Other Income (Expense)

3 Months Ended

Mar. 29, 2013

Other Income and Expenses [Abstract]

Other Income (Expense)

Other Income (Expense)

Other income (expense) includes foreign currency transaction gains or losses, which result from changes in exchange rates between the designated functional currency and the currency in which a transaction is denominated as well as gains and losses on derivative instruments that are not designated as cash flow hedges and ineffectiveness on derivatives designated as cash flow hedges. During the three months ended March 29, 2013 and March 30, 2012, the Company recorded other expense of $52.7 million and other income of $6.8 million, respectively. For the three months ended March 29, 2013, other expense was primarily attributable to $40.9 million related to the Venezuela currency devaluation, $10.1 million related to loses on derivative instruments that were not designated as cash flow hedges and other expense of $1.7 million related to foreign currency transaction losses. For the three months ended March 30, 2012, other income was primarily the result $5.5 million related to gains on derivative instruments which were not designated as cash flow hedges and other income of $2.1 million related to foreign currency transactions.

On February 13, 2013 the Venezuelan government announced the devaluation of its currency from 4.30 BsF per U.S. dollar to 6.30 BsF per U.S. dollar. Due to the impact of the devaluation of its currency by the Venezuelan government, the Company recorded a pre-tax charge of $40.9 million in the three months ended March 29, 2013 primarily related to the remeasurement of the local balance sheet on the date of the devaluation at the 6.30 BsF per U.S. dollar rate. The functional currency of the Company’s subsidiary in Venezuela is the U.S. dollar. See Item 2 - Management's Discussion &Analysis - Venezuelan Operations for additional detail.