Banana Republic 2011 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2011 Banana Republic 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 100

  • 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
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Amount and Location
of Gain (Loss)
Reclassified from Accumulated OCI
into Income (Effective Portion)
Fiscal Year
($ in millions) 2011 2010 2009
Derivatives in cash flow hedging relationships:
Foreign exchange forward contracts— Cost of goods sold and occupancy
expenses ............................................................ $(46) $(33) $ 17
Foreign exchange forward contracts— Operating expenses ................. (5) (5) (3)
Cross-currency interest rate swap— Operating expenses ................... —— 1
$(51) $(38) $ 15
Amount of Gain (Loss)
Recognized in OCI on Derivatives
(Effective Portion)
Fiscal Year
($ in millions) 2011 2010 2009
Derivatives in net investment hedging relationships:
Foreign exchange forward contracts ...................................... $ (1) $ (5) $—
Amount and Location
of Gain (Loss)
Recognized in Income on Derivatives
Fiscal Year
($ in millions) 2011 2010 2009
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts— Operating expenses ................. $7 $8 $35
For fiscal 2011, 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 8. Common Stock
Common and Preferred Stock
The Company is authorized to issue 2.3 billion shares of common stock. We are also 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 28, 2012.
The Company is authorized to issue 30 million shares of one or more series of preferred stock, which has a par
value of $0.05 per share, and to establish at the time of issuance the issue price, dividend rate, redemption price,
liquidation value, conversion features, and such other terms and conditions of each series (including voting rights)
as the Board of Directors deems appropriate, without further action on the part of the stockholders. No preferred
shares have been issued as of January 28, 2012.
Share Repurchases
Share repurchase activity is as follows:
Fiscal Year
($ and shares in millions except average per share cost) 2011 2010 2009
Number of shares repurchased ................................................... 111 96 24
Totalcost ...................................................................... $2,096 $1,956 $ 510
Average per share cost including commissions ..................................... $18.88 $20.44 $21.30
60 Gap Inc. Form 10-K