RELATED PARTIES

3 Months Ended

Apr. 01, 2012

RELATED PARTIES

RELATED PARTIES

NOTE 12—RELATED PARTIES

        The Company maintains minority ownership in a joint venture located in China. The joint venture is accounted for and recorded on the consolidated condensed balance sheet as other assets under the equity method. The Company recorded $0.3 million loss and $0.2 million earnings during the quarters ended April 1, 2012 and April 3, 2011, respectively, related to the Company's equity share in the earnings (loss) of the joint venture.

        The joint venture may purchase raw components and other goods from the Company and may sell finished goods to the Company as well as to other third parties. The Company records revenue on sales to the joint venture only when the components and goods are for sales to third parties. When the joint venture purchases components that will be assembled and sold back to the Company, no revenue is recorded. The Company also has significant and similar relationships with contract manufacturers. These contract manufacturers may purchase raw components from and sell finished goods back to the Company. No revenue is recognized for these transactions. Revenue is recognized only when the products are for sale to third parties. No revenue was recognized related to the joint venture during the quarters ended April 1, 2012 and April 3, 2011.

        The Company paid $2.1 million and $2.6 million for inventory purchased from the joint venture during the quarters ended April 1, 2012 and April 3, 2011, respectively. At April 1, 2012 and January 1, 2012, the Company owed the joint venture approximately $2.5 million and $2.3 million, respectively.