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Other Income (Expense)
6 Months Ended
Jul. 01, 2016
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 July 1, 2016 and July 3, 2015, the Company recorded other income of $9.1 million and other expense of $6.0 million, respectively. For the three months ended July 1, 2016, other income was primarily attributable to $5.7 million related to foreign currency transaction gains and $3.4 million related to gains on derivative instruments that were not designated as cash flow hedges. For the three months ended July 3, 2015, other expense was primarily attributable to $3.6 million related to foreign currency transaction losses and $2.4 million related to losses on derivative instruments that were not designated as cash flow hedges.
During the six months ended July 1, 2016 and July 3, 2015, the Company recorded other income of $7.7 million and other expense of $31.8 million, respectively. For the six months ended July 1, 2016, other income was primarily attributable to $4.2 million related to foreign currency transaction gains and $3.5 million related to gains on derivative instruments that were not designated as cash flow hedges. For the six months ended July 3, 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 $22.8 million, $7.0 million related to other foreign currency transaction losses and $2.0 million related to losses on derivative instruments that were not designated as cash flow hedges.
Refer to Note 1 - Basis of Presentation and Principles of Consolidation for more information regarding the Company's Venezuelan operations.