Derivative Financial Instruments (Tables)

6 Months Ended

12 Months Ended

Jul. 01, 2012

Fair value of derivative instruments in Condensed Consolidated Balance Sheet

Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheet:



(In thousands):	Condensed Consolidated Balance Sheet Location	Fair Value as of			Fair Value as of			Fair Value as of
(In thousands):	Condensed Consolidated Balance Sheet Location	July 1, 2012			December 31, 2011			June 26, 2011
Derivatives designated as hedging instruments:
Interest rate swaps	Current derivative liability	$	—		$	—		$	(20,193	)
Interest rate swaps	Derivative Liability	(35,146		)	(32,400		)	(16,750		)
Total derivatives designated as hedging instruments		$	(35,146	)	$	(32,400	)	$	(36,943	)
Derivatives not designated as hedging instruments:
Foreign currency swaps	Current derivative liability	$	—		$	(13,155	)	$	(4,273	)
Cross-currency swaps	Current derivative liability	—			(37,617		)	(53,107		)
Total derivatives not designated as hedging instruments		$	—		$	(50,772	)	$	(57,380	)
Net derivative liability		$	(35,146	)	$	(83,172	)	$	(94,323	)

Effects of derivative instruments on income (loss) and other comprehensive income (loss)

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the six-month periods ended July 1, 2012 and June 26, 2011:



(In thousands):	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion)						Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Amount and Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
Derivatives designated as Cash Flow Hedging Relationships	Six months ended			Six months ended				Six months ended			Six months ended			Six months ended		Six months ended
Derivatives designated as Cash Flow Hedging Relationships	7/1/12			6/26/11				7/1/12			6/26/11			7/1/12		6/26/11
Interest rate swaps	$	(2,746	)	$	(19,703	)	Interest Expense	$	(6,014	)	$	—	Net effect of swaps	$	—	$	27,794
Total	$	(2,746	)	$	(19,703	)		$	(6,014	)	$	—		$	—	$	27,794



(In thousands):	Amount and Location of Gain (Loss) Recognized in Income on Derivative
Derivatives not designated as Cash Flow Hedging Relationships		Six months ended			Six months ended
		7/1/12			6/26/11
Interest rate swaps ⁽¹⁾	Net effect of swaps	$	—		$	(3,342	)
Cross-currency swaps⁽²⁾	Net effect of swaps	(4,999		)	1,960
Foreign currency swaps	Net effect of swaps	6,278			(4,306		)
		$	1,279		$	(5,688	)


(1)	The September 2010 swaps became ineffective and were de-designated in February 2011.


(2)	The cross-currency swaps became ineffective and were de-designated in August 2009.

For the six-month period ended July 1, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.4 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.1 million recorded in “Net effect of swaps.”

For the six-month period ended June 26, 2011, in addition to the $22.1 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $22.8 million of expense representing the amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings of $0.5 million recorded in “Net effect of swaps.”

The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:



($'s in thousands)	Interest Rate Swaps				Cross-currency Swaps
	Notional Amounts		LIBOR Rate		Notional Amounts		Implied Interest Rate
	$	200,000	5.64	%	$	255,000	7.31	%
	200,000		5.64	%	150		9.50	%
	200,000		5.64	%
	200,000		5.57	%
	100,000		5.60	%
	100,000		5.60	%
Total $'s / Average Rate	$	1,000,000	5.62	%	$	255,150	7.31	%

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended July 1, 2012 and June 26, 2011:



(In thousands):	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion)						Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Amount and Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
Derivatives designated as Cash Flow Hedging Relationships	Three months ended			Three months ended				Three months ended			Three months ended			Three months ended		Three months ended
Derivatives designated as Cash Flow Hedging Relationships	7/1/12			6/26/11				7/1/12			6/26/11			7/1/12		6/26/11
Interest rate swaps	$	(2,866	)	$	(20,558	)	Interest Expense	$	(3,221	)	$	—	Net effect of swaps	$	—	$	13,300
Total	$	(2,866	)	$	(20,558	)		$	(3,221	)	$	—		$	—	$	13,300



(In thousands):	Amount and Location of Gain (Loss) Recognized in Income on Derivative
Derivatives not designated as Cash Flow Hedging Relationships		Three months ended		Three months ended
		7/1/12		6/26/11
Cross-currency swaps⁽¹⁾	Net effect of swaps	$	—	$	3,772
Foreign currency swaps	Net effect of swaps	—		(4,306		)
		$	—	$	(534	)


(1)	The cross-currency swaps became ineffective and were de-designated in August 2009.

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended July 1, 2012 and June 26, 2011:



(In thousands):	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion)						Amount and Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Amount and Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
Derivatives designated as Cash Flow Hedging Relationships	Twelve months ended			Twelve months ended				Twelve months ended			Twelve months ended			Twelve months ended		Twelve months ended
Derivatives designated as Cash Flow Hedging Relationships	7/1/12			6/26/11				7/1/12			6/26/11			7/1/12		6/26/11
Interest rate swaps	$	(18,396	)	$	(13,409	)	Interest Expense	$	(9,037	)	$	—	Net effect of swaps	$	20,193	$	48,168



(In thousands):	Amount and Location of Gain (Loss) Recognized in Income on Derivative
Derivatives not designated as Cash Flow Hedging Relationships		Twelve months ended			Twelve months ended
		7/1/12			6/26/11
Interest rate swaps ⁽¹⁾	Net effect of swaps	$	—		$	(3,342	)
Cross-currency swaps ⁽²⁾	Net effect of swaps	9,139			(3,597		)
Foreign currency swaps	Net effect of swaps	(3,081		)	(4,306		)
		$	6,058		$	(11,245	)


(1)	The September 2010 swaps became ineffective and were de-designated in February 2011.


(2)	The cross-currency swaps became ineffective and were de-designated in August 2

Interest Rate and Cross Currency Swap [Member]

Derivative [Line Items]

Derivative instruments, notional amounts outstanding and interest rates

Forward Starting Interest Rate Swap [Member]

Derivative [Line Items]

Derivative instruments, notional amounts outstanding and interest rates

The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, which became effective October 1, 2011 and mature December 15, 2015, along with their notional amounts and their fixed interest rates.



($'s in thousands)	Interest Rate Swaps
	Notional Amounts		LIBOR Rate
	$	200,000	2.40	%
	75,000		2.43	%
	50,000		2.42	%
	150,000		2.55	%
	50,000		2.42	%
	50,000		2.55	%
	25,000		2.43	%
	50,000		2.54	%
	30,000		2.54	%
	70,000		2.54	%
	50,000		2.54	%
Total $'s / Average Rate	$	800,000	2.48	%

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details