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Derivative Financial Instruments (Tables)
 9 Months Ended
Jul. 01, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional Amounts of Outstanding Forward Contracts
As of July 1, 2017 and September 30, 2016, we had outstanding forward contracts with notional amounts equivalent to the following:
Currency Hedged
July 1,
2017
 
September 30,
2016
 
(in thousands)
Canadian / U.S. Dollar
$
8,488

 
$
14,685

Swiss Franc / Euro
7,374

 
730

Chinese Yuan offshore / Euro
10,303

 
—

Euro / U.S. Dollar
227,898

 
174,120

Japanese Yen / Euro
11,025

 
32,782

Israeli Shekel / U.S. Dollar
8,116

 
7,271

Japanese Yen / U.S. Dollar
2,718

 
6,716

Swedish Krona / U.S. Dollar
6,410

 
3,852

Danish Krona / U.S. Dollar
5,279

 
1,183

All other
7,018

 
8,195

Total
$
294,629

 
$
249,534

As of July 1, 2017 and September 30, 2016, we had outstanding forward contracts designated as cash flow hedges with notional amounts equivalent to the following:
Currency Hedged
July 1,
2017
 
September 30,
2016
 
(in thousands)
Euro / U.S. Dollar
$
109,702

 
$
26,181

Japanese Yen / U.S. Dollar
16,273

 
8,800

SEK / U.S. Dollar
3,672

 
4,078

Total
$
129,647

 
$
39,059
Net Gains and Losses on Foreign Currency Exposures
The following table shows the effect of our non-designated hedges in the Consolidated Statements of Operations for the three and nine months ended July 1, 2017 and July 2, 2016:
Derivatives Not Designated as Hedging Instruments
 
Location of Gain or (Loss) Recognized in Income
 
Net realized and unrealized gain or (loss) (excluding the underlying foreign currency exposure being hedged)
 
 
 
 
Three months ended
 
Nine months ended
 
 
 
 
July 1,
2017
 
July 2,
2016
 
July 1,
2017
 
July 2,
2016
 
 
 
 
(in thousands)
Forward Contracts
 
Interest income and other expense, net
 
$
6,669

 
$
(1,059
)
 
$
(1,422
)
 
$
(1,645
)

In the three and nine months ended July 1, 2017, foreign currency losses, net were 0.7 million and 3.2 million, respectively. In the three and nine months ended July 2, 2016, foreign currency losses, net were 0.3 million and 1.3 million, respectively.
The following table shows the effect of our derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the three and nine months ended July 1, 2017 and July 2, 2016 (in thousands):

Derivatives Designated as Hedging Instruments
 
Gain or (Loss) Recognized in OCI-Effective Portion
 
Location of Gain or (Loss) Reclassified from OCI into Income-Effective Portion
 
Gain or (Loss) Reclassified from OCI into Income-Effective Portion
 
Location of Gain or (Loss) Recognized-Ineffective Portion
 
Gain or (Loss) Recognized-Ineffective Portion
 
 
Three months ended
 
 
 
Three months ended
 
 
 
Three months ended
 
 
July 1,
2017
 
July 2,
2016
 
 
 
July 1,
2017
 
July 2,
2016
 
 
 
July 1,
2017
 
July 2,
2016
Forward Contracts
 
$
(2,627
)
 
$
361

 
Subscription, support and license revenue
 
$
(86
)
 
$
(1,560
)
 
Interest income and other expense, net
 
$
(29
)
 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
 
Nine months ended
 
 
 
Nine months ended
 
 
July 1,
2017
 
July 2,
2016
 
 
 
July 1,
2017
 
July 2,
2016
 
 
 
July 1,
2017
 
July 2,
2016
Forward Contracts
 
$
256

 
$
(3,633
)
 
Subscription, support and license revenue
 
$
888

 
$
(727
)
 
Interest income and other expense, net
 
$
(23
)
 
$
(28
)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:
 
Fair Value of Derivatives Designated As Hedging Instruments
 
Fair Value of Derivatives Not Designated As Hedging Instruments
 
July 1,
2017
 
September 30,
2016
 
July 1,
2017
 
September 30,
2016
 
(in thousands)
 
(in thousands)
Derivative assets (1):
 
 
 
 
 
 
 
       Forward Contracts
$
226

 
$
44

 
$
4,576

 
$
216

Derivative liabilities (2):
 
 
 
 
 
 
 
       Forward Contracts
$
2,310

 
$
1,477

 
$
2,215

 
$
1,693

(1) As of July 1, 2017 and September 30, 2016, all derivative assets were recorded in other current assets in the Consolidated Balance Sheet.
(2) As of July 1, 2017, $4,394 thousand current derivative liabilities are recorded in accrued expenses and other current liabilities, and $131 thousand long term derivative liabilities are recorded in other liabilities in the Consolidated Balance Sheets. As of September 30, 2016, all derivative liabilities were recorded in accrued expenses and other current liabilities in the Consolidated Balance Sheets.
Offsetting Assets
The following table sets forth the offsetting of derivative assets as of July 1, 2017:
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
As of July 1, 2017
Gross Amount of Recognized Assets
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Assets Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Received
 
Net Amount
 
(in thousands)
Forward Contracts
$
4,802

 
$
—

 
$
4,802

 
$
(4,525
)
 
$
—

 
$
277
Offsetting Liabilities
The following table sets forth the offsetting of derivative liabilities as of July 1, 2017:
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
 
 
Gross Amounts Not Offset in the Consolidated Balance Sheets
 
 
As of July 1, 2017
Gross Amount of Recognized Liabilities
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Pledged
 
Net Amount
 
(in thousands)
Forward Contracts
$
4,525

 
$
—

 
$
4,525

 
$
(4,525
)
 
$
—

 
$
—