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Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 29, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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 September 29, 2019 and December 31, 2018 are summarized as follows:
 
 
 
 
As of
 
 
 
As of
 
 
Balance Sheet
Location
 
September 29,
2019
 
December 31,
2018
 
Balance Sheet
Location
 
September 29,
2019
 
December 31,
2018
 
 
 
 
(In thousands)
 
 
 
(In thousands)
Derivatives not designated as hedging instruments
 
Prepaid expenses and other current assets
 
$
1,050

 
$
784

 
Other accrued liabilities
 
$
150

 
$
331

Derivatives designated as hedging instruments
 
Prepaid expenses and other current assets
 
47

 
2

 
Other accrued liabilities
 
58

 
37

Total
 
 
 
$
1,097

 
$
786

 
 
 
$
208

 
$
368


Schedule of Offsetting of Derivative Assets
The following tables set forth the offsetting of derivative assets as of September 29, 2019 and December 31, 2018:
As of September 29, 2019
 
 
 
 
 
 
 
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset on the Condensed Consolidated Balance Sheets
 
Net Amounts Of Assets Presented on the Condensed Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
 
 
(In thousands)
J.P. Morgan Chase
 
$
128

 
$

 
$
128

 
$
(31
)
 
$

 
$
97

Bank of America
 

 

 

 
(2
)
 

 
(2
)
Wells Fargo
 
969

 

 
969

 
(175
)
 

 
794

Total
 
$
1,097

 
$

 
$
1,097

 
$
(208
)
 
$

 
$
889


As of December 31, 2018
 
 
 
 
 
 
 
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset on the Condensed Consolidated Balance Sheets
 
Net Amounts Of Assets Presented on the Condensed Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
 
 
(In thousands)
Bank of America
 
$
323

 
$

 
$
323

 
$
(64
)
 
$

 
$
259

Wells Fargo
 
463

 

 
463

 
(298
)
 

 
165

Total
 
$
786

 
$

 
$
786

 
$
(362
)
 
$

 
$
424



Schedule of Offsetting of Derivative Liabilities
The following tables set forth the offsetting of derivative liabilities as of September 29, 2019 and December 31, 2018:
As of September 29, 2019
 
 
 
 
 
 
 
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset on the Condensed Consolidated Balance Sheets
 
Net Amounts Of Liabilities Presented on the Condensed Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount

 
(In thousands)
J.P. Morgan Chase
 
$
31

 
$

 
$
31

 
$
(31
)
 
$

 
$

Bank of America
 
2

 

 
2

 
(2
)
 

 

Wells Fargo
 
175

 

 
175

 
(175
)
 

 

Total
 
$
208

 
$

 
$
208

 
$
(208
)
 
$

 
$


As of December 31, 2018
 
 
 
 
 
 
 
Gross Amounts Not Offset on the Condensed Consolidated Balance Sheets
 
 
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset on the Condensed Consolidated Balance Sheets
 
Net Amounts Of Liabilities Presented on the Condensed Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
 
 
(In thousands)
J.P. Morgan Chase
 
$
6

 
$

 
$
6

 
$

 
$

 
$
6

Bank of America
 
64

 

 
64

 
(64
)
 

 

Wells Fargo
 
298

 

 
298

 
(298
)
 

 

Total
 
$
368

 
$

 
$
368

 
$
(362
)
 
$

 
$
6


Schedule of Effects and Locations of Gains or Losses Recognized in Income
The effects of the Company's cash flow hedges in the unaudited condensed statement of operations for the three and nine months ended September 29, 2019 and September 30, 2018 are summarized as follows:
 
 
Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
 
 
Three Months Ended September 29, 2019
 
Net revenue
 
Cost of revenue
 
Research and development
 
Sales and marketing
 
General and administrative
 
 
(In thousands)
Statement of operations
 
$
265,858

 
$
188,666

 
$
19,537

 
$
33,491

 
$
11,887

Gains (losses) on cash flow hedge
 
$
548

 
$
(2
)
 
