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Document And Entity Information - shares	3 Months Ended
Mar. 31, 2017	Apr. 24, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2017
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		129,593,771

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 279,008	$ 285,283
Short-term investments	86,410	73,117
Accounts receivable, net	224,267	228,686
Inventories, net	194,878	193,608
Prepaid expenses and other current assets	45,970	53,953
Total current assets	830,533	834,647
Property and equipment, net	260,208	260,456
Goodwill	254,523	253,197
Intangible assets, net	113,188	108,663
Other long-term assets	33,471	39,601
Total assets	1,491,923	1,496,564
Current liabilities:
Accounts payable	55,850	48,800
Accrued compensation	29,001	27,743
Deferred revenue - current	121,597	115,577
Accrued expenses and other liabilities	37,342	32,997
Other taxes payable	19,739	34,958
Total current liabilities	263,529	260,075
Long-term debt	25,000	25,000
Deferred income taxes	37,736	45,386
Liability for uncertain tax positions	12,071	11,719
Deferred revenue- long term	30,024	29,752
Other long-term liabilities	7,793	10,413
Total liabilities	376,153	382,345
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; 129,594,639 shares and 129,202,979 shares issued and outstanding, respectively	1,296	1,292
Additional paid-in capital	785,666	771,346
Retained earnings	361,327	376,202
Accumulated other comprehensive loss	(32,519)	(34,621)
Total stockholders' equity	1,115,770	1,114,219
Total liabilities and stockholders' equity	$ 1,491,923	$ 1,496,564

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net sales:
Product	$ 271,512	$ 259,434
Software maintenance	28,594	27,743
Total net sales	300,106	287,177
Cost of sales:
Product	75,196	74,209
Software maintenance	1,328	1,937
Total cost of sales	76,524	76,146
Gross profit	223,582	211,031
Operating expenses:
Sales and marketing	117,258	113,207
Research and development	58,263	59,340
General and administrative	25,743	24,640
Total operating expenses	201,264	197,187
Operating income	22,318	13,844
Other income:
Interest income	343	253
Net foreign exchange loss	82	574
Other gain(loss), net	431	(2,406)
Income before income taxes	23,174	12,265
Provision for income taxes	5,026	2,967
Net income	$ 18,148	$ 9,298
Basic earnings per share	$ 0.14	$ 0.07
Weighted average shares outstanding - basic	129,438	127,595
Diluted earnings per share	$ 0.14	$ 0.07
Weighted average shares outstanding - diluted	130,108	128,103
Dividends declared per share	$ 0.21	$ 0.20

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements Of Comprehensive Income [Abstract]
Net income	$ 18,148	$ 9,298
Other comprehensive income, before tax and net of reclassification adjustments:
Foreign currency translation adjustment	3,961	14,357
Unrealized (loss) gain on securities available-for-sale	(4)	338
Unrealized (loss) gain on derivative instruments	(2,812)	3,427
Other comprehensive gain, before tax	1,145	18,122
Tax (benefit) expense related to items of other comprehensive income	(957)	4,713
Other comprehensive gain, net of tax	2,102	13,409
Comprehensive income	$ 20,250	$ 22,707

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flow from operating activities:
Net income	$ 18,148	$ 9,298
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,669	19,432
Stock-based compensation	6,402	6,748
Tax expense from deferred income taxes	(2,984)	(6,915)
Changes in operating assets and liabilities	6,441	15,801
Net cash provided by operating activities	46,676	44,364
Cash flow from investing activities:
Capital expenditures	(10,811)	(9,267)
Capitalization of internally developed software	(11,624)	(8,003)
Additions to other intangibles	(525)	(363)
Acquisitions, net of cash received		(549)
Purchases of short-term investments	(25,253)	(5,008)
Sales and maturities of short-term investments	11,931	23,589
Net cash (used in)/provided by investing activities	(36,282)	399
Cash flow from financing activities:
Principal payments on revolving line of credit		(12,000)
Proceeds from issuance of common stock	7,817	7,445
Repurchase of common stock		(4,642)
Dividends paid	(27,201)	(25,556)
Net cash used in financing activities	(19,384)	(34,753)
Effect of exchange rate changes on cash	2,715	4,261
Net change in cash and cash equivalents	(6,275)	14,271
Cash and cash equivalents at beginning of period	285,283	251,129
Cash and cash equivalents at end of period	$ 279,008	$ 265,400

