Other Comprehensive Income |
Note 15 – Other
Comprehensive Income
Stockholders’ equity
includes certain items classified as accumulated other
comprehensive income (AOCI), including:
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• |
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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.
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|
• |
|
Unrealized gains (losses) on investments are deferred
from income statement recognition until the gains or losses are
realized.
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|
• |
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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.
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The components of other
comprehensive income are as follows (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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As of
December 31,
2012 |
|
|
Gain (Loss)
recognized in
OCI |
|
|
Gain (Loss)
reclassified from
AOCI to income |
|
|
Subtotal |
|
|
As of
March 30, 2013 |
|
Unrealized gains (losses)
on hedging transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
$ |
(2,581 |
) |
|
$ |
3,292 |
|
|
$ |
(1,022 |
) (1) |
|
$ |
2,270 |
|
|
$ |
(311 |
) |
Income tax
(benefit)
|
|
|
(599 |
) |
|
|
782 |
|
|
|
(255 |
) |
|
|
527 |
|
|
|
(72 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
(1,982 |
) |
|
|
2,510 |
|
|
|
(767 |
) |
|
|
1,743 |
|
|
|
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
|
540 |
|
|
|
(287 |
) |
|
|
179 |
(2) |
|
|
(108 |
) |
|
|
432 |
|
Income tax
(benefit)
|
|
|
162 |
|
|
|
(94 |
) |
|
|
58 |
|
|
|
(36 |
) |
|
|
126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
378 |
|
|
|
(193 |
) |
|
|
121 |
|
|
|
(72 |
) |
|
|
306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(8,721 |
) |
|
|
94 |
|
|
|
0 |
(3) |
|
|
94 |
|
|
|
(8,627 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accumulated other
comprehensive loss
|
|
$ |
(10,325 |
) |
|
$ |
2,411 |
|
|
$ |
(646 |
) |
|
$ |
1,765 |
|
|
$ |
(8,560 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
December 31,
2011 |
|
|
Gain (Loss)
recognized
in OCI |
|
|
Gain (Loss)
reclassified from
AOCI to income |
|
|
Subtotal |
|
|
As of
March 30, 2012 |
|
Unrealized gains (losses)
on hedging transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
$ |
7,355 |
|
|
$ |
(7,695 |
) |
|
$ |
1,157 |
(1) |
|
$ |
(6,538 |
) |
|
$ |
817 |
|
Income tax
(benefit)
|
|
|
2,096 |
|
|
|
(2,181 |
) |
|
|
289 |
|
|
|
(1,892 |
) |
|
|
204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
5,259 |
|
|
|
(5,514 |
) |
|
|
868 |
|
|
|
(4,646 |
) |
|
|
613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
|
(797 |
) |
|
|
884 |
|
|
|
(16 |
) (2) |
|
|
868 |
|
|
|
71 |
|
Income tax
(benefit)
|
|
|
(288 |
) |
|
|
299 |
|
|
|
(1 |
) |
|
|
298 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
(509 |
) |
|
|
585 |
|
|
|
(15 |
) |
|
|
570 |
|
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(8,963 |
) |
|
|
83 |
|
|
|
0 |
(3) |
|
|
83 |
|
|
|
(8,880 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accumulated other
comprehensive loss
|
|
$ |
(4,213 |
) |
|
$ |
(4,846 |
) |
|
$ |
853 |
|
|
$ |
(3,993 |
) |
|
$ |
(8,206 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
(1) |
Transfer of unrealized
gains and (losses) from AOCI to income on hedging transactions are
included in net sales of tangible products. |
(2) |
Transfer of unrealized
gains and (losses) from AOCI to income on investments are included
in investment income. |
(3) |
Transfer of foreign
currency translation gains and (losses) from AOCI to income, are
included in foreign exchange. |
|