Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2012

Other Comprehensive Income (Loss)

Note 19 Other Comprehensive Income (Loss)

Stockholders’ equity contains certain items classified as other comprehensive income (loss), including:

• Foreign currency translation adjustments related to our non-U.S. subsidiary companies that have designated a functional currency other than the dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, month-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustments component of other comprehensive income (loss).

• Unrealized holding 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 11 for more details.

• Unrealized gains (losses) on investments classified as available-for-sale are deferred from income statement recognition. See Note 4 for more details.

The components of other comprehensive income (loss) included in the Consolidated Statements of Comprehensive Income (Loss) are as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Changes in unrealized gains and (losses) on hedging transactions:
Gross	$	(9,936)	$	8,878	$	(1,522)
Income tax (benefit)		(2,695)		2,669		(573)
Net	$	(7,241)	$	6,209	$	(949)
Changes in unrealized holding gains and (losses) on investments classified as available-for-sale:
Gross	$	1,337	$	(597)	$	(652)
Income tax (benefit)		450		(212)		(246)
Net	$	887	$	(385)	$	(406)
Foreign currency translation adjustments	$	242	$	(688)	$	67

Changes in unrealized gains (losses) on hedging transactions included in net income totaled $7,203,000 for the year ended December 31, 2012, $(5,109,000) for the year ended December 31, 2011, and $3,689,000 for the year ended December 31, 2010.

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

	As of December 31,
	2012		2011
Unrealized gains and (losses) on hedging transactions:
Gross	$	(2,581)	$	7,355
Income tax expense (benefit)		(599)		2,096
Net		(1,982)		5,259
Unrealized gains and (losses) on investments classified as available-for-sale:
Gross		540		(797)
Income tax expense (benefit)		162		(288)
Net		378		(509)
Foreign currency translation adjustments		(8,721)		(8,963)
Total accumulated other comprehensive income (loss)	$	(10,325)	$	(4,213)