Coach 2009 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2009 Coach 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 138

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
9. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES – (continued)
Amount of Loss Reclassified
from Accumulated OCI into
Income (Effective Portion)
Year Ended
Location of Loss Reclassified from Accumulated
OCI into Income (Effective Portion)
July 3,
2010
June 27,
2009
Cost of Sales $ (5,453) $ (5,031)
Total $ (5,453) $ (5,031)
During fiscal 2010 and fiscal 2009, there were no material gains or losses recognized in income due to hedge ineffectiveness.
The Company expects that $2,634 of net derivative losses included in accumulated other comprehensive income at July 3, 2010 will be
reclassified into earnings within the next 12 months. This amount will vary due to fluctuations in the Japanese Yen and Canadian Dollar
exchange rates.
Hedging activity affected accumulated other comprehensive (loss) income, net of tax, as follows:
Year Ended
July 3,
2010
June 27,
2009
Balance at beginning of period $ (335) $ 6,943
Net losses transferred to earnings 1,606 2,915
Change in fair value, net of tax (3,363) (10,193)
Balance at end of period $ (2,092) $ (335)
10. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended July 3, 2010 and June 27, 2009 are as follows:
Direct-to-
Consumer
Indirect Total
Balance at June 28, 2008 $ 247,602 $ 1,516 $ 249,118
Acquisition of Hong Kong, Macau and mainland China retail
businesses
6,254 — 6,254
Foreign exchange impact 28,015 — 28,015
Balance at June 27, 2009 281,871 1,516 283,387
Foreign exchange impact 22,474 — 22,474
Balance at July 3, 2010 $ 304,345 $ 1,516 $ 305,861
At July 3, 2010 and June 27, 2009, intangible assets not subject to amortization were $9,788 and consisted of trademarks.
60