XML 53 R40.htm IDEA: XBRL DOCUMENT v3.19.2
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Aug. 02, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value of Derivatives and Consolidated Balance Sheet Location
The following table presents the fair value and location of the company’s derivative instruments on the Condensed Consolidated Balance Sheets:
(Dollars in thousands)
 
August 2, 2019
 
August 3, 2018
 
October 31, 2018
Derivative assets:
 
 

 
 

 
 

Derivatives designated as cash flow hedging instruments:
 
 

 
 

 
 

Prepaid expenses and other current assets
 
 

 
 

 
 

Forward currency contracts
 
$
12,511

 
$
2,324

 
$
8,596

Derivatives not designated as cash flow hedging instruments:
 
 
 
 
 
 
Prepaid expenses and other current assets
 
 
 
 
 
 
Forward currency contracts
 
3,920

 
869

 
2,305

Total assets
 
$
16,431

 
$
3,193

 
$
10,901

 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
Accrued liabilities
 
 
 
 
 
 
Forward currency contracts
 
$
—

 
$
—

 
$
—

Derivatives not designated as cash flow hedging instruments:
 
 
 
 
 
 
Accrued liabilities
 
 
 
 
 
 
Forward currency contracts
 
—

 
—

 
13

Total liabilities
 
$
—

 
$
—

 
$
13
Schedule of Effects of Master Netting Arrangements on Fair Value of Derivative Contracts Recorded in Consolidated Balance Sheets
The following table shows the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded in the Condensed Consolidated Balance Sheets:
(Dollars in thousands)
 
August 2, 2019
 
August 3, 2018
 
October 31, 2018
Derivative assets:
 
 
 
 
 
 
Forward currency contracts:
 
 
 
 
 
 
Gross amounts of recognized assets
 
$
16,496

 
$
3,349

 
$
10,901

Gross liabilities offset in the Condensed Consolidated Balance Sheets
 
(65
)
 
(156
)
 
—

Net amounts of assets presented in the Condensed Consolidated Balance Sheets
 
$
16,431

 
$
3,193

 
$
10,901

 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
Forward currency contracts:
 
 
 
 
 
 
Gross amounts of recognized liabilities
 
$
—

 
$
—

 
$
(13
)
Gross assets offset in the Condensed Consolidated Balance Sheets
 
—

 
—

 
—

Net amounts of liabilities presented in the Condensed Consolidated Balance Sheets
 
$
—

 
$
—

 
$
(13
)
Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Designated as Cash Flow Hedging Instruments
The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Condensed Consolidated Statements of Earnings and the impact of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the company's derivatives designated as cash flow hedging instruments for the three and nine months ended August 2, 2019 and August 3, 2018:
 
 
Three Months Ended
 
 
Gain (Loss) Reclassified from AOCL into Earnings
 
Gain Recognized in OCI on Derivatives
(Dollars in thousands)
 
August 2, 2019
 
August 3, 2018
 
August 2, 2019
 
August 3, 2018
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
Forward currency contracts:
 
 
 
 
 
 
 
 
Net sales
 
$
1,350

 
$
(170
)
 
$
2,022

 
$
1,435

Cost of sales
 
140

 
137

 
241

 
14

Total derivatives designated as cash flow hedging instruments
 
$
1,490

 
$
(33
)
 
$
2,263

 
$
1,449

 
 
Nine Months Ended
 
 
Gain (Loss) Reclassified from AOCL into Earnings
 
Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)
 
August 2, 2019
 
August 3, 2018
 
August 2, 2019
 
August 3, 2018
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
Forward currency contracts:
 
 
 
 
 
 
 
 
Net sales
 
$
3,828

 
$
(3,207
)
 
$
1,307

 
$
2,900

Cost of sales
 
497

 
610

 
113

 
(195
)
Total derivatives designated as cash flow hedging instruments
 
$
4,325

 
$
(2,597
)
 
$
1,420

 
$
2,705



The following tables present the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from effectiveness testing:
 
 
Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)
 
August 2, 2019
 
August 3, 2018
Three Months Ended
 
Net Sales
 
Cost of Sales
 
Net Sales
 
Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded
 
$
838,713

 
$
(572,732
)
 
$
655,821

 
$
(422,168
)
Gain (loss) on derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
Forward currency contracts:
 
 
 
 
 
 
 
 
Amount of gain (loss) reclassified from AOCL into earnings
 
1,350

 
140

 
(170
)
 
137

Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value
 
$
1,262

 
$
18

 
$
132

 
$
(92
)
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)
 
August 2, 2019
 
August 3, 2018
Nine Months Ended
 
Net Sales
 
Cost of Sales
 
Net Sales
 
Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded
 
$
2,403,705

 
$
(1,600,809
)
 
$
2,079,347

 
$
(1,317,399
)
Gain (loss) on derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
Forward currency contracts:
 
 
 
 
 
 
 
 
Amount of gain (loss) reclassified from AOCL into earnings
 
3,828

 
497

 
(3,207
)
 
610

Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value
 
$
3,579

 
$
34

 
$
31

 
$
(210
)
Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Not Designated as Hedging Instruments
The following table presents the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives not designated as cash flow hedging instruments:
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in thousands)
 
August 2, 2019
 
August 3, 2018
 
August 2, 2019
 
August 3, 2018
Gain (loss) on derivatives not designated as cash flow hedging instruments
 
 
 
 
 
 
 
 
Forward currency contracts:
 
 
 
 
 
 
 
 
Other income, net
 
$
(555
)
 
$
2,111

 
$
172

 
$
1,495

Total gain (loss) on derivatives not designated as cash flow hedging instruments
 
$
(555
)
 
$
2,111

 
$
172

 
$
1,495