Banana Republic 2010 Annual Report Download - page 61

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We generate intercompany activity each month, and as such, we generally enter into foreign exchange forward
contracts on a monthly basis to hedge intercompany balances that bear foreign exchange risk. These foreign
exchange forward contracts generally settle in less than 12 months.
Outstanding Notional Amounts
As of January 29, 2011 and January 30, 2010, we had foreign exchange forward contracts outstanding to sell various
currencies related to our forecasted merchandise purchases and forecasted intercompany royalty payments and to
buy the following notional amounts:
(notional amounts in millions) January 29,
2011 January 30,
2010
U.S.dollars.......................................................................... $1,025 $671
Britishpounds ...................................................................... £54 £21
As of January 29, 2011 and January 30, 2010, we had foreign exchange forward contracts outstanding to hedge the
net assets of our Japanese subsidiary and Canadian subsidiaries in the following notional amounts:
(notional amounts in millions) January 29,
2011 January 30,
2010
Japaneseyen........................................................................ ¥ 3,000 ¥ 2,000
Canadian dollars .................................................................... C$— C$81
As of January 29, 2011 and January 30, 2010, we had foreign exchange forward contracts outstanding to buy the
following currencies related to our intercompany balances that bear foreign exchange risk:
(notional amounts in millions) January 29,
2011 January 30,
2010
U.S.dollars.......................................................................... $12 $24
Britishpounds ...................................................................... £— £ 2
Japaneseyen........................................................................ ¥3,238 ¥3,238
Contingent Features
We had no derivative financial instruments with credit-risk-related contingent features underlying the agreements
as of January 29, 2011 or January 30, 2010.
54 Gap Inc. Form 10-K