Abercrombie & Fitch 2008 Annual Report Download - page 75

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Table of Contents
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The table below includes a roll forward of the Company’s level 2 and level 3 financial instruments
from February 2, 2008 to January 31, 2009, and the reclassification of these instruments from level 2 to
level 3 in the hierarchy. When a determination is made to classify a financial instrument within level 3,
the determination is based upon the lack of significance of the observable parameters to the overall fair
value measurement. However, the fair value determination for level 3 financial instruments may include
observable components.
Significant Other Significant
Observable Inputs Unobservable Inputs
(Level 2) (Level 3)
(In thousands)
Fair value, February 2, 2008 $ 530,486 $ —
Purchases 49,411 —
Redemptions (242,955) (65,718)
Tranfers (out)/in (336,942) 336,942
Unrealized losses included in Other Comprehensive
Income — (28,192)
Realized losses included in Operating Income — (13,951)
Recognition of Put Option included in Operating Income — 12,309
Fair value, January 31, 2009 $ — $ 241,390
On February 3, 2008, the Company adopted SFAS No. 159, “The Fair Value Option for Financial
Assets and Financial Liabilities-Including an amendment of FASB Statement No. 115” (“SFAS No. 159”).
SFAS No. 159 permits companies to measure many financial instruments and certain other assets and
liabilities at fair value on an instrument by instrument basis. The Company elected not to apply the fair
value option to its financial assets and liabilities that existed on February 3, 2008. For Fiscal 2008, the
Company elected the fair value option for the Put Option related to the Company’s UBS ARS. The
Company recognized the fair value of the Put Option of $12.3 million as an asset within Other Assets on
the accompanying Consolidated Balance Sheet at January 31, 2009 and the related gain within Other
Income on the accompanying Consolidated Statement of Net Income and Comprehensive Income for the
year ended January 31, 2009.
71
Source: ABERCROMBIE & FITCH CO /DE/, 10-K, March 27, 2009 Powered by Morningstar® Document Research℠