Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Nov. 02, 2018

Derivative Instruments and Hedging Activities [Abstract]

Interest Rate Swaps

A summary of the Company’s interest rate swaps at November 2, 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		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 as of November 2, 2018 and August 3, 2018 were as follows:

(See Note 2)	Balance Sheet Location	November 2, 2018		August 3, 2018
Interest rate swaps	Prepaid expenses and other current assets	$	437	$	169
Interest rate swaps	Other assets		6,245		6,086
Total assets		$	6,682	$	6,255

*These interest rate swap assets are recorded at gross at both November 2, 2018 and August 3, 2018 since there were no offsetting liabilities under the Company’s master netting agreements.

Pre-tax Effects of Derivative Instruments on AOCI and Income

The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCI for the three months ended November 2, 2018 and the year ended August 3, 2018:

	Amount of Income Recognized in AOCI on Derivatives (Effective Portion)
	Three Months Ended November 2, 2018		Year Ended August 3, 2018
Cash flow hedges:
Interest rate swaps	$	1,699	$	13,103

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

The following table summarizes the changes in AOCI, net of tax, related to the Company’s interest rate swaps for the three months ended November 2, 2018 (see Notes 2 and 5):

	Changes in AOCI
AOCI balance at August 3, 2018	$	4,685
Other comprehensive income before reclassifications		1,293
Amounts reclassified from AOCI		--
Other comprehensive income, net of tax		1,293