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Risk Management and Derivatives | 6 Months Ended
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Jul. 29, 2017
General Discussion of Derivative Instruments and Hedging Activities [Abstract] |
Risk Management And Derivatives |
Note 12 | Risk Management and Derivatives
In the normal course of business, the Company’s financial results are impacted by currency rate movements in foreign currency denominated assets, liabilities and cash flows as it makes a portion of its purchases and sales in local currencies. The Company has established policies and business practices that are intended to mitigate a portion of the effect of these exposures. The Company uses derivative financial instruments, primarily forward contracts, to manage its currency exposures. These derivative financial instruments are viewed as risk management tools and are not used for trading or speculative purposes. Derivatives entered into by the Company are designated as cash flow hedges of forecasted foreign currency transactions. Derivative financial instruments expose the Company to credit and market risk. The market risk associated with these instruments resulting from currency exchange movements is expected to offset the market risk of the underlying transactions being hedged. The Company does not believe there is a significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with major international financial institutions and have varying maturities through August 2018. Credit risk is managed through the continuous monitoring of exposures to such counterparties. The Company’s hedging strategy uses forward contracts as cash flow hedging instruments, which are recorded in the Company's condensed consolidated balance sheets at fair value. The effective portion of gains and losses resulting from changes in the fair value of these hedge instruments are deferred in accumulated other comprehensive loss and reclassified to earnings in the period that the hedged transaction is recognized in earnings. Hedge ineffectiveness is evaluated using the hypothetical derivative method. The amount of hedge ineffectiveness for the thirteen and twenty-six weeks ended July 29, 2017 and July 30, 2016 was not material. As of July 29, 2017, July 30, 2016 and January 28, 2017, the Company had forward contracts maturing at various dates through August 2018, July 2017 and February 2018, respectively. The contract amounts in the following table represent the net notional amount of all purchase and sale contracts of a foreign currency.
(U.S. $ equivalent in thousands) | July 29, 2017 |  | July 30, 2016 |  | January 28, 2017 |
Financial Instruments |  |  |
U.S. dollars (purchased by the Company’s Canadian division with Canadian dollars) | $ | 18,110 |  | $ | 17,404 |  | $ | 18,826 |
Euro | 14,725 |  | 13,544 |  | 13,297 |
Chinese yuan | 11,887 |  | 12,477 |  | 7,723 |
New Taiwanese dollars | 567 |  | 522 |  | 526 |
United Arab Emirates dirham | 254 |  | 939 |  | 823 |
Japanese yen | 176 |  | 1,026 |  | 769 |
Other currencies | 14 |  | 174 |  | 124 |
Total financial instruments | $ | 45,733 |  | $ | 46,086 |  | $ | 42,088 |
The classification and fair values of derivative instruments designated as hedging instruments included within the condensed consolidated balance sheets as of July 29, 2017, July 30, 2016 and January 28, 2017 are as follows:
| Asset Derivatives |  | Liability Derivatives
($ thousands) | Balance Sheet Location | Fair Value |  |  | Balance Sheet Location | Fair Value |
Foreign exchange forward contracts: |  |  |  |  |  |
July 29, 2017 | Prepaid expenses and other current assets | $ | 918 |  |  | Other accrued expenses | $ | 1,083 |
July 30, 2016 | Prepaid expenses and other current assets | 365 |  |  | Other accrued expenses | 565 |
January 28, 2017 | Prepaid expenses and other current assets | 234 |  |  | Other accrued expenses | 874 |
For the periods ended July 29, 2017 and July 30, 2016, the effect of derivative instruments in cash flow hedging relationships on the condensed consolidated statements of earnings was as follows:
| Thirteen Weeks Ended | Thirteen Weeks Ended
($ thousands) | July 29, 2017 | July 30, 2016
Foreign exchange forward contracts: Income Statement Classification (Losses) Gains - Realized | Loss Recognized in OCL on Derivatives |  | Gain Reclassified from Accumulated OCL into Earnings |  | (Loss) Gain Recognized in OCL on Derivatives |  | (Loss) Gain Reclassified from Accumulated OCL into Earnings |
Net sales | $ | (8 | ) | $ | 6 |  | $ | (25 | ) | $ | (36 | )
Cost of goods sold | (55 | ) | 158 |  | (472 | ) | 33 |
Selling and administrative expenses | (194 | ) | — |  | (75 | ) | (187 | )
Interest expense | (14 | ) | — |  | 14 |  | — |
| Twenty-Six Weeks Ended | Twenty-Six Weeks Ended
($ thousands) | July 29, 2017 | July 30, 2016
Foreign exchange forward contracts: Income Statement Classification (Losses) Gains - Realized | (Loss) Gain Recognized in OCL on Derivatives |  | Gain (Loss) Reclassified from Accumulated OCL into Earnings |  | Loss Recognized in OCL on Derivatives |  | (Loss) Gain Reclassified from Accumulated OCL into Earnings |
Net sales | $ | (40 | ) | $ | 24 |  | $ | (189 | ) | $ | (72 | )
Cost of goods sold | 737 |  | 161 |  | (585 | ) | 116 |
Selling and administrative expenses | 117 |  | (67 | ) | (24 | ) | (357 | )
Interest expense | (10 | ) | (1 | ) | (24 | ) | — |
All gains and losses currently included within accumulated other comprehensive loss associated with the Company’s foreign exchange forward contracts are expected to be reclassified into net earnings within the next 12 months. Additional information related to the Company’s derivative financial instruments are disclosed within Note 13 to the condensed consolidated financial statements.

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- 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 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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