Other Comprehensive Income

3 Months Ended

Mar. 29, 2014

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 are as follows (in thousands):

	As of December 31, 2013			Gain (Loss) recognized in OCI			Gain (Loss) reclassified from AOCI to income			Subtotal			As of March 29, 2014
Unrealized gains (losses) on hedging transactions:
Gross	$	(2,373	)	$	1,771		$	(991	) (1)	$	780		$	(1,593	)
Income tax (benefit)		(509	)		380			(213	)		167			(342	)
Net		(1,864	)		1,391			(778	)		613			(1,251	)
Unrealized gains (losses) on investments:
Gross		(151	)		121			81	(2)		202			51
Income tax (benefit)		(73	)		29			25			54			(19	)
Net		(78	)		92			56			148			70
Foreign currency translation adjustments		(7,839	)		(160	)		(7	) (3)		(167	)		(8,006	)
Total accumulated other comprehensive loss	$	(9,781	)	$	1,323		$	(729	)	$	594		$	(9,187	)

	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	)

(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.