Derivative Financial Instruments (Tables)

6 Months Ended

Aug. 04, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The fair value of derivative instruments in the condensed consolidated balance sheets as of August 4, 2018 and February 3, 2018 is as follows (in thousands):



	Derivative Balance Sheet Location	Fair Value at Aug 4, 2018		Fair Value at Feb 3, 2018
ASSETS:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	Other current assets/ Other assets	$	4,224	$	41
Interest rate swap	Other assets	1,525		1,460
Total derivatives designated as hedging instruments		5,749		1,501
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other current assets	1,726		10
Total		$	7,475	$	1,511
LIABILITIES:
Derivatives designated as hedging instruments:
Cash flow hedges:
Foreign exchange currency contracts	Accrued expenses/ Other long-term liabilities	$	528	$	13,789
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Accrued expenses	483		4,300
Total		$	1,011	$	18,089

Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI 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 the three and six months ended August 4, 2018 and July 29, 2017 (in thousands):



	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss) (1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss)
	Three Months Ended						Three Months Ended
	Aug 4, 2018		Jul 29, 2017				Aug 4, 2018			Jul 29, 2017
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	4,638	$	(14,673	)	Cost of product sales	$	(2,342	)	$	661
Foreign exchange currency contracts	$	—	$	(785	)	Other income (expense)	$	—		$	14
Interest rate swap	$	37	$	(77	)	Interest expense	$	31		$	(26	)



	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss) (1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings (Loss)
	Six Months Ended						Six Months Ended
	Aug 4, 2018		Jul 29, 2017				Aug 4, 2018			Jul 29, 2017
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	12,060	$	(13,816	)	Cost of product sales	$	(4,028	)	$	1,279
Foreign exchange currency contracts	$	2	$	(996	)	Other income (expense)	$	(201	)	$	93
Interest rate swap	$	105	$	(277	)	Interest expense	$	39		$	(62	)

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(1)

The Company recognized gains of $0.8 million and $1.4 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during the three and six months ended August 4, 2018, respectively. The Company recognized gains of $0.9 million and $1.5 million resulting from the ineffective portion related to foreign exchange currency contracts in interest income during the three and six months ended July 29, 2017, respectively. There was no ineffectiveness recognized related to the interest rate swap during the three and six months ended August 4, 2018 and July 29, 2017.

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):



	Three Months Ended						Six Months Ended
	Aug 4, 2018			Jul 29, 2017			Aug 4, 2018			Jul 29, 2017
Beginning balance gain (loss)	$	(6,285	)	$	4,948		$	(14,369	)	$	5,400
Net gains (losses) from changes in cash flow hedges	4,111			(13,093		)	10,579			(12,969		)
Net (gains) losses reclassified into earnings (loss)	2,032			(606		)	3,648			(1,182		)
Ending balance loss	$	(142	)	$	(8,751	)	$	(142	)	$	(8,751	)

Summary of gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income (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 the three and six months ended August 4, 2018 and July 29, 2017 (in thousands):



	Location of Gain (Loss) Recognized in Earnings (Loss)	Gain (Loss) Recognized in Earnings (Loss)
		Three Months Ended					Six Months Ended
		Aug 4, 2018		Jul 29, 2017			Aug 4, 2018		Jul 29, 2017
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other income (expense)	$	2,216	$	(6,540	)	$	5,906	$	(7,333	)