Other Comprehensive Income

3 Months Ended

Mar. 31, 2012

Other Comprehensive Income [Abstract]

Other Comprehensive Income

Note 15 – Other Comprehensive Income

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

• Unrealized gains (losses) on hedging transactions 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 are deferred from income statement recognition until the gains or losses are realized.

• 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.

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

	Three Months Ended
	March 31, 2012			April 2, 2011
Unrealized losses on hedging transactions:
Gross	$	(6,538	)	$	(4,419	)
Income tax (benefit)		(1,892	)		(1,663	)
Net	$	(4,646	)	$	(2,756	)
Unrealized gains (losses) on investments:
Gross	$	868		$	(22	)
Income tax (benefit)		298			(8	)
Net	$	570		$	(14	)

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

	As of
	March 31, 2012			December 31, 2011
Foreign currency translation adjustments	$	(8,880	)	$	(8,963	)
Unrealized gains and (losses) on hedging transactions:
Gross		817			7,355
Income tax (benefit)		204			2,096
Net		613			5,259
Unrealized gains and (losses) on investments classified as available-for-sale:
Gross		71			(797	)
Income tax (benefit)		10			(288	)
Net		61			(509	)
Total accumulated other comprehensive loss	$	(8,206	)	$	(4,213	)