Derivative Financial Instruments (Tables)

12 Months Ended

Jan. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair value of derivative instruments in the consolidated balance sheets

The fair value of derivative instruments in the consolidated balance sheets as of January 30, 2021 and February 1, 2020 is as follows (in thousands):


	Fair Value at Jan 30, 2021		Fair Value at Feb 1, 2020		Derivative Balance Sheet Location
ASSETS:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	$	—	$	3,987	Other current assets/Other assets


Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	—		867		Other current assets/Other assets
Total	$	—	$	4,854
LIABILITIES:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	$	3,326	$	—	Accrued expenses/Other long-term liabilities
Interest rate swaps	999		348		Other long-term liabilities
Total derivatives designated as hedging instruments	4,325		348
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	1,155		—		Accrued expenses


Total	$	5,480	$	348

Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in accumulated other comprehensive income (loss) and net earnings (loss)

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings (loss) for fiscal 2021, fiscal 2020 and fiscal 2019 (in thousands):


	Year Ended January 30, 2021
	Loss Recognized in OCI1		Gain (Loss) Reclassified from Accumulated OCI into Loss		Location of Gain (Loss) Reclassified from Accumulated OCI into Loss1

Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	(5,614)	$	6,298	Cost of product sales


Interest rate swap	(832)		(181)		Interest expense


	Year Ended February 1, 2020
	Gain (Loss) Recognized in OCI1		Gain Reclassified from Accumulated OCI into Earnings		Location of Gain Reclassified from Accumulated OCI into Earnings1

Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	10,557	$	7,776	Cost of product sales


Interest rate swap	(1,253)		128		Interest expense


	Year Ended February 2, 2019
	Gain (Loss) Recognized in OCI1		Gain (Loss) Reclassified from Accumulated OCI into Loss		Location of Gain (Loss) Reclassified from Accumulated OCI into Loss1

Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	12,973	$	(7,020)	Cost of product sales

Foreign exchange currency contracts	2		(201)		Other income (expense)
Interest rate swap	(324)		103		Interest expense

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1During the first quarter of fiscal 2020, the Company adopted new authoritative guidance which eliminated the requirement to separately measure and report ineffectiveness for instruments that qualify for hedge accounting and generally requires that the entire change in the fair value of such instruments ultimately be presented in the same line as the respective hedge item. As a result, there is no interest component recognized for the ineffective portion of instruments that qualify for hedge accounting, but rather all changes in the fair value of such instruments are included in other comprehensive income (loss). Upon adoption of this guidance, the Company reclassified $2.0 million in gains from retained earnings to accumulated other comprehensive loss related to the previously recorded interest component on outstanding instruments that qualified for hedge accounting. The Company recognized gains of $3.5 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during fiscal 2019. There was no ineffectiveness recognized related to the interest rate swap during fiscal 2021, fiscal 2020 or fiscal 2019.

Summary of net after-tax derivative activity recorded in accumulated other comprehensive income (loss)

The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):


	Year Ended Jan 30, 2021		Year Ended Feb 1, 2020
Beginning balance gain	$	6,300	$	2,999
Cumulative adjustment from adoption of new accounting guidance1	—		1,981
Net gains (losses) from changes in cash flow hedges	(5,709)		8,316
Net gains reclassified to earnings (loss)	(5,467)		(6,996)
Ending balance gain (loss)	$	(4,876)	$	6,300

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Summary of gains (loss) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income (expense) for fiscal 2021, fiscal 2020 and fiscal 2019 (in thousands):


	Location of Gain (Loss) Recognized in Earnings (Loss)	Gain (Loss) Recognized in Earnings (Loss)
		Year Ended Jan 30, 2021		Year Ended Feb 1, 2020		Year Ended Feb 2, 2019
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other income (expense)	$	(5,117)	$	1,254	$	6,785