We extend our reach to additional consumer groups through our 158 Polo Ralph Lauren factory stores worldwide.
During Fiscal 2008, we added 13 new Polo Ralph Lauren factory stores, net.
Our factory stores are generally located in outlet malls.
We operated the following factory retail stores as of March 29, 2008: Factory Retail Stores
## Table 0 ##
?
Polo Ralph Lauren factory stores offer selections of our menswear, womenswear, children’s apparel, accessories, home furnishings and fragrances.
Ranging in size from approximately 2,000 to 33,000 square feet, with an average of approximately 8,600 square feet, these stores are principally located in major outlet centers in 36 states and Puerto Rico.  ?
European factory stores offer selections of our menswear, womenswear, children’s apparel, accessories, home furnishings and fragrances.
Ranging in size from approximately 2,400 to 13,200 square feet, with an average of approximately 6,700 square feet, these stores are located in 7 countries, principally in major outlet centers.
Factory stores obtain products from our retail stores, our product licensing partners and our suppliers.
RalphLauren.
com In addition to our stores, our Retail segment sells Ralph Lauren products online through our e-commerce website, RalphLauren.
com (http://www.
RalphLauren.
com).
RalphLauren.
com offers our customers access to the full breadth of Ralph Lauren apparel, accessories and home products, allows us to reach retail customers on a multi-channel basis and reinforces the luxury image of our brands.
RalphLauren.
com averaged 2.6 million unique visitors a month and acquired approximately 290,000 new customers, resulting in 1.3 million total customers in Fiscal 2008.
RalphLauren.
com is owned and operated by Ralph Lauren Media, LLC (“RL Media”).
We acquired the remaining 50% equity interest in RL Media, formerly held by NBC-Lauren Media Holdings, Inc. , a subsidiary wholly owned by the National Broadcasting Company, Inc.  (37.5%) and Value Vision Media, Inc.  (“Value Vision”) (12.5%) (the “RL Media Minority Interest Acquisition”), in late Fiscal 2007.
Our Licensing Segment Through licensing alliances, we combine our consumer insight, design, and marketing skills with the specific product or geographic competencies of our licensing partners to create and build new businesses.
We generally seek out licensing partners who: ?
are leaders in their respective markets; ?
contribute the majority of the product development costs; ?
provide the operational infrastructure required to support the business; and ?
own the inventory.
We grant our product licensees the right to manufacture and sell at wholesale specified categories of products under one or more of our trademarks.
We grant our international geographic area licensing partners exclusive rights to distribute certain brands or classes of our products and operate retail stores in specific international territories.
These geographic area licensees source products from us, our product licensing partners and independent sources.
Each licensing partner pays us royalties based upon its sales of our products, generally subject to a minimum royalty requirement for the right to use the Company’s trademarks and design services.
In addition, licensing partners may be required to allocate a portion of their revenues to advertise our products and share in the creative costs associated
Amortization of Intangible Assets.
Amortization of intangible assets increased by $6.5 million, to $15.6 million in Fiscal 2007 from $9.1 million in Fiscal 2006.
The increase was due to the amortization of intangible assets related to the Polo Jeans Business acquired in February 2006 and the Footwear Business acquired in July 2005.
Impairment of Retail Assets.
A non-cash impairment charge of $10.8 million was recognized during Fiscal 2006 to reduce the carrying value of fixed assets largely relating to our Club Monaco brand.
No impairment charges were recognized in Fiscal 2007.
Restructuring Charges.
Restructuring charges decreased by $4.4 million, to $4.6 million in Fiscal 2007 from $9.0 million in Fiscal 2006.
Restructuring charges recognized in both periods were principally associated with the Club Monaco retail business.
See Note 11 to the accompanying audited consolidated financial statements for further discussion.
Operating Income.
Operating income increased by $136.0 million, or 26.3%, to $652.6 million in Fiscal 2007 from $516.6 million in Fiscal 2006.
Operating income as a percentage of revenue increased 140 basis points, to 15.2% in Fiscal 2007 from 13.8% in Fiscal 2006, reflecting our revenue growth, gross profit percentage expansion and improved SG&A expense leveraging.
Operating income for our three business segments is provided below:
## Table 1 ##
Wholesale operating income increased by $79.5 million, primarily as a result of higher net sales and improved gross margin rates in most product lines, as well as the incremental contribution from the newly acquired Polo Jeans Business and the new Chaps product lines.
These increases were partially offset by increases in SG&A expenses in support of new product lines across all geographic territories and higher amortization expenses associated with intangible assets recognized in acquisitions.
Retail operating income increased by $84.2 million, primarily as a result of increased net sales and improved gross margin rates, as well as the absence of a non-cash impairment charge of $10.8 million recognized in Fiscal 2006.
These increases were partially offset by an increase in selling related salaries and associated costs in connection with the increase in retail sales, including RalphLauren.
com, and worldwide store expansion, including the new Tokyo flagship store.
Licensing operating income decreased by $11.9 million primarily due to the loss of royalty income formerly collected in connection with the Footwear and Polo Jeans Businesses, which have now been acquired.
The decline in Home royalties also contributed to the decrease along with the decline in eyewear royalties, due to the wind-down of the Company’s pre-existing licensing agreement.
These decreases were partially offset by an increase in international royalties, as well as the accelerated receipt and recognition of approximately $8 million of minimum royalty and design-service fees in connection with the termination of a domestic license agreement during Fiscal 2007.
Unallocated corporate expenses increased by $24.3 million, primarily as a result of increases in brand-related marketing, payroll-related and facilities costs to support the ongoing growth of our businesses.
The increase in compensation-related costs includes higher stock-based compensation expense due to the adoption of FAS 123R (as further discussed in Note 18 to the accompanying audited consolidated financial statements)
Fiscal 2007 Compared to Fiscal 2006
## Table 2 ##
Net Cash Provided by Operating Activities.
Net cash provided by operating activities increased to $796.1 million during Fiscal 2007, compared to $449.1 million for Fiscal 2006.
This $347.0 million increase in operating cash flow was driven primarily by the increase in net income, the receipt of approximately $180 million under the new Eyewear Licensing Agreement (net of certain tax withholdings) and the absence of the $100 million payment to settle the Jones-related Litigation in Fiscal 2006, partially offset by higher tax payments made in Fiscal 2007.
Also offsetting the increase in operating cash flow was an increase in working capital needs during Fiscal 2007, primarily as a result of recent expansions and the overall growth in the business.
This increase in working capital needs was partially offset by a decrease in accounts receivable days sales outstanding as a result of improved cash collections in the Company’s Wholesale segment.
On a comparative basis, operating cash flows were reduced by $33.7 million as a result of a change in the reporting of excess tax benefits from stock-based compensation arrangements.
That is, prior to the adoption of FAS 123R, benefits of tax deductions in excess of recognized compensation costs were reported as operating cash flows.
FAS 123R requires excess tax benefits to be reported as a financing cash inflow rather than in operating cash flows as a reduction of taxes paid.
Net Cash Used in Investing Activities.
Net cash used in investing activities was $434.6 million for Fiscal 2007, as compared to $539.2 million for Fiscal 2006.
The net decrease in cash used in investing activities is primarily due to acquisition-related activities.
In Fiscal 2007, the Company used $175 million to fund the acquisition of the remaining 50% equity interest in RL Media that it did not previously own, whereas in Fiscal 2006, approximately $380 million was used primarily to fund the acquisition of the Polo Jeans and Footwear Businesses.
In addition, net cash used in investing activities for Fiscal 2007 included $74.5 million of restricted cash placed in escrow with certain banks as collateral to secure guarantees of a corresponding amount made by the banks to certain international tax authorities on behalf of the Company (see “Restricted Cash” within Note 3 to the accompanying audited consolidated financial statements for further discussion).
Net cash used in investing activities also included $184.0 million relating to capital expenditures, as compared to $158.6 million in the prior fiscal year.
Net Cash (Used in)/Provided by Financing Activities.
Net cash used in financing activities was $95.2 million for Fiscal 2007, compared to net cash provided by financing activities of $33.5 million in Fiscal 2006.
The increase in net cash used in financing activities during Fiscal 2007 principally related to the repayment of approximately A227 million principal amount ($291.6 million) of the Company’s 1999 Euro Debt and the repurchase of 3.5 million shares of Class A common stock pursuant to its common stock repurchase program at a cost of $231.3 million.
Partially offsetting the increase was the receipt of proceeds from the issuance of A300 million principal amount (approximately $380 million) of 2006 Euro Debt.
This net increase in cash used in financing activities was partially offset by the change in the reporting of excess tax benefits from stock-based compensation arrangements of $33.7 million.
