XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Derivatives and Hedging Activities | 3 Months Ended
--- | ---
Apr. 29, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions and principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company, on a routine basis and in the normal course of business, experiences expenses denominated in Swiss Franc ("CHF"), Canadian Dollar ("CAD") and Great British Pound ("GBP"). Such expenses expose the Company to exchange rate fluctuations between these foreign currencies and the U.S. Dollar ("USD"). The Company uses derivative financial instruments in the form of forward contracts to mitigate risk associated with adverse movements in these foreign currency exchange rates on a portion of foreign denominated expenses expected to be realized during the current and following fiscal year. Currency forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date. The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The Company is currently applying hedge accounting to all foreign currency derivatives and has designated these hedges as cash flow hedges. At April 29, 2018, the Company had the following outstanding foreign exchange contracts:
(in thousands) |  |  |  |  |  |
Foreign Exchange Contracts |  | Number of Instruments |  | Sell Notional Value |  | Buy Notional Value
Sell USD/Buy CAD Forward Contract |  | 9 |  | $ | 12,829 |  |  | C$ | 16,500 |
Total |  | 9 |  |  |  |
These contracts met the criteria for cash flow hedges and the unrealized gains or losses, after tax, are recorded as a component of "Accumulated other comprehensive loss" within the Balance Sheet. The effective portions of cash flow hedges are recorded in accumulated other comprehensive income or loss ("AOCI") until the hedged item is recognized in selling, general and administrative ("SG&A") expense within the Statements of Income when the underlying hedged expense is recognized. Any ineffective portions of cash flow hedges are recorded in "Non-operating expense, net" within the Company’s Statements of Income. The Company presents its derivative assets and liabilities at their gross fair values on the Balance Sheets. The Company had no outstanding foreign exchange contracts at January 28, 2018. The table below summarizes the carrying values of derivative instruments as of April 29, 2018:
|  | Carrying Values of Derivative Instruments as of April 29, 2018
(in thousands) |  | Fair Value - Assets (2) |  | Fair Value - (Liabilities) (2) |  | Derivative Net Carrying Value
Derivatives designated as hedging instruments |  |  |  |  |  |
Foreign exchange contracts (1) |  | $ | 64 |  |  | $ | — |  |  | $ | 64 |
Total derivatives |  | $ | 64 |  |  | $ | — |  |  | $ | 64 |
(1) Assets are included in "Other current assets" and liabilities are included in "Accrued liabilities" within the Balance Sheets. (2) The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Please refer to Note 6. The following table summarizes the amount of income recognized from derivative instruments for the three months ended April 29, 2018 and April 30, 2017 as well as the line items within the accompanying Statements of Income where the results are recorded for cash flow hedges:
| Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) |  | Location of Gain or Loss into Income (Effective Portion) |  | Amount of Gain Reclassified from AOCI into Income (Effective Portion) |  | Location of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) |  | Amount of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
| Three Months Ended |  |  | Three Months Ended |  |  | Three Months Ended
(in thousands) | April 29, 2018 |  | April 30, 2017 |  |  | April 29, 2018 |  | April 30, 2017 |  |  | April 29, 2018 |  | April 30, 2017
Sell USD/Buy CAD Forward Contract | $ | 65 |  |  | $ | (35 | ) |  | SG&A |  | $ | (1 | ) |  | $ | — |  |  | SG&A |  | $ | — |  |  | $ | — |
Sell USD/Buy GBP Forward Contract | — |  |  | 234 |  |  | SG&A |  | — |  |  | (59 | ) |  | SG&A |  | — |  |  | — |
| $ | 65 |  |  | $ | 199 |  |  |  |  | $ | (1 | ) |  | $ | (59 | ) |  |  |  | $ | — |  |  | $ | — |
The amount of gains related to the effective portion of derivative instruments designated as cash flow hedges included in AOCI within the Balance Sheets for the three months ended April 29, 2018 and April 30, 2017 was $0.1 million and $0.1 million, respectively. Any gains or losses under these contracts are expected to be realized and reclassified to selling, general and administrative expenses within the next nine months.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration