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Derivative Financial Instruments (Tables) | 6 Months Ended
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Aug. 03, 2019
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 3, 2019 and February 2, 2019 is as follows (in thousands):
| Derivative Balance Sheet Location |  | Fair Value at Aug 3, 2019 |  | Fair Value at Feb 2, 2019
ASSETS: |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |
Foreign exchange currency contracts | Other current assets/ Other assets |  | $ | 5,894 |  |  | $ | 4,058 |
Interest rate swap | Other assets |  | — |  |  | 1,033 |
Total derivatives designated as hedging instruments |  |  | 5,894 |  |  | 5,091 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Foreign exchange currency contracts | Other current assets |  | 1,018 |  |  | 632 |
Total |  |  | $ | 6,912 |  |  | $ | 5,723 |
LIABILITIES: |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |
Foreign exchange currency contracts | Accrued expenses and other current liabilities |  | $ | — |  |  | $ | 77 |
Interest rate swap | Other long-term liabilities |  | 53 |  |  | — |
Total |  |  | $ | 53 |  |  | $ | 77 |
Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings | The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for the three and six months ended August 3, 2019 and August 4, 2018 (in thousands):
| Gains (Losses) Recognized in OCI1 |  | Location of Gains (Losses) Reclassified from Accumulated OCI into Earnings1 |  | Gains (Losses) Reclassified from Accumulated OCI into Earnings
| Three Months Ended |  |  | Three Months Ended
| Aug 3, 2019 |  | Aug 4, 2018 |  |  | Aug 3, 2019 |  | Aug 4, 2018
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts | $ | 3,063 |  |  | $ | 4,638 |  |  | Cost of product sales |  | $ | 1,757 |  |  | $ | (2,342 | )
Interest rate swap | (777 | ) |  | 37 |  |  | Interest expense |  | 44 |  |  | 31 |
| Gains (Losses) Recognized in OCI1 |  | Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings1 |  | Gains (Losses) Reclassified from Accumulated OCI into Earnings
| Six Months Ended |  |  | Six Months Ended
| Aug 3, 2019 |  | Aug 4, 2018 |  |  | Aug 3, 2019 |  | Aug 4, 2018
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts | $ | 7,718 |  |  | $ | 12,060 |  |  | Cost of product sales |  | $ | 1,987 |  |  | $ | (4,028 | )
Foreign exchange currency contracts | — |  |  | 2 |  |  | Other income (expense) |  | — |  |  | (201 | )
Interest rate swap | (996 | ) |  | 105 |  |  | Interest expense |  | 90 |  |  | 39 |
______________________________________________________________________ Notes: 1 During 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) during the three and six months ended August 3, 2019. 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. During the three and six months ended August 4, 2018, the Company recognized gains of $0.8 million and $1.4 million, respectively, resulting from the ineffective portion related to foreign exchange currency contracts in interest income. There was no ineffectiveness recognized related to the interest rate swap during the three and six months ended August 4, 2018.
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 3, 2019 |  | Aug 4, 2018 |  | Aug 3, 2019 |  | Aug 4, 2018
Beginning balance gain (loss) | $ | 8,663 |  |  | $ | (6,285 | ) |  | $ | 2,999 |  |  | $ | (14,369 | )
Cumulative adjustment from adoption of new accounting guidance1 | — |  |  | — |  |  | 1,981 |  |  | — |
Net gains from changes in cash flow hedges | 1,978 |  |  | 4,111 |  |  | 5,842 |  |  | 10,579 |
Net (gains) losses reclassified into earnings | (1,572 | ) |  | 2,032 |  |  | (1,753 | ) |  | 3,648 |
Ending balance gain (loss) | $ | 9,069 |  |  | $ | (142 | ) |  | $ | 9,069 |  |  | $ | (142 | )
______________________________________________________________________ Notes: 1 During 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) during the three and six months ended August 3, 2019. 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.
Summary of gains before taxes recognized on the derivative instruments not designated as hedging instruments in other income (expense) | The following table summarizes the gains before taxes recognized on the derivative instruments not designated as hedging instruments in other income (expense) for the three and six months ended August 3, 2019 and August 4, 2018 (in thousands):
| Location of Gain Recognized in Earnings |  | Gain Recognized in Earnings
|  | Three Months Ended |  | Six Months Ended
|  | Aug 3, 2019 |  | Aug 4, 2018 |  | Aug 3, 2019 |  | Aug 4, 2018
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts | Other income (expense) |  | $ | 233 |  |  | $ | 2,216 |  |  | $ | 808 |  |  | $ | 5,906 |

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