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Derivative Financial Instruments and Risk Management | 6 Months Ended
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Jul. 28, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments and Risk Management | (13) Derivative Financial Instruments and Risk Management The Company has entered into a cross-currency interest rate swap to manage the interest rate risk and foreign currency exchange risk associated with the floating-rate foreign currency-denominated term loan borrowing by our Danish Subsidiary and an interest rate swap to manage the interest rate risk associated with the variable rate $15.0 million term loan borrowing by the Company. In accordance with the guidance in ASC 815 “Derivatives and Hedging”, both swaps have been designated as cash flow hedges of floating-rate borrowings. The cross-currency interest rate swap agreement utilized by the Company effectively modifies the Company’s exposure to interest rate risk and foreign currency exchange rate risk by converting approximately $8.9 million of the Company’s floating-rate debt denominated in U.S. Dollars on our Danish subsidiary’s books to a fixed-rate debt denominated in Danish Krone for the term of the loan, thus reducing the impact of interest-rate and foreign currency exchange rate changes on future interest expense and principal repayments. This swap involves the receipt of floating rate amounts in U.S. Dollars in exchange for fixed-rate interest payments in Danish Krone, as well as exchanges of principal at the inception spot rate, over the life of the term loan. As of July 28, 2018, the total notional amount of the Company’s cross-currency interest rate swap was $7.1 million and is included in other long term liabilities in the Company’s condensed consolidated balance sheet at its fair value amount of $0.8 million. The interest rate swap agreement utilized by the Company on the $15.0 million term loan effectively modifies the Company’s exposure to interest rate risk by converting the Company’s floating-rate debt to fixed-rate debt for the next five years, thus reducing the impact of interest-rate changes on future interest expense. This swap involves the receipt of floating rate amounts in U.S. Dollars in exchange for fixed rate payments in U.S. dollars over the life of the term loan. As of July 28, 2018, the total notional amount of the Company’s interest rate swap was $12.8 million and is included in other assets in the Company’s condensed consolidated balance at its fair value amount of $0.2 million. The following tables present the impact of the derivative instruments in our condensed consolidated financial statements for the three and six months ended July 28, 2018 and July 29, 2017:
|  | Three Months Ended |
|  | Amount of Gain (Loss) Recognized in OCI on Derivative |  |  | Location of Gain (Loss) Reclassified from Accumulated OCI into Income |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income |
Cash Flow Hedge (In thousands) |  | July 28, 2018 |  |  | July 29, 2017 |  |  | July 28, 2018 |  |  | July 29, 2017 |
Swap contracts |  | $ | 315 |  |  | $ | (643 | ) |  | Other Income (Expense) |  | $ | 327 |  |  | $ | (633 | )
|  | Six Months Ended |
|  | Amount of Gain (Loss) Recognized in OCI on Derivative |  |  | Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income |
Cash Flow Hedge (In thousands) |  | July 28, 2018 |  |  | July 29, 2017 |  |  | July 28, 2018 |  |  | July 29, 2017 |
Swap contracts |  | $ | 698 |  |  | $ | (1,035 | ) |  | Other Income (Expense) |  | $ | 583 |  |  | $ | (953 | )
At July 28, 2018, the Company expects to reclassify approximately $0.3 million of net gains on the swap contracts from accumulated other comprehensive income (loss) to earnings during the next 12 months due to changes in foreign exchange rates and the payment of variable interest associated with the floating-rate debt.

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- References No definition available. + Details
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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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