Basis Of Presentation And Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2017

Basis Of Presentation And Recent Accounting Pronouncements [Abstract]

Basis Of Presentation And Recent Accounting Pronouncements

Note 1 – Basis of presentation and recent accounting pronouncements

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, 2016, 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 March 31, 2017 and December 31, 2016, the results of our operations and comprehensive income for the three month periods ended March 31, 2017 and 2016, and the cash flows for the three month periods ended March 31, 2017 and 2016. Our operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States.

Starting January 1, 2017, we began separately presenting the effect of exchange rate changes on cash and cash equivalents in our condensed consolidated statements of cash flows due to growing operations in foreign currency environments. Amounts in the comparable prior period have been reclassified to conform to the current period presentation. The reclassifications resulted in the disaggregation of the amount attributable to the “Effect of exchange rate changes on cash” of $4.3 million, with a corresponding decrease to “Net cash provided by operating activities” for the three month period ended March 31, 2016. We believe the reclassification is immaterial to the consolidated financial statements.

Recently Adopted Accounting Pronouncements

In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-16, Income Taxes – Intra-Entity Transfers of Assets Other Than Inventory. The standard is intended to address diversity in practice and complexity in financial reporting, particularly for intra-entity transfers of intellectual property. We early adopted ASU 2016-16 effective January 1, 2017. Using the modified retrospective method, the impact of the adoption of the standard was to increase deferred tax assets by $0.4 million, decrease other assets, net by $6.2 million and decrease retained earnings by $5.8 million. The adoption of the amendments had the effect of increasing our diluted earnings per share by $0.01 for the three months ended March 31, 2017.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid in capital pools. The guidance also allows for the employer to repurchase a greater number of an employee’s shares for tax withholding purposes without triggering liability accounting. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. We adopted ASU 2016-09 effective January 1, 2017 as follows:

Our adoption of the amendments related to accounting for excess tax benefits resulted in the recognition of $0.5 million of excess tax benefits within income taxes rather than additional paid in capital for the three months ended March 31, 2017. We expect the impact on income tax expense could increase during fiscal year 2017 due to the vesting of restricted stock units in the second quarter.

We elected to retrospectively apply the changes in presentation to the statements of cash flows and no longer classify excess tax benefits as a financing activity, which increased net cash provided by operating activities and reduced net cash provided by financing activities by an immaterial amount for the three months ended March 31, 2017.

We elected to account for forfeitures as they occur using a modified retrospective transition method. The adoption of this one-time accounting policy election did not have a material impact on our financial statements.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330). The amendments require that reporting entities measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments apply to inventory that is measured using the first-in, first-out or average cost basis. We adopted ASU 2015-11 as of January 1, 2017 and the guidance was applied prospectively. We determined there were no changes to disclosure, financial statement presentation, or valuation of inventory as a result of adoption.

Recently Issued Accounting Pronouncements

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted, including adoption in an interim period, but any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The new standard must be adopted retrospectively. We are currently evaluating the impact of this standard on our consolidated statements of cash flows.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC840, Leases. The guidance requires lessees to recognize most lease liabilities on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The update states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The update is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2017 and early adoption is permitted for annual reporting periods, and interim periods within that period, beginning after December 31, 2016. We intend to adopt this standard as of January 1, 2018 by applying the modified retrospective transition method. Consequently, the cumulative effect of applying the new standard to existing contracts as of January 1, 2018 will be recognized as an adjustment to the opening balance of equity in the first quarter of 2018.

