DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Nov. 01, 2015

Foreign Currency Forward Contracts Outstanding

As of November 1, 2015 and November 2, 2014, we had foreign currency forward contracts outstanding (in U.S. dollars) as follows:

In thousands	November 1, 2015		November 2, 2014
Contracts to sell Canadian dollars and buy U.S. dollars
Contracts designated as cash flow hedges		$    20,000		$        14,600
Contracts to sell Australian dollars and buy U.S. dollars
Contracts not designated as cash flow hedges		$    37,000		$        14,000

Effect of Derivative Instruments in Consolidated Financial Statements

The effect of derivative instruments in our Condensed Consolidated Financial Statements, pre-tax, was as follows:

In thousands	Thirteen Weeks Ended November 1, 2015			Thirteen Weeks Ended November 2, 2014			Thirty-nine Weeks Ended November 1, 2015			Thirty-nine Weeks Ended November 2, 2014
Net gain recognized in OCI		$   158			$    472			$          729			$             270
Net gain reclassified from OCI into cost of goods sold		$   339			$        7			$       1,250			$             527
Net foreign exchange gain (loss) recognized in other income (expense):
Instruments designated as cash flow hedges1		$    (12	)		$     (36	)		$           (54	)		$            (123	)
Instruments not designated or de-designated2		$   748			$   (482	)		$       3,153			$             138

¹  Changes in fair value of the forward contract related to interest charges or “forward points.”

²  Changes in fair value for instruments not designated as cash flow hedges as well as de-designated instruments.

Fair Values of Derivative Instruments

The fair values of our derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I.

In thousands	Balance sheet location	November 1, 2015		November 2, 2014
Derivatives designated as hedging instruments:
Cash flow hedge foreign currency forward contracts	Other current assets		$         412		$              372
Cash flow hedge foreign currency forward contracts	Other current liabilities		0		0
Total, net			$         412		$              372
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets		$         541		$                  0
Foreign currency forward contracts	Other current liabilities		0		(9	)
Total, net			$         541		$                 (9	)