FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

9 Months Ended

May 01, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

NOTE 6—FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

Recurring Fair Value Measurements

The following tables provides the fair value hierarchy for financial assets and liabilities measured on a recurring basis:

	Condensed Consolidated Balance Sheets Location	Fair Value at May 1, 2021
(in thousands)		Level 1		Level 2		Level 3
Assets:
Foreign currency derivatives not designated as hedging instruments	Prepaid expenses and other current assets	$	—	$	2	$	—
Fuel derivatives designated as hedging instruments	Prepaid expenses and other current assets	$	—	$	1,101	$	—
Mutual funds	Other long-term assets	$	1,550	$	—	$	—
Liabilities:
Foreign currency derivatives designated as hedging instruments	Accrued expenses and other current liabilities	$	—	$	1,904	$	—
Interest rate swaps designated as hedging instruments	Accrued expenses and other current liabilities	$	—	$	32,156	$	—
Interest rate swaps designated as hedging instruments	Other long-term liabilities	$	—	$	47,541	$	—

	Condensed Consolidated Balance Sheets Location	Fair Value at August 1, 2020
(in thousands)		Level 1		Level 2		Level 3
Assets:
Foreign currency derivatives not designated as hedging instruments	Prepaid expenses and other current assets	$	—	$	26	$	—
Fuel derivatives designated as hedging instruments	Prepaid expenses and other current assets	$	—	$	36	$	—
Foreign currency derivatives designated as hedging instruments	Prepaid expenses and other current assets	$	—	$	94	$	—
Fuel derivatives designated as hedging instruments	Other long-term assets	$	—	$	23	$	—
Mutual funds	Other long-term assets	$	1,678	$	—	$	—
Liabilities:
Fuel derivatives designated as hedging instruments	Accrued expenses and other current liabilities	$	—	$	197	$	—
Foreign currency derivatives designated as hedging instruments	Accrued expenses and other current liabilities	$	—	$	357	$	—
Interest rate swaps designated as hedging instruments	Accrued expenses and other current liabilities	$	—	$	46,743	$	—
Interest rate swaps designated as hedging instruments	Other long-term liabilities	$	—	$	91,994	$	—

Interest Rate Swap Contracts

The fair values of interest rate swap contracts are measured using Level 2 inputs. The interest rate swap contracts are valued using an income approach interest rate swap valuation model incorporating observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. As of May 1, 2021, a 100 basis point increase in forward LIBOR interest rates would increase the fair value of the interest rate swaps by approximately $34.0 million; a 100 basis point decrease in forward LIBOR interest rates would decrease the fair value of the interest rate swaps by approximately $35.3 million. Refer to Note 7—Derivatives for further information on interest rate swap contracts.

Mutual Funds

Mutual fund assets consist of balances held in investments to fund certain deferred compensation plans. The fair values of mutual fund assets are based on quoted market prices of the mutual funds held by the plan at each reporting period. Mutual funds traded in active markets are classified within Level 1 of the fair value hierarchy.

Fuel Supply Agreements and Derivatives

To reduce diesel price risk, the Company has entered into derivative financial instruments and/or forward purchase commitments for a portion of our projected monthly diesel fuel requirements at fixed prices. The fair values of fuel derivative agreements are measured using Level 2 inputs.

Foreign Exchange Derivatives

To reduce foreign exchange risk, the Company has entered into derivative financial instruments for a portion of our projected monthly foreign currency requirements at fixed prices. The fair values of foreign exchange derivatives are measured using Level 2 inputs.

Fair Value Estimates

For certain of the Company’s financial instruments including cash and cash equivalents, receivables, accounts payable, accrued vacation, compensation and benefits, and other current assets and liabilities the fair values approximate carrying amounts due to their short maturities. The fair value of notes receivable is estimated by using a discounted cash flow approach prior to consideration for uncollectible amounts and is calculated by applying a market rate for similar instruments using Level 3 inputs. The fair value of debt is estimated based on market quotes, where available, or market values for similar instruments, using Level 2 and 3 inputs. In the table below, the carrying value of the Company’s long-term debt is net of original issue discounts and debt issuance costs.

	May 1, 2021				August 1, 2020
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes receivable, including current portion	$	35,445	$	33,127	$	77,598	$	78,877
Long-term debt, including current portion	$	2,327,397	$	2,417,797	$	2,497,626	$	2,535,851