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Venezuela
3 Months Ended
Apr. 04, 2015
Venezuela Devaluation [Abstract]  
Venezuela Disclosure [Text Block]

Note 11 Venezuela

Venezuela is designated as a highly inflationary economy. Gains and losses resulting from the translation of the financial statements of subsidiaries operating in highly inflationary economies are recorded in earnings. In 2013 the Company began using the CENCOEX exchange rate, which is 6.3 bolivars to the U.S. dollar, to translate its Venezuelan subsidiary's financial statements to U.S. dollars. The CENCOEX exchange is restricted to some raw materials, finished goods, and machinery for sectors considered as national priorities, which is primarily food and medicines.

In 2013, the Venezuelan government established an auction-based currency transaction program referred to as SICAD1. SICAD1 allowed entities in specific sectors to bid for U.S. dollars to be used for specified import transactions, with the minimum exchange rate to be offered being 6.3 bolivars to the U.S. dollar. In addition in 2014, the Venezuelan government expanded SICAD1 to include prospective dividends and royalties and established new profit margin controls. As the Company's Venezuelan subsidiary declares dividends or pays royalties in the future, based on the availability of U.S. dollars exchanged under the SICAD1 program, the realized exchange losses on payments made in U.S. dollars would be recognized in earnings. On profit margin controls, the Company continues to ensure it is complying with the requirements.

In 2014, the Venezuelan government also established a third foreign exchange mechanism, known as SICAD2. SICAD2 relied on U.S. dollar cash and U.S. dollar denominated bonds offered by the Venezuelan Central Bank, PDVSA (the national oil and gas company) and private companies. The Venezuelan government allowed all industry sectors to access SICAD2 and indicated that its use would not be restricted as to purpose.

In the first quarter of 2015, the Venezuelan government established a new foreign exchange mechanism, known as SIMADI. SIMADI has been reported to be an open market in which rates will be determined based on supply and demand, however there has been minimal transactions exchanged in the first quarter of 2015. In connection with the establishment of SIMADI, SICAD1 and SICAD2 have been merged into one exchange known as SICAD.

As of April 4, 2015, the published SICAD and SIMADI rates offered were 12.0 and 193.0 bolivars to the U.S. dollar, respectively.

In light of the current difficult macroeconomic environment in Venezuela, the Company continues to monitor and actively manage its investment and exposures in Venezuela. The Company's Venezuelan business does not rely heavily on imports and when items are imported, they are largely exchanged at the CENCOEX rate. As of April 4, 2015 and January 3, 2015 the Company remeasured its Venezuelan subsidiary's financial statements to U.S. dollars using the CENCOEX exchange rate. The Company will continue to monitor local conditions, its continued ability to obtain U.S. dollars at the CENCOEX exchange rate, and the use, if applicable, of the SICAD or SIMADI mechanisms to determine the appropriate rate for remeasurement.

For the quarter ended April 4, 2015, Venezuela represented approximately 2% of total net sales and 3% of total operating profit. As of April 4, 2015 and January 3, 2015, the Company's net monetary assets denominated in the Venezuelan bolivar were approximately $117 million and $100 million, respectively in U.S. dollars applying the CENCOEX exchange rate.

If the CENCOEX exchange rate were to devalue further or if the currently less favorable SICAD or SIMADI exchange rates were extended to apply to a greater portion of the Company's net monetary assets in Venezuela, the Company would recognize a devaluation charge in earnings. The Company continues to monitor the currency developments in Venezuela and take protective measures against currency devaluation which may include converting monetary assets into non-monetary assets which the Company can use in its business.