Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Aug. 03, 2018

Derivative Instruments and Hedging Activities [Abstract]

Interest Rate Swaps

A summary of the Company’s interest rate swaps at August 3, 2018 is as follows:

Trade Date	Effective Date	Term (in Years)		Notional Amount		Fixed Rate
June 18, 2014	May 3, 2015		4	$	160,000		2.51	%
June 24, 2014	May 3, 2015		4		120,000		2.51	%
July 1, 2014	May 5, 2015		4		120,000		2.43	%
January 30, 2015	May 3, 2019		2		80,000		2.15	%
January 30, 2015	May 3, 2019		2		60,000		2.16	%
January 30, 2015	May 4, 2021		3		120,000		2.41	%
January 30, 2015	May 3, 2019		2		60,000		2.15	%
January 30, 2015	May 4, 2021		3		80,000		2.40	%

Estimated Fair Value of Derivative Instruments

The estimated fair values of the Company’s derivative instruments were as follows:

(See Note 3)	Balance Sheet Location	August 3, 2018		July 28, 2017
Interest rate swaps	Prepaid expenses and other current assets	$	169	$	32
Interest rate swaps	Other assets		6,086		--
Total assets		$	6,255	$	32
Interest rate swaps	Other current liabilities	$	--	$	47
Interest rate swaps	Long-term interest rate swap liability		--		6,833
Total liabilities		$	--	$	6,880

**These interest rate swap assets and liabilities are recorded at gross at both August 3, 2018 and July 28, 2017 since there were no offsetting assets and liabilities under the Company’s master netting agreements.

Pre-tax Effects of Derivative Instruments on AOCIL and Income

The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCIL for each of the three years:

	Amount of Income (Loss) Recognized in AOCIL on Derivatives (Effective Portion)
	2018		2017		2016
Cash flow hedges:
Interest rate swaps	$	13,103	$	15,402	$	(16,188	)

Changes in AOCIL, Net of Tax, Related to Interest Rate Swaps

The following table summarizes the changes in AOCIL, net of tax, related to the Company’s interest rate swaps for the years ended August 3, 2018, July 28, 2017 and July 29, 2016:

	August 3, 2018			July 28, 2017			July 29, 2016
Beginning AOCIL balance	$	(4,229	)	$	(13,740	)	$	(3,725	)
Other comprehensive income (loss) before reclassifications		11,274			12,082			(6,683	)
Amounts reclassified from AOCIL into earnings		(2,360	)		(2,571	)		(3,332	)
Other comprehensive income (loss), net of tax		8,914			9,511			(10,015	)
Ending AOCIL balance	$	4,685		$	(4,229	)	$	(13,740	)

Amounts Reclassified Out of AOCIL Related to Interest Rate Swaps

The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for each of the three years:

Location of Loss Reclassified from AOCIL into Income (Effective Portion)		Amount of Loss Reclassified from AOCIL into Income (Effective Portion)
		2018		2017		2016
Cash flow hedges:
Interest rate swaps	Interest expense	$	3,398	$	4,163	$	5,395

The following table summarizes the amounts reclassified out of AOCIL related to the Company’s interest rate swaps for the years ended August 3, 2018, July 28, 2017 and July 29, 2016:

Details about AOCIL	August 3, 2018			July 28, 2017			July 29, 2016			Affected Line Item in the Consolidated Statement of Income
Loss on cash flow hedges:
Interest rate swaps	$	(3,398	)	$	(4,163	)	$	(5,395	)	Interest expense
Tax benefit		1,038			1,592			2,063		Provision for income taxes
	$	(2,360	)	$	(2,571	)	$	(3,332	)	Net of tax