Fargo | | 1,643 |
| | — |
| | 1,643 |
| | (189 | ) | | — |
| | 1,454 |
| Total | | $ | 3,824 |
| | $ | — |
| | $ | 3,824 |
| | $ | (507 | ) | | $ | — |
| | $ | 3,317 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2017 | | | | | | | | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | | | | Gross Amounts of Recognized Assets | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Pledged | | Net Amount | | | (In thousands) | Bank of America | | $ | 1,664 |
| | $ | — |
| | $ | 1,664 |
| | $ | (1,664 | ) | | $ | — |
| | $ | — |
| Wells Fargo | | 135 |
| | — |
| | 135 |
| | (135 | ) | | — |
| | — |
| Total | | $ | 1,799 |
| | $ | — |
| | $ | 1,799 |
| | $ | (1,799 | ) | | $ | — |
| | $ | — |
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Schedule of Offsetting of Derivative Liabilities |
The following tables set forth the offsetting of derivative liabilities as of July 1, 2018 and December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | As of July 1, 2018 | | | | | | | | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | | | | Gross Amounts of Recognized Liabilities | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Pledged | | Net Amount |
| | (In thousands) | Bank of America | | $ | 318 |
| | $ | — |
| | $ | 318 |
| | $ | (318 | ) | | $ | — |
| | $ | — |
| Wells Fargo | | 189 |
| | — |
| | 189 |
| | (189 | ) | | — |
| | — |
| Total | | $ | 507 |
| | $ | — |
| | $ | 507 |
| | $ | (507 | ) | | $ | — |
| | $ | — |
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| | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2017 | | | | | | | | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | | | | Gross Amounts of Recognized Liabilities | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Pledged | | Net Amount | | | (In thousands) | Bank of America | | $ | 7,815 |
| | $ | — |
| | $ | 7,815 |
| | $ | (1,664 | ) | | $ | — |
| | $ | 6,151 |
| Wells Fargo | | 377 |
| | — |
| | 377 |
| | (135 | ) | | — |
| | 242 |
| Total | | $ | 8,192 |
| | $ | — |
| | $ | 8,192 |
| | $ | (1,799 | ) | | $ | — |
| | $ | 6,393 |
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Schedule of Effects and Locations of Gains or Losses Recognized in Income |
The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the three months ended July 1, 2018 are summarized as follows: | | | | | | | | | | | | | | | | | | | | | | | | Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges | | | Three Months Ended July 1, 2018 | | Net revenue | | Cost of revenue | | Research and development | | Sales and marketing | | General and administrative | | | (In thousands) | Statements of operations | | $ | 366,820 |
| | $ | 257,648 |
| | $ | 31,371 |
| | $ | 46,983 |
| | $ | 20,448 |
| Gains (losses) on cash flow hedge | | $ | 1,783 |
| | $ | (7 | ) | | $ | (13 | ) | | $ | (157 | ) | | $ | (50 | ) |
The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the six months ended July 1, 2018 are summarized as follows:
| | | | | | | | | | | | | | | | | | | | | | | | Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges | | | Six Months Ended July 1, 2018 | | Net revenue | | Cost of revenue | | Research and development | | Sales and marketing | | General and administrative | | | (In thousands) | Statements of operations | | $ | 711,793 |
| | $ | 498,116 |
| | $ | 60,318 |
| | $ | 90,641 |
| | $ | 37,086 |
| Gains (losses) on cash flow hedge | | $ | (785 | ) | | $ | (1 | ) | | $ | 86 |
| | $ | 73 |
| | $ | (9 | ) |
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Schedule of Company's Derivative Instruments on Other Comprehensive Income and the Consolidated Statement of Operations |
The pre-tax effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three and six months ended July 1, 2018 and July 2, 2017 are summarized as follows: | | | | | | | | | | | | Derivatives Designated as Hedging Instruments | | Three Months Ended July 1, 2018 | | Gains (Losses) Recognized in OCI - Effective Portion | | Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion | | Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) | | | (In thousands) | Cash flow hedges: | | | | | | | Foreign currency forward contracts | | $ | 1,680 |
| | Net revenue | | $ | 1,783 |
| Foreign currency forward contracts | | — |
| | Cost of revenue | | (7 | ) | Foreign currency forward contracts | | — |
| | Research and development | | (13 | ) | Foreign currency forward contracts | | — |
| | Sales and marketing | | (157 | ) | Foreign currency forward contracts | | — |
| | General and administrative | | (50 | ) | Total | | $ | 1,680 |
| | | | $ | 1,556 |
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_________________________(1) Refer to Note 10, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.
