Derivative Financial Instruments

3 Months Ended

Jan. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS

We use derivative financial instruments to manage interest rate and foreign currency exchange risks. We enter into derivative financial instruments with high-credit quality counterparties and diversify our positions among such counterparties to reduce our exposure to credit losses. We do not have any credit-risk-related contingent features in our derivative contracts as of January 30, 2015.

At January 30, 2015, we had foreign currency contracts with a notional amount of $9,276 that will mature during fiscal year 2015. These foreign currency contracts have been designated as cash flow hedges with unrealized gains or losses recorded in accumulated other comprehensive income (loss). Gains and losses are reclassified from accumulated other comprehensive income (loss) to other expense (income) in the Condensed Consolidated Statement of Operations when the underlying hedged item is realized. At January 24, 2014, we had foreign currency contracts with a notional amount of $21,133 maturing in fiscal year 2014. There was no material ineffectiveness related to these hedges during the quarters ended January 30, 2015 or January 24, 2014.

At January 30, 2015 and January 24, 2014, we had no treasury lock contracts in place. The accumulated other comprehensive loss amount in our Condensed Consolidated Balance Sheets as of January 30, 2015 and January 24, 2014 represents the unamortized gains and losses, net of tax, from treasury lock contracts settled in previous periods. Unamortized gains and losses are reclassified ratably from accumulated other comprehensive income (loss) to interest expense in our Condensed Consolidated Statements of Operations over the term of the related debt. At January 30, 2015, the amount that will be recognized in interest expense in the remainder of fiscal year 2015 is $938.

Our derivative assets and liabilities subject to fair value measurement (see Note 6) include the following:

	Fair Value at January 30, 2015		Fair Value at October 31, 2014		Fair Value at January 24, 2014
Assets
Prepaid expenses and other
Foreign currency contracts	$	1,026	$	455	$	—
Total Assets	$	1,026	$	455	$	—
Liabilities
Accrued liabilities other
Foreign currency contracts	$	—	$	—	$	398
Total Liabilities	$	—	$	—	$	398

Derivative gains (losses) recognized in AOCI¹ and on the Condensed Consolidated Statements of Operations for the three months ended January 30, 2015 and January 24, 2014, respectively, are as follows:

Three Months Ended January 30, 2015	Amount of Gain (Loss) recognized in AOCI1		Statement of Operations Classification	Gain (Loss) in Income1
Derivatives designated as cash flow hedges
Foreign currency contracts	$	571	Other income / (expense), net	$	(218	)
Treasury lock contracts	318		Interest expense	(318		)
Total derivatives designated as cash flow hedges	$	889	Total	$	(536	)

Three Months Ended January 24, 2014	Amount of Gain (Loss) recognized in AOCI1			Statement of Operations Classification	Gain (Loss) in Income1
Derivatives designated as cash flow hedges
Foreign currency contracts	$	(253	)	Other income / (expense), net	$	(116	)
Treasury lock contracts	320			Interest expense	(320		)
Total derivatives designated as cash flow hedges	$	67		Total	$	(436	)

¹Accumulated other comprehensive income (loss) (AOCI) is included in the Condensed Consolidated Balance Sheets in the Stockholders’ Equity section and is reported net of tax. The amounts disclosed in the above table are reported pretax and represent the year-to-date derivative activity.