Banana Republic 2011 Annual Report Download - page 73

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January 29, 2011
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 . . Other current assets $—
Accrued expenses and
other current liabilities $30
Foreign exchange forward contracts . . Other long-term assets 2
Lease incentives and
other long-term
liabilities 2
Total derivatives designated as cash
flowhedges ...................... 232
Derivatives designated as net investment
hedges:
Foreign exchange forward contracts . . Other current assets —
Accrued expenses and
other current liabilities —
Foreign exchange forward contracts . . Other long-term assets —
Lease incentives and
other long-term
liabilities —
Total derivatives designated as net
investmenthedges................ ——
Derivatives not designated as hedging
instruments:
Foreign exchange forward contracts . . Other current assets 2
Accrued expenses and
other current liabilities 5
Foreign exchange forward contracts . . Other long-term assets —
Lease incentives and
other long-term
liabilities —
Total derivatives not designated as
hedginginstruments .............. 25
Totalderivativeinstruments .............. $4 $37
Substantially all of the unrealized gains and losses from designated cash flow hedges as of January 28, 2012 will be
recognized in income within the next 12 months at the then current values, which may differ from the fair values
as of January 28, 2012 shown above.
See Note 6 of Notes to Consolidated Financial Statements for disclosures on the fair value measurements of our
derivative financial instruments.
The effects of derivative financial instruments on OCI and the Consolidated Statements of Income, on a pre-tax
basis, are as follows:
Amount of Gain (Loss)
Recognized in OCI on Derivatives
(Effective Portion)
Fiscal Year
($ in millions) 2011 2010 2009
Derivatives in cash flow hedging relationships:
Foreign exchange forward contracts ...................................... $(20) $(50) $(33)
Treasury rate lock agreements ........................................... 1— —
Cross-currency interest rate swap ........................................ —— 3
$(19) $(50) $(30)
59