Notes to Consolidated Financial Statements EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES Guarantees In November 2002, the FASB issued Interpretation No.45 (“FIN 45”), “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others,” an interpretation of FASB Statements No.5, 57, and 107 and Rescission of FASB Interpretation No.34.
FIN 45 clarifies the requirements of SFAS No.5, “Accounting for Contingencies,” relating to the guarantor’s accounting for, and disclosure of, the issuance of certain types of guarantees.
Disclosures about each group of similar guarantees are provided below and summarized in the following table:
## Table 0 ##
Obligations of Equity Affiliates As described in Note 5, Eastman has a 50% interest in and serves as the operating partner in Primester, a joint venture engaged in the manufacture of cellulose acetate at its Kingsport, Tennessee plant.
Eastman also owns a 50% interest in Nanjing Yangzi Eastman Chemical Ltd, a company that engages in the manufacture of certain products for the adhesives market.
The Company guarantees up to $125 million and $6 million, respectively, of the principal amount of these joint ventures’ third-party borrowings, but believes, based on current facts and circumstances and the structure of the ventures, that the likelihood of a payment pursuant to such guarantees is remote.
Residual Value Guarantees If certain operating leases are terminated by the Company, it guarantees a portion of the residual value loss, if any, incurred by the lessors in disposing of the related assets.
Under these operating leases, the residual value guarantees at December 31, 2004 totaled $90 million and consisted primarily of leases for railcars, company aircraft, and other equipment.
The Company believes, based on current facts and circumstances, that a material payment pursuant to such guarantees is remote.
Guarantees and claims also arise during the ordinary course of business from relationships with suppliers, customers and non-consolidated affiliates when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur.
Non-performance under a contract could trigger an obligation of the Company.
These potential claims include actions based upon alleged exposures to products, intellectual property and environmental matters, and other indemnifications.
The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims.
However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Company’s consolidated financial position or liquidity.
Product Warranty Liability The Company warrants to the original purchaser of its products that it will repair or replace without charge products if they fail due to a manufacturing defect.
However, the Company’s historical claims experience has not been material.
The estimated product warranty liability for the Company’s products as of December 31, 2004 is approximately $1 million.
The Company accrues for product warranties when it is probable that customers will make claims under warranties relating to products that have been sold and a reasonable estimate of the costs can be made.
Variable Interest Entities The Company has evaluated material relationships including the guarantees related to the third-party borrowings of joint ventures described above and has concluded that the entities are not Variable Interest Entities (“VIEs”) or, in the case of Primester, a joint venture that manufactures cellulose acetate at its Kingsport, Tennessee plant, the Company is not the primary beneficiary of the VIE.
As such, in accordance with FIN 46R, the Company is not required to consolidate these entities.
In addition, the Company has evaluated long-term purchase obligations with two entities that may be VIEs at December 31, 2004.
These potential VIEs are joint ventures from which the Company has purchased raw materials and utilities for several years and purchases approximately $40 million of raw materials and utilities on an annual basis.
The Company has no equity interest in these entities and has confirmed that one party to each of these joint ventures does consolidate the potential VIE.
However, due to competitive and other reasons, the Company has not been able to obtain the necessary financial information to determine whether the entities are VIEs, and if one or both are VIEs, whether or not the Company is the primary beneficiary
Table of Contents These forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control.
A detailed discussion of significant risk factors that have the potential to cause our actual results to differ materially from our expectations is described in Part I of this Form 10-K under the heading of “Risk Factors.
” We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
WEBSITE ACCESS TO COMPANY REPORTS Our investor website is http://investor.
ralphlauren.
com.
We were incorporated in June 1997 under the laws of the State of Delaware.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed with or furnished to the SEC pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 are available at our investor website under the caption “SEC Filings” promptly after we electronically file such materials with or furnish such materials to the SEC.
