Other Comprehensive Income (Loss)

9 Months Ended

Oct. 01, 2011

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss)

Note 15 – Other Comprehensive Income (Loss)

Stockholders' equity includes certain items classified as accumulated other comprehensive income (loss), including:

• Foreign currency translation adjustment relates to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. We are 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.

• Unrealized gains (losses) on foreign currency hedging activities relate to derivative instruments used to hedge the currency exchange rates for forecasted euro sales. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transaction occurs. See Note 8 for more details.

• Unrealized gains (losses) on investments classified as available-for-sale are deferred from income statement recognition until the gains or losses are realized. See Note 3 for more details.

The Consolidated Statements of Comprehensive Income are as follows (in thousands):

		October 1, 2011			October 1, 2011			October 1, 2011			October 1, 2011
	Three Months Ended						Nine Months Ended
	October 1, 2011			October 2, 2010			October 1, 2011			October 2, 2010
Net income	$	45,001		$	26,151		$	139,599		$	73,561
Other comprehensive income (loss):
Foreign currency translation adjustment		173			1,237			(630	)		(173	)
Changes in unrealized gains (losses) on hedging transactions, net of tax		5,615			(2,185	)		2,838			(2,056	)
Changes in unrealized gains (losses) on investments, net of tax		(636	)		8			(303	)		(34	)
Comprehensive income	$	50,153		$	25,211		$	141,504		$	71,298

The components of other comprehensive income gross and net of income tax are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	October 1, 2011			October 2, 2010			October 1, 2011			October 2, 2010
Changes in unrealized gains and (losses) on foreign currency hedging activities:
Gross	$	8,617		$	(3,504	)	$	4,164		$	(3,297	)
Income tax expense (benefit)		3,002			(1,319	)		1,326			(1,241	)
Net	$	5,615		$	(2,185	)	$	2,838		$	(2,056	)
Changes in unrealized gains and (losses) on investments classified as available-for-sale:
Gross	$	(989	)	$	13		$	(455	)	$	(55	)
Income tax expense (benefit)		(353	)		5			(152	)		(21	)
Net	$	(636	)	$	8		$	(303	)	$	(34	)

The components of accumulated other comprehensive income (loss) included in the Consolidated Balance Sheets are as follows (in thousands):

		December 31, 2010			December 31, 2010
	As of
	October 1, 2011			December 31, 2010
Foreign currency translation adjustments	$	(8,905	)	$	(8,275	)
Unrealized gains and (losses) on hedging transactions:
Gross		2,641			(1,523	)
Income tax expense (benefit)		753			(573	)
Net		1,888			(950	)
Unrealized gains and (losses) on investments classified as available-for-sale:
Gross		(655	)		(200	)
Income tax expense (benefit)		(228	)		(76	)
Net		(427	)		(124	)
Total accumulated other comprehensive income (loss)	$	(7,444	)	$	(9,349	)