We anticipate ASU 2014-09, as amended, could have a material impact on our consolidated financial statements and disclosures. We have reached initial conclusions on our key accounting matters related to the new standard. We will continue to monitor and assess the impact of changes to the standard and interpretations as they become available. The most significant impact of the standard relates to our accounting for software revenue from term licenses. Specifically, under the new standard we expect to recognize all software license revenue at the time of contract execution rather than over the contractual term for most of our enterprise agreements that include software term licenses, software maintenance, training, and support. Due to the complexity of certain of our enterprise agreement contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and may vary in some instances from recognition at the time of billing. We do not expect the new standard will have an adverse effect on the timing of revenue recognition from our arrangements with customers.

Other Updates

The FASB also issued the following ASUs which are not expected to have a material impact on our financial condition, results of operations or cash flows upon adoption:

ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.

ASU 2017-04, Simplifying the Accounting for Goodwill Impairment, which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment.

Cash, Cash Equivalents And Short-Term Investments

3 Months Ended

Mar. 31, 2017

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 March 31, 2017
(In thousands)		(Unaudited)
				Gross		Gross		Cumulative
		Adjusted Cost		Unrealized Gain		Unrealized Loss		Translation Adjustment		Fair Value
Cash	$	219,389	$	-	$	-	$	(383)	$	219,006
Money Market Accounts		60,002		-		-		-		60,002
Corporate bonds		86,274		82		(180)		(1,526)		84,650
Time deposits		1,760		-		-		-		1,760
Cash, cash equivalents, and short-term investments	$	367,425	$	82	$	(180)	$	(1,909)	$	365,418



(In thousands)		As of December 31, 2016
				Gross		Gross		Cumulative
		Adjusted Cost		Unrealized Gain		Unrealized Loss		Translation Adjustment		Fair Value
Cash	$	217,112	$	-	$	-	$	(406)	$	216,706
Money Market Accounts		68,577		-		-		-		68,577
Corporate bonds		72,986		89		(182)		(1,536)		71,357
Time deposits		1,760		-		-		-		1,760
Cash, cash equivalents, and short-term investments	$	360,435	$	89	$	(182)	$	(1,942)	$	358,400

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



		As of March 31, 2017
(In thousands)		(Unaudited)
		Adjusted Cost		Fair Value
Due in less than 1 year	$	22,762	$	22,755
Due in 1 to 5 years		65,272		63,655
Total available-for-sale debt securities	$	88,034	$	86,410

Due in less than 1 year		Adjusted Cost		Fair Value
Corporate bonds	$	21,002	$	20,995
Time deposits		1,760		1,760
Total available-for-sale debt securities	$	22,762	$	22,755

Due in 1 to 5 years		Adjusted Cost		Fair Value
Corporate bonds	$	65,272	$	63,655
Total available-for-sale debt securities	$	65,272	$	63,655

Fair Value Measurements

3 Months Ended

Mar. 31, 2017

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		March 31, 2017		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	$	60,002	$	60,002	$	-	$	-
Short-term investments available for sale:
Corporate bonds		84,650		-		84,650		-
Time deposits		1,760		1,760		-		-
Derivatives		8,413		-		8,413		-
Total Assets	$	154,825	$	61,762	$	93,063	$	-

Liabilities
Derivatives	$	(7,448)		-		(7,448)		-
Total Liabilities	$	(7,448)	$	-	$	(7,448)	$	-


(In thousands)		Fair Value Measurements at Reporting Date Using
Description		December 31, 2016		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	$	68,577	$	68,577	$	-	$	-
Short-term investments available for sale:
Corporate bonds		71,357		-		71,357		-
Time deposits		1,760		1,760		-		-
Derivatives		15,113		-		15,113		-
Total Assets	$	156,807	$	70,337	$	86,470	$	-

Liabilities
Derivatives	$	(8,199)	$	-	$	(8,199)	$	-
Total Liabilities	$	(8,199)	$	-	$	(8,199)	$	-

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. All short-term investments available-for-sale have contractual maturities of less than 60 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 three month period ended March 31, 2017. There were no transfers in or out of Level 1 or Level 2 during the three month period ended March 31, 2017.

As of March 31, 2017, our short-term investments did not include sovereign debt from any country other than the United States.

We did not have any items that were measured at fair value on a nonrecurring basis at March 31, 2017 and December 31, 2016. The carrying value of net accounts receivable, accounts payable, and long-term debt contained in the Consolidated Balance Sheets approximates fair value.

Derivative Instruments And Hedging Activities

3 Months Ended

Mar. 31, 2017

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 61% of our net sales during each of the three month periods ended March 31, 2017 and 2016. 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, in that 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 financial assets or liabilities. 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 sales 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 net sales 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 net sales 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, Malaysian ringgit and Chinese yuan) 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 gain (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 March 31, 2017		As of December 31,
		(Unaudited)		2016
Chinese yuan	$	20,703	$	27,414
Euro		135,252		123,522
Japanese yen		35,812		44,982
Hungarian forint		62,523		57,077
British pound		-		-
Malaysian ringgit		40,768		42,510
Total forward contracts notional amount	$	295,058	$	295,505

The contracts in the foregoing table had contractual maturities of 36 months or less at March 31, 2017 and December 31, 2016.

At March 31, 2017, we expect to reclassify $5.5 million of gains on derivative instruments from accumulated OCI to net sales during the next twelve months when the hedged international sales occur, $1.7 million of losses on derivative instruments from accumulated OCI to cost of sales during the next twelve months when the hedged cost of sales are incurred and $1.7 million 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 March 31, 2017. Actual results may vary materially as a result of changes in the corresponding exchange rates subsequent to that date.

The gains and losses recognized in earnings due to hedge ineffectiveness were not material for each of the three month periods ended March 31, 2017 and 2016 and are included as a component of net income.

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 help 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 or less. 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 March 31, 2017 and December 31, 2016, we held foreign currency forward contracts with a notional amount of $85 million and $60 million, respectively.

The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at March 31, 2017 and December 31, 2016, respectively.



	Asset Derivatives
	March 31, 2017			December 31, 2016
(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	$	5,717	Prepaid expenses and other current assets	$	9,378

Foreign exchange contracts - LT forwards	Other long-term assets		2,463	Other long-term assets		3,866
Total derivatives designated as hedging instruments		$	8,180		$	13,244

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Prepaid expenses and other current assets	$	233	Prepaid expenses and other current assets	$	1,869
Total derivatives not designated as hedging instruments		$	233		$	1,869

Total derivatives		$	8,413		$	15,113




	Liability Derivatives
	March 31, 2017			December 31, 2016
(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	$	(3,631)	Accrued expenses and other liabilities	$	(4,672)

Foreign exchange contracts - LT forwards	Other long-term liabilities		(2,194)	Other long-term liabilities		(3,352)
Total derivatives designated as hedging instruments		$	(5,825)		$	(8,024)

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Accrued expenses and other liabilities	$	(1,623)	Accrued expenses and other liabilities	$	(175)
Total derivatives not designated as hedging instruments		$	(1,623)		$	(175)

Total derivatives		$	(7,448)		$	(8,199)

The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the three month periods ended March 31, 2017 and 2016, respectively:



March 31, 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 and options	$	(5,309)	Net sales	$	2,080	Net foreign exchange gain/(loss)	$	-

Foreign exchange contracts - forwards and options		1,309	Cost of sales		(550)	Net foreign exchange gain/(loss)		-

Foreign exchange contracts - forwards and options		1,188	Operating expenses		(563)	Net foreign exchange gain/(loss)		-
Total	$	(2,812)		$	967		$	-



March 31, 2016
(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	$	(3,040)	Net sales	$	(237)	Net foreign exchange gain/(loss)	$	-

Foreign exchange contracts - forwards and options		3,039	Cost of sales		(571)	Net foreign exchange gain/(loss)		-

Foreign exchange contracts - forwards and options		3,428	Operating expenses		(529)	Net foreign exchange gain/(loss)		-
Total	$	3,427		$	(1,337)		$	-


(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
			March 31, 2017		March 31, 2016
			(Unaudited)		(Unaudited)
Foreign exchange contracts - forwards	Net foreign exchange gain/(loss)	$	(2,546)		(2,254)

Total		$	(2,546)	$	(2,254)

- 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

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+ Details

Comprehensive Income

3 Months Ended

Mar. 31, 2017

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 OCI, net of tax, for the three month periods ended March 31, 2017 and 2016, consisted of the following:


		March 31, 2017
		(Unaudited)
(In thousands)		Currency translation adjustment		Investments		Derivative instruments		Accumulated other comprehensive income/(loss)
Balance as of December 31, 2016	$	(37,174)	$	(669)		3,222	$	(34,621)
Current-period other comprehensive income (loss)		3,961		(4)		(1,845)		2,112
Reclassified from accumulated OCI into income		-		-		(967)		(967)
Income tax (benefit) expense		65		(20)		(1,002)		(957)
Balance as of March 31, 2017	$	(33,278)	$	(653)	$	1,412	$	(32,519)


		March 31, 2016
		(Unaudited)
(In thousands)		Currency translation adjustment		Investments		Derivative instruments		Accumulated other comprehensive income/(loss)
Balance as of December 31, 2015	$	(31,871)	$	(857)		(5,362)	$	(38,090)
Current-period other comprehensive (loss) income		14,357		338		2,090		16,785
Reclassified from accumulated OCI into income		-		-		1,337		1,337
Income tax expense		3,473		83		1,157		4,713
Balance as of March 31, 2016	$	(20,987)	$	(602)	$	(3,092)	$	(24,681)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

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-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Authorized Shares Of Common And Preferred Stock And Stock-Based Compensation Plans	3 Months Ended
	Mar. 31, 2017
Authorized Shares Of Common And Preferred Stock And Stock-Based Compensation Plans [Abstract]
Authorized Shares Of Common And Preferred Stock And Stock-Based Compensation Plans	Note 11 – Authorized shares of common and preferred stock and stock-based compensation plans Authorized shares of common and preferred stock Following approval by the Company’s Board of Directors and stockholders, on May 14, 2013, the Company’s certificate of incorporation was amended to increase the authorized shares of common stock by 180,000,000 shares to a total of 360,000,000 shares. As a result of this amendment, the total number of shares which the Company is authorized to issue is 365,000,000 shares, consisting of (i) 5,000,000 shares of preferred stock, par value $.01 per share, and (ii) 360,000,000 shares of common stock, par value $.01 per share. Restricted stock plan Our stockholders approved our 2005 Incentive Plan (the “2005 Plan”) in May 2005. At the time of approval, 4,050,000 shares of our common stock were reserved for issuance under this plan, as well as the number of shares which had been reserved but not issued under the 1994 Incentive Stock Option Plan (the “1994 Plan”) (our plan which terminated in May 2005), and any shares that returned to the 1994 Plan as a result of termination of options or repurchase of shares issued under such plan. The 2005 Plan, administered by the Compensation Committee of the Board of Directors, provided for granting of incentive awards in the form of restricted stock and RSUs to directors, executive officers and employees of the Company and its subsidiaries. Awards vest over a three, five or ten-year period, beginning on the date of grant. Vesting of ten year awards may accelerate based on the Company’s previous year’s earnings and growth but ten year awards cannot accelerate to vest over a period of less than five years. The 2005 Plan terminated on May 11, 2010, except with respect to outstanding awards previously granted thereunder. There were 3,362,304 shares of common stock that were reserved but not issued under the 2005 Plan as of May 11, 2010. Our stockholders approved our 2010 Incentive Plan (the “2010 Plan”) on May 11, 2010. At the time of approval, 3,000,000 shares of our common stock were reserved for issuance under this plan, as well as the 3,362,304 shares of common stock that were reserved but not issued under the 1994 Plan and the 2005 Plan as of May 11, 2010, and any shares that are returned to the 1994 Plan and the 2005 Plan as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under these plans. The 2010 Plan, administered by the Compensation Committee of the Board of Directors, provides for granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. Awards vest over a three, five or ten-year period, beginning on the date of grant. Vesting of ten year awards may accelerate based on the Company’s previous year’s earnings and growth but ten year awards cannot accelerate to vest over a period of less than five years. The 2010 Plan terminated on May 12, 2015, except with respect to the outstanding awards previously granted thereunder. There were 2,518,416 shares of common stock that were reserved but not issued under the 2010 Plan as of May 12, 2015. Our stockholders approved our 2015 Equity Incentive Plan (the “2015 Plan”) on May 12, 2015. At the time of approval, 3,000,000 shares of our common stock were reserved for issuance under this plan, as well as the 2,518,416 shares of common stock that were reserved but not issued under the 2010 Plan as of May 12, 2015, and any shares that were returned to the 1994, 2005, and the 2010 Plans as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under these plans. The 2015 Plan, administered by the Compensation Committee of the Board of Directors, provides for the granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. Awards vest over a three, four, five or ten-year period, beginning on the date of grant. Vesting of ten year awards may accelerate based on the Company’s previous year’s earnings and growth but ten year awards cannot accelerate to vest over a period of less than five years. There were 4,730,268 shares available for grant under the 2015 Plan at March 31, 2017. During the three month period ended March 31, 2017, we did not make any material changes in accounting principles or methods of estimates related to the 2005 Plan, the 2010 and the 2015 Plans. See “Note 1 – Basis of Presentation” of Notes to Consolidated Financial Statements for our discussion of the adoption of recent ASUs related to our accounting for stock-based compensation. Employee stock purchase plan Our employee stock purchase plan permits substantially all domestic employees and employees of designated subsidiaries to acquire our common stock at a purchase price of 85% of the lower of the market price at the beginning or the end of the purchase period. The plan has quarterly purchase periods generally beginning on February 1, May 1, August 1 and November 1 of each year. Employees may designate up to 15% of their compensation for the purchase of common stock under this plan. On May 13, 2014, our stockholders approved an additional 3,000,000 shares for issuance under our employee stock purchase plan. At March 31, 2017, we had 605,695 shares of common stock reserved for future issuance under this plan. We issued 327,356 shares under this plan in the three month period ended March 31, 2017. The weighted average purchase price of the employees’ purchase rights was $23.88 per share during the three month period ended March 31, 2017. During the three month period ended March 31, 2017, we did not make any changes in accounting principles or methods of estimates with respect to such plan. Authorized Preferred Stock and Preferred Stock Purchase Rights Plan We have 5,000,000 authorized shares of preferred stock. On January 21, 2004, our Board of Directors designated 750,000 of these shares as Series A Participating Preferred Stock in conjunction with the adoption of a Preferred Stock Rights Agreement which expired on May 10, 2014. There were no shares of preferred stock issued and outstanding at March 31, 2017. Stock repurchases and retirements From time to time, our Board of Directors has authorized various programs for our repurchase of shares of our common stock depending on market conditions and other factors. Under the current program, we did not make any share repurchases during the three month period ended March 31, 2017. We repurchased a total of 170,790 shares of our common stock at a weighted average price per share of $27.18 during the three month period ended March 31, 2016. At March 31, 2017, there were 1,134,247 shares remaining available for repurchase under this program. This repurchase program does not have an expiration date.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	129,594,639	129,202,979
Common stock, shares outstanding	129,594,639	129,202,979

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2017
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 $12.1 million and $11.7 million unrecognized tax benefits at March 31, 2017 and December 31, 2016, respectively, all of which would affect our effective income tax rate if recognized. We recorded a gross increase in unrecognized tax benefits of $260,000 for the three month period ended March 31, 2017, as a result of tax positions related to the current year. As of March 31, 2017, it is reasonably possible that we will recognize tax benefits in the amount of $3.7 million in the next twelve months due to the closing of open tax years. The nature of the uncertainty is related to deductions taken on returns that have not been examined by the applicable tax authority. Our continuing policy is to recognize interest and penalties related to income tax matters in income tax expense. As of March 31, 2017, we had approximately $1.2 million accrued for interest related to uncertain tax positions. The tax years 2008 through 2017 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 22% and 24% for the three month periods ended March 31, 2017 and 2016, respectively. For the three months ended March 31, 2017, 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 9%. 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. The tax position of our Hungarian operations resulted in income tax benefits of $2.9 million and $1.9 million for the three month periods ended March 31, 2017 and 2016, 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 $0.6 million and $0.3 million for the three month periods ended March 31, 2017 and 2016, 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.