The Gap 2010 Annual Report Download - page 64

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Amount and Location
of Gain (Loss)
Reclassified from
Accumulated OCI into Income
(Effective Portion)
Fiscal Year
($ in millions) 2010 2009
Derivatives in cash flow hedging relationships:
Foreign exchange forward contracts—Cost of goods sold and occupancy
expenses.................................................................. $(33) $ 17
Foreign exchange forward contracts—Operating expenses .................... (5) (3)
Cross-currency interest rate swap—Operating expenses ....................... —1
$(38) $ 15
Amount of Loss
Recognized in OCI on
Derivatives
(Effective Portion)
Fiscal Year
($ in millions) 2010 2009
Derivatives in net investment hedging relationships:
Foreign exchange forward contracts ......................................... $ (5) $—
Amount and Location
of Gain
Recognized in Income
on Derivatives
Fiscal Year
($ in millions) 2010 2009
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts—Operating expenses .................... $8 $35
For fiscal years 2010 and 2009, there were no amounts of gain or loss reclassified from accumulated OCI into
income for derivative financial instruments in net investment hedging relationships, as we did not sell or liquidate
(or substantially liquidate) any of our hedged subsidiaries during the periods.
Note 7. Common Stock
Common and Preferred Stock
The Company is authorized to issue 60 million shares of Class B common stock, which is convertible into shares of
common stock on a share-for-share basis. Transfer of the shares is restricted. In addition, the holders of the Class B
common stock have six votes per share on most matters and are entitled to a lower cash dividend. No Class B
shares have been issued as of January 29, 2011.
The Company is authorized to issue 30 million shares of one or more series of preferred stock, which has a par
value of $0.05 per share, and to establish at the time of issuance the issue price, dividend rate, redemption price,
liquidation value, conversion features, and such other terms and conditions of each series (including voting rights)
as the Board of Directors deems appropriate, without further action on the part of the stockholders. No preferred
shares have been issued as of January 29, 2011.
Share Repurchases
Share repurchase activity is as follows:
Fiscal Year
($ and shares in millions except average per share cost) 2010 2009 2008
Number of shares repurchased ................................................... 96 24 46
Totalcost ...................................................................... $1,956 $ 510 $ 745
Average per share cost including commissions ..................................... $20.44 $21.30 $16.36
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