Derivative Financial Instruments

3 Months Ended

Mar. 31, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

Note 5 — Derivative Financial Instruments

    The notional amounts and fair values of derivative instruments in our consolidated balance sheet were as follows:

	Notional Amounts (1)				Fair Value
	March 31, 2012		December 31, 2011		March 31, 2012			December 31, 2011
Derivatives designated as hedging instruments recorded in:
Other current assets
Foreign exchange contracts	$	13,448	$	—	$	62		$	—
Accrued expenses
Foreign exchange contracts		17,090		—		(220	)		—
		30,538		—		(158	)		—
Derivatives not receiving hedge accounting treatment recorded in:
Other current assets
Foreign exchange contracts		425,371		552,677		3,780			10,689
Accrued expenses
Foreign exchange contracts		592,451		574,018		(5,502	)		(3,976	)
		1,017,822		1,126,695		(1,722	)		6,713
Total	$	1,048,360	$	1,126,695	$	(1,880	)	$	6,713

(1) Notional amounts represent the gross amount of foreign currency bought or sold at maturity for foreign exchange contracts.

The amount recognized in earnings from our derivative instruments, including ineffectiveness, was a net loss of $20,518 and $30,097 for the thirteen weeks ended March 31, 2012 and April 2, 2011, respectively, which was largely offset by the change in the fair value of the underlying hedged assets or liabilities. The gains or losses on derivative instruments are classified in our consolidated statement of income on a consistent basis with the classification of the change in fair value of the underlying hedged assets or liabilities. The unrealized gains (losses) associated with our cash flow hedging transactions, net of taxes, are reflected in our consolidated statement of comprehensive income for the thirteen weeks ended March 31, 2012 and April 2, 2011.

Cash Flow and Other Hedges

Our designated hedges have consisted of foreign currency forward contracts to hedge certain foreign currency-denominated intercompany management fees and an interest rate swap to hedge variable interest rates on a portion of our senior unsecured term loan, which we terminated upon repaying the underlying loan in September 2011. There were no such designated hedges outstanding as of December 31, 2011. We also use foreign currency forward contracts that are not designated as hedges primarily to manage currency risk associated with foreign currency-denominated trade accounts receivable, accounts payable and intercompany loans.