Information relating to corporate governance at Polo Ralph Lauren Corporation, including our Corporate Governance Policies, our Code of Business Conduct and Ethics for all directors, officers, and employees, our Code of Ethics for Principal Executive Officers and Senior Financial Officers, and information concerning our directors, Committees of the Board, including Committee charters, and transactions in Polo Ralph Lauren Corporation securities by directors and executive officers, is available at our website under the captions “Corporate Governance” and “SEC Filings.
” Paper copies of these filings and corporate governance documents are available to stockholders without charge by written request to Investor Relations, Polo Ralph Lauren Corporation, 625 Madison Avenue, New York, New York 10022.
In this Form 10-K, references to “Polo,” “ourselves,” “we,” “our,” “us” and the “Company” refer to Polo Ralph Lauren Corporation and its subsidiaries, unless the context indicates otherwise.
Due to the collaborative and ongoing nature of our relationships with our licensees, such licensees are sometimes referred to in this Form 10-K as “licensing alliances.
” Our fiscal year ends on the Saturday closest to March 31.
All references to “Fiscal 2011” represent the 52-week fiscal year ended April 2, 2011.
All references to “Fiscal 2010” represent the 53-week fiscal year ended April 3, 2010.
All references to “Fiscal 2009” represent the 52-week fiscal year ended March 28, 2009.
PART I Item 1.  Business.
General Founded in 1967 by Ralph Lauren, we are a global leader in the design, marketing and distribution of premium lifestyle products, including men’s, women’s and children’s apparel, accessories (including footwear), fragrances and home furnishings.
We believe that our global reach, breadth of product and multi-channel distribution is unique among luxury and apparel companies.
We operate in three distinct but integrated segments: Wholesale, Retail and Licensing.
The tables below show our net revenues and operating profit (excluding unallocated corporate expenses and legal and restructuring charges) by segment for the last three fiscal years.
## Table 1 ##
Table of Contents wholesale businesses, partially offset by net unfavorable foreign currency effects.
Excluding the effect of foreign currency, net revenues increased by 14.0%.
Net revenues for our three business segments are provided below:
## Table 2 ##
Wholesale net revenues — The net increase in revenues primarily reflects: ?
a $208 million aggregate net increase in our domestic businesses primarily due to increased revenues from our menswear and womenswear product lines (offset in part by sales declines in related American Living product categories).
In addition, our accessories product lines (including footwear) contributed to the increase in revenues, reflecting an increased presence at department store locations as well as additional product category offerings.
These increases were partially offset by a planned reduction in sales for our off-price channel business; ?
a $62 million net increase in our European businesses on a constant currency basis primarily driven by increased revenues from our menswear and womenswear product lines; and ?
The inclusion of $25 million of incremental revenues in connection with the Asia-Pacific Licensed Operations Acquisition, which was included in our results for the full year in Fiscal 2011 in comparison to three months in the prior fiscal year.
The above net increase was partially offset by: ?
a $25 million net decrease in our Japanese businesses on a constant currency basis driven by a decrease in womenswear sales; and ?
a $25 million net decrease in revenues due to an unfavorable foreign currency effect related to the weakening of the Euro, partially offset by a favorable foreign currency effect related to the strengthening of the Yen, both in comparison to the U. S.  dollar during Fiscal 2011.
Retail net revenues — Within our discussion of Retail operating performance below, we refer to the measure “comparable store sales.
” Comparable store sales refer to the growth of sales in stores that are open for at least one full fiscal year.
Sales for stores that are closing during a fiscal year are excluded from the calculation of comparable store sales.
Sales for stores that are either relocated, enlarged (as defined by gross square footage expansion of 25% or greater) or generally closed for 30 or more consecutive days for renovation are also excluded from the calculation of comparable store sales until such stores have been in their new location or in a newly renovated state for at least one full fiscal year.
Comparable store sales information includes both Ralph Lauren (including Rugby) and Club Monaco stores, as well as concessions-based shop-within-shops and RalphLauren.
com (including Rugby.
com).
