Financial Instruments (Tables)
|
3 Months Ended |
Apr. 02, 2023 |
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis |
The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of April 2, 2023 and December 31, 2022.
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| |
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Assets |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
244,542 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
244,542 |
|
Cash equivalents |
|
|
252,374 |
|
|
|
152,292 |
|
|
|
— |
|
|
|
404,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
|
— |
|
|
|
52,168 |
|
|
|
— |
|
|
|
52,168 |
|
Corporate debt securities |
|
|
— |
|
|
|
51,369 |
|
|
|
— |
|
|
|
51,369 |
|
Commercial paper |
|
|
— |
|
|
|
47,548 |
|
|
|
— |
|
|
|
47,548 |
|
U.S. government agency securities |
|
|
— |
|
|
|
7,394 |
|
|
|
— |
|
|
|
7,394 |
|
Debt mutual funds |
|
|
6,800 |
|
|
|
— |
|
|
|
— |
|
|
|
6,800 |
|
Certificates of deposit and time deposits |
|
|
— |
|
|
|
1,754 |
|
|
|
— |
|
|
|
1,754 |
|
Non-U.S. government securities |
|
|
— |
|
|
|
554 |
|
|
|
— |
|
|
|
554 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds |
|
|
42,246 |
|
|
|
— |
|
|
|
— |
|
|
|
42,246 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
545,962 |
|
|
$ |
313,079 |
|
|
$ |
— |
|
|
$ |
859,041 |
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|
|
|
|
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|
|
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|
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|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
$ |
— |
|
|
$ |
1,980 |
|
|
$ |
— |
|
|
$ |
1,980 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
— |
|
|
$ |
1,980 |
|
|
$ |
— |
|
|
$ |
1,980 |
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|
|
|
|
|
|
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| Reported as follows:
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| |
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Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
496,916 |
|
|
$ |
152,292 |
|
|
$ |
— |
|
|
$ |
649,208 |
|
Marketable securities |
|
|
— |
|
|
|
92,895 |
|
|
|
— |
|
|
|
92,895 |
|
Long-term marketable securities |
|
|
49,046 |
|
|
|
67,892 |
|
|
|
— |
|
|
|
116,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
545,962 |
|
|
$ |
313,079 |
|
|
$ |
— |
|
|
$ |
859,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Liabilities |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
$ |
— |
|
|
$ |
1,980 |
|
|
$ |
— |
|
|
$ |
1,980 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
— |
|
|
$ |
1,980 |
|
|
$ |
— |
|
|
$ |
1,980 |
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|
|
|
|
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| |
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Assets |
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|
|
|
|
|
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|
|
|
|
|
|
|
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|
Cash |
|
$ |
632,417 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
632,417 |
|
Cash equivalents |
|
|
161,767 |
|
|
|
60,589 |
|
|
|
— |
|
|
|
222,356 |
|
Available for sale securities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
|
|
— |
|
|
|
50,856 |
|
|
|
— |
|
|
|
50,856 |
|
U.S. Treasury securities |
|
|
— |
|
|
|
39,649 |
|
|
|
— |
|
|
|
39,649 |
|
Commercial paper |
|
|
— |
|
|
|
7,159 |
|
|
|
— |
|
|
|
7,159 |
|
Debt mutual funds |
|
|
6,580 |
|
|
|
— |
|
|
|
— |
|
|
|
6,580 |
|
U.S. government agency securities |
|
|
— |
|
|
|
6,352 |
|
|
|
— |
|
|
|
6,352 |
|
Certificates of deposit and time deposits |
|
|
— |
|
|
|
1,740 |
|
|
|
— |
|
|
|
1,740 |
|
Non-U.S. government securities |
|
|
— |
|
|
|
535 |
|
|
|
— |
|
|
|
535 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds |
|
|
37,518 |
|
|
|
— |
|
|
|
— |
|
|
|
37,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
838,282 |
|
|
$ |
166,880 |
|
|
$ |
— |
|
|
$ |
1,005,162 |
|
Derivative assets |
|
|
— |
|
|
|
86 |
|
|
|
— |
|
|
|
