Other Income (Expense), Net

6 Months Ended

Jul. 02, 2011

NOTE 10 – OTHER INCOME (EXPENSE), NET

The Company's other income (expense) consisted of the following (in thousands):


	Three Months Ended						Six Months Ended
	July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Interest income	$	606		$	471		$	1,945		$	722
Interest expense		(17,194	)		(15,430	)		(34,761	)		(35,585	)
Other		(8,425	)		(5,271	)		(18,649	)		(5,683	)
Total other income (expense), net	$	(25,013	)	$	(20,230	)	$	(51,465	)	$	(40,546	)

During 2011, legislation became effective in Puerto Rico that levied a 4% excise tax for most purchases from Puerto Rico. As the excise tax is not levied on income, the Company has classified the tax as other expense. The Company recognized $7.9 million and $15.2 million of excise tax expense in the second quarter and first six months of 2011, respectively, for purchases made from its Puerto Rico subsidiary. This tax is almost entirely offset by the foreign tax credits which are recognized as a benefit to income tax expense.