Derivative Instruments

The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. Currently, the Company enters into two types of hedges to manage this risk. The first are economic hedges which utilize foreign currency forward contracts with maturities of up to 45 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment. The second are cash flow hedges which utilize foreign currency forward contracts with maturities of up to 18 months to hedge specific forecasted transactions of the Company's foreign subsidiaries with the goal of protecting the Company's budgeted revenues and expenses against foreign currency exchange rate changes compared to its budgeted rates. These cash flow hedges are designated as hedging instruments for hedge accounting treatment.

The Company had the following outstanding forward contracts (in thousands):



	April 1, 2018			December 31, 2017
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:
Japanese Yen	565,000	$	5,299	455,000	$	4,049
Swiss Franc	1,600	2,072		1,365	1,401
British Pound	1,300	1,824		1,650	2,232
Hungarian Forint	400,000	1,576		545,000	2,110
Taiwanese Dollar	43,000	1,480		37,725	1,278
Korean Won	655,000	616		1,825,000	1,708

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):



	Asset Derivatives					Liability Derivatives
	Balance	Fair Value				Balance	Fair Value
	Sheet Location	April 1, 2018		December 31, 2017		Sheet Location	April 1, 2018		December 31, 2017
Derivatives Designated as Hedging Instruments:
Cash flow hedge forward contracts	Prepaid expenses and other current assets	$	—	$	—	Accrued expenses	$	—	$	—

Economic hedge forward contracts	Prepaid expenses and other current assets	$	4	$	16	Accrued expenses	$	18	$	13

The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):



Asset Derivatives					Liability Derivatives
	April 1, 2018		December 31, 2017			April 1, 2018		December 31, 2017
Gross amounts of recognized assets	$	4	$	16	Gross amounts of recognized liabilities	$	18	$	13
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	4	$	16	Net amount of liabilities presented	$	18	$	13

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):



	Location in Financial Statements	Three-months Ended
	Location in Financial Statements	April 1, 2018			April 2, 2017
Derivatives Designated as Hedging Instruments:
Gains (losses) recorded in shareholders' equity (effective portion)	Accumulated other comprehensive income (loss), net of tax	$	—		$	10
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion)	Revenue	$	—		$	(55	)
	Research, development, and engineering expenses	—			3
	Selling, general, and administrative expenses	—			8
	Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations	$	—		$	(44	)
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives)	Foreign currency gain (loss)	$	—		$	—
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	(310	)	$	(81	)