Derivative Instruments

9 Months Ended

Nov. 02, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

5. Derivative Instruments

The interest rate swap, caps and collars are accounted for as cash flow hedges because they are expected to be highly effective in hedging variable rate interest payments. Changes in the fair value of the cash flow hedges are reported as a component of AOCI. As of November 2, 2024, AOCI included unrealized losses of $0.4 million ($0.3 million, net of tax). As of February 3, 2024, AOCI included unrealized losses of $2.2 million ($1.7 million, net of tax). Approximately $0.8 million and $3.0 million of pre-tax gains deferred in AOCI were reclassified to interest expense during the thirteen and thirty-nine week periods ended November 2, 2024, respectively. Approximately $0.4 million of pre-tax gains and $0.7 million of pre-tax losses deferred in AOCI were reclassified to interest expense during the thirteen and thirty-nine week periods ended October 28, 2023, respectively. The Company currently estimates that $1.1 million of losses related to trade date costs on its cash flow hedges that are currently deferred in AOCI will be reclassified to interest expense in the consolidated statement of operations within the next twelve months. This estimate could vary based on actual amounts as a result of changes in market conditions.

The cash flow hedges are reflected in the Company’s consolidated balance sheets as follows (in thousands):


Assets (Liabilities)	Balance sheet location	November 2, 2024			February 3, 2024
Current asset portion of cash flow hedges	Other current assets	$	1,538		$	2,259
Non-current asset portion of cash flow hedges	Other long-term assets	$	532		$	—
Current liability portion of cash flow hedges	Accrued expenses and other liabilities	$	(584	)	$	(124	)
Non-current liability portion of cash flow hedges	Other long-term liabilities	$	(1,051	)	$	(3,067	)