Starbucks 2010 Annual Report Download - page 59

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Fair values of derivative instruments on the consolidated balance sheet (in millions):
Cash Flow Hedges Net Investment Hedges Other Derivatives
Financial Statement Location Oct 3, 2010 Sep 27, 2009 Oct 3, 2010 Sep 27, 2009 Oct 3, 2010 Sep 27, 2009
Prepaid expenses and other
current assets ............. $ 0.1 $6.3 $ 0.0 $ 0.4 $0.0 $1.0
Other assets ................ 0.0 5.5 0.0 0.0 0.0 0.0
Other accrued expenses ....... 10.6 6.6 5.6 4.7 4.0 9.9
Other long-term liabilities ...... 6.4 5.6 8.1 6.4 0.0 0.0
Total losses in accumulated
OCI(1) ................... 13.9 3.9 26.7 19.8
(1) Amount that will be dedesignated within 12 months for cash flow hedges is $6.4 million as of October 3, 2010.
Ineffectiveness from hedges in fiscal years 2010 and 2009 was insignificant. Outstanding cash flow hedge and net
investment hedge contracts will expire within 36 months and 30 months, respectively.
The following table presents the pretax effect of derivative instruments on other comprehensive income and earnings
for fiscal years ending (in millions):
Cash Flow Hedges Net Investment Hedges Other Derivatives
Oct 3, 2010 Sep 27, 2009 Oct 3, 2010 Sep 27, 2009 Oct 3, 2010 Sep 27, 2009
Gain/(Loss) recognized in
earnings ................. $ (5.9) $(0.2) $ 0.0 $ 0.0 $1.0 $22.2
Gain/(Loss) recognized in
OCI..................... $(20.9) $ 7.8 $(10.8) $(10.8)
Notional amounts of outstanding derivative contracts (in millions):
Oct 3, 2010 Sep 27, 2009
Foreignexchange ............ $ 593 $708
Dairy ..................... $ 20 $ 25
Diesel ..................... $ 0 $ 7
Note 5: Fair Value Measurements
Fair value accounting guidance defines fair value, establishes a framework for measuring fair value under GAAP
and expands disclosures about fair value measurements, for both financial and non-financial assets. It also
establishes a fair value hierarchy that prioritizes the inputs used to measure fair value.
Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):
Fair Value Measurements at Reporting Date Using
Balance at
Oct 3, 2010
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Trading securities .................. $ 49.2 $ 49.2 $ 0.0 $ 0.0
Available-for-sale securities .......... 428.3 190.8 196.2 41.3
Derivatives ....................... 0.1 0.0 0.1 0.0
Total ............................ $477.6 $240.0 $196.3 $41.3
Liabilities:
Derivatives ....................... $ 34.7 $ 0.0 $ 34.7 $ 0.0
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