Other Income (Expense)

9 Months Ended

Sep. 28, 2012

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 September 28, 2012 and September 30, 2011, the Company recorded other income of $9.3 million and other expense of $31.5 million, respectively. During the nine months ended September 28, 2012 and September 30, 2011, the Company recorded other income of $2.6 million and other expense of $28.4 million, respectively. For the three months ended September 28, 2012, other income was primarily the result of $8.4 million related to gains on derivative instruments that were not designated as cash flow hedges and ineffectiveness on derivatives designated as cash flow hedges and other income of $0.9 million related to foreign currency transaction gains. For the nine months ended September 28, 2012, other income was primarily the result of $6.8 million related to gains on derivative instruments that were not designated as cash flow hedges and ineffectiveness on derivatives designated as cash flow hedges and other expense of $4.2 million related to foreign currency transaction losses. For the three and nine months ended September 30, 2011, other expense of $31.5 million and $28.4 million, respectively, were primarily the result of losses on derivative instruments which were not designated as cash flow hedges and foreign currency transaction losses.

The functional currency of the Company’s subsidiary in Venezuela is the U.S. dollar. The Company remeasures the financial statements of the Venezuelan subsidiary at the rate the Company expects to remit dividends, which is 4.30 Venezuelan Bolivar (“BsF”) per U.S. dollar.

Effective January 1, 2011, the Central Bank of Venezuela and the Ministry of Finance published an amendment to Convenio Cambiario No. 14 (the Exchange Law), whereby the official exchange rate was set at 4.30 BsF per U.S. dollar. See Item 2, “Venezuelan Operations” for additional details.