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Derivative Financial Instruments and Risk Management | 6 Months Ended
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Aug. 03, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments and Risk Management | Note 9 – 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 term loan borrowing by the Company. 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 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 Kroner 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 Kroner, as well as exchanges of principal at the inception spot rate, over the life of the term loan. The interest rate swap agreement utilized by the Company on its 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. The following table summarizes the notional amount and fair value of the Company’s derivative instrument:
|  |  |  | August 3, 2019 |  |  | January 31, 2019 |
Cash Flow Hedges (In thousands) |  | Balance Sheet Classification |  | Outstanding Notional Amount |  |  | Fair Value of Liability |  |  | Outstanding Notional Amount |  |  | Fair Value of Liability |
Cross-currency interest rate swap |  | Other Long- Term Liabilities |  | $ | 5,400 |  |  | $ | 388 |  |  | $ | 6,329 |  |  | $ | 600 |
Interest rate swap |  | Other Long- Term Liabilities/ Other Assets |  | $ | 9,750 |  |  | $ | (107 | ) |  | $ | 11,250 |  |  | $ | 85 |
The following table presents the impact of the Company’s derivative instruments in our condensed consolidated financial statements for the three and six months ended August 3 , 2019 and July 28 , 2018 :
|  | 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) |  | August 3, 2019 |  |  | July 28, 2018 |  |  | August 3, 2019 |  |  | July 28, 2018 |
Swap contracts |  | $ | (147 | ) |  | $ | 315 |  |  | Other Income (Expense) |  | $ | 77 |  |  | $ | 327 |
|  | 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) |  | August 3, 2019 |  |  | July 28, 2018 |  |  | August 3, 2019 |  |  | July 28, 2018 |
Swap contracts |  | $ | 2 |  |  | $ | 698 |  |  | Other Income (Expense) |  | $ | 262 |  |  | $ | 583 |
At August 3, 2019, the Company expects to reclassify approximately $0.2 million of net gains on the swap contracts from accumulated other comprehensive 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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