Best Buy 2011 Annual Report Download - page 105

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$ in millions, except per share amounts or as otherwise noted
non-functional currencies and on certain forecasted inventory purchases denominated in non-functional currencies. The
contracts have terms of up to six months. These derivative instruments are not designated in hedging relationships and,
therefore, we record gains and losses on these contracts directly in net earnings.
Summary of Derivative Balances
The following table presents the gross fair values for derivative instruments and the corresponding classification at
February 26, 2011 and February 27, 2010:
February 26, February 27,
2011 2010
Contract Type Assets Liabilities Assets Liabilities
Cash flow hedges (foreign exchange forward contracts) $1 $(2) $2 $(1)
Net investment hedges (foreign exchange swap contracts) — — 4 —
Total derivatives designated as hedging instruments $1 $(2) $6 $(1)
No hedge designation (foreign exchange forward contracts) 2 (2) 1 (2)
Total $3 $(4) $7 $(3)
The following tables present the effects of derivative instruments on other comprehensive income (‘‘OCI’’) and on our
consolidated statements of earnings for fiscal 2011 and 2010:
2011 2010
Gain(Loss) Reclassified Gain(Loss) Reclassified
from Accumulated from Accumulated
Pre-tax Gain(Loss) OCI to Earnings Pre-tax Gain(Loss) OCI to Earnings
Contract Type Recognized in OCI(1) (Effective Portion)(2) Recognized in OCI(1) (Effective Portion)(2)
Cash flow hedges
(foreign exchange
forward contracts) $ 9 $12 $ 1 $ 4
Net investment
hedges (foreign
exchange swap
contracts) 8 — 45 —
Total $17 $12 $46 $ 4
(1) Reflects the amount recognized in OCI prior to the reclassification of 50% to noncontrolling interests for the cash flow and net
investment hedges, respectively.
(2) Gain reclassified from accumulated OCI is included within SG&A in our consolidated statements of earnings.
The following table presents the effects of derivatives not designated as hedging instruments on our consolidated
statements of earnings for fiscal 2011 and 2010:
Gain (Loss)
Recognized
within SG&A
Contract Type 2011 2010
No hedge designation (foreign exchange forward contracts) $13 $(5)
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