Derivative Instruments

9 Months Ended

Sep. 27, 2020

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. Currently, the Company enters into economic hedges to manage this risk. The economic hedges 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 Company had the following outstanding forward contracts (in thousands):

	September 27, 2020			December 31, 2019
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:
Euro	66,500	$	77,643	18,000	$	20,249
Korean Won	14,840,000	12,695		161,951,500	139,688
Mexican Peso	165,000	7,324		80,000	4,223
Japanese Yen	450,000	4,259		575,000	5,291
Hungarian Forint	1,305,000	4,174		870,000	2,962
British Pound	2,000	2,543		2,700	3,569
Taiwanese Dollar	41,675	1,430		37,450	1,256
Canadian Dollar	1,430	1,066		1,300	1,000
Singapore Dollar	1,310	951		845	628

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	September 27, 2020		December 31, 2019		Sheet Location	September 27, 2020		December 31, 2019
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contracts	Prepaid expenses and other current assets	$	313	$	857	Accrued expenses	$	121	$	23

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
	September 27, 2020		December 31, 2019			September 27, 2020		December 31, 2019
Gross amounts of recognized assets	$	313	$	857	Gross amounts of recognized liabilities	$	121	$	23
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	313	$	857	Net amount of liabilities presented	$	121	$	23

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

	Location in Financial Statements	Three-months Ended				Nine-months Ended
		September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	(1,521)	$	469	$	(9,701)	$	535