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Derivative Instruments

9 Months Ended

Nov. 02, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of November 2, 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	$	183,360
British pound	$	86,097
Canadian dollar	$	29,673
Japanese yen	$	17,336


⁽¹⁾	Amounts reported are the U.S. Dollar notional amounts outstanding as of November 2, 2019.

As of November 2, 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	$	21,230
Euro	$	17,347
British pound	$	3,884


⁽¹⁾	Amount reported is the U.S. Dollar notional amount outstanding as of November 2, 2019.

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



(in thousands)	Location	November 2, 2019		February 2, 2019		Location	November 2, 2019		February 2, 2019
Derivatives designated as cash flow hedging instruments	Other current assets	$	2,476	$	2,162	Accrued expenses	$	1,613	$	15
Derivatives not designated as hedging instruments	Other current assets	2		—		Accrued expenses	154		317
Total		$	2,478	$	2,162		$	1,767	$	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 thirty-nine weeks ended November 2, 2019 and November 3, 2018 follows:



	Thirteen Weeks Ended					Thirty-nine Weeks Ended
(in thousands)	November 2, 2019			November 3, 2018		November 2, 2019		November 3, 2018
(Loss) gain recognized in AOCL ⁽¹⁾	$	(1,136	)	$	2,051	$	5,918	$	18,716
Gain (loss) reclassified from AOCL into cost of sales, exclusive of depreciation and amortization ⁽²⁾	$	2,541		$	2,814	$	6,845	$	(2,408	)


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


⁽²⁾	Amount represents gain (loss) reclassified from accumulated other comprehensive loss to cost of sales, exclusive of depreciation and amortization, on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 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 to foreign currency exchange forward contracts designated as cash flow hedging instruments as of November 2, 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 thirty-nine weeks ended November 2, 2019 and November 3, 2018 follows:



	Thirteen Weeks Ended						Thirty-nine Weeks Ended
(in thousands)	November 2, 2019			November 3, 2018			November 2, 2019		November 3, 2018
(Loss) gain recognized in other operating income, net	$	(1,023	)	$	(1,912	)	$	157	$	2,684