Abercrombie & Fitch 2009 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2009 Abercrombie & Fitch annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

The location and amounts of derivative gains and losses for the fifty-two weeks ended January 30, 2010
and January 31, 2009 on the Consolidated Statements of Operations and Comprehensive Income are as
follows:
January 30,
2010
January 31,
2009
January 30,
2010
January 31,
2009
January 30,
2010
January 31,
2009
For the Fifty-Two Weeks Ended
Location of (Gain)
Loss Reclassified
from Accumulated
OCI into Earnings
(Effective Portion)
Location of Gain
Recognized in Earnings
on Derivative (Ineffective
Portion and Amount
Excluded from
Effectiveness
Testing)
Amount of (Loss) Gain
Recognized in OCI
on Derivative Contracts
(Effective Portion)
(a)
Amount of (Gain) Loss
Reclassified from
Accumulated OCI into
Earnings (Effective
Portion)
(b)
Amount of Gain
Recognized
in Earnings on Derivative
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
(c)
(In thousands)
Derivatives in Cash
Flow Hedging
Relationships
Foreign Exchange
Forward Contracts . . $(3,790) $3,406 Cost of Goods Sold $(3,074) $1,893
Other Operating
(Income) Loss, Net $(74) $(219)
(a) The amount represents the change in fair value of derivative contracts due to changes in spot rates.
(b) The amount represents reclassification from OCI to earnings that occurs when the hedged item affects
earnings, which is when merchandise is sold to the Company’s customers.
(c) The amount represents the change in fair value of derivative contracts due to changes in the difference
between the spot price and forward price that is excluded from the assessment of hedge effectiveness and
therefore recognized in earnings. There were no ineffective portions recorded in earnings for the fifty-
two weeks ended January 30, 2010 and January 31, 2009.
The Company does not use forward contracts to engage in currency speculation and does not enter into
derivative financial instruments for trading purposes.
14. DISCONTINUED OPERATIONS
On June 16, 2009, A&F’s Board of Directors approved the closure of the Company’s 29 RUEHL branded
stores and related direct-to-consumer operations. The determination to take this action was based on a
comprehensive review and evaluation of the performance of the RUEHL branded stores and related
direct-to-consumer operations, as well as the related real estate portfolio. The Company completed the
closure of the RUEHL branded stores and related direct-to-consumer operations during the fourth quarter of
Fiscal 2009. Accordingly, the results of operations of RUEHL are reflected in Net Loss from Discontinued
Operations for all periods presented on the Consolidated Statements of Operations and Comprehensive
Income.
80
ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)