DERIVATIVE INSTRUMENTS

As of February 2, 2019, 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	$	40,502
British pound	$	17,845
Canadian dollar	$	7,658
Japanese yen	$	4,773


⁽¹⁾	Amounts reported are the U.S. Dollar notional amounts outstanding as of February 2, 2019.

As of February 2, 2019, the Company had outstanding the following foreign currency exchange forward contracts that were entered into to hedge foreign-currency-denominated net monetary assets/liabilities:



(in thousands)	Notional Amount ⁽¹⁾
Chinese yuan	$	27,197
Euro	$	22,934


⁽¹⁾	Amounts reported are the U.S. Dollar notional amounts outstanding as of February 2, 2019.

The location and amounts of the fair values of derivative instruments on the Consolidated Balance Sheets as of February 2, 2019 and February 3, 2018 were as follows:



	Asset Derivatives					Liability Derivatives
(in thousands)	Location	February 2, 2019		February 3, 2018		Location	February 2, 2019		February 3, 2018
Derivatives designated as hedging instruments:
Foreign currency exchange forward contracts		$	2,162	$	37		$	15	$	9,108
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts		—		—			317		39
Total	Other current assets	$	2,162	$	37	Accrued expenses	$	332	$	9,147

Refer to Note 3, “FAIR VALUE,” for further discussion of the determination of the fair value of derivative instruments.

The location and amounts of gains and losses related to derivative instruments for Fiscal 2018 and Fiscal 2017 on the Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows:

Fiscal 2018

Fiscal 2017

Fiscal 2016

(in thousands)

Location

Gain/(Loss)

Derivatives not designated as hedging instruments:

Foreign currency exchange forward contracts

Other operating income, net

3,722

(3,557

)

627



	Effective Portion															Ineffective Portion and Amount Excluded from Effectiveness Testing
	Amount of Gain (Loss) Recognized in OCI on Derivative Instruments ⁽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 Instruments	Amount of Gain Recognized in Earnings on Derivative Instruments ⁽³⁾
(in thousands)	Fiscal 2018		Fiscal 2017			Fiscal 2016			Fiscal 2018		Fiscal 2017			Fiscal 2016			Fiscal 2018		Fiscal 2017		Fiscal 2016
Derivatives in cash flow hedging relationships:
Foreign currency exchange forward contracts	$	18,700	$	(21,810	)	$	7,204	Cost of sales, exclusive of depreciation and amortization	$	4,727	$	(4,303	)	$	15,596	Other operating income, net	$	5,167	$	2,949	$	242


⁽¹⁾	The amount represents the change in fair value of derivative instruments 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 instruments 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.