Banana Republic 2011 Annual Report Download - page 71

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instruments, as well as the remeasurement of the underlying intercompany balances, is recorded in operating
expenses in the Consolidated Statements of Income in the same period and generally offset.
We generally enter into foreign exchange forward contracts as needed 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 28, 2012 and January 29, 2011, 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 28,
2012 January 29,
2011
U.S.dollars(1) ....................................................................... $796 $1,025
Britishpounds ...................................................................... £30 £ 54
(1) The principal currencies hedged against changes in the U.S. dollar were British pounds, Japanese yen, and Canadian dollars.
As of January 28, 2012 and January 29, 2011, we had foreign exchange forward contracts outstanding to hedge the
net assets of our Japanese subsidiary in the following notional amounts:
(notional amounts in millions) January 28,
2012 January 29,
2011
Japaneseyen........................................................................ ¥— ¥3,000
As of January 28, 2012 and January 29, 2011, 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 28,
2012 January 29,
2011
U.S.dollars.......................................................................... $77 $12
Britishpounds ...................................................................... £1£—
Japaneseyen........................................................................ ¥2,564 ¥3,238
Euro ............................................................................... €16 €—
Contingent Features
We had no derivative financial instruments with credit-risk-related contingent features underlying the agreements
as of January 28, 2012 or January 29, 2011.
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