Liquidity The Company’s primary sources of liquidity are the cash flow generated from its operations, $450 million of availability under its credit facility, available cash and equivalents, investments and other financing options.
These sources of liquidity are needed to fund the Company’s ongoing cash requirements, including working capital requirements, global retail store expansion, construction and renovation of shop-in-shops, investment in technological infrastructure, acquisitions, dividends, debt repayment, stock repurchases, contingent liabilities (including uncertain tax positions) and other corporate activities.
Management believes that the Company’s existing resources
POLO RALPH LAUREN CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) principal balance of each security.
Auction rate securities have been classified as Level 2 assets as of March 28, 2009.
Cash and cash equivalents, short-term investments and accounts receivable are recorded at carrying value, which approximates fair value.
Restricted cash is reported at carrying value.
The Company’s Euro Debt, which is adjusted for foreign currency fluctuations, is also reported at carrying value.
Derivative Financial Instruments The Company primarily has exposure to changes in foreign currency exchange rates relating to certain anticipated cash flows from its international operations and possible declines in the fair value of reported net assets of certain of its foreign operations, as well as changes in the fair value of its fixed-rate debt relating to changes in interest rates.
Consequently, the Company periodically uses derivative financial instruments to manage such risks.
The following tables summarize the Company’s outstanding derivative instruments and the related impact on its consolidated financial statements as of March 28, 2009 and March 29, 2008:
## Table 3 ##
(a) FC = Forward exchange contracts for the sale or purchase of foreign currencies; Euro Debt = A300 million principal notes due October 2013.
(b) PP = Prepaid expenses and other; OA = Other assets; AE = Accrued expenses and other; LTD = Long-term debt.
(c) The Company’s Euro Debt is reported at carrying value in the Company’s consolidated balance sheets.
The carrying value of the Euro Debt was $406.4 as of March 28, 2009 and $472.8 million as of March 29, 2008.
(d) Primarily related to forward foreign exchange contracts entered into in connection with the Company’s Japanese Business Acquisitions minority squeeze-out, as discussed in Note 5.
(e) $2.6 million included within PP and $1.3 million included within OA.

Tables referenced above, in order (Table 0 first):
<table><tr><td>Location</td><td>Ralph Lauren</td></tr><tr><td>United States and Canada</td><td>132</td></tr><tr><td>Europe</td><td>22</td></tr><tr><td>Japan</td><td>4</td></tr><tr><td>Total</td><td>158</td></tr></table>
<table><tr><td></td><td colspan="2">Fiscal Years Ended</td><td></td><td></td></tr><tr><td></td><td>March 31, 2007</td><td>April 1, 2006</td><td>$ Change</td><td>% Change</td></tr><tr><td></td><td colspan="3">(millions)</td><td></td></tr><tr><td> Operating Income:</td><td></td><td></td><td></td><td></td></tr><tr><td>Wholesale</td><td>$477.8</td><td>$398.3</td><td>$79.5</td><td>20.0%</td></tr><tr><td>Retail</td><td>224.2</td><td>140.0</td><td>84.2</td><td>60.1%</td></tr><tr><td>Licensing</td><td>141.6</td><td>153.5</td><td>-11.9</td><td>-7.8%</td></tr><tr><td></td><td>843.6</td><td>691.8</td><td>151.8</td><td>21.9%</td></tr><tr><td>Less:</td><td></td><td></td><td></td><td></td></tr><tr><td>Unallocated corporate expenses</td><td>-183.4</td><td>-159.1</td><td>-24.3</td><td>15.3%</td></tr><tr><td>Unallocated legal and restructuring charges</td><td>-7.6</td><td>-16.1</td><td>8.5</td><td>-52.8%</td></tr><tr><td>Total operating income</td><td>$652.6</td><td>$516.6</td><td>$136.0</td><td>26.3%</td></tr></table>
<table><tr><td></td><td colspan="2">Fiscal Years Ended</td><td></td></tr><tr><td></td><td>March 31, 2007</td><td>April 1, 2006</td><td>$ Change</td></tr><tr><td></td><td colspan="3">(millions)</td></tr><tr><td>Net cash provided by operating activities</td><td>$796.1</td><td>$449.1</td><td>$347.0</td></tr><tr><td>Net cash used in investing activities</td><td>-434.6</td><td>-539.2</td><td>104.6</td></tr><tr><td>Net cash provided by (used in) financing activities</td><td>-95.2</td><td>33.5</td><td>-128.7</td></tr><tr><td>Effect of exchange rate changes on cash and cash equivalents</td><td>11.9</td><td>-8.2</td><td>20.1</td></tr><tr><td>Net increase (decrease) in cash and cash equivalents</td><td>$278.2</td><td>$-64.8</td><td>$343.0</td></tr></table>
<table><tr><td></td><td colspan="2"> Notional Amounts</td><td colspan="4"> Derivative Assets</td><td colspan="4">Derivative (Liabilities)</td></tr><tr><td> Derivative Instrument<sup>(a)</sup></td><td> March 28,   2009</td><td> March 29,   2008</td><td> Balance   Sheet   Line<sup>(b)</sup></td><td> Fair   Value</td><td> Balance   Sheet   Line<sup>(b)</sup></td><td> Fair   Value</td><td> Balance   Sheet   Line<sup>(b)</sup></td><td>Fair Value</td><td> Balance   Sheet   Line<sup>(b)</sup></td><td>Fair Value</td></tr><tr><td></td><td></td><td></td><td colspan="2"> March 28, 2009</td><td colspan="2"> March 29, 2008</td><td colspan="2">March 28, 2009</td><td colspan="2">March 29, 2008</td></tr><tr><td></td><td colspan="10">(millions)</td></tr><tr><td>Designated Hedges:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>FC — Inventory purchases</td><td>$239.4</td><td>$257.0</td><td>PP</td><td>$22.5</td><td>PP</td><td>$1.4</td><td>AE</td><td>$-0.7</td><td>AE</td><td>$-21.9</td></tr><tr><td>FC — I/C royalty payments</td><td>89.9</td><td>14.2</td><td> <sup>(e)</sup></td><td>3.9</td><td>—</td><td>—</td><td>AE</td><td>-1.2</td><td>AE</td><td>-1.0</td></tr><tr><td>FC — Interest payments</td><td>17.9</td><td>19.2</td><td>PP</td><td>0.1</td><td>PP</td><td>1.9</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>FC — I/C marketing contributions</td><td>3.0</td><td>1.9</td><td>—</td><td>—</td><td>PP</td><td>0.1</td><td>AE</td><td>-0.4</td><td>—</td><td>—</td></tr><tr><td>FC — Operational obligations</td><td>0.7</td><td>30.2</td><td>PP</td><td>0.1</td><td>PP</td><td>0.5</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net Investment — Euro Debt</td><td>406.4</td><td>381.2</td><td>—</td><td>—</td><td>—</td><td>—</td><td>LTD</td><td>-320.0 (c)</td><td>LTD</td><td>-423.0 (c)</td></tr><tr><td>Total Designated Hedges</td><td>$757.3</td><td>$703.7</td><td></td><td>$26.6</td><td></td><td>$3.9</td><td></td><td>$-322.3</td><td></td><td>$-445.9</td></tr><tr><td>Undesignated Hedges:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>FC — Inventory purchases</td><td>$16.9</td><td>$11.7</td><td>PP</td><td>$0.5</td><td>—</td><td>$—</td><td>AE</td><td>$-0.3</td><td>AE</td><td>$-0.3</td></tr><tr><td>FC — Forecasted sales</td><td>—</td><td>48.2</td><td>—</td><td>—</td><td>PP</td><td>1.7</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>FC — Other <sup>(d)</sup></td><td>15.5</td><td>5.0</td><td>PP</td><td>0.6</td><td>—</td><td>—</td><td>AE</td><td>-0.8</td><td>AE</td><td>-0.4</td></tr><tr><td>Total Undesignated Hedges</td><td>$32.4</td><td>$64.9</td><td></td><td>$1.1</td><td></td><td>$1.7</td><td></td><td>$-1.1</td><td></td><td>$-0.7</td></tr><tr><td>Total Derivatives</td><td>$789.7</td><td>$768.6</td><td></td><td>$27.7</td><td></td><td>$5.6</td><td></td><td>$-323.4</td><td></td><td>-446.6</td></tr></table>

Question: What will Net Investment — Euro Debt for Notional Amounts be like in 2010 if it develops with the same increasing rate as current? (in million)
Answer: 433.266
Reasoning program: subtract(406.4,381.2), divide(#0,381.2), add(const_1,#1), multiply(406.4,#2)