XML 34 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
Other Comprehensive Loss
 3 Months Ended
Apr. 02, 2016
Equity [Abstract]  
Other Comprehensive Loss
Other Comprehensive Loss
Stockholders’ equity includes certain items classified as accumulated other comprehensive loss, including:

•
Unrealized (loss) gain on anticipated sales hedging transactions relate to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 10 Derivative Instruments.
•
Unrealized (loss) gain on forward interest rate swaps hedging transactions refer to the hedging of the interest rate risk exposure associated with the variable rate commitment entered into for the Acquisition. See Note 10 Derivative Instruments for more details.
•
Foreign currency translation adjustment relates to the Company's non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. The Company is required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income.
The components of accumulated other comprehensive loss ("AOCI") for the 3 months ended April 2, 2016 and April 4, 2015 are as follows (in millions):
 
 
 
Unrealized (losses) gains on sales hedging
 
Unrealized (losses)/ gains on forward interest rate swaps (1)
 
Currency translation adjustments
 
Total
Balance at December 31, 2014
$
5

 
$
(8
)
 
$
(6
)
 
$
(9
)
Other comprehensive (loss) income before reclassifications
 
9

 
(12
)
 
(2
)
 
(5
)
Amounts reclassified from AOCI
 
(6
)
 
—

 
 
 
(6
)
Tax (expense) benefit
 
(1
)
 
5

 
 
 
4

Other comprehensive income (loss)
 
2

 
(7
)
 
(2
)
 
(7
)
Balance at April 4, 2015
$
7

 
$
(15
)
 
$
(8
)
 
$
(16
)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2015 (restated)
$
(1
)
 
$
(15
)
 
$
(32
)
 
$
(48
)
Other comprehensive (loss) income before reclassifications (restated)
 
(20
)
 
(9
)
 
4

 
(25
)
Amounts reclassified from AOCI
 
1

 
(1
)
 
—

 
—

Tax benefit (expense)
 
4

 
3

 
—

 
7

Other comprehensive (loss) income
 
(15
)
 
(7
)
 
4

 
(18
)
Balance at April 2, 2016 (restated)
$
(16
)
 
$
(22
)
 
$
(28
)
 
$
(66
)

(1) See Note 10 Derivatives Instruments regarding timing of reclassifications.

Reclassifications out of AOCI to earnings during the 3 months ended April 2, 2016 and April 4, 2015 were as follows (in millions):
 
 
 
April 2,
2016
 
April 4,
2015
Comprehensive Income Components
Financial Statement Line Item
 

 
Unrealized loss (gain) on sales hedging:
 
 

 
   Total before tax
Net sales of tangible products
$
1


$
(6
)
   Tax (benefit) expense
 
—

 
1

   Net of taxes
 
1


(5
)
Unrealized loss (gain) on forward interest rate swaps:


 

   Total before tax
Interest expense (income)
(1
)
 
—

   Tax expense (benefit)

—

 
—

   Net of taxes

(1
)
 
—

Total amounts reclassified from AOCI

$
—

 
$
(5
)