The net increase in Retail net revenues primarily reflects: ?
a $259 million aggregate net increase in non-comparable store sales primarily driven by: ?
an increase of approximately $137 million related to the inclusion of a full year of revenues from stores and concession-based shop-within-shops assumed in connection with the Asia-Pacific Licensed Operations acquisition, in comparison to three months in the prior fiscal year; ?
the inclusion of approximately $22 million of revenues from stores and concession-based shop-within-shops assumed in connection with the South Korea Licensed Operations Acquisition;
Table of Contents Acquisition and $17.0 million to fund the acquisition of certain finite-lived intellectual property rights.
In Fiscal 2010, we used $30.8 million primarily to fund the Asia-Pacific Licensed Operations Acquisition.
Net Cash Used in Financing Activities.
Net cash used in financing activities was $512.6 million in Fiscal 2011, as compared to $306.4 million in Fiscal 2010.
The increase in net cash used in financing activities was primarily driven by: ?
an increase in cash used in connection with repurchases of our Class A common stock.
In Fiscal 2011, 6.0 million shares of Class A common stock at a cost of $577.8 million were repurchased pursuant to our common stock repurchase program and 0.2 million shares of Class A common stock at a cost of $16.8 million were surrendered or withheld in satisfaction of withholding taxes in connection with the vesting of awards issued under the 1997 Long-Term Stock Incentive Plan, as amended (the “1997 Incentive Plan”).
On a comparative basis, in Fiscal 2010, 2.9 million shares of Class A common stock at a cost of $215.9 million were repurchased pursuant to our common stock repurchase program and 0.3 million shares of Class A common stock at a cost of $15.1 million were surrendered for tax withholdings; and ?
an increase in cash used to pay dividends.
In Fiscal 2011, we used $38.5 million to pay dividends as compared to $24.7 million in Fiscal 2010, largely due to the increases in the quarterly cash dividend on our common stock from $0.05 per share to $0.10 per share in November 2009.
The above increases in cash used were partially offset by: ?
a decrease in cash used in connection with our repayment of debt in July 2009.
In Fiscal 2010, we completed a cash tender offer Table of Contents Acquisition and $17.0 million to fund the acquisition of certain finite-lived intellectual property rights.
In Fiscal 2010, we used $30.8 million primarily to fund the Asia-Pacific Licensed Operations Acquisition.
Net Cash Used in Financing Activities.
Net cash used in financing activities was $512.6 million in Fiscal 2011, as compared to $306.4 million in Fiscal 2010.
The increase in net cash used in financing activities was primarily driven by: ?
an increase in cash used in connection with repurchases of our Class A common stock.
In Fiscal 2011, 6.0 million shares of Class A common stock at a cost of $577.8 million were repurchased pursuant to our common stock repurchase program and 0.2 million shares of Class A common stock at a cost of $16.8 million were surrendered or withheld in satisfaction of withholding taxes in connection with the vesting of awards issued under the 1997 Long-Term Stock Incentive Plan, as amended (the ¡°1997 Incentive Plan¡±).
On a comparative basis, in Fiscal 2010, 2.9 million shares of Class A common stock at a cost of $215.9 million were repurchased pursuant to our common stock repurchase program and 0.3 million shares of Class A common stock at a cost of $15.1 million were surrendered for tax withholdings; and ?
an increase in cash used to pay dividends.
In Fiscal 2011, we used $38.5 million to pay dividends as compared to $24.7 million in Fiscal 2010, largely due to the increases in the quarterly cash dividend on our common stock from $0.05 per share to $0.10 per share in November 2009.
The above increases in cash used were partially offset by: ?
a decrease in cash used in connection with our repayment of debt in July 2009.
In Fiscal 2010, we completed a cash tender offer and used $121.0 million to repurchase €90.8 million of principal amount of our 4.5% notes due October 4, 2013.
There were no debt repurchases during Fiscal 2011; ?
an increase in cash received from the exercise of employee stock options.
In Fiscal 2011, we received $88.3 million from the exercise of employee stock options, as compared to $50.5 million in Fiscal 2010; and ?
an increase in excess tax benefits from stock-based compensation arrangements of $17.4 million in Fiscal 2011, as compared to the prior fiscal year.
