XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Derivative Financial Instruments | 9 Months Ended
--- | ---
Dec. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company in its normal course of business enters into transactions with foreign suppliers and seeks to minimize risks related to certain forecasted inventory purchases by using forward foreign currency exchange contracts. The Company only enters into derivative instruments with highly credit-rated counterparties. The Company does not enter into derivative contracts for trading or speculative purposes. The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of December 30, 2017 and April 1, 2017 (in millions):
|  |  |  |  | Fair Values
| Notional Amounts |  | Current Assets (1) |  | Current Liabilities (2)
| December 30, 2017 |  | April 1, 2017 |  | December 30, 2017 |  | April 1, 2017 |  | December 30, 2017 |  | April 1, 2017
Designated forward foreign currency exchange contracts | $ | 168.9 |  |  | $ | 167.5 |  |  | $ | — |  |  | $ | 4.7 |  |  | $ | 7.1 |  |  | $ | 0.4 |
Undesignated forward foreign currency exchange contracts | 20.6 |  |  | — |  |  | — |  |  | — |  |  | 2.4 |  |  | — |
Total | $ | 189.5 |  |  | $ | 167.5 |  |  | $ | — |  |  | $ | 4.7 |  |  | $ | 9.5 |  |  | $ | 0.4 |
(1) | Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2) | Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets.
The Company records and presents the fair values of all of its derivative assets and liabilities in its consolidated balance sheet on a gross basis as shown in the above table. As of April 1, 2017, the Company had derivative assets of $4.7 million that were subject to master netting arrangements. As of December 30, 2017 and April 1, 2017, the Company had derivative liabilities of $9.5 million and $0.3 million, respectively, that were subject to master netting arrangements. If the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to setoff amounts for similar transactions denominated in the same currencies, its net derivative liabilities as of December 30, 2017 and April 1, 2017 would be $9.5 million and $0.2 million, respectively, and it would have derivative net assets of $4.5 million as of April 1, 2017. The Company’s master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. Changes in the fair value of the effective portion of the Company’s forward foreign currency exchange contracts that are designated as accounting hedges are recorded in equity as a component of accumulated other comprehensive income, and are reclassified from accumulated other comprehensive income (loss) into earnings when the items underlying the hedged transactions are recognized into earnings, as a component of cost of sales within the Company’s consolidated statements of operations and comprehensive income (loss). The following table summarizes the impact of the effective portion of gains and losses on the forward contracts designated as hedges (in millions):
| Three Months Ended
| December 30, 2017 |  | December 31, 2016
| Pre-Tax Loss Recognized in OCI (Effective Portion) |  | Pre-Tax Loss Reclassified from Accumulated OCI into Earnings (Effective Portion) |  | Pre-Tax Gain Recognized in OCI (Effective Portion) |  | Pre-Tax Loss Reclassified from Accumulated OCI into Earnings (Effective Portion)
Forward foreign currency exchange contracts | $ | (2.4 | ) |  | $ | (2.2 | ) |  | $ | 10.2 |  |  | $ | (0.2 | )
| Nine Months Ended
| December 30, 2017 |  | December 31, 2016
| Pre-Tax Loss Recognized in OCI (Effective Portion) |  | Pre-Tax Gain Reclassified from Accumulated OCI into Earnings (Effective Portion) |  | Pre-Tax Gain Recognized in OCI (Effective Portion) |  | Pre-Tax Amount Reclassified from Accumulated OCI into Earnings (Effective Portion)
Forward foreign currency exchange contracts | $ | (17.7 | ) |  | $ | 1.0 |  |  | $ | 12.3 |  |  | $ | — |
Amounts related to ineffectiveness were not material during all periods presented. The Company expects that substantially all of the amounts currently recorded in accumulated other comprehensive loss will be reclassified into earnings during the next twelve months, based upon the timing of inventory purchases and turnover. These amounts are subject to fluctuations in the applicable currency exchange rates. During the three and nine months ended December 30, 2017, the Company recognized a net loss of $31.8 million and a net gain of $3.4 million, respectively, related to changes in the fair value of undesignated forward currency exchange contracts within foreign currency loss (gain) in the Company’s consolidated statement of operations. These amounts were primarily comprised of a $32.0 million loss and a $4.7 million gain during the three and nine months ended December 30, 2017, respectively, related to the derivative contract entered into on July 25, 2017 to mitigate foreign currency exchange risk associated with the Jimmy Choo acquisition that was subsequently settled on October 30, 2017. During the three and nine months ended December 31, 2016, the Company recognized net gains of $1.8 million and $2.1 million, respectively, related to changes in the fair value of undesignated forward currency exchange contracts within foreign currency loss (gain).

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