Other Comprehensive Income

9 Months Ended

Sep. 29, 2012

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

	Three Months Ended						Nine Months Ended
	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Unrealized gains (losses) on hedging transactions:
Gross	$	(5,458	)	$	8,617		$	(8,599	)	$	4,164
Income tax (benefit) expense		(1,512	)		3,002			(2,407	)		1,326
Net	$	(3,946	)	$	5,615		$	(6,192	)	$	2,838
Unrealized gains (losses) on investments:
Gross	$	556		$	(989	)	$	1,355		$	(455	)
Income tax (benefit) expense		164			(353	)		438			(152	)
Net	$	392		$	(636	)	$	917		$	(303	)

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

	As of
	September 29, 2012			December 31, 2011
Unrealized gains and (losses) on hedging transactions:
Gross	$	(1,244	)	$	7,355
Income tax (benefit) expense		(311	)		2,096
Net		(933	)		5,259
Unrealized gains and (losses) on investments classified as available-for-sale:
Gross		558			(797	)
Income tax (benefit) expense		150			(288	)
Net		408			(509	)
Foreign currency translation adjustments		(8,765	)		(8,963	)
Total accumulated other comprehensive loss	$	(9,290	)	$	(4,213	)