| | | | | | | | | | | | Derivatives Designated as Hedging Instruments | | Six Months Ended July 1, 2018 | | Gains (Losses) Recognized in OCI - Effective Portion | | Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion | | Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) | | | (In thousands) | Cash flow hedges: | | | | | | | Foreign currency forward contracts | | $ | 180 |
| | Net revenue | | $ | (785 | ) | Foreign currency forward contracts | | — |
| | Cost of revenue | | (1 | ) | Foreign currency forward contracts | | — |
| | Research and development | | 86 |
| Foreign currency forward contracts | | — |
| | Sales and marketing | | 73 |
| Foreign currency forward contracts | | — |
| | General and administrative | | (9 | ) | Total | | $ | 180 |
| | | | $ | (636 | ) |
_________________________(1) Refer to Note 10, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.
| | | | | | | | | | | | Derivatives Designated as Hedging Instruments | | Three Months Ended July 2, 2017 | | Gains (Losses) Recognized in OCI - Effective Portion | | Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion | | Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) | | | (In thousands) | Cash flow hedges: | | | | | | | Foreign currency forward contracts | | $ | (6,935 | ) | | Net revenue | | $ | (1,008 | ) | Foreign currency forward contracts | | — |
| | Cost of revenue | | (1 | ) | Foreign currency forward contracts | | — |
| | Research and development | | (55 | ) | Foreign currency forward contracts | | — |
| | Sales and marketing | | 115 |
| Foreign currency forward contracts | | — |
| | General and administrative | | 17 |
| Total | | $ | (6,935 | ) | | | | $ | (932 | ) |
_______________________ (1) Refer to Note 10, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.
| | | | | | | | | | | | Derivatives Designated as Hedging Instruments | | Six Months Ended July 2, 2017 | | Gains (Losses) Recognized in OCI - Effective Portion | | Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion | | Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) | | | (In thousands) | Cash flow hedges: | | | | | | | Foreign currency forward contracts | | $ | (7,052 | ) | | Net revenue | | $ | 1,027 |
| Foreign currency forward contracts | | — |
| | Cost of revenue | | (14 | ) | Foreign currency forward contracts | | — |
| | Research and development | | (74 | ) | Foreign currency forward contracts | | — |
| | Sales and marketing | | (249 | ) | Foreign currency forward contracts | | — |
| | General and administrative | | (42 | ) | Total | | $ | (7,052 | ) | | | | $ | 648 |
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_______________________ (1) Refer to Note 10, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.
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Schedule of Derivatives not Designated as Hedging Instruments |
The effects of the Company’s non-designated hedge included in Other income (expense), net in the unaudited condensed consolidated statements of operations for the three and six months ended July 1, 2018 and July 2, 2017 are as follows:
| | | | | | | | | | | | | | | | | | | | Derivatives Not Designated as Hedging Instruments | | Location of Gains (Losses) Recognized in Income on Derivative | | Three Months Ended | | Six Months Ended | | July 1, 2018 | | July 2, 2017 | | July 1, 2018 | | July 2, 2017 | | | | | (In thousands) | Foreign currency forward contracts | | Other income (expense), net | | $ | 5,438 |
| | $ | (2,893 | ) | | $ | 3,030 |
| | $ | (4,246 | ) |
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