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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2014	Oct. 28, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014
Entity Registrant Name	NATIONAL INSTRUMENTS CORP /DE/
Entity Central Index Key	0000935494
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		127,586,103

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 259,455	$ 230,263
Short-term investments	188,299	163,149
Accounts receivable, net	187,726	180,680
Inventories, net	170,862	172,109
Prepaid expenses and other current assets	71,735	49,001
Deferred income taxes, net	28,425	33,393
Total current assets	906,502	828,595
Property and equipment, net	261,622	260,568
Goodwill	145,026	146,520
Intangible assets, net	83,151	82,310
Other long-term assets	24,592	25,558
Total assets	1,420,893	1,343,551
Current liabilities:
Accounts payable	61,893	56,614
Accrued compensation	37,638	25,189
Deferred revenue - current	101,407	96,117
Accrued expenses and other liabilities	13,728	17,627
Other taxes payable	34,822	29,808
Total current liabilities	249,488	225,355
Deferred income taxes	41,885	44,620
Liability for uncertain tax positions	10,412	23,572
Deferred revenue- long term	24,808	21,389
Other long-term liabilities	7,012	5,531
Total liabilities	333,605	320,467
Commitments and contingencies
Stockholders' equity:
Preferred stock: par value $0.01; 5,000,000 shares authorized; none issued and outstanding
Common stock: par value $0.01; 360,000,000 shares authorized; 127,585,824 and 125,690,240 shares issued and outstanding, respectively	1,276	1,257
Additional paid-in capital	649,794	604,330
Retained earnings	440,785	414,947
Accumulated other comprehensive (loss) income	(4,567)	2,550
Total stockholders' equity	1,087,288	1,023,084
Total liabilities and stockholders' equity	$ 1,420,893	$ 1,343,551

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2014	Dec. 31, 2013
Consolidated Balance Sheets [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	360,000,000	360,000,000
Common stock, shares issued	127,585,824	125,690,240
Common stock, shares outstanding	127,585,824	125,690,240

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net sales:
Product	$ 287,336	$ 269,582	$ 837,824	$ 810,663
Software maintenance	26,365	19,556	73,262	61,089
Total net sales	313,701	289,138	911,086	871,752
Cost of sales:
Product	79,266	73,541	229,529	224,954
Software maintenance	1,683	1,665	4,443	4,307
Total cost of sales	80,949	75,206	233,972	229,261
Gross profit	232,752	213,932	677,114	642,491
Operating expenses:
Sales and marketing	116,736	111,253	348,026	337,884
Research and development	58,972	60,791	170,082	180,520
General and administrative	22,741	21,363	68,854	66,363
Acquisition related adjustment				(1,316)
Total operating expenses	198,449	193,407	586,962	583,451
Operating income	34,303	20,525	90,152	59,040
Other income:
Interest income	362	133	793	495
Net foreign exchange (loss) gain	(452)	456	(1,005)	(2,057)
Other (loss) income, net	(70)	304	283	728
Income before income taxes	34,143	21,418	90,223	58,206
(Benefit from) provision for income taxes	(5,559)	5,654	7,275	9,421
Net income	$ 39,702	$ 15,764	$ 82,948	$ 48,785
Basic earnings per share	$ 0.31	$ 0.13	$ 0.65	$ 0.39
Weighted average shares outstanding - basic	127,478	125,032	126,785	124,244
Diluted earnings per share	$ 0.31	$ 0.13	$ 0.65	$ 0.39
Weighted average shares outstanding - diluted	127,903	125,608	127,529	125,221
Dividends declared per share	$ 0.15	$ 0.14	$ 0.45	$ 0.42

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements Of Comprehensive Income [Abstract]
Net income	$ 39,702	$ 15,764	$ 82,948	$ 48,785
Other comprehensive income, before tax and net of reclassification adjustments:
Foreign currency translation adjustment	(9,909)	6,307	(10,467)	3,058
Unrealized (loss) gain on securities available-for-sale	(221)	(91)	(129)	(497)
Unrealized gain (loss) on derivative instruments	10,023	(2,371)	8,063	1,281
Other comprehensive loss, before tax	(107)	3,845	(2,533)	3,842
Tax expense related to items of other comprehensive income	5,224	611	4,584	1,964
Other comprehensive (loss) income, net of tax	(5,331)	3,234	(7,117)	1,878
Comprehensive income	$ 34,371	$ 18,998	$ 75,831	$ 50,663

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flow from operating activities:
Net income	$ 82,948	$ 48,785
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	51,011	50,897
Stock-based compensation	19,531	21,996
Tax benefit from deferred income taxes	2,222	(1,272)
Tax benefit from stock option plans	(1,189)	(2,185)
Changes in operating assets and liabilities:
Accounts receivable	(7,046)	4,789
Inventories	1,247	(8,358)
Prepaid expenses and other assets	(24,887)	(18,320)
Accounts payable	5,279	(10,636)
Deferred revenue	8,709	6,192
Taxes, accrued expenses and other liabilities	2,891	2,834
Net cash provided by operating activities	140,716	94,722
Cash flow from investing activities:
Capital expenditures	(30,645)	(40,795)
Capitalization of internally developed software	(22,055)	(10,566)
Additions to other intangibles	(2,238)	(4,146)
Purchases of short-term investments	(107,664)	(16,039)
Sales and maturities of short-term investments	82,514	35,299
Net cash used in investing activities	(80,088)	(36,247)
Cash flow from financing activities:
Proceeds from issuance of common stock	24,483	28,809
AWR earnout payment		(9,016)
Dividends paid	(57,108)	(52,241)
Tax benefit from stock option plans	1,189	2,185
Net cash used in financing activities	(31,436)	(30,263)
Net change in cash and cash equivalents	29,192	28,212
Cash and cash equivalents at beginning of period	230,263	161,996
Cash and cash equivalents at end of period	$ 259,455	$ 190,208

Basis Of Presentation	9 Months Ended
Basis Of Presentation	Sep. 30, 2014
Basis Of Presentation [Abstract]
Basis Of Presentation	Note 1 – Basis of presentation The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, included in our annual report on Form 10-K, filed with the Securities and Exchange Commission. In our opinion, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary to present fairly our financial position at September 30, 2014 and December 31, 2013, and the results of our operations and comprehensive income for the three and nine month periods ended September 30, 2014. Operating results for the three and nine month periods ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States.

Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Note 2 – Earnings per share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which include stock options and restricted stock units (“RSUs”), is computed using the treasury stock method.

The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and nine month periods ended September 30, 2014 and 2013, are as follows:



	Three Months Ended September 30,		Nine Months Ended September 30,
	(In thousands)		(In thousands)
	(Unaudited)		(Unaudited)
	2014	2013	2014	2013
Weighted average shares outstanding-basic	127,478	125,032	126,785	124,244
Plus: Common share equivalents
Stock options, RSUs	425	576	744	977
Weighted average shares outstanding-diluted	127,903	125,608	127,529	125,221

Stock awards to acquire 420,000 shares and 682,300 shares for the three months ended September 30, 2014 and 2013, respectively, and 24,300 shares and 58,500 shares for the nine month periods ended September 30, 2014 and 2013, respectively, were excluded in the computations of diluted EPS because the effect of including the stock awards would have been anti-dilutive.

Cash, Cash Equivalents And Short-Term Investments

9 Months Ended

Sep. 30, 2014

Cash, Cash Equivalents And Short-Term Investments [Abstract]

Cash, Cash Equivalents And Short-Term Investments

Note 3 – Cash, cash equivalents and short-term investments

The following tables summarize unrealized gains and losses related to our cash, cash equivalents, and short-term investments designated as available-for-sale:



		As of September 30, 2014
(In thousands)		(Unaudited)
				Gross		Gross		Cumulative
		Adjusted Cost		Unrealized Gain		Unrealized Loss		Translation Adjustment		Fair Value
Cash	$	140,155	$	-	$	-	$	-	$	140,155
Money Market Accounts		119,300		-		-		-		119,300
Corporate bonds		107,766		87		(168)		(3,924)		103,761
U.S. treasuries and agencies		74,079		3		(38)		-		74,044
Foreign government bonds		8,863		12		-		(1,293)		7,582
Time deposits		2,912		-		-		-		2,912
Cash, cash equivalents, and short-term investments	$	453,075	$	102	$	(206)	$	(5,217)	$	447,754



