XML 34 R18.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative Instruments
 9 Months Ended
Nov. 02, 2019
Derivative [Line Items]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS

We enter into derivative instruments, particularly collar contracts designed 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 2, 2019
 
February 2, 2019
Diesel fuel collars (in gallons)
4,500

 
7,200



The fair value of our outstanding derivative instrument contracts was as follows:
(In thousands)
 
Assets (Liabilities)
Derivative Instrument
Balance Sheet Location
November 2, 2019
 
February 2, 2019
Diesel fuel collars
Other current assets
$
157

 
$
523

 
Other assets
297

 
203

 
Accrued operating expenses
(672
)
 
(586
)
 
Other liabilities
(594
)
 
(825
)
Total derivative instruments
$
(812
)
 
$
(685
)


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 and Comprehensive Income Location
2019
 
2018
 
2019
 
2018
Diesel fuel collars
 
 
 
 
 
 
 
 
Realized
Other income (expense)
$
(47
)
 
$
154

 
$
(71
)
 
$
279

Unrealized
Other income (expense)
(278
)
 
(102
)
 
(126
)
 
460

Total derivative instruments
$
(325
)
 
$
52

 
$
(197
)
 
$
739



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.