Derivative Financial Instruments

3 Months Ended

May 01, 2011

Derivative Financial Instruments [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 2 — DERIVATIVE FINANCIAL INSTRUMENTS

     We use foreign currency exchange forward contracts, or “Foreign Exchange Contracts,” to manage the impact of foreign currency exchange rate fluctuations related to certain balance sheet accounts. We enter into the Foreign Exchange Contracts in Canada primarily to mitigate risk related to non-functional currency exposures. These Foreign Exchange Contracts are not designated as hedges and are recorded at fair value using quoted prices for similar assets or liabilities in active markets. The changes in the fair value are recognized in operating, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.

     At May 1, 2011, we had Foreign Exchange Contracts outstanding with a notional amount of $10.0 million, which represents the amount of foreign currencies to be purchased or sold at maturity and does not represent our exposure on these contracts. The fair value of the liability related to these Foreign Exchange Contracts included in other current liabilities was immaterial at May 1, 2011. The fair value of the receivable related to these Foreign Exchange Contracts included in prepaid expenses and other current assets was also immaterial at January 30, 2011. During the thirteen weeks ended May 1, 2011, we recorded $0.6 million in losses on the Foreign Exchange Contracts. We did not enter into any Foreign Exchange Contracts during the thirteen weeks ended May 2, 2010.