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Stockholders' Equity | 6 Months Ended
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Aug. 03, 2019
Equity [Abstract] |
Stockholders' Equity | Stockholders’ Equity Share Repurchase Program On June 26, 2012, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 million of the Company’s common stock. Repurchases under the program may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under the program, which may be discontinued at any time, without prior notice. During the six months ended August 3, 2019, the Company repurchased 11,013,304 shares under the program at an aggregate cost of $212.5 million, which is inclusive of the shares repurchased under the accelerated share repurchase agreement (the “ASR Contract”) as described below. The Company repurchased 10,264,052 shares at an aggregate cost of $201.5 million during the three months ended May 4, 2019 and an additional 749,252 shares at an aggregate cost of $11.0 million during the three months ended August 3, 2019. During the six months ended August 4, 2018, the Company repurchased 1,118,808 shares under the program at an aggregate cost of $17.6 million. The shares were repurchased during the three months ended May 5, 2018. The Company also paid an additional $6.0 million for shares that were repurchased during the fourth quarter of fiscal 2018 but were settled during the first quarter of fiscal 2019. As of August 3, 2019, the Company had remaining authority under the program to purchase $94.1 million of its common stock. On April 26, 2019, pursuant to existing stock repurchase authorizations, the Company entered into an ASR Contract with JPMorgan Chase Bank, National Association (in such capacity, the “ASR Counterparty”), to repurchase an aggregate of $170 million of the Company’s common stock. Under the ASR Contract, the Company made an initial payment of $170 million to the ASR Counterparty and received an initial delivery of approximately 5.2 million shares of common stock, which represented approximately $102 million (or 60%) of the ASR Contract. The remaining balance of $68 million was classified as an equity forward contract and recorded in paid-in capital within shareholders’ equity as of August 3, 2019. On September 4, 2019 (subsequent to the second quarter of fiscal 2020), the Company received a final delivery of 5.4 million shares under its ASR Contract entered into in April 2019, which amount was determined based on the daily volume-weighted average price since the effective date of the ASR Contract, less the applicable contractual discount. When combined with the 5.2 million upfront shares received at the inception of the ASR in April 2019, the Company repurchased approximately 10.6 million of its shares under the ASR at an average repurchase price of $16.09 per share. All shares were repurchased in accordance with the Company’s publicly announced ASR program, which is now complete. The shares delivered under the ASR Contract reduced the Company’s outstanding shares, and going forward that will have the effect of reducing its weighted average number of common shares outstanding for purposes of calculating basic and diluted earnings per share. Dividends The following table sets forth the cash dividend declared per share for the three and six months ended August 3, 2019 and August 4, 2018:
| Three Months Ended |  | Six Months Ended
| Aug 3, 2019 |  | Aug 4, 2018 |  | Aug 3, 2019 |  | Aug 4, 2018
Cash dividend declared per share | $ | 0.1125 |  |  | $ | 0.2250 |  |  | $ | 0.3375 |  |  | $ | 0.4500 |
During the first quarter of fiscal 2020, the Company announced that its Board of Directors reduced the future quarterly cash dividends that may be paid to holders of the Company’s common stock, when, as and if any such dividend is declared by the Company’s Board of Directors, from $0.225 per share to $0.1125 per share to redeploy capital and return incremental value to shareholders through share repurchases. Decisions on whether, when and in what amounts to continue making any future dividend distributions will remain at all times entirely at the discretion of the Company’s Board of Directors, which reserves the right to change or terminate the Company’s dividend practices at any time and for any reason without prior notice. The payment of cash dividends in the future will be based upon a number of business, legal and other considerations, including our cash flow from operations, capital expenditures, debt service and covenant requirements, cash paid for income taxes, earnings, share repurchases, economic conditions and U.S. and global liquidity. Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and six months ended August 3, 2019 and August 4, 2018 are as follows (in thousands):
| Three Months Ended Aug 3, 2019
| Foreign Currency Translation Adjustment |  | Derivative Financial Instruments Designated as Cash Flow Hedges |  | Defined Benefit Plans |  | Total
Balance at May 4, 2019 | $ | (131,923 | ) |  | $ | 8,663 |  |  | $ | (9,446 | ) |  | $ | (132,706 | )
Gains (losses) arising during the period | (4,841 | ) |  | 1,978 |  |  | (151 | ) |  | (3,014 | )
Reclassification to net earnings for (gains) losses realized | — |  |  | (1,572 | ) |  | 90 |  |  | (1,482 | )
Net other comprehensive income (loss) | (4,841 | ) |  | 406 |  |  | (61 | ) |  | (4,496 | )
Balance at August 3, 2019 | $ | (136,764 | ) |  | $ | 9,069 |  |  | $ | (9,507 | ) |  | $ | (137,202 | )
| Six Months Ended Aug 3, 2019
| Foreign Currency Translation Adjustment |  | Derivative Financial Instruments Designated as Cash Flow Hedges |  | Defined Benefit Plans |  | Total
Balance at February 2, 2019 | $ | (119,546 | ) |  | $ | 2,999 |  |  | $ | (9,632 | ) |  | $ | (126,179 | )
Cumulative adjustment reclassified from retained earnings due to adoption of new accounting guidance1 | — |  |  | 1,981 |  |  | — |  |  | 1,981 |
Gains (losses) arising during the period | (17,218 | ) |  | 5,842 |  |  | (55 | ) |  | (11,431 | )
Reclassification to net earnings for (gains) losses realized | — |  |  | (1,753 | ) |  | 180 |  |  | (1,573 | )
Net other comprehensive income (loss) | (17,218 | ) |  | 4,089 |  |  | 125 |  |  | (13,004 | )
Balance at August 3, 2019 | $ | (136,764 | ) |  | $ | 9,069 |  |  | $ | (9,507 | ) |  | $ | (137,202 | )
______________________________________________________________________ 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 approximately $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.
