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Other Income (Expense)
9 Months Ended
Oct. 02, 2015
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. During the three months ended October 2, 2015 and September 26, 2014, the Company recorded other expense of $26.8 million and $17.8 million, respectively. For the three months ended October 2, 2015, other expense was primarily attributable to $25.9 million related to other foreign currency transaction losses and $0.9 million related to losses on derivative instruments that were not designated as cash flow hedges. For the three months ended September 26, 2014, other expense was primarily attributable to $19.3 million related to foreign currency transaction losses, of which $14.1 million was related to the remeasurement of the local balance sheet in Venezuela as the SICAD I rate depreciated during the third quarter, partially offset by $5.0 million related to gains on derivative instruments that were not designated as cash flow hedges.
During the nine months ended October 2, 2015 and September 26, 2014, the Company recorded other expense of $58.6 million and $110.6 million, respectively. For the nine months ended October 2, 2015, other expense was primarily attributable to the adoption of the SIMADI currency exchange system in Venezuela and ongoing remeasurement of the local balance sheet which resulted in an expense of $22.9 million, $32.9 million related to other foreign currency transaction losses and $2.9 million related to losses on derivative instruments that were not designated as cash flow hedges. For the nine months ended September 26, 2014, other expense was primarily attributable to $83.1 million related to a Venezuela currency devaluation, $3.4 million related to losses on derivative instruments that were not designated as cash flow hedges and other expense of $20.6 million related to foreign currency transaction losses, of which $11.6 million was related to the remeasurement of the local balance sheet in Venezuela as the SICAD I rate depreciated from the first quarter of 2014.
Refer to Note 1 - Basis of Presentation and Principles of Consolidation for more information regarding the Company's Venezuelan operations.