XML 58 R32.htm IDEA: XBRL DOCUMENT

Derivative Instruments (Tables)

6 Months Ended

Aug. 03, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Foreign Exchange Forward Contracts

As of August 3, 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	$	86,139
British pound	$	42,892
Canadian dollar	$	15,742
Japanese yen	$	9,140


⁽¹⁾	Amounts reported are the U.S. Dollar notional amounts outstanding as of August 3, 2019.

As of August 3, 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	$	21,763
Euro	$	9,485

⁽¹⁾

Amount reported is the U.S. Dollar notional amount outstanding as of August 3, 2019.

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

The location and amounts of derivative fair values of foreign currency exchange forward contracts on the Condensed Consolidated Balance Sheets as of August 3, 2019 and February 2, 2019 were as follows:



(in thousands)	Location	August 3, 2019		February 2, 2019		Location	August 3, 2019		February 2, 2019
Derivatives designated as cash flow hedging instruments	Other current assets	$	5,254	$	2,162	Accrued expenses	$	349	$	15
Derivatives not designated as hedging instruments	Other current assets	203		—		Accrued expenses	—		317
Total		$	5,457	$	2,162		$	349	$	332

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



(in thousands)	Location	August 3, 2019		February 2, 2019		Location	August 3, 2019		February 2, 2019
Derivatives designated as cash flow hedging instruments	Other current assets	$	5,254	$	2,162	Accrued expenses	$	349	$	15
Derivatives not designated as hedging instruments	Other current assets	203		—		Accrued expenses	—		317
Total		$	5,457	$	2,162		$	349	$	332

Refer to Note 5, “FAIR VALUE,” for further discussion of the determination of the fair value of derivative instruments.

Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts designated as cash flow hedging instruments for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 follows:



	Thirteen Weeks Ended					Twenty-six Weeks Ended
(in thousands)	August 3, 2019		August 4, 2018			August 3, 2019		August 4, 2018
Gain recognized in AOCL ⁽¹⁾	$	4,791	$	8,058		$	7,053	$	16,665
Gain (loss) reclassified from AOCL into cost of sales, exclusive of depreciation and amortization ⁽²⁾	$	1,763	$	(150	)	$	4,303	$	(5,222	)


⁽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 depreciation and amortization.

Substantially all of the unrealized gains or losses related foreign currency exchange forward contracts designated as cash flow hedging instruments as of August 3, 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.

Additional information pertaining to derivative gains or losses from foreign currency exchange forward contracts not designated as hedging instruments for the thirteen and twenty-six weeks ended August 3, 2019 and August 4, 2018 follows:



	Thirteen Weeks Ended				Twenty-six Weeks Ended
(in thousands)	August 3, 2019		August 4, 2018		August 3, 2019		August 4, 2018
Gain recognized in other operating income, net	$	906	$	1,894	$	1,181	$	4,595