(In thousands)		December 31, 2013
				Gross		Gross		Cumulative
		Adjusted Cost		Unrealized Gain		Unrealized Loss		Translation Adjustment		Fair Value
Cash	$	142,058	$	-	$	-	$	-	$	142,058
Money Market Accounts		88,205		-		-		-		88,205
Corporate bonds		71,964		16		(146)		(1,218)		70,616
U.S. treasuries and agencies		72,459		26		-		-		72,485
Foreign government bonds		18,409		-		(7)		(1,266)		17,136
Time deposits		2,912		-		-		-		2,912
Cash, cash equivalents, and short-term investments	$	396,007	$	42	$	(153)	$	(2,484)	$	393,412

The following tables summarize the contractual maturities of our short-term investments designated as available-for-sale:



		As of September 30, 2014
(In thousands)		(Unaudited)
		Adjusted Cost		Fair Value
Due in less than 1 year	$	58,746	$	54,971
Due in 1 to 5 years		134,874		133,328
Total available-for-sale debt securities	$	193,620	$	188,299

Due in less than 1 year		Adjusted Cost		Fair Value
Corporate bonds	$	42,278	$	39,781
U.S. treasuries and agencies		4,693		4,696
Foreign government bonds		8,863		7,582
Time deposits		2,912		2,912
Total available-for-sale debt securities	$	58,746	$	54,971

Due in 1 to 5 years		Adjusted Cost		Fair Value
Corporate bonds	$	65,488	$	63,980
U.S. treasuries and agencies		69,386		69,348
Total available-for-sale debt securities	$	134,874	$	133,328

Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 4 – Fair value measurements

We define fair value to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market that market participants may use when pricing the asset or liability.

We follow a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value measurement is determined based on the lowest level input that is significant to the fair value measurement. The three values of the fair value hierarchy are the following:

Level 1 – Quoted prices in active markets for identical assets or liabilities

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 – Inputs that are not based on observable market data

Assets and liabilities measured at fair value on a recurring basis are summarized below:



		Fair Value Measurements at Reporting Date Using
(In thousands)		(Unaudited)
Description		September 30, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash and cash equivalents available for sale:
Money Market Funds	$	119,300	$	119,300	$	-	$	-
Short-term investments available for sale:
Corporate bonds		103,761		-		103,761		-
U.S. treasuries and agencies		74,044		-		74,044		-
Foreign government bonds		7,582		-		7,582		-
Time deposits		2,912		2,912		-		-
Derivatives		14,180		-		14,180		-
Total Assets	$	321,779	$	122,212	$	199,567	$	-

Liabilities
Derivatives	$	(1,626)	$	-	$	(1,626)	$	-
Total Liabilities	$	(1,626)	$	-	$	(1,626)	$	-


(In thousands)		Fair Value Measurements at Reporting Date Using
Description		December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash and cash equivalents available for sale:
Money Market Funds	$	88,205	$	88,205	$	-	$	-
Short-term investments available for sale:
Corporate bonds		70,616		-		70,616		-
U.S. treasuries and agencies		72,485		-		72,485		-
Foreign government bonds		17,136		-		17,136		-
Time deposits		2,912		2,912		-		-
Derivatives		6,908		-		6,908		-
Total Assets	$	258,262	$	91,117	$	167,145	$	-

Liabilities
Derivatives	$	(4,742)	$	-	$	(4,742)	$	-
Total Liabilities	$	(4,742)	$	-	$	(4,742)	$	-

We value our available-for-sale short-term investments based on pricing from third party pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. We classify all of our fixed income available-for-sale securities as having Level 2 inputs. The valuation techniques used to measure the fair value of our financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques. We believe all of these sources reflect the credit risk associated with each of our available-for-sale short-term investments. Short-term investments available-for-sale consists of debt securities issued by states of the U.S. and political subdivisions of the U.S., corporate debt securities and debt securities issued by U.S. government organizations and agencies as well as debt securities issued by foreign governments. All short-term investments available-for-sale have contractual maturities of less than 40 months.

Derivatives include foreign currency forward and option contracts. Our foreign currency forward contracts are valued using an income approach (Level 2) based on the spot rate less the contract rate multiplied by the notional amount. Our foreign currency option contracts are valued using a market approach based on the quoted market prices which are derived from observable inputs including current and future spot rates, interest rate spreads as well as quoted market prices of similar instruments. We consider counterparty credit risk in the valuation of our derivatives. However, counterparty credit risk did not impact the valuation of our derivatives during the nine month period ended September 30, 2014. There were not any transfers in or out of Level 1 or Level 2 during the nine month period ended September 30, 2014.

Our foreign government bonds consist of German government sovereign debt denominated in Euro with maximum remaining maturities of 8 months. Our short-term investments do not involve sovereign debt from any other country in Europe.

We did not have any items that were measured at fair value on a nonrecurring basis at September 30, 2014 and December 31, 2013.

The carrying value of net accounts receivable and accounts payable contained in the Consolidated Balance Sheets approximates fair value.

Derivative Instruments And Hedging Activities

9 Months Ended

Sep. 30, 2014

Derivative Instruments And Hedging Activities [Abstract]

Derivative Instruments And Hedging Activities

Note 5 – Derivative instruments and hedging activities

We recognize all of our derivative instruments as either assets or liabilities in our statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

We have operations in over 50 countries. Sales outside of the Americas accounted for approximately 58% and 56% of our revenues during the three month periods ended September 30, 2014 and 2013, respectively, and 60% and 59% during the nine month periods ended September 30, 2014 and 2013, respectively. Our activities expose us to a variety of market risks, including the effects of changes in foreign currency exchange rates. These financial risks are monitored and managed by us as an integral part of our overall risk management program.

We maintain a foreign currency risk management strategy that uses derivative instruments (foreign currency forward and purchased option contracts) to help protect our earnings and cash flows from fluctuations caused by the volatility in currency exchange rates. Movements in foreign currency exchange rates pose a risk to our operations and competitive position, since exchange rate changes may affect our profitability and cash flow, and the business or pricing strategies of our non-U.S. based competitors.

The vast majority of our foreign sales are denominated in the customers’ local currency. We purchase foreign currency forward and option contracts as hedges of forecasted sales that are denominated in foreign currencies and as hedges of foreign currency denominated receivables. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash inflows resulting from such sales or firm commitments will be adversely affected by changes in exchange rates. We also purchase foreign currency forward contracts as hedges of forecasted expenses that are denominated in foreign currencies. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash outflows resulting from foreign currency operating and cost of revenue expenses will be adversely affected by changes in exchange rates.

We designate foreign currency forward and purchased option contracts as cash flow hedges of forecasted revenues or forecasted expenses. In addition, we hedge our foreign currency denominated balance sheet exposures using foreign currency forward contracts that are not designated as hedging instruments. None of our derivative instruments contain a credit-risk-related contingent feature.

Cash flow hedges

To help protect against the reduction in value caused by a fluctuation in foreign currency exchange rates of forecasted foreign currency cash flows resulting from international sales over the next one to three years, we have instituted a foreign currency cash flow hedging program. We hedge portions of our forecasted revenue and forecasted expenses denominated in foreign currencies with forward and purchased option contracts. For forward contracts, when the dollar strengthens significantly against the foreign currencies, the change in the present value of future foreign currency cash flows may be offset by the change in the fair value of the forward contracts designated as hedges. For option contracts, when the dollar strengthens significantly against the foreign currencies, the change in the present value of future foreign currency cash flows may be offset by the change in the fair value of the option contracts net of the premium paid designated as hedges. Our foreign currency purchased option contracts are purchased “at-the-money” or “out-of-the-money.” We purchase foreign currency forward and option contracts for up to 100% of our forecasted exposures in selected currencies (primarily in Euro, Japanese yen, Hungarian forint, British pound, and Malaysian ringgit) and limit the duration of these contracts to 40 months or less.

For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (“OCI”) and reclassified into earnings in the same line item (net sales, operating expenses, or cost of sales) associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings or expenses during the current period and are classified as a component of “net foreign exchange loss.” Hedge effectiveness of foreign currency forwards and purchased option contracts designated as cash flow hedges are measured by comparing the hedging instrument’s cumulative change in fair value from inception to maturity to the forecasted transaction’s terminal value.

We held forward contracts with the following notional amounts:



(In thousands)		US Dollar Equivalent
		As of September 30, 2014		As of December 31,
		(Unaudited)		2013
Euro	$	131,932	$	75,886
Japanese yen		11,371		23,284
Hungarian forint		36,206		21,159
British pound		30,813		14,869
Malaysian ringgit		1,778		4,426
Total forward contracts notional amount	$	212,100	$	139,624

The contracts in the foregoing table had contractual maturities of 36 months or less at September 30, 2014 and December 31, 2013.

At September 30, 2014, we expect to reclassify $10 million of gains on derivative instruments from accumulated OCI to net sales during the next twelve months when the hedged international sales occur, $501,000 of losses on derivative instruments from accumulated OCI to cost of sales when the cost of sales are incurred and $294,000 of losses on derivative instruments from accumulated OCI to operating expenses during the next twelve months when the hedged operating expenses occur. Expected amounts are based on derivative valuations at September 30, 2014. Actual results may vary as a result of changes in the corresponding exchange rates subsequent to this date.

We did not record any ineffectiveness from our hedges during the three and nine month periods ended September 30, 2014 and 2013.

Other Derivatives

Other derivatives not designated as hedging instruments consist primarily of foreign currency forward contracts that we use to hedge our foreign denominated net receivable or net payable positions to protect against the change in value caused by a fluctuation in foreign currency exchange rates. We typically attempt to hedge up to 90% of our outstanding foreign denominated net receivables or net payables and typically limit the duration of these foreign currency forward contracts to approximately 120 days. The gain or loss on the derivatives as well as the offsetting gain or loss on the hedge item attributable to the hedged risk is recognized in current earnings under the line item “net foreign exchange gain (loss).” As of September 30, 2014 and December 31, 2013, we held foreign currency forward contracts with a notional amount of $73 million and $70 million, respectively.

The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at September 30, 2014 and December 31, 2013, respectively.



	Asset Derivatives
	September 30, 2014			December 31, 2013
(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	$	9,818	Prepaid expenses and other current assets	$	4,825

Foreign exchange contracts - LT forwards	Other long-term assets		2,763	Other long-term assets		1,719
Total derivatives designated as hedging instruments		$	12,581		$	6,544

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Prepaid expenses and other current assets	$	1,599	Prepaid expenses and other current assets	$	364
Total derivatives not designated as hedging instruments		$	1,599		$	364

Total derivatives		$	14,180		$	6,908




	Liability Derivatives
	September 30, 2014			December 31, 2013
(In thousands)	(Unaudited)

	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts - ST forwards	Accrued expenses and other liabilities	$	(840)	Accrued expenses and other liabilities	$	(3,350)

Foreign exchange contracts - LT forwards	Other long-term liabilities		(402)	Other long-term liabilities		-
Total derivatives designated as hedging instruments		$	(1,242)		$	(3,350)

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Accrued expenses and other liabilities	$	(384)	Accrued expenses and other liabilities	$	(1,392)
Total derivatives not designated as hedging instruments		$	(384)		$	(1,392)

Total derivatives		$	(1,626)		$	(4,742)

The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the three month periods ended September 30, 2014 and 2013, respectively:



September 30, 2014
(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 and options	$	11,637	Net sales	$	999	Net foreign exchange gain (loss)	$	-

Foreign exchange contracts - forwards and options		(1,009)	Cost of sales		32	Net foreign exchange gain (loss)		-

Foreign exchange contracts - forwards and options		(605)	Operating expenses		24	Net foreign exchange gain (loss)		-
Total	$	10,023		$	1,055		$	-



September 30, 2013
(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 and options	$	(3,536)	Net sales	$	751	Net foreign exchange gain (loss)	$	-

Foreign exchange contracts - forwards and options		698	Cost of sales		(20)	Net foreign exchange gain (loss)		-

Foreign exchange contracts - forwards and options		467	Operating expenses		15	Net foreign exchange gain (loss)		-
Total	$	(2,371)		$	746		$	-


(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
			September 30, 2014		September 30, 2013
			(Unaudited)		(Unaudited)
Foreign exchange contracts - forwards	Net foreign exchange gain/(loss)	$	2,223	$	(1,293)

Total		$	2,223	$	(1,293)

The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the nine month periods ended September 30, 2014 and 2013, respectively:



September 30, 2014
(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 and options	$	10,660	Net sales	$	1,114	Net foreign exchange gain (loss)	$	-

Foreign exchange contracts - forwards and options		(1,748)	Cost of sales		214	Net foreign exchange gain (loss)		-

Foreign exchange contracts - forwards and options		(849)	Operating expenses		128	Net foreign exchange gain (loss)		-
Total	$	8,063		$	1,456		$	-



September 30, 2013
(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 and options	$	459	Net sales	$	2,713	Net foreign exchange gain (loss)	$	-

Foreign exchange contracts - forwards and options		432	Cost of sales		54	Net foreign exchange gain (loss)		-

Foreign exchange contracts - forwards and options		390	Operating expenses		5	Net foreign exchange gain (loss)		-
Total	$	1,281		$	2,772		$	-


(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
			September 30, 2014		September 30, 2013
			(Unaudited)		(Unaudited)
Foreign exchange contracts - forwards	Net foreign exchange gain/(loss)	$	1,413	$	533

Total		$	1,413	$	533

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624258-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708775-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708773-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624181-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

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-Name Accounting Standards Codification
-Topic 815
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-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Inventories, Net

9 Months Ended

Sep. 30, 2014

Inventories, Net [Abstract]

Inventories

Note 6 – Inventories, net

Inventories, net consist of the following:


		September 30, 2014		December 31,
(In thousands)		(Unaudited)		2013

Raw materials	$	79,128	$	81,574
Work-in-process		5,747		4,958
Finished goods		85,987		85,577
	$	170,862	$	172,109

Intangible Assets, Net

9 Months Ended

Sep. 30, 2014

Intangible Assets, Net [Abstract]

Intangible Assets

Note 7 – Intangible assets, net

Intangible assets at September 30, 2014 and December 31, 2013 are as follows:



		September 30, 2014
(In thousands)		(Unaudited)						December 31, 2013
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Capitalized software development costs	$	60,851	$	(24,657)	$	36,194	$	48,947	$	(25,706)	$	23,241
Acquired technology		88,565		(62,886)		25,679		89,446		(54,253)		35,193
Patents		27,372		(12,351)		15,021		26,070		(11,045)		15,025
Other		28,672		(22,415)		6,257		28,517		(19,666)		8,851
	$	205,460	$	(122,309)	$	83,151	$	192,980	$	(110,670)	$	82,310

Software development costs capitalized for the three month periods ended September 30, 2014 and 2013 were $5.5 million and $2.7 million, respectively, and related amortization expense was $4.1 million and $3.5 million, respectively. For the nine month periods ended September 30, 2014 and 2013, capitalized software development costs were $23 million and $11 million, respectively, and related amortization expense was $10 million and $11 million, respectively. Capitalized software development costs for the three month periods ended September 30, 2014 and 2013 included costs related to stock based compensation of $193,000 and $170,000, respectively. For the nine month periods ended September 30, 2014 and 2013, capitalized software development costs included costs related to stock based compensation of $533,000 and $572,000, respectively. The related amounts in the table above are net of fully amortized assets.

Amortization of capitalized software development costs is computed on an individual product basis for those products available for market and is recognized based on the product’s estimated economic life, generally three years. Acquired technology and other intangible assets are amortized over their useful lives, which range from three to eight years. Patents are amortized using the straight-line method over their estimated period of benefit, generally 10 to 17 years. Total intangible assets amortization expenses were $9 million and $8 million for the three months ended September 30, 2014 and 2013, respectively, and $24 million and $24 million for the nine month periods ended September 30, 2014 and 2013, respectively.

