FUEL DERIVATIVE CONTRACTS |
9 Months Ended |
|---|---|
Oct. 29, 2011 | |
| FUEL DERIVATIVE CONTRACTS [Abstract] | |
| FUEL DERIVATIVE CONTRACTS |
3. FUEL DERIVATIVE CONTRACTS
The Company enters into fuel derivative contracts with third parties in order to manage fluctuations in cash flows resulting from changes in diesel fuel costs. The Company has entered into fuel derivative contracts for approximately 4.2 million gallons of diesel fuel, or approximately 50% of the Company’s fuel needs from November 2011 through July 2012 and 0.6 million gallons or approximately 20% of the Company’s fuel needs from August 2012 through October 2012. Under these contracts, the Company pays the third party a fixed price for diesel fuel and receives variable diesel fuel prices at amounts approximating current diesel fuel costs, thereby creating the economic equivalent of a fixed-rate obligation. These derivative contracts do not qualify for hedge accounting and therefore all changes in fair value for these derivatives are included in “Other (income) expense, net” in the accompanying condensed consolidated income statements. The fair value of these contracts at October 29, 2011 was an asset of $0.3 million which is included in “Other current assets” in the accompanying condensed consolidated balance sheets.
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