INTEREST RATE SWAP AGREEMENT

12 Months Ended

Feb. 02, 2013

INTEREST RATE SWAP AGREEMENT

INTEREST RATE SWAP AGREEMENT

NOTE 15—INTEREST RATE SWAP AGREEMENT

        On October 11, 2012, the Company settled its interest rate swap designated as a cash flow hedge on $145.0 million of the Company's Term Loan prior to its amendment and restatement. The swap was used to minimize interest rate exposure and overall interest costs by converting the variable component of the total interest rate to a fixed rate of 5.036%. Since February 1, 2008, this swap was deemed to be fully effective and all adjustments in the interest rate swap's fair value were recorded to accumulated other comprehensive loss. The settlement of this swap resulted in an interest charge of $7.5 million, which was previously recorded within accumulated other comprehensive loss. As of January 28, 2012, the fair value of this swap was a net $12.5 million payable, recorded within other long-term liabilities on the balance sheet.

        On October 11, 2012, the Company entered into two new interest rate swaps for a notional amount of $50.0 million each that together are designated as a cash flow hedge on the first $100.0 million of the amended and restated Term Loan. The interest rate swaps convert the variable LIBOR portion of the interest payments due on the first $100.0 million of the Term Loan to a fixed rate of 1.855%. As of February 2, 2013, the fair value of the new swap was a net $1.6 million payable, recorded within other long-term liabilities on the balance sheet.