$
(2
)
 
$
(42
)
 
$
(7
)



 
 
Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
 
 
Three Months Ended September 30, 2018
 
Net revenue
 
Cost of revenue
 
Research and development
 
Sales and marketing
 
General and administrative
 
 
(In thousands)
Statement of operations
 
$
269,411

 
$
174,966

 
$
20,136

 
$
37,892

 
$
16,184

Gains (losses) on cash flow hedge
 
$
750

 
$
(6
)
 
$

 
$
(115
)
 
$
(32
)

 
 
Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
 
 
Nine Months Ended September 29, 2019
 
Net revenue
 
Cost of revenue
 
Research and development
 
Sales and marketing
 
General and administrative
 
 
(In thousands)
Statement of operations
 
$
745,792

 
$
521,147

 
$
57,183

 
$
103,887

 
$
35,467

Gains (losses) on cash flow hedge
 
$
1,634

 
$
(10
)
 
$
(47
)
 
$
(209
)
 
$
(30
)

 
 
Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges
 
 
Nine Months Ended September 30, 2018
 
Net revenue
 
Cost of revenue
 
Research and development
 
Sales and marketing
 
General and administrative
 
 
(In thousands)
Statement of operations
 
$
769,888

 
$
518,844

 
$
63,273

 
$
114,318

 
$
50,403

Gains (losses) on cash flow hedge
 
$
235

 
$
(7
)
 
$
86

 
$
(42
)
 
$
(41
)

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 in OCI and the unaudited condensed consolidated statement of operations for the three and nine months ended September 29, 2019 and September 30, 2018 are summarized as follows:
Derivatives Designated as
Hedging Instruments
 
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)
 
Three Months Ended
 
 
Three Months Ended
 
September 29,
2019
 
September 30,
2018
 
 
September 29,
2019
 
September 30,
2018
 
 
(In thousands)
 
 
 
(In thousands)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
 
$
458

 
$
625

 
Net revenue
 
$
548

 
$
750

Foreign currency forward contracts
 

 

 
Cost of revenue
 
(2
)
 
(6
)
Foreign currency forward contracts
 

 

 
Research and development
 
(2
)
 

Foreign currency forward contracts
 

 

 
Sales and marketing
 
(42
)
 
(115
)
Foreign currency forward contracts
 

 

 
General and administrative
 
(7
)
 
(32
)
Total
 
$
458

 
$
625

 
 
 
$
495

 
$
597

_________________________
(1) Refer to Note 11. Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.

Derivatives Designated as
Hedging Instruments
 
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)
 
Nine Months Ended
 
 
Nine Months Ended
 
September 29,
2019
 
September 30,
2018
 
 
September 29,
2019
 
September 30,
2018
 
 
(In thousands)
 
 
 
(In thousands)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
 
$
1,322

 
$
1,075

 
Net revenue
 
$
1,634

 
$
235

Foreign currency forward contracts
 

 

 
Cost of revenue
 
(10
)
 
(7
)
Foreign currency forward contracts
 

 

 
Research and development
 
(47
)
 
86

Foreign currency forward contracts
 

 

 
Sales and marketing
 
(209
)
 
(42
)
Foreign currency forward contracts
 

 

 
General and administrative
 
(30
)
 
(41
)
Total
 
$
1,322

 
$
1,075

 
 
 
$
1,338

 
$
231

_________________________
(1) Refer to Note 11. Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.
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 nine months ended September 29, 2019 and September 30, 2018 are as follows:

Derivatives Not Designated as Hedging Instruments
 
Location of Gains (Losses)
Recognized in Income on Derivative
 
Three Months Ended
 
Nine Months Ended
 
September 29, 2019
 
September 30, 2018
 
September 29, 2019
 
September 30, 2018
 
 
 
 
(In thousands)
Foreign currency forward contracts
 
Other income (expense), net
 
$
1,540

 
$
991

 
$
2,446

 
$
2,930