The Gap 2010 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2010 The Gap 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 88

  • 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

January 30, 2010
Asset Derivatives Liability Derivatives
($ in millions) Balance Sheet Location Fair
Value Balance Sheet Location Fair
Value
Derivatives designated as cash flow hedges:
Foreign exchange forward contracts ........ Othercurrent assets $5
Accrued expenses and
other current
liabilities $23
Foreign exchange forward contracts ........ Otherlong-termassets 1
Lease incentives and
other long-term
liabilities —
Total derivatives designated as cash flow
hedges................................. 623
Derivatives designated as net investment hedges:
Foreign exchange forward contracts ........ Othercurrent assets 2
Accrued expenses and
other current
liabilities —
Foreign exchange forward contracts ........ Otherlong-termassets —
Lease incentives and
other long-term
liabilities —
Total derivatives designated as net
investmenthedges...................... 2—
Derivatives not designated as hedging
instruments:
Foreign exchange forward contracts ........ Othercurrent assets 1
Accrued expenses and
other current
liabilities 4
Foreign exchange forward contracts ........ Otherlong-termassets —
Lease incentives and
other long-term
liabilities —
Total derivatives not designated as hedging
instruments ............................ 14
Totalderivativeinstruments .................... $9 $27
Substantially all of the unrealized gains and losses from designated cash flow hedges as of January 29, 2011 will be
recognized in income within the next 12 months at the then current values, which may differ from the fair values
as of January 29, 2011 shown above.
See Note 5 of Notes to Consolidated Financial Statements for disclosures on the fair value measurements of our
derivative financial instruments.
The effects of derivative financial instruments on OCI and the Consolidated Statements of Income, on a pre-tax
basis, are as follows:
Amount of Gain (Loss)
Recognized in OCI on
Derivatives
(Effective Portion)
Fiscal Year
($ in millions) 2010 2009
Derivatives in cash flow hedging relationships:
Foreign exchange forward contracts .................................................. $(50) $(33)
Cross-currency interest rate swap .................................................... —3
$(50) $(30)
56 Gap Inc. Form 10-K