Abercrombie & Fitch 2014 Annual Report Download - page 66

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ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
66
As of January 31, 2015, the Company had outstanding the following foreign currency exchange forward contracts that were entered
into to hedge foreign currency denominated net monetary assets/liabilities:
Notional Amount(1)
Euro $ 5,659
British Pound $ 3,763
(1) Amounts are reported in thousands and in U.S. Dollars equivalent as of January 31, 2015.
The location and amounts of derivative fair values on the Consolidated Balance Sheets as of January 31, 2015 and February 1,
2014 were as follows:
Asset Derivatives Liability Derivatives
(in thousands) Balance Sheet
Location January 31,
2015 February 1,
2014 Balance Sheet
Location January 31,
2015 February 1,
2014
Derivatives designated as hedging instruments:
Foreign currency exchange forward contracts Other Current Assets $ 10,283 $ 691 Other Liabilities $ — $ 2,503
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts Other Current Assets $ 10 $ 278 Other Liabilities $ — $ 52
Total Other Current Assets $ 10,293 $ 969 Other Liabilities $ — $ 2,555
Refer to Note 5, “FAIR VALUE,” for further discussion of the determination of the fair value of derivatives.
The location and amounts of derivative gains and losses for Fiscal 2014 and Fiscal 2013 on the Consolidated Statements of
Operations and Comprehensive (Loss) Income were as follows:
Fiscal 2014 Fiscal 2013
(in thousands) Location Gain/(Loss) Gain/(Loss)
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts Other Operating Income, Net $ 2,537 $ 378
Amount of Gain (Loss)
Recognized in OCI on
Derivative Contracts
(Effective Portion) (a)
Location of
Gain (Loss)
Reclassified
from
Accumulated
OCI into
Earnings
(Effective
Portion)
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Earnings (Effective Portion)
(b)
Location of
Gain (Loss)
Recognized in
Earnings on
Derivative
Contracts
(Ineffective
Portion and
Amount
Excluded
from
Effectiveness
Testing)
Amount of Gain (Loss)
Recognized in Earnings on
Derivative Contracts
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing) (c)
(in thousands) January 31,
2015 February 1,
2014 January 31,
2015 February 1,
2014 January 31,
2015 February 1,
2014
Derivatives in cash flow hedging relationships
Foreign currency
exchange forward
contracts $ 16,572 $ 6,435 Cost of Goods
Sold $ 440 $ 857
Other
Operating
Income, Net $ 215 $ 248
(a) The amount represents the change in fair value of derivative contracts due to changes in spot rates.
(b) The amount represents reclassification from OCI into earnings that occurs when the hedged item affects earnings, which is when
merchandise is sold to the Company’s customers.
(c) The amount represents the change in fair value of derivative contracts 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.