Derivative Instruments (Tables)

3 Months Ended

Apr. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Foreign Exchange Forward Contracts

As of April 30, 2016, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge either a portion, or all, of forecasted foreign-currency-denominated intercompany inventory sales, the resulting settlement of the foreign-currency-denominated intercompany accounts receivable, or both:



(in thousands)	Notional Amount⁽¹⁾
Euro	$	112,748
British pound	$	20,885
Canadian dollar	$	17,848
Japanese yen	$	7,012


⁽¹⁾	Amounts are reported in U.S. Dollars equivalent as of April 30, 2016.

The Company also uses foreign currency exchange forward contracts to hedge certain foreign-currency-denominated net monetary assets/liabilities. Examples of monetary assets/liabilities include cash balances, receivables and payables. Fluctuations in exchange rates result in transaction gains/(losses) being recorded in earnings as U.S. GAAP requires that monetary assets/liabilities be remeasured at the spot exchange rate at quarter-end or upon settlement. The Company has chosen not to apply hedge accounting to these instruments because there are no differences in the timing of gain or loss recognition on the hedging instrument and the hedged item.

As of April 30, 2016, the Company had outstanding the following foreign currency forward contracts that were entered into to hedge foreign currency denominated net monetary assets/liabilities:



(in thousands)	Notional Amount⁽¹⁾
Euro	$	11,326
Swiss franc	$	4,114


⁽¹⁾	Amounts are reported in U.S. Dollars equivalent as of April 30, 2016.

Location and Amounts of Derivative Fair Values on the Condensed Consolidated Balance Sheets

The location and amounts of derivative fair values on the Condensed Consolidated Balance Sheets as of April 30, 2016 and January 30, 2016 were as follows:



	Asset Derivatives					Liability Derivatives
(in thousands)	Location	April 30, 2016		January 30, 2016		Location	April 30, 2016		January 30, 2016
Derivatives designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	538	$	4,097	Accrued expenses	$	6,845	$	—
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	—	$	69	Accrued expenses	$	194	$	—
Total	Other current assets	$	538	$	4,166	Accrued expenses	$	7,039	$	—

Location and Amounts of Derivative Gains and Losses on the Condensed Consolidated Statements of Operations and Comprehensive Loss

The location and amounts of derivative gains and losses for the thirteen weeks ended April 30, 2016 and May 2, 2015 on the Condensed Consolidated Statements of Operations and Comprehensive Loss were as follows:



		Thirteen Weeks Ended
		April 30, 2016			May 2, 2015
(in thousands)	Location	Gain/(Loss)			Gain/(Loss)
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts	Other operating income, net	$	(1,777	)	$	160



	Effective Portion										Ineffective Portion and Amount Excluded from Effectiveness Testing
	Amount of Gain (Loss) Recognized in OCI on Derivative Contracts ⁽¹⁾					Location of Gain (Loss) Reclassified from AOCL into Earnings	Amount of Gain (Loss) Reclassified from AOCL into Earnings ⁽²⁾				Location of Gain Recognized in Earnings on Derivative Contracts	Amount of Gain Recognized in Earnings on Derivative Contracts ⁽³⁾
	Thirteen Weeks Ended
(in thousands)	April 30, 2016			May 2, 2015			April 30, 2016		May 2, 2015			April 30, 2016		May 2, 2015
Derivatives in cash flow hedging relationships:
Foreign currency exchange forward contracts	$	(9,382	)	$	219	Cost of sales, exclusive of depreciation and amortization	$	2,305	$	6,036	Other operating income, net	$	355	$	35


⁽¹⁾	The amount represents the change in fair value of derivative contracts due to changes in spot rates.


⁽²⁾	The amount represents the reclassification from AOCL into earnings when the hedged item affects earnings, which is when merchandise is sold to the Company’s customers.


⁽³⁾	The amount represents the change in fair value of derivative contracts due to changes in the difference between the spot price and forward price that is excluded from the assessment of hedge effectiveness and, therefore, recognized in earnings.