Derivative Instruments

9 Months Ended

Nov. 03, 2018

We may enter into derivative instruments designed to mitigate certain risks, including collar contracts to mitigate our risk associated with market fluctuations in diesel fuel prices. These contracts are used strictly to limit our risk exposure and not as speculative transactions. Our derivative instruments associated with diesel fuel do not meet the requirements for cash flow hedge accounting. Therefore, our derivative instruments associated with diesel fuel will be marked-to-market to determine their fair value and the associated gains and losses will be recognized currently in other income (expense) on our consolidated statements of operations and comprehensive income.

Our outstanding derivative instrument contracts were comprised of the following:



(In thousands)	November 3, 2018	February 3, 2018
Diesel fuel collars (in gallons)	5,700	3,600

The fair value of our outstanding derivative instrument contracts was as follows:



(In thousands)		Assets (Liabilities)
Derivative Instrument	Balance Sheet Location	November 3, 2018			February 3, 2018
Diesel fuel collars	Other current assets	$	1,080		$	312
	Other assets	452			262
	Accrued operating expenses	(240		)	(77		)
	Other liabilities	(442		)	(107		)
Total derivative instruments		$	850		$	390

The effect of derivative instruments on the consolidated statements of operations and comprehensive income was as follows:



		Amount of Gain (Loss)
(In thousands)		Third Quarter						Year-to-Date
Derivative Instrument	Statements of Operations Location	2018			2017			2018		2017
Diesel fuel collars
Realized	Other income (expense)	$	154		$	(180	)	$	279	$	(678	)
Unrealized	Other income (expense)	(102		)	611			460		961
Total derivative instruments		$	52		$	431		$	739	$	283

The fair values of our derivative instruments are determined using observable inputs from commonly quoted markets. These fair value measurements are classified as Level 2 within the fair value hierarchy.