Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

May 01, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivatives and Consolidated Balance Sheet Location

The following table presents the fair value and location of the company’s derivative instruments on the Condensed Consolidated Balance Sheets:

(Dollars in thousands)	May 1, 2020		May 3, 2019		October 31, 2019
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	13,303	$	8,980	$	8,642
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	7,270		3,881		2,256
Total assets	$	20,573	$	12,861	$	10,898
Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	—	$	—	$	—
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	259		3		9
Total liabilities	$	259	$	3	$	9

Schedule of Effects of Master Netting Arrangements on Fair Value of Derivative Contracts Recorded in Consolidated Balance Sheets

The following table presents the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded in the Condensed Consolidated Balance Sheets:

(Dollars in thousands)	May 1, 2020			May 3, 2019			October 31, 2019
Derivative assets:
Forward currency contracts:
Gross amounts of recognized assets	$	20,662		$	12,861		$	11,056
Gross liabilities offset in the Condensed Consolidated Balance Sheets	(89		)	—			(158		)
Net amounts of assets presented in the Condensed Consolidated Balance Sheets	$	20,573		$	12,861		$	10,898
Derivative liabilities:
Forward currency contracts:
Gross amounts of recognized liabilities	$	(259	)	$	(3	)	$	(9	)
Gross assets offset in the Condensed Consolidated Balance Sheets	—			—			—
Net amounts of liabilities presented in the Condensed Consolidated Balance Sheets	$	(259	)	$	(3	)	$	(9	)

Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Designated as Cash Flow Hedging Instruments

The following tables present the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from effectiveness testing:

	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	May 1, 2020					May 3, 2019
Three Months Ended	Net Sales		Cost of Sales			Net Sales		Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	929,398	$	(622,681	)	$	962,036	$	(640,738	)
Gain (loss) on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain reclassified from AOCL into earnings	2,272		208			1,240		114
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	2,332	$	134		$	1,094	$	(46	)

	Gain Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	May 1, 2020					May 3, 2019
Six Months Ended	Net Sales		Cost of Sales			Net Sales		Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	1,696,881	$	(1,102,076	)	$	1,564,992	$	(1,028,077	)
Gain on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain reclassified from AOCL into earnings	3,477		540			2,478		357
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	2,992	$	145		$	2,317	$	16

The following tables present the impact and location of the amounts reclassified from AOCL into net earnings on the Condensed Consolidated Statements of Earnings and the impact of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the company's derivatives designated as cash flow hedging instruments for the three and six months ended May 1, 2020 and May 3, 2019:

	Three Months Ended
	Gain Reclassified from AOCL into Earnings				Gain Recognized in OCI on Derivatives
(Dollars in thousands)	May 1, 2020		May 3, 2019		May 1, 2020		May 3, 2019
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	2,272	$	1,240	$	2,521	$	2,766
Cost of sales	208		114		153		400
Total derivatives designated as cash flow hedging instruments	$	2,480	$	1,354	$	2,674	$	3,166

	Six Months Ended
	Gain Reclassified from AOCL into Earnings				Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)	May 1, 2020		May 3, 2019		May 1, 2020		May 3, 2019
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	3,477	$	2,478	$	3,105	$	(715	)
Cost of sales	540		357		221		(128		)
Total derivatives designated as cash flow hedging instruments	$	4,017	$	2,835	$	3,326	$	(843	)

Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Not Designated as Hedging Instruments

The following table presents the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives not designated as cash flow hedging instruments:

	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 1, 2020		May 3, 2019		May 1, 2020		May 3, 2019
Gain on derivatives not designated as cash flow hedging instruments
Forward currency contracts:
Other income, net	$	1,557	$	1,790	$	1,777	$	727
Total gain on derivatives not designated as cash flow hedging instruments	$	1,557	$	1,790	$	1,777	$	727