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Derivative instruments and hedging activities (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Notional Amounts of Derivative Instruments
We held forward contracts designated as cash flow hedges with the following notional amounts:

(In thousands)
 
US Dollar Equivalent

 
As of June 30, 2018
 
As of December 31,

 
(Unaudited)
 
2017
Chinese yuan
 
$
80,203

 
$
39,197

Euro
 
153,178

 
177,406

Japanese yen
 
15,657

 
22,857

Hungarian forint
 
30,364

 
41,296

British pound
 
6,463

 
9,931

Malaysian ringgit
 
20,694

 
28,287

Korean won
 
13,359

 
—

Total forward contracts notional amount
 
$
319,918

 
$
318,974
Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheets
The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, respectively.   

 
Asset Derivatives

 
June 30, 2018
 
December 31, 2017
(In thousands)
 
(Unaudited)
 
 
 
 

 
 
 
 
 
 
 
 

 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
Derivatives designated as hedging instruments
 
 
 
 

 
 
 
 

Foreign exchange contracts - ST forwards
 
Prepaid expenses and other current assets
 
$
4,980

 
Prepaid expenses and other current assets
 
$
4,707

 
 
 
 
 
 
 
 
 
Foreign exchange contracts - LT forwards
 
Other long-term assets
 
2,027

 
Other long-term assets
 
2,339

Total derivatives designated as hedging instruments
 
 
 
$
7,007

 
 
 
$
7,046

 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
Foreign exchange contracts - ST forwards
 
Prepaid expenses and other current assets
 
$
792

 
Prepaid expenses and other current assets
 
$
187

Total derivatives not designated as hedging instruments
 
 
 
$
792

 
 
 
$
187

 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
7,799

 
 
 
$
7,233

   

 
Liability Derivatives

 
June 30, 2018
 
December 31, 2017
(In thousands)
 
(Unaudited)
 

 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
 
Derivatives designated as hedging instruments
 
 
 
 

 
 
 
 

Foreign exchange contracts - ST forwards
 
Other current liabilities
 
$
(2,286
)
 
Other current liabilities
 
$
(7,487
)

 
 
 
 

 
 
 
 

Foreign exchange contracts - LT forwards
 
Other long-term liabilities
 
(899
)
 
Other long-term liabilities
 
(3,959
)
Total derivatives designated as hedging instruments
 
 
 
$
(3,185
)
 
 
 
$
(11,446
)

 
 
 
 

 
 
 
 

Derivatives not designated as hedging instruments
 
 
 
 

 
 
 
 


 
 
 
 

 
 
 
 

Foreign exchange contracts - ST forwards
 
Other current liabilities
 
$
(47
)
 
Other current liabilities
 
$
(1,297
)
Total derivatives not designated as hedging instruments
 
 
 
$
(47
)
 
 
 
$
(1,297
)

 
 
 
 

 
 
 
 

Total derivatives
 
 
 
$
(3,232
)
 
 
 
$
(12,743
)
Summary of Derivative Instruments, Gain (Loss)
The following tables present the effect of derivative instruments on our Consolidated Statements of Income for three months ended June 30, 2018 and 2017, respectively:
June 30, 2018
(In thousands)
(Unaudited)
Derivatives in Cash Flow Hedging Relationship
 
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
 
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
Foreign exchange contracts - forwards
 
$
17,632

 
Net sales
 
$
(1,295
)
 
Net foreign exchange gain/(loss)
 
$
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
(3,052
)
 
Cost of sales
 
302

 
Net foreign exchange gain/(loss)
 
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
(2,548
)
 
Operating expenses
 
321

 
Net foreign exchange gain/(loss)
 
—

Total
 
$
12,032

 
 
 
$
(672
)
 
 
 
$
—

June 30, 2017
(In thousands)
(Unaudited)
Derivatives in Cash Flow Hedging Relationship
 
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
 
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
Foreign exchange contracts - forwards
 
$
(9,488
)
 
Net sales
 
$
669

 
Net foreign exchange gain/(loss)
 
$
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
3,171

 
Cost of sales
 
(428
)
 
Net foreign exchange gain/(loss)
 
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
2,795

 
Operating expenses
 
(416
)
 
Net foreign exchange gain/(loss)
 
—

Total
 
$
(3,522
)
 
 
 
$
(175
)
 
 
 
$
—

(In thousands)
 
 
 
 
 
 
Derivatives not Designated as Hedging Instruments
 
Location of Gain (Loss) Recognized in Income
 
Amount of Gain (Loss) Recognized in Income
 
Amount of Gain (Loss) Recognized in Income

 
 
 
June 30, 2018
 
June 30, 2017

 
 
 
(Unaudited)
 
(Unaudited)
Foreign exchange contracts - forwards
 
Net foreign exchange gain/(loss)
 
$
1,573

 
(632
)

 
 
 
 

 
 

Total
 
 
 
$
1,573

 
$
(632
)
The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the six months ended June 30, 2018 and 2017, respectively:
June 30, 2018
(In thousands)
(Unaudited)
Derivatives in Cash Flow Hedging Relationship
 
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
 
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
Foreign exchange contracts - forwards
 
$
12,560

 
Net sales
 
$
(3,915
)
 
Net foreign exchange gain/(loss)
 
$
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
(2,326
)
 
Cost of sales
 
643

 
Net foreign exchange gain/(loss)
 
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
(1,972
)
 
Operating expenses
 
777

 
Net foreign exchange gain/(loss)
 
—

Total
 
8,262

 
 
 
$
(2,495
)
 
 
 
$
—

June 30, 2017
(In thousands)
(Unaudited)
Derivatives in Cash Flow Hedging Relationship
 
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
 
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
 
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
Foreign exchange contracts - forwards
 
$
(14,797
)
 
Net sales
 
$
2,749

 
Net foreign exchange gain/(loss)
 
$
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
4,480

 
Cost of sales
 
(978
)
 
Net foreign exchange gain/(loss)
 
—


 
 

 
 
 
 

 
 
 
 

Foreign exchange contracts - forwards
 
3,983

 
Operating expenses
 
(979
)
 
Net foreign exchange gain/(loss)
 
—

Total
 
$
(6,334
)
 
 
 
$
792

 
 
 
$
—

(In thousands)
 
 
 
 
 
 
Derivatives not Designated as Hedging Instruments
 
Location of Gain (Loss) Recognized in Income
 
Amount of Gain (Loss) Recognized in Income
 
Amount of Gain (Loss) Recognized in Income

 
 
 
June 30, 2018
 
June 30, 2017

 
 
 
(Unaudited)
 
(Unaudited)
Foreign exchange contracts - forwards
 
Net foreign exchange gain/(loss)
 
$
(188
)
 
(3,178
)
Total
 
 
 
$
(188
)
 
$
(3,178
)