Financial instruments and fair value (Tables)
|
9 Months Ended |
Nov. 01, 2014
|
Fair Value and Presentation of Derivative Instruments in Condensed Consolidated Balance Sheets |
The following table
summarizes the fair value and presentation of derivative
instruments in the condensed consolidated balance
sheets:
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Derivative
assets |
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Fair
value |
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(in
millions) |
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Balance sheet
location |
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November 1,
2014 |
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February 1,
2014 |
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November 2,
2013 |
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Derivatives designated as
hedging instruments:
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Foreign currency
contracts
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Other current assets |
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$ |
0.4 |
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$ |
— |
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$ |
0.2 |
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Foreign currency
contracts
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Other assets |
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— |
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— |
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— |
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Commodity
contracts
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Other current
assets |
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— |
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0.8 |
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1.2 |
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Commodity
contracts
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Other assets |
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— |
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— |
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— |
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$ |
0.4 |
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$ |
0.8 |
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$ |
1.4 |
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Derivatives not designated
as hedging instruments:
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Foreign currency
contracts
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Other current
assets |
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0.4 |
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0.2 |
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1.1 |
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Total derivative
assets
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$ |
0.8 |
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$ |
1.0 |
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$ |
2.5 |
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Derivative
liabilities |
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Fair
value |
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(in
millions) |
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Balance sheet
location |
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November 1,
2014 |
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February 1,
2014 |
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November 2,
2013 |
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Derivatives designated as
hedging instruments:
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Foreign currency
contracts
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Other current liabilities |
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$ |
(0.3 |
) |
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$ |
(2.1 |
) |
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$ |
(0.7 |
) |
Foreign currency
contracts
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Other
liabilities |
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— |
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— |
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(0.2 |
) |
Commodity
contracts
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Other current
liabilities |
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(3.6 |
) |
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(0.8 |
) |
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(0.6 |
) |
Commodity
contracts
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Other
liabilities |
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— |
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— |
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— |
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$ |
(3.9 |
) |
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$ |
(2.9 |
) |
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$ |
(1.5 |
) |
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Derivatives not designated
as hedging instruments:
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Foreign currency
contracts
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Other current
liabilities |
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— |
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— |
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— |
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Total derivative
liabilities
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$ |
(3.9 |
) |
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$ |
(2.9 |
) |
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$ |
(1.5 |
) |
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Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives |
The following table
summarizes the pre-tax gains (losses) recorded in accumulated OCI
for derivatives designated in cash flow hedging
relationships:
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(in
millions) |
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November 1,
2014 |
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February 1,
2014 |
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November 2,
2013 |
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Foreign currency
contracts
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$ |
(1.3 |
) |
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$ |
(2.3 |
) |
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$ |
— |
|
Commodity
contracts
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|
(6.8 |
)(1) |
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(18.8 |
)(1) |
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(26.0 |
)(1) |
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Total
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$ |
(8.1 |
) |
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$ |
(21.1 |
) |
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$ |
(26.0 |
) |
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(1) |
As of November 1,
2014, losses recorded in accumulated OCI include $3.6 million
related to commodity contracts terminated prior to contract
maturity in Fiscal 2014 (February 1, 2014 and November 2,
2013: $18.2 million and $25.9 million, respectively). |
|
Fair Value of Financial Instruments Held Or Issued |
The methods Signet uses to
determine fair value on an instrument-specific basis are detailed
below:
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November 1,
2014 |
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February 1,
2014 |
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November 2,
2013 |
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(in
millions) |
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Carrying
Value |
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Quoted
market
prices
for
identical
assets
(Level 1) |
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Significant other
observable
inputs
(Level 2) |
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Carrying
Value |
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Quoted
market
prices
for
identical
assets
(Level 1) |
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Significant other
observable
inputs
(Level 2) |
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Carrying
Value |
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Quoted
market
prices
for
identical
assets
(Level 1) |
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Significant other
observable
inputs
(Level 2) |
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Assets:
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US Treasury
securities
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$ |
9.6 |
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$ |
9.6 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Corporate equity
securities
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3.3 |
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3.3 |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Foreign currency
contracts
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|
0.8 |
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— |
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|
0.8 |
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|
0.2 |
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— |
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0.2 |
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1.3 |
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— |
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1.3 |
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Commodity
contracts
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— |