Goodwill

9 Months Ended

Sep. 30, 2014

Goodwill [Abstract]

Goodwill

Note 8 – Goodwill

The carrying amount of goodwill as of September 30, 2014, was as follows:



		Amount
		(In thousands)
Balance as of December 31, 2013	$	146,520
Foreign currency translation impact		(1,494)
Balance as of September 30, 2014 (unaudited)	$	145,026

The excess purchase price over the fair value of assets acquired is recorded as goodwill. As we have one operating segment, we allocate goodwill to one reporting unit for goodwill impairment testing. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test was performed as of February 28, 2014. No impairment of goodwill was identified during 2014 or 2013. Goodwill is deductible for tax purposes in certain jurisdictions.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2014
Income Taxes [Abstract]
Income Taxes	Note 9 – Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. We account for uncertainty in income taxes recognized in our financial statements using prescribed recognition thresholds and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on our tax returns. We had $10.4 million and $23.6 million of unrecognized tax benefits at September 30, 2014 and December 31, 2013, respectively, all of which would affect our effective income tax rate if recognized. We recorded a gross increase in unrecognized tax benefits of $976,000 and a gross decrease of $407,000 for the nine month periods ended September 30, 2014, as a result of tax positions taken during this period. The gross decrease of our unrecognized tax benefit of $407,000 was recorded in the three month period ended September 30, 2014. We recorded a gross decrease in unrecognized tax benefits of $13.1 million for the three and nine month periods ended September 30, 2014 related to a settlement with the Internal Revenue Service of the examination of our U.S. income tax returns for 2010 and 2011. Our continuing policy is to recognize interest and penalties related to income tax matters in income tax expense. As of September 30, 2014, we had approximately $760,000 accrued for interest related to uncertain tax positions. The tax years 2007 through 2013 remain open to examination by the major taxing jurisdictions to which we are subject. Our provision for income taxes reflected an effective tax rate of (16)% and 26% for the three month periods ended September 30, 2014 and 2013, respectively, and 8% and 16% for the nine month periods ended September 30, 2014 and 2013, respectively. For the three and nine month periods ended September 30, 2014, our effective tax rate was lower than the U.S. federal statutory rate of 35% as a result of an enhanced deduction for certain research and development expenses, profits in foreign jurisdictions with reduced income tax rates, a tax benefit from disqualifying dispositions of equity awards that do not ordinarily result in a tax benefit, and a decrease in unrecognized tax benefits. For the three and nine month periods ended September 30, 2013, our effective tax rate was lower than the U.S. federal statutory rate of 35% as a result of an enhanced deduction for certain research and development expenses, profits in foreign jurisdictions with reduced income tax rates, the research and development tax credit, and a tax benefit from disqualifying dispositions of equity awards that do not ordinarily result in a tax benefit. Our earnings in Hungary are subject to a statutory tax rate of 19%. The difference between this rate and the statutory U.S. rate of 35% resulted in income tax benefits of $600,000 and $1.2 million for the three month periods ended September 30, 2014 and 2013, respectively, and $4.6 million and $4.4 million for the nine month periods ended September 30, 2014 and 2013, respectively. The tax position of our Hungarian operation continues to benefit from assets created by the restructuring of our operations in Hungary. In addition, our research and development activities in Hungary continue to benefit from a tax law in Hungary that provides for an enhanced deduction for qualified research and development expenses. Partial release of the valuation allowance on assets from the restructuring and the enhanced tax deduction for research expenses resulted in income tax benefits of $1.5 million and $1.9 million for the three month periods ended September 30, 2014 and 2013, respectively, and $7.3 million and $6.6 million for the nine month periods ended September 30, 2014 and 2013, respectively. Earnings from our operations in Malaysia are free of tax under a tax holiday effective January 1, 2013. This tax holiday expires in 2027. If we fail to satisfy the conditions of the tax holiday, this tax benefit may be terminated early. The tax holiday resulted in income tax benefits of $1.3 million and $1.6 million for the three and nine month periods ended September 30, 2014, respectively. No other taxing jurisdictions had a significant impact on our effective tax rate. We have not entered into any advanced pricing or other agreements with the IRS with regard to any foreign jurisdictions.

Comprehensive Income

9 Months Ended

Sep. 30, 2014

Comprehensive Income [Abstract]

Comprehensive Income

Note 10 – Comprehensive income

Our comprehensive income is comprised of net income, foreign currency translation, unrealized gains and losses on forward and option contracts and securities classified as available-for-sale. The accumulated other comprehensive income, net of tax, for the nine month periods ended September 30, 2014 and 2013, consisted of the following: