Abercrombie & Fitch 2015 Annual Report Download - page 66

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Table of Contents ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
66
The location and amounts of derivative gains and losses for Fiscal 2015 and Fiscal 2014 on the Consolidated Statements of
Operations and Comprehensive Income (Loss) were as follows:
Fiscal 2015 Fiscal 2014
(in thousands) Location Gain/(Loss) Gain/(Loss)
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts Other operating income, net $ 751 $ 2,537
Effective Portion Ineffective Portion and Amount Excluded from
Effectiveness Testing
Amount of Gain (Loss)
Recognized in OCI on
Derivative Contracts (1)
Location of
Gain (Loss)
Reclassified
from AOCL
into Earnings
Amount of Gain (Loss)
Reclassified from AOCL
into Earnings (2)
Location of
Gain
Recognized in
Earnings
on Derivative
Contracts
Amount of Gain
Recognized in Earnings on
Derivative Contracts (3)
(in thousands) January 30,
2016 January 31,
2015 January 30,
2016 January 31,
2015 January 30,
2016 January 31,
2015
Derivatives in cash flow hedging relationships:
Foreign currency
exchange
forward
contracts $ 7,204 $ 16,572
Cost of sales,
exclusive of
depreciation and
amortization $ 15,596 $ 440 Other operating
income, net $ 242 $ 215
(1) The amount represents the change in fair value of derivative contracts due to changes in spot rates.
(2) The amount represents the reclassification from AOCL into earnings when the hedged item affects earnings, which is when merchandise is sold to the
Company’s customers.
(3) 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.
15. ACCUMULATED OTHER COMPREHENSIVE LOSS
The activity in accumulated other comprehensive loss for Fiscal 2015 was as follows:
Fiscal 2015
(in thousands)
Unrealized Gain (Loss)
on Derivative Financial
Instruments Foreign Currency
Translation Adjustment Total
Beginning balance at January 31, 2015 $ 13,100 $ (96,680) $ (83,580)
Other comprehensive income (loss) before reclassifications 7,204 (22,623) (15,419)
Reclassified from accumulated other comprehensive (loss) income(1) (15,596) — (15,596)
Tax effect on other comprehensive income (loss) (131) 107 (24)
Other comprehensive income (loss) (8,523) (22,516) (31,039)
Ending balance at January 30, 2016 $ 4,577 $ (119,196) $ (114,619)
(1) For Fiscal 2015, a gain was reclassified from other comprehensive income (loss) to the cost of sales, exclusive of depreciation and amortization line item on
the Consolidated Statement of Operations and Comprehensive Income (Loss). Additionally, a foreign currency translation loss related to the Company's
dissolution of its Australian operations was reclassified to other operating income, net.