DERIVATIVE INSTRUMENTS

12 Months Ended

Feb. 01, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of February 1, 2020, 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	$	102,043
British pound	$	44,991
Canadian dollar	$	15,429
Japanese yen	$	9,123


⁽¹⁾	Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2020.

As of February 1, 2020, the Company had outstanding the following 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	$	21,695
Euro	$	11,019


⁽¹⁾	Amounts reported are the U.S. Dollar notional amounts outstanding as of February 1, 2020.

The location and amounts of derivative fair values of foreign currency exchange forward contracts on the Consolidated Balance Sheets as of February 1, 2020 and February 2, 2019 were as follows:



(in thousands)	Location	February 1, 2020		February 2, 2019		Location	February 1, 2020		February 2, 2019
Derivatives designated as cash flow hedging instruments	Other current assets	$	1,869	$	2,162	Accrued expenses	$	1,377	$	15
Derivatives not designated as hedging instruments	Other current assets	100		—		Accrued expenses	83		317
Total		$	1,969	$	2,162		$	1,460	$	332

Refer to Note 4, “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 Fiscal 2019, Fiscal 2018 and Fiscal 2017 follows:



(in thousands)	Fiscal 2019		Fiscal 2018		Fiscal 2017
Gain (loss) recognized in AOCL ⁽¹⁾	$	7,495	$	18,700	$	(21,810	)
Gain (loss) reclassified from AOCL into cost of sales, exclusive of depreciation and amortization ⁽²⁾	$	9,160	$	4,727	$	(4,303	)


⁽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 Consolidated Statements of Operations and Comprehensive Income 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 February 1, 2020 will be recognized within the Consolidated Statements of Operations and Comprehensive Income 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 Fiscal 2019, Fiscal 2018 and Fiscal 2017 follows:



(in thousands)	Fiscal 2019			Fiscal 2018		Fiscal 2017
(Loss) gain recognized in other operating income, net	$	(298	)	$	3,722	$	(3,557	)

Refer to Note 2, “SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative instruments,” for discussion regarding significant accounting policies related to the Company’s derivative instruments.