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— |
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— |
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0.8 |
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— |
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0.8 |
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1.2 |
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— |
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1.2 |
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US government agency
securities
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1.3 |
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— |
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1.3 |
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— |
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— |
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— |
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— |
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— |
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— |
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Corporate bonds and
notes
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9.3 |
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— |
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9.3 |
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— |
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— |
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— |
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— |
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— |
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— |
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Liabilities:
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Foreign currency
contracts
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(0.3 |
) |
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— |
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(0.3 |
) |
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(2.1 |
) |
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— |
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(2.1 |
) |
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(0.9 |
) |
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— |
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(0.9 |
) |
Commodity
contracts
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(3.6 |
) |
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— |
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(3.6 |
) |
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(0.8 |
) |
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— |
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(0.8 |
) |
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(0.6 |
) |
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— |
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(0.6 |
) |
|
Carrying Amount and Fair Value of Outstanding Debt |
The carrying amount and
fair value of outstanding debt at were as follows:
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November 1,
2014 |
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February 1,
2014 |
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November 2,
2013 |
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(in
millions) |
|
Carrying
Value |
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Fair Value |
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Carrying
Value |
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Fair Value |
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Carrying
Value |
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Fair Value |
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Outstanding
debt:
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Senior notes (Level
2)
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$ |
398.4 |
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$ |
410.5 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Securitization facility
(Level 2)
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|
600.0 |
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600.0 |
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— |
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— |
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— |
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— |
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Term loan (Level
2)
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|
395.0 |
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395.0 |
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Capital lease obligations
(Level 2)
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1.5 |
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1.5 |
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— |
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— |
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— |
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— |
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Total outstanding
debt
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$ |
1,394.9 |
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$ |
1,407.0 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Cash Flow Hedging
|
|
Effect of Derivative Instruments on Condensed Consolidated Income Statements |
The following tables
summarize the effect of derivative instruments designated as cash
flow hedges in OCI and the condensed consolidated statements of
operations:
Foreign
currency contracts
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13 weeks
ended |
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39 weeks
ended |
|
(in millions) |
|
Statement of operations caption |
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November 1,
2014 |
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November 2,
2013 |
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November 1,
2014 |
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November 2,
2013 |
|
(Losses) gains recorded in
accumulated OCI, beginning of period
|
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|
$ |
(3.2 |
) |
|
$ |
2.3 |
|
|
$ |
(2.3 |
) |
|
$ |
1.3 |
|
Current period gains
(losses) recognized in OCI
|
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|
1.6 |
|
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|
(2.1 |
) |
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|
0.4 |
|
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(0.7 |
) |
Losses (gains) reclassified
from accumulated OCI to net (loss) income
|
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|
Cost of sales |
|
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|
0.3 |
|
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(0.2 |
) |
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|
0.6 |
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(0.6 |
) |
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(Losses) gains recorded in
accumulated OCI, end of period
|
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|
$ |
(1.3 |
) |
|
$ |
— |
|
|
$ |
(1.3 |
) |
|
$ |
— |
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Commodity
contracts
|
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13 weeks
ended |
|
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39 weeks
ended |
|
(in
millions) |
|
Statement of operations caption |
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November 1,
2014 |
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November 2,
2013 |
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November 1,
2014 |
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November 2,
2013 |
|
(Losses) gains recorded in
accumulated OCI, beginning of period
|
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|
$ |
(4.9 |
) |
|
$ |
(28.6 |
) |
|
$ |
(18.8 |
) |
|
$ |
(0.5 |
) |
Current period (losses)
gains recognized in OCI
|
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|
(4.3 |
) |
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0.3 |
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(2.6 |
) |
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(27.2 |
) |
Losses (gains) reclassified
from accumulated OCI to net (loss) income
|
|
|
Cost of sales |
|
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|
2.4 |
|
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2.3 |
|
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|
14.6 |
|
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|
1.7 |
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(Losses) gains recorded in
accumulated OCI, end of period
|
|
|
|
|
|
$ |
(6.8 |
) |
|
$ |
(26.0 |
) |
|
$ |
(6.8 |
) |
|
$ |
(26.0 |
) |
|
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Not Designated as Hedging Instrument
|
|
Effect of Derivative Instruments on Condensed Consolidated Income Statements |
The following table
presents the effects of the Company’s derivatives instruments
not designated as cash flow hedges in the condensed consolidated
statements of operations:
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13 weeks
ended |
|
|
39 weeks
ended |
|
(in
millions) |
|
Statement of
operations caption |
|
|
November 1,
2014 |
|
|
November 2,
2013 |
|
|
November 1,
2014 |
|
|
November 2,
2013 |
|
Derivatives not designated
as hedging instruments:
|
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|
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|
|
|
|
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Foreign currency
contracts
|
|
|
Other operating income, net |
|
|
$ |
2.0 |
|
|
$ |
(2.8 |
) |
|
$ |
0.4 |
|
|
$ |
— |
|
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Total
|
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|
$ |
2.0 |
|
|
$ |
(2.8 |
) |
|
$ |
0.4 |
|
|
$ |
— |
|
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