XML 58 R26.htm IDEA: XBRL DOCUMENT v2.4.1.9
Derivatives (Tables)
 3 Months Ended
May 02, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding Foreign Exchange Forward Contracts
As of May 2, 2015, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge either a portion, or all, of forecasted foreign-currency-denominated inter-company inventory sales, the resulting settlement of the foreign-currency-denominated inter-company accounts receivable, or both:
(in thousands)
Notional Amount(1)
Euro
$
51,775

British Pound
$
20,360

Canadian Dollar
$
11,438


(1) 
Amounts are reported in U.S. Dollar equivalent as of May 2, 2015.

The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets/liabilities. Examples of monetary assets/liabilities include cash balances, receivables and payables. Fluctuations in exchange rates result in transaction gains/(losses) being recorded in earnings as U.S. GAAP requires that monetary assets/liabilities be remeasured at the spot exchange rate at quarter-end or upon settlement. The Company has chosen not to apply hedge accounting to these instruments because there are no differences in the timing of gain or loss recognition on the hedging instrument and the hedged item.

As of May 2, 2015, the Company had outstanding the following foreign currency forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities:
(in thousands)
Notional Amount(1)
Euro
$
14,570

Canadian Dollar
$
4,876

British Pound
$
3,786


(1) 
Amounts are reported in U.S. Dollar equivalent as of May 2, 2015.
Location and Amounts of Derivative Fair Values on the Consolidated Balance Sheets
The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets as of May 2, 2015 and January 31, 2015 were as follows:
 
Asset Derivatives
 
Liability Derivatives
(in thousands)
Balance Sheet Location
 
May 2,
2015
 
January 31,
2015
 
Balance Sheet Location
 
May 2,
2015
 
January 31,
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange forward contracts
Other current assets
 
$
4,816

 
$
10,283

 
Other liabilities
 
$
274

 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange forward contracts
Other current assets
 
$
22

 
$
10

 
Other liabilities
 
$
—

 
$
—

Total
Other current assets
 
$
4,838

 
$
10,293

 
Other liabilities
 
$
274

 
$
—
Location and Amounts of Derivative Gains and Losses on the Consolidated Statements of Operations and Comprehensive Income (Loss)
The location and amounts of derivative gains and losses for the thirteen weeks ended May 2, 2015 and May 3, 2014 on the Condensed Consolidated Statements of Operations and Comprehensive Loss were as follows:
 
 
 
Thirteen Weeks Ended
 
 
 
May 2, 2015
 
May 3, 2014
(in thousands)
Location
 
Gain/(Loss)
 
Gain/(Loss)
Derivatives not designated as hedging instruments:
 
 
 
 
Foreign currency exchange forward contracts
Other operating income, net
 
$
160

 
$
(688
)
 
 
Effective Portion
 
Ineffective Portion and Amount Excluded from Effectiveness Testing
 
Amount of Gain (Loss) Recognized in OCI on Derivative Contracts (a)
 
Location of Gain (Loss) Reclassified from AOCI into Earnings
 
Amount of Gain (Loss) Reclassified from AOCI into Earnings (b)
 
Location of Gain Recognized in Earnings on Derivative Contracts
 
Amount of Gain  Recognized in Earnings on Derivative Contracts (c)
 
Thirteen Weeks Ended
(in thousands)
May 2,
2015
 
May 3,
2014
 
 
 
May 2,
2015
 
May 3,
2014
 
 
 
May 2,
2015
 
May 3,
2014
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange forward contracts
$
219

 
$
(5,025
)
 
Cost of goods sold
 
$
6,036

 
$
(1,434
)
 
Other operating income, net
 
$
35

 
$
3


(a)
The amount represents the change in fair value of derivative contracts due to changes in spot rates.
(b)
The amount represents the reclassification from OCI into earnings when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers.
(c)
The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings.