Abercrombie & Fitch 2011 Annual Report Download - page 96

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ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The location and amounts of derivative gains and losses for the fifty-two weeks ended January 28,
2012 and January 29, 2011 on the Consolidated Statements of Operations and Comprehensive Income were
as follows:
Fifty-Two Weeks Ended
January 28, 2012 January 29, 2011
Location Gain/(Loss) Gain/(Loss)
(in thousands)
Derivatives not designated as
Hedging Instruments:
Foreign Exchange Forward
Contracts ................. Other Operating Income (Expense), Net $1,503 $(971)
Amount of
Gain (Loss)
Recognized
in OCI on
Derivative
Contracts
(Effective
Portion)
(a)
Location of
Gain (Loss)
Reclassified
from
Accumulated
OCI into Earnings
(Effective Portion)
Amount of
Gain (Loss)
Reclassified from
Accumulated
OCI into
Earnings
(Effective
Portion)
(b)
Location of
Gain (Loss)
Recognized in
Earnings on
Derivative
Contracts
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)
Amount of
Gain (Loss)
Recognized
in Earnings
on Derivative
Contracts
(Ineffective
Portion and
Amount
Excluded
from
Effectiveness
Testing)
(c)
January 28,
2012
January 29,
2011
January 28,
2012
January 29,
2011
January 28,
2012
January 29,
2011
(in thousands)
Derivatives in
Cash Flow
Hedging
Relationships
Foreign Exchange
Forward
Contracts .... $14,415 $1,614 Cost of Goods Sold $982 $2,122
Other Operating
Expense
(Income), Net $(1,190) $(304)
(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 into 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.
17. 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 Company completed the closure of the
RUEHL branded stores and related direct-to-consumer operations during the fourth quarter of Fiscal 2009.
93