4.	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 unrealized gains and losses on derivative instruments that are not designated as cash flow hedges. During the three months ended July 1, 2011 and July 2, 2010, the Company recorded other expense of $3.9 million and $3.0 million, respectively. During the six months ended July 1, 2011 and July 2, 2010, the Company recorded other income of $3.1 million and other expense of $39.5 million, respectively. For the three months ended July 1, 2011, other expense of $3.9 million was primarily attributable to foreign currency transaction losses which resulted from changes in exchange rates in the various countries in which the Company operates. For the six months ended July 1, 2011, other income of $3.1 million was primarily the result of unrealized gains and losses on derivative instruments which were not designated as cash flow hedges and foreign currency transaction gains and losses. For the three months ended July 2, 2010, other expense of $3.0 million primarily reflects foreign currency transaction losses which resulted from changes in exchange rates in the various countries in which the Company operates. For the six months ended July 2, 2010, other expense of $39.5 million was attributable to the $29.8 million Venezuelan currency devaluation related to the re-measurement of the local balance sheet on the date of the devaluation at the official non-essential rate and other expense of $9.7 million resulting primarily from foreign currency transaction gains and losses.

The functional currency of the Company's subsidiary in Venezuela is the U.S. dollar; therefore, gains and losses for transactions at a rate other than the official exchange rate are recorded in the statement of operations. The Company remeasures the financial statements of the Venezuelan subsidiary at the rate in which the Company expects to remit dividends, which is 4.30 Venezuelan Bolivar ("BsF") per U.S. dollar. During the three and six fiscal months ended July 2, 2010 the Company was authorized to import copper at the official exchange rate for essential goods of 2.60 BsF per U.S. dollar. For the three and six months ended July 2, 2010, the Company recorded $4.4 million in foreign exchange gains related to transactions completed at the 2.60 BsF per U.S. dollar essential rate. Copper imports prior to the approval were imported at the parallel rate, which was closed on June 9, 2010. For the three and six months ended July 2, 2010, the Company recorded $2.4 million and $10.7 million in foreign exchange losses related to copper imports at the parallel rate.

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, eliminating the 2.60 BsF per U.S. dollar rate previously established for essential goods in the first quarter of 2010. Therefore, the Company can only import copper at the 4.30 BsF per U.S. dollar rate, eliminating gains and losses in the statement of operations for transactions completed at a rate other than the official exchange rate for the three and six months ended July 1, 2011. See Item 2, "Venezuelan Operations" for additional details.