Other Comprehensive Income

6 Months Ended

Jun. 29, 2013

Equity [Abstract]

Other Comprehensive Income

Note 15 – Other Comprehensive Income

Stockholders’ equity includes certain items classified as accumulated other comprehensive income (AOCI), 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 for the three months ended June 29, 2013 are as follows (in thousands):

	As of March 30, 2013			Gain (Loss) recognized  in OCI			Gain (Loss) reclassified  from AOCI to income			Three months ended June  29, 2013			As of June 29, 2013
Unrealized gains (losses) on hedging transactions:
Gross	$	(311	)	$	366		$	(876	) (1)	$	(510	)	$	(821	)
Income tax (benefit)		(72	)		100			(219	)		(119	)		(191	)
Net		(239	)		266			(657	)		(391	)		(630	)
Unrealized gains (losses) on investments:
Gross		432			(1,371	)		95 (2	)		(1,276	)		(844	)
Income tax (benefit)		126			(436	)		27			(409	)		(283	)
Net		306			(935	)		68			(867	)		(561	)
Foreign currency translation adjustments		(8,627	)		114			109 (3	)		223			(8,404	)
Total accumulated other comprehensive loss	$	(8,560	)	$	(555	)	$	(480	)	$	(1,035	)	$	(9,595	)

	As of March 30, 2012			Gain (Loss) recognized  in OCI			Gain (Loss) reclassified  from AOCI to income			Three months ended June  30, 2012			As of June 30, 2012
Unrealized gains (losses) on hedging transactions:
Gross	$	817		$	1,722		$	1,478	(1)	$	3,200		$	4,017
Income tax (benefit)		204			430			370			800			1,004
Net		613			1,292			1,108			2,400			3,013
Unrealized gains (losses) on investments:
Gross		71			(238	)		167	(2)		(71	)		0
Income tax (benefit)		10			(86	)		61			(25	)		(15	)
Net		61			(152	)		106			(46	)		15
Foreign currency translation adjustments		(8,880	)		105			0	(3)		105			(8,775	)
Total accumulated other comprehensive loss	$	(8,206	)	$	1,245		$	1,214		$	2,459		$	(5,747	)

(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.

The components of other comprehensive income for the six months ended June 29, 2013 are as follows (in thousands):

	As of December 31, 2012			Gain (Loss) recognized  in OCI			Gain (Loss) reclassified from AOCI to income			Six months ended June  29, 2013			As of June 29, 2013
Unrealized gains (losses) on hedging transactions:
Gross	$	(2,581	)	$	3,658		$	(1,898	) (1)	$	1,760		$	(821	)
Income tax (benefit)		(599	)		882			(474	)		408			(191	)
Net		(1,982	)		2,776			(1,424	)		1,352			(630	)
Unrealized gains (losses) on investments:
Gross		540			(1,658	)		274	(2)		(1,384	)		(844	)
Income tax (benefit)		162			(530	)		85			(445	)		(283	)
Net		378			(1,128	)		189			(939	)		(561	)
Foreign currency translation adjustments		(8,721	)		208			109	(3)		317			(8,404	)
Total accumulated other comprehensive loss	$	(10,325	)	$	1,856		$	(1,126	)	$	730		$	(9,595	)

	As of December 31, 2011			Gain (Loss) recognized in OCI			Gain (Loss) reclassified from AOCI to income			Six months ended June  30, 2012			As of June 30, 2012
Unrealized gains (losses) on hedging transactions:
Gross	$	7,355		$	(5,973	)	$	2,635	(1)	$	(3,338	)	$	4,017
Income tax (benefit)		2,096			(1,751	)		659			(1,092	)		1,004
Net		5,259			(4,222	)		1,976			(2,246	)		3,013
Unrealized gains (losses) on investments:
Gross		(797	)		646			151	(2)		797			0
Income tax (benefit)		(288	)		213			60			273			(15	)
Net		(509	)		433			91			524			15
Foreign currency translation adjustments		(8,963	)		188			0	(3)		188			(8,775	)
Total accumulated other comprehensive loss	$	(4,213	)	$	(3,601	)	$	2,067		$	(1,534	)	$	(5,747	)

(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.