Fiscal 2010 Compared to Fiscal 2009
## Table 3 ##
Net Cash Provided by Operating Activities.
Net cash provided by operating activities increased to $906.5 million in Fiscal 2010, compared to $774.2 million in Fiscal 2009.
This net increase in operating cash flow was primarily driven by: ?
lower accounts receivable levels due to improved cash collections and lower sales in our Wholesale segment; ?
an increase related to inventory primarily due to the effects of ongoing inventory management across most businesses; and ?
an increase in net income before depreciation, amortization, stock-based compensation and other non-cash expenses, including impairments of assets.
The above increases in cash provided by operating activities were partially offset by: ?
a decrease related to income taxes primarily due to the timing of payments.
POLO RALPH LAUREN CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 8.
Goodwill and Other Intangible Assets As discussed in Note 3, goodwill and certain other intangible assets deemed to have indefinite useful lives are not amortized.
Rather, goodwill and such indefinite-lived intangible assets are subject to annual impairment testing.
Finite-lived intangible assets continue to be amortized over their respective estimated useful lives.
Based on the results of the Company’s annual impairment testing of goodwill and indefinite-lived intangible assets in Fiscal 2011, Fiscal 2010 and Fiscal 2009, no impairment charges were deemed necessary.
Goodwill The following table details the changes in goodwill for each reportable segment during Fiscal 2011 and Fiscal 2010:
## Table 4 ##
(a) Fiscal 2011 acquisition-related activity includes the South Korea Licensed Operations Acquisition.
Fiscal 2010 acquisition-related activity primarily includes the Asia-Pacific Licensed Operations Acquisition.
See Note 5 for further discussion of the Company’s acquisitions.
(b) Fiscal 2011 other adjustments are primarily attributable to changes in foreign currency exchange rates.
Fiscal 2010 other adjustments include the reallocation of approximately $65 million of goodwill in connection with the Company’s reclassification of its concessions-based sales arrangements to the Retail segment from the Wholesale segment at the beginning of the fourth quarter, as well as changes in foreign currency exchange rates.
Other Intangible Assets Other intangible assets consist of the following:
## Table 5 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td>(Dollars in millions)</td><td>December 31, 2004</td></tr><tr><td>Obligations of equity affiliates</td><td>$131</td></tr><tr><td>Residual value guarantees</td><td>90</td></tr><tr><td>Total</td><td>$221</td></tr></table>
<table><tr><td></td><td colspan="3"> Fiscal Years Ended</td></tr><tr><td></td><td> April 2,   2011</td><td> April 3,   2010</td><td> March 28,   2009</td></tr><tr><td></td><td colspan="3"> (millions)</td></tr><tr><td> Net revenues:</td><td></td><td></td><td></td></tr><tr><td>Wholesale</td><td>$2,777.6</td><td>$2,532.4</td><td>$2,749.5</td></tr><tr><td>Retail</td><td>2,704.2</td><td>2,263.1</td><td>2,074.2</td></tr><tr><td>Licensing</td><td>178.5</td><td>183.4</td><td>195.2</td></tr><tr><td>Total net revenues</td><td>$5,660.3</td><td>$4,978.9</td><td>$5,018.9</td></tr></table>