| Three Months Ended Aug 4, 2018
| Foreign Currency Translation Adjustment |  | Derivative Financial Instruments Designated as Cash Flow Hedges |  | Defined Benefit Plans |  | Total
Balance at May 5, 2018 | $ | (91,297 | ) |  | $ | (6,285 | ) |  | $ | (11,208 | ) |  | $ | (108,790 | )
Gains (losses) arising during the period | (23,464 | ) |  | 4,111 |  |  | (34 | ) |  | (19,387 | )
Reclassification to net earnings for losses realized | — |  |  | 2,032 |  |  | 125 |  |  | 2,157 |
Net other comprehensive income (loss) | (23,464 | ) |  | 6,143 |  |  | 91 |  |  | (17,230 | )
Balance at August 4, 2018 | $ | (114,761 | ) |  | $ | (142 | ) |  | $ | (11,117 | ) |  | $ | (126,020 | )
| Six Months Ended Aug 4, 2018
| Foreign Currency Translation Adjustment |  | Derivative Financial Instruments Designated as Cash Flow Hedges |  | Defined Benefit Plans |  | Total
Balance at February 3, 2018 | $ | (67,049 | ) |  | $ | (14,369 | ) |  | $ | (11,644 | ) |  | $ | (93,062 | )
Gains (losses) arising during the period | (47,712 | ) |  | 10,579 |  |  | 277 |  |  | (36,856 | )
Reclassification to net earnings for losses realized | — |  |  | 3,648 |  |  | 250 |  |  | 3,898 |
Net other comprehensive income (loss) | (47,712 | ) |  | 14,227 |  |  | 527 |  |  | (32,958 | )
Balance at August 4, 2018 | $ | (114,761 | ) |  | $ | (142 | ) |  | $ | (11,117 | ) |  | $ | (126,020 | )
Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during the three and six months ended August 3, 2019 and August 4, 2018 are as follows (in thousands):
| Three Months Ended |  | Six Months Ended |  | Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings
| Aug 3, 2019 |  | Aug 4, 2018 |  | Aug 3, 2019 |  | Aug 4, 2018 |
Derivative financial instruments designated as cash flow hedges: |  |
Foreign exchange currency contracts | $ | (1,757 | ) |  | $ | 2,342 |  |  | $ | (1,987 | ) |  | $ | 4,028 |  |  | Cost of product sales
Foreign exchange currency contracts | — |  |  | — |  |  | — |  |  | 201 |  |  | Other income (expense)
Interest rate swap | (44 | ) |  | (31 | ) |  | (90 | ) |  | (39 | ) |  | Interest expense
Less income tax effect | 229 |  |  | (279 | ) |  | 324 |  |  | (542 | ) |  | Income tax expense
| (1,572 | ) |  | 2,032 |  |  | (1,753 | ) |  | 3,648 |  |  |
Defined benefit plans: |  |  |  |  |  |  |  |  |
Net actuarial loss amortization | 111 |  |  | 151 |  |  | 222 |  |  | 303 |  |  | Other income (expense)
Prior service credit amortization | (9 | ) |  | (7 | ) |  | (19 | ) |  | (14 | ) |  | Other income (expense)
Less income tax effect | (12 | ) |  | (19 | ) |  | (23 | ) |  | (39 | ) |  | Income tax expense
| 90 |  |  | 125 |  |  | 180 |  |  | 250 |  |  |
Total reclassifications during the period | $ | (1,482 | ) |  | $ | 2,157 |  |  | $ | (1,573 | ) |  | $ | 3,898 |  |  |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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