Derivative Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

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. The Company may enter 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 our budgeted revenues and expenses against foreign currency exchange rate changes compared to our budgeted rates. These cash flow hedges are designated as hedging instruments for hedge accounting treatment. The Company did not have any cash flow hedges as of December 31, 2019 and 2018.

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

	December 31, 2019			December 31, 2018
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:
Korean Won	161,951,500	$	139,688	3,125,000	$	2,808
Euro	18,000	20,249		23,000	26,330
Japanese Yen	575,000	5,291		380,000	3,459
Mexican Peso	80,000	4,223		—	—
British Pound	2,700	3,569		2,500	3,204
Hungarian Forint	870,000	2,962		750,000	2,685
Taiwanese Dollar	37,450	1,256		55,000	1,807
Canadian Dollar	1,300	1,000		990	726
Singapore Dollar	845	628		700	514

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

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Fair Value				Balance Sheet Location	Fair Value
		December 31, 2019		December 31, 2018			December 31, 2019		December 31, 2018
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contracts	Prepaid expenses and other current assets	$	857	$	1	Accrued expenses	$	23	$	106

The following table summarizes 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
	December 31, 2019		December 31, 2018			December 31, 2019		December 31, 2018
Gross amounts of recognized assets	$	857	$	1	Gross amounts of recognized liabilities	$	23	$	106
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	857	$	1	Net amount of liabilities presented	$	23	$	106

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

	Location in Financial Statements	Year Ended December 31,
		2019		2018			2017
Derivatives Designated as Hedging Instruments:
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion)	Revenue	$	—	$	—		$	30
	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	$	—	$	—		$	41
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	1,305	$	(285	)	$	270