<table><tr><td></td><td colspan="2"> Fiscal Years Ended</td><td></td><td></td></tr><tr><td></td><td> April 2,   2011</td><td> April 3,   2010</td><td>$ Change</td><td>% Change</td></tr><tr><td></td><td colspan="3">(millions)</td><td></td></tr><tr><td> Net Revenues:</td><td></td><td></td><td></td><td></td></tr><tr><td>Wholesale</td><td>$2,777.6</td><td>$2,532.4</td><td>$245.2</td><td>9.7%</td></tr><tr><td>Retail</td><td>2,704.2</td><td>2,263.1</td><td>441.1</td><td>19.5%</td></tr><tr><td>Licensing</td><td>178.5</td><td>183.4</td><td>-4.9</td><td>-2.7%</td></tr><tr><td>Total net revenues</td><td>$5,660.3</td><td>$4,978.9</td><td>$681.4</td><td>13.7%</td></tr></table>
<table><tr><td></td><td colspan="2">Fiscal Years Ended</td><td></td></tr><tr><td></td><td>April 3, 2010</td><td>March 28, 2009</td><td>$ Change</td></tr><tr><td></td><td colspan="3">(millions)</td></tr><tr><td>Net cash provided by operating activities</td><td>$906.5</td><td>$774.2</td><td>$132.3</td></tr><tr><td>Net cash used in investing activities</td><td>-504.4</td><td>-458.0</td><td>-46.4</td></tr><tr><td>Net cash used in financing activities</td><td>-306.4</td><td>-352.1</td><td>45.7</td></tr><tr><td>Effect of exchange rate changes on cash and cash equivalents</td><td>-13.8</td><td>-34.4</td><td>20.6</td></tr><tr><td>Net increase (decrease) in cash and cash equivalents</td><td>$81.9</td><td>$-70.3</td><td>$152.2</td></tr></table>
<table><tr><td></td><td>Wholesale</td><td> Retail</td><td> Licensing</td><td> Total</td></tr><tr><td></td><td colspan="4"> (millions)</td></tr><tr><td> Balance at March 28, 2009</td><td>$674.1</td><td>$150.8</td><td>$141.5</td><td>$966.4</td></tr><tr><td>Acquisition-related activity <sup>(a)</sup></td><td>—</td><td>—</td><td>1.0</td><td>1.0</td></tr><tr><td>Other adjustments <sup>(b)</sup></td><td>-45.8</td><td>65.0</td><td>—</td><td>19.2</td></tr><tr><td> Balance at April 3, 2010</td><td>628.3</td><td>215.8</td><td>142.5</td><td>986.6</td></tr><tr><td>Acquisition-related activity <sup>(a)</sup></td><td>—</td><td>3.8</td><td>—</td><td>3.8</td></tr><tr><td>Other adjustments <sup>(b)</sup></td><td>16.8</td><td>5.8</td><td>3.3</td><td>25.9</td></tr><tr><td> Balance at April 2, 2011</td><td>$645.1</td><td>$225.4</td><td>$145.8</td><td>$1,016.3</td></tr></table>
<table><tr><td></td><td colspan="3"> April 2, 2011</td><td colspan="3"> April 3, 2010</td></tr><tr><td></td><td> Gross   Carrying   Amount</td><td>Accum. Amort.</td><td> Net</td><td> Gross   Carrying   Amount</td><td>Accum. Amort.</td><td> Net</td></tr><tr><td></td><td colspan="6"> (millions)</td></tr><tr><td><i>Intangible assets subject to amortization:</i></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Re-acquired licensed trademarks</td><td>$233.2</td><td>$-82.5</td><td>$150.7</td><td>$229.4</td><td>$-70.6</td><td>$158.8</td></tr><tr><td>Customer relationships/lists</td><td>278.6</td><td>-67.1</td><td>211.5</td><td>244.7</td><td>-49.3</td><td>195.4</td></tr><tr><td>Other</td><td>24.4</td><td>-7.7</td><td>16.7</td><td>7.4</td><td>-7.2</td><td>0.2</td></tr><tr><td>Total intangible assets subject to amortization</td><td>536.2</td><td>-157.3</td><td>378.9</td><td>481.5</td><td>-127.1</td><td>354.4</td></tr><tr><td><i>Intangible assets not subject to amortization:</i></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Trademarks and brands</td><td>8.8</td><td>—</td><td>8.8</td><td>8.8</td><td>—</td><td>8.8</td></tr><tr><td>Total intangible assets</td><td>$545.0</td><td>$-157.3</td><td>$387.7</td><td>$490.3</td><td>$-127.1</td><td>$363.2</td></tr></table>

Question: What is the sum of Balance at March 28, 2009 in the range of1 and 1000 in 2009 ? (in million)
Answer: 1932.8
Reasoning program: add(674.1,150.8), add(#0,141.5), add(#1,966.4)