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
838,282 |
|
|
$ |
166,966 |
|
|
$ |
— |
|
|
$ |
1,005,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
$ |
— |
|
|
$ |
4,215 |
|
|
$ |
— |
|
|
$ |
4,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
— |
|
|
$ |
4,215 |
|
|
$ |
— |
|
|
$ |
4,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported as follows:
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| |
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Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
794,184 |
|
|
$ |
60,589 |
|
|
$ |
— |
|
|
$ |
854,773 |
|
Marketable securities |
|
|
— |
|
|
|
39,612 |
|
|
|
— |
|
|
|
39,612 |
|
Long-term marketable securities |
|
|
44,098 |
|
|
|
66,679 |
|
|
|
— |
|
|
|
110,777 |
|
Prepayments |
|
|
— |
|
|
|
86 |
|
|
|
— |
|
|
|
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
838,282 |
|
|
$ |
166,966 |
|
|
$ |
— |
|
|
$ |
1,005,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
$ |
— |
|
|
$ |
4,215 |
|
|
$ |
— |
|
|
$ |
4,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
— |
|
|
$ |
4,215 |
|
|
$ |
— |
|
|
$ |
4,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Carrying Amounts and Fair Values of Financial Instruments |
The carrying amounts and fair values of Teradyne’s financial instruments at April 2, 2023 and December 31, 2022 were as follows:
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| |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
649,208 |
|
|
$ |
649,208 |
|
|
$ |
854,773 |
|
|
$ |
854,773 |
|
Marketable securities |
|
|
209,833 |
|
|
|
209,833 |
|
|
|
150,389 |
|
|
|
150,389 |
|
Derivative assets |
|
|
— |
|
|
|
— |
|
|
|
86 |
|
|
|
86 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
|
1,980 |
|
|
|
1,980 |
|
|
|
4,215 |
|
|
|
4,215 |
|
Convertible debt |
|
|
35,109 |
|
|
|
119,586 |
|
|
|
50,115 |
|
|
|
139,007 |
|
|
Schedule of Available-for-Sale Marketable Securities |
The following table summarizes the composition of marketable securities at April 2, 2023:
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| |
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
55,615 |
|
|
$ |
38 |
|
|
$ |
(3,485 |
) |
|
$ |
52,168 |
|
|
$ |
49,669 |
|
Corporate debt securities |
|
|
56,040 |
|
|
|
41 |
|
|
|
(4,712 |
) |
|
|
51,369 |
|
|
|
49,131 |
|
Commercial paper |
|
|
47,225 |
|
|
|
337 |
|
|
|
(14 |
) |
|
|
47,548 |
|
|
|
16,845 |
|
U.S. government agency securities |
|
|
7,427 |
|
|
|
9 |
|
|
|
(42 |
) |
|
|
7,394 |
|
|
|
4,419 |
|
Debt mutual funds |
|
|
7,130 |
|
|
|
— |
|
|
|
(330 |
) |
|
|
6,800 |
|
|
|
3,312 |
|
Certificates of deposit and time deposits |
|
|
1,754 |
|
|
|
— |
|
|
|
— |
|
|
|
1,754 |
|
|
|
— |
|
Non-U.S. government securities |
|
|
554 |
|
|
|
— |
|
|
|
— |
|
|
|
554 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
175,745 |
|
|
$ |
425 |
|
|
$ |
(8,583 |
) |
|
$ |
167,587 |
|
|
$ |
123,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities |
|
$ |
92,915 |
|
|
$ |
337 |
|
|
$ |
(357 |
) |
|
$ |
92,895 |
|
|
$ |
60,438 |
|
Long-term marketable securities |
|
|
82,830 |
|
|
|
88 |
|
|
|
(8,226 |
) |
|
|
74,692 |
|
|
|
62,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
175,745 |
|
|
$ |
425 |
|
|
$ |
(8,583 |
) |
|
$ |
167,587 |
|
|
$ |
123,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The following table summarizes the composition of marketable securities at December 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
|
$ |
57,006 |
|
|
$ |
3 |
|
|
$ |
(6,153 |
) |
|
$ |
50,856 |
|
|
$ |
50,667 |
|
U.S. Treasury securities |
|
|
44,030 |
|
|
|
— |
|
|
|
(4,381 |
) |
|
|
39,649 |
|
|
|
39,649 |
|
Commercial paper |
|
|
7,089 |
|
|
|
70 |
|
|
|
— |
|
|
|
7,159 |
|
|
|
— |
|
Debt mutual funds |
|
|
6,997 |
|
|
|
— |
|
|
|
(417 |
) |
|
|
6,580 |
|
|
|
3,095 |
|
U.S. government agency securities |
|
|
6,442 |
|
|
|
— |
|
|
|
(90 |
) |
|
|
6,352 |
|
|
|
6,352 |
|
Certificates of deposit and time deposits |
|
|
1,740 |
|
|
|
— |
|
|
|
— |
|
|
|
1,740 |
|
|
|
— |
|
Non-U.S. government securities |
|
|
535 |
|
|
|
— |
|
|
|
— |
|
|
|
535 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
123,839 |
|
|
$ |
73 |
|
|
$ |
(11,041 |
) |
|
$ |
112,871 |
|
|
$ |
99,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities |
|
$ |
39,950 |
|
|
$ |
70 |
|
|
$ |
(408 |
) |
|
$ |
39,612 |
|
|
$ |
30,713 |
|
Long-term marketable securities |
|
|
83,889 |
|
|
|
3 |
|
|
|
(10,633 |
) |
|
|
73,259 |
|
|
|
69,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
123,839 |
|
|
$ |
73 |
|
|
$ |
(11,041 |
) |
|
$ |
112,871 |
|
|
$ |
99,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual Maturities of Investments Held |
The contractual maturities of investments in securities held at April 2, 2023 were as follows:
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due within one year |
|
$ |
92,915 |
|
|
$ |
92,895 |
|
Due after 1 year through 5 years |
|
|
31,721 |
|
|
|
30,672 |
|
Due after 5 years through 10 years |
|
|
5,022 |
|
|
|
4,612 |
|
Due after 10 years |
|
|
38,957 |
|
|
|
32,608 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
168,615 |
|
|
$ |
160,787 |
|
|
|
|
|
|
|
|
|
|
|
Schedule of Notional Amount of Derivatives |
At April 2, 2023 and December 31, 2022, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Japanese Yen |
|
$ |
(57.7 |
) |
|
$ |
— |
|
|
$ |
(57.7 |
) |
|
$ |
(37.1 |
) |
|
$ |
— |
|
|
$ |
(37.1 |
) |
Taiwan Dollar |
|
|
(38.3 |
) |
|
|
— |
|
|
|
(38.3 |
) |
|
|
(29.2 |
) |
|
|
— |
|
|
|
(29.2 |
) |
Korean Won |
|
|
(3.1 |
) |
|
|
— |
|
|
|
(3.1 |
) |
|
|
(6.4 |
) |
|
|
— |
|
|
|
(6.4 |
) |
British Pound Sterling |
|
|
(1.2 |
) |
|
|
— |
|
|
|
(1.2 |
) |
|
|
(1.2 |
) |
|
|
— |
|
|
|
(1.2 |
) |
Singapore Dollar |
|
|
— |
|
|
|
35.7 |
|
|
|
35.7 |
|
|
|
— |
|
|
|
33.5 |
|
|
|
33.5 |
|
Euro |
|
|
— |
|
|
|
24.3 |
|
|
|
24.3 |
|
|
|
— |
|
|
|
38.4 |
|
|
|
38.4 |
|
Philippine Peso |
|
|
— |
|
|
|
2.5 |
|
|
|
2.5 |
|
|
|
— |
|
|
|
2.7 |
|
|
|
2.7 |
|
Chinese Yuan |
|
|
— |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
2.2 |
|
|
|
2.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(100.3 |
) |
|
$ |
64.4 |
|
|
$ |
(35.9 |
) |
|
$ |
(73.9 |
) |
|
$ |
76.8 |
|
|
$ |
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Foreign Currency Cash Flow Hedges |
At April 2, 2023 and December 31, 2022, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S. currencies for U.S. dollars with the following notional amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Japanese Yen |
|
$ |
(13.6 |
) |
|
$ |
30.2 |
|
|
$ |
16.6 |
|
|
$ |
(23.4 |
) |
|
$ |
61.2 |
|
|
$ |
37.8 |
|
Taiwan Dollar |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5.5 |
) |
|
|
10.9 |
|
|
|
5.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(13.6 |
) |
|
$ |
30.2 |
|
|
$ |
16.6 |
|
|
$ |
(28.9 |
) |
|
$ |
72.1 |
|
|
$ |
43.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value |
The following table summarizes the fair value of derivative instruments as of April 2, 2023 and December 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange forward contracts |
|
|
Prepayments |
|
|
$ |
— |
|
|
$ |
86 |
|
Foreign exchange forward contracts |
|
|
Other current liabilities |
|
|
|
(1,057 |
) |
|
|
(990 |
) |
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange option contracts |
|
|
Other current liabilities |
|
|
|
(923 |
) |
|
|
(3,225 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivatives |
|
|
|
|
|
$ |
(1,980 |
) |
|
$ |
(4,129 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized |
The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three months ended April 2, 2023 and April 3, 2022:
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Location of Losses (Gains) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange forward contracts |
|
|
Other (income) expense, net |
|
|
$ |
1,259 |
|
|
$ |
(1,752 |
) |
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange option contracts |
|
|
Revenue |
|
|
|
1,538 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Derivatives |
|
|
|
|
|
$ |
2,797 |
|
|
$ |
(1,752 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|