Derivative and Hedgiing Activities Derivative and Hedging Activities

6 Months Ended

Jun. 27, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

DERIVATIVES AND HEDGING ACTIVITIES

The Company enters into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on cash and certain trade and inter-company receivables and payables, primarily denominated in Euro, British pound, Japanese yen and Israeli shekel. These contracts reduce the exposure to fluctuations in foreign currency exchange rate movements as the gains and losses associated with foreign currency balances are generally offset with the gains and losses on the forward contracts. These contracts are not designated as hedges that are eligible for hedge accounting treatment and are marked to market through earnings every period and generally range from one to three months in original maturity. We do not enter into foreign currency forward contacts for trading purposes. The balance sheet location and net fair value of each of the Company’s derivatives are as follows (in thousands):

		Fair Value of Asset (Liability)
Derivatives not designated as hedging instruments	Balance Sheet Location	June 27, 2014			December 31, 2013
Foreign currency contracts	Prepaid expenses and other current assets	$	79		$	196
Foreign currency contracts	Accrued liabilities	(16		)	(195		)

The effects of the changes in the fair values of non-designated foreign currency forward contracts are summarized as follows (in thousands) :

	Three Months Ended				Six months ended
	June 27, 2014		June 28, 2013		June 27, 2014			June 28, 2013
Gain (loss) recorded in other income (expense), net	$	70	$	10	$	(106	)	$	815