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Derivative Financial Instruments
 3 Months Ended
May 04, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Hedging Strategy
Foreign Exchange Currency Contracts
The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company’s primary objective is to hedge the variability in forecasted cash flows due to the foreign currency risk. The Company enters into certain forward exchange currency contracts to hedge the risk of a portion of these anticipated foreign currency transactions against foreign currency rate fluctuations. The Company may also hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries.
Interest Rate Swap Agreements
The Company is exposed to interest rate risk on its floating-rate debt. The Company has entered into interest rate swap agreements for certain of these agreements to effectively convert its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s floating-rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. Refer to Note 10 for further information.
Summary of Derivative Instruments
The fair value of derivative instruments in the condensed consolidated balance sheets is (in thousands):
 Fair Value at May 4, 2024Fair Value at Feb 3, 2024Derivative Balance Sheet Location
ASSETS:   
Derivatives designated as hedging instruments:   
Cash flow hedges:
   Foreign exchange currency contracts$2,191 $1,590 Other current assets/Other assets
   Interest rate swap835 797 Other assets
Total derivatives designated as hedging instruments3,026 2,387 
Derivatives not designated as hedging instruments:  
Foreign exchange currency contracts1,069 688 Other current assets
2028 Bond Hedge138,269 85,918 Other assets
Total derivatives not designated as hedging instruments139,338 86,606 
Total$142,364 $88,993  
LIABILITIES:   
Derivatives designated as hedging instruments:   
Cash flow hedges:
   Foreign exchange currency contracts$285 $763 Accrued expenses/
Other long-term liabilities
   Interest rate swap— — Other long-term liabilities
Total derivatives designated as hedging instruments285 763 
Derivatives not designated as hedging instruments:   
Foreign exchange currency contracts113 939 Accrued expenses
Embedded derivative30,230 16,390 Convertible senior notes due 2028, net
Total derivatives not designated as hedging instruments30,343 17,329 
Total$30,628 $18,092  
Derivatives Designated as Hedging Instruments
Foreign Exchange Currency Contracts Designated as Cash Flow Hedges
During the three months ended May 4, 2024, the Company purchased U.S. dollar forward contracts in Europe totaling US$135.0 million that were designated as cash flow hedges. As of May 4, 2024, the Company had forward contracts outstanding for its European operations of US$195.0 million to hedge forecasted merchandise purchases, which are expected to mature over the next 14 months.
As of May 4, 2024, AOCL related to foreign exchange currency contracts included a $1.6 million net unrealized gain, net of tax, of which $1.3 million will be recognized in cost of product sales over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values.
At February 3, 2024, the Company had forward contracts outstanding for its European operations of $104.0 million that were designated as cash flow hedges.
Interest Rate Swap Agreement Designated as Cash Flow Hedge
As of May 4, 2024, AOCL related to the interest rate swap agreement included a net unrealized gain of $0.6 million, net of tax, which will be recognized in interest expense over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values.
The following summarizes the gains (losses) before income taxes recognized on derivative instruments designated as cash flow hedges in other comprehensive income (loss) (“OCL”) and net earnings (loss) (in thousands): 
Gain (Loss) Recognized in OCL
Location of Gain (Loss) Reclassified from AOCL into Earnings (Loss)Gain (Loss) Reclassified from AOCL into Earnings (Loss)
May 4, 2024Apr 29, 2023May 4, 2024Apr 29, 2023
Three Months Ended
Derivatives designated as cash flow hedges:    
Foreign exchange currency contracts$1,171 $(1,072)Cost of product sales$(2,045)$5,893 
Interest rate swap193 15 Interest expense155 128 
The following summarizes net after income tax derivative activity recorded in AOCL (in thousands):
 Three Months Ended
 May 4, 2024Apr 29, 2023
Beginning balance loss$(544)$(1,584)
Net gain (loss) from changes in cash flow hedges1,145 (942)
Net (gain) loss reclassified into earnings (loss)1,620 (5,343)
Ending balance gain (loss)$2,221 $(7,869)
Foreign Exchange Currency Contracts Not Designated as Hedging Instruments
As of May 4, 2024, the Company had euro foreign exchange currency contracts to purchase US$73.0 million expected to mature over the next 10 months. As of February 3, 2024, the Company had euro foreign exchange currency contracts to purchase US$52.0 million.
The following summarizes the gains (losses) before income taxes recognized on derivative instruments not designated as hedging instruments in other income (expense) (in thousands):
 Location of Gains (Losses) Recognized in Earnings (Loss)Gains (Losses) Recognized in Earnings (Loss)
Three Months Ended
 May 4, 2024Apr 29, 2023
Foreign exchange currency contractsOther income (expense)$521 $(625)
2028 Bond HedgeOther income (expense)$45,813 $— 
Embedded derivativesOther income (expense)$(7,302)$—