Derivative Instruments (Tables)

3 Months Ended

May 04, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Foreign Exchange Forward Contracts

As of May 4, 2019, 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 intercompany inventory sales, the resulting settlement of the foreign currency denominated intercompany accounts receivable, or both:



(in thousands)	Notional Amount ⁽¹⁾
Euro	$	61,003
British pound	$	28,562
Canadian dollar	$	11,890
Japanese yen	$	6,654


⁽¹⁾	Amounts reported are the U.S. Dollar notional amounts outstanding as of May 4, 2019.

As of May 4, 2019, foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets and liabilities were as follows:



(in thousands)	Notional Amount ⁽¹⁾
Chinese yuan	$	22,218
Japanese yen	$	896


⁽¹⁾	Amount reported is the U.S. Dollar notional amount outstanding as of May 4, 2019.

Location and Amounts of Derivative Fair Values on the Condensed Consolidated Balance Sheets

The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets as of May 4, 2019 and February 2, 2019 were as follows:



(in thousands)	Location	May 4, 2019		February 2, 2019		Location	May 4, 2019		February 2, 2019
Derivatives designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	2,508	$	2,162	Accrued expenses	$	258	$	15
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	—	$	—	Accrued expenses	$	58	$	317
Total		$	2,508	$	2,162		$	316	$	332

Location and Amounts of Derivative Gains and Losses on the Condensed Consolidated Statements of Operations and Comprehensive Loss

The location and amounts of derivative gains and losses for the thirteen weeks ended May 4, 2019 and May 5, 2018 on the Condensed Consolidated Statements of Operations and Comprehensive Loss were as follows:



(in thousands)		Thirteen Weeks Ended
Derivatives not designated as hedging instruments:	Location	May 4, 2019		May 5, 2018
Foreign currency exchange forward contracts gain	Other operating income, net	$	275	$	2,702



	Gain Recognized in AOCL on Derivative Contracts⁽¹⁾				Location	Gain (Loss) Reclassified from AOCL into Earnings ⁽²⁾
	Thirteen Weeks Ended
(in thousands)	May 4, 2019		May 5, 2018			May 4, 2019		May 5, 2018
Derivatives in cash flow hedging relationships:
Foreign currency exchange forward contracts	$	2,263	$	8,607	Cost of sales, exclusive of depreciation and amortization	$	2,541	$	(5,072	)


⁽¹⁾	The amount represents the change in fair value of derivative contracts.


⁽²⁾	The amount represents the reclassification from AOCL into earnings when the hedged item affects earnings, which is when merchandise is converted to cost of sales, exclusive of deprecation and amortization.

Substantially all of the unrealized gains or losses related to designated cash flow hedges as of May 4, 2019 will be recognized in cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) over the next twelve months.