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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
equivalents of approximately $185.2 million and $98.7 million in foreign currencies, respectively, based
upon the exchange rates at December 29, 2013.
The amounts in the tables below include fair value adjustments related to the Company’s own credit
risk and counterparty credit risk.
Fair Value of Derivative Contracts. Fair value of derivative contracts were as follows (in thousands):
Derivative assets reported in
Other Current Assets Other Non-current Assets
December 29, December 30, December 29, December 30,
2013 2012 2013 2012
Foreign exchange forward contracts not designated . . . $ 777 $ 19,064 $ — $ 994
Derivative liabilities reported in
Other Current Accrued Non-current
Liabilities Liabilities
December 29, December 30, December 29, December 30,
2013 2012 2013 2012
Foreign exchange forward contracts designated ...... $ 38,375 $ 7,058 $ 118 $ —
Foreign exchange forward contracts not designated . . . 7,366 6,526 — —
Total derivatives ....................... $ 45,741 $ 13,584 $ 118 $ —
Foreign Exchange Forward Contracts and Equity Market Risk Contracts Designated as Cash Flow Hedges.
The impact of the effective portion of designated cash flow derivative contracts on the Company’s results
of operations was as follows (in thousands):
Fiscal years ended
Amount of gain (loss) Amount of gain (loss) reclassified
recognized in OCI from AOCI to earnings
December 29, December 30, January 1, December 29, December 30, January 1,
2013 2012 2012 2013 2012 2012
Foreign exchange
forward contracts .... $ (74,834) $ (38,197) $ 33,224 $ (41,523) $ (10,946) $ 27,985
Equity market risk
contract .......... — — (3,024) — — (9,885)
Foreign exchange forward contracts designated as cash flow hedges relate to forecasted wafer
purchases and R&D expenses in Japanese yen. Gains and losses associated with foreign exchange forward
contracts designated as cash flow hedges are expected to be recorded in cost of revenue for wafer
purchases or R&D expense when reclassified out of AOCI. Losses from the equity market risk contract
were recorded in other income (expense) when reclassified out of AOCI. The Company expects to realize
the majority of the AOCI balance related to foreign exchange contracts within the next twelve months.
The following table includes the ineffective portion of designated cash flow derivative contracts and
the forward points excluded for the purposes of cash flow hedging designation recognized in other income
(expense) (in thousands):
Fiscal years ended
December 29, December 30, January 1,
2013 2012 2012
Foreign exchange forward contracts ........................ $ (1,201) $ (6,630) $ (5,148)
F-18