Financial Instruments (Tables)

9 Months Ended

Sep. 29, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of cash, cash equivalents and marketable securities

The following table sets forth cash, cash equivalents and marketable securities as of September 29, 2018 (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	114,641	$	—	$	—		$	114,641	$	114,641	$	—
Money market funds	218,567		—		—			218,567		218,567		—
U.S. government agencies	82,837		1		(104		)	82,734		13,649		69,085
Corporate debt securities	207,426		2		(50		)	207,378		55,380		151,998
Total	$	623,471	$	3	$	(154	)	$	623,320	$	402,237	$	221,083

The following table sets forth cash, cash equivalents and marketable securities as of December 31, 2017 (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	115,028	$	—	$	—		$	115,028	$	115,028	$	—
Money market funds	193,066		—		—			193,066		193,066		—
U.S. government agencies	79,722		1		(99		)	79,624		6,595		73,029
Corporate debt securities	291,738		15		(171		)	291,582		27,277		264,305
Total	$	679,554	$	16	$	(270	)	$	679,300	$	341,966	$	337,334

The following table classifies marketable securities by contractual maturities (in thousands):

	September 29, 2018		December 31, 2017
Due in one year	$	221,083	$	319,112
Due in one to two years	—		18,222
Total	$	221,083	$	337,334

Schedule of derivative instruments in statement of financial position, fair value

The following table presents the fair value of the Company’s foreign currency derivative contracts as of the periods presented (in thousands):

		September 29, 2018				December 31, 2017
	Balance Sheet Location	Fair Value Derivative Assets		Fair Value Derivative Liabilities		Fair Value Derivative Assets		Fair Value Derivative Liabilities
Cash flow designated hedges	Prepaid expenses and other current assets	$	3,882	$	—	$	—	$	—
Cash flow designated hedges	Accrued liabilities	—		—		—		—
Hedges not designated	Prepaid expenses and other current assets	799		—		—		—
Hedges not designated	Accrued liabilities	—		86		—		2,138
Total fair value of derivative instruments		$	4,681	$	86	$	—	$	2,138

Schedule of cash flow hedging instruments, statement of operations

The following table presents the pre-tax impact of the Company’s foreign currency derivative contracts on other comprehensive income (“OCI”) and the condensed consolidated statements of operations for the periods presented (in thousands):

		Three Months Ended					Nine Months Ended
	Income Statement Location	September 29, 2018		September 30, 2017			September 29, 2018		September 30, 2017
Foreign exchange cash flow hedges:
Gain (loss) recognized in OCI – effective portion		$	911	$	(6,603	)	$	7,489	$	(20,590	)
Gain (loss) reclassified from OCI into income – effective portion	Revenue	2,449		(6,617		)	3,606		(6,897		)
Loss reclassified from OCI into income – effective portion	Operating expenses	—		—			—		(1,405		)
Gain recognized in income – ineffective portion	Other income, net	—		—			—		21
Gain recognized in income – excluded time value portion	Other income, net	—		672			—		1,516
Foreign exchange balance sheet hedges:
Gain (loss) recognized in income	Other income, net	1,035		(2,062		)	3,335		(8,838		)

Schedule of derivative contracts on consolidated statement of operations

The following table provides the location in the condensed consolidated statements of operations and amount of the recognized gains or losses to the Company’s derivative instruments designated as hedging instruments (in thousands):

	Three Months Ended					Nine Months Ended
	September 29, 2018		September 30, 2017			September 29, 2018		September 30, 2017
Total amounts presented in the condensed consolidated statement of operations in which the effects of cash flow hedges are recorded in revenue	$	393,575	$	392,522		$	940,784	$	1,044,763
Total amounts presented in the condensed consolidated statement of operations in which the effects of cash flow hedges are recorded in operating expenses	171,328		202,396			586,907		624,728
Gains (losses) on foreign exchange contracts designated as cash flow hedges reclassified from OCI into revenue	2,449		(6,617		)	3,606		(6,897		)
Losses on foreign exchange contracts designated as cash flow hedges reclassified from OCI into operating expenses	—		—			—		(1,405		)

Schedule of cash flow hedging instruments, comprehensive income

The following table presents the pre-tax impact of the Company’s foreign currency derivative contracts on other comprehensive income (“OCI”) and the condensed consolidated statements of operations for the periods presented (in thousands):

		Three Months Ended					Nine Months Ended
	Income Statement Location	September 29, 2018		September 30, 2017			September 29, 2018		September 30, 2017
Foreign exchange cash flow hedges:
Gain (loss) recognized in OCI – effective portion		$	911	$	(6,603	)	$	7,489	$	(20,590	)
Gain (loss) reclassified from OCI into income – effective portion	Revenue	2,449		(6,617		)	3,606		(6,897		)
Loss reclassified from OCI into income – effective portion	Operating expenses	—		—			—		(1,405		)
Gain recognized in income – ineffective portion	Other income, net	—		—			—		21
Gain recognized in income – excluded time value portion	Other income, net	—		672			—		1,516
Foreign exchange balance sheet hedges:
Gain (loss) recognized in income	Other income, net	1,035		(2,062		)	3,335		(8,838		)

Schedule of offsetting of foreign currency derivative contracts

The following tables set forth the available offsetting of net derivative assets under the master netting arrangements as of September 29, 2018 and December 31, 2017 (in thousands):

	Gross Amounts Offset in the Condensed Consolidated Balance Sheets						Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
September 29, 2018	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral Received		Net Amount
Foreign exchange contracts assets	$	4,681	$	—	$	4,681	$	86	$	—	$	4,595
Foreign exchange contracts liabilities	86		—		86		86		—		—
	Gross Amounts Offset in the Condensed Consolidated Balance Sheets						Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
December 31, 2017	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral Received		Net Amount
Foreign exchange contracts assets	$	—	$	—	$	—	$	—	$	—	$	—
Foreign exchange contracts liabilities	2,138		—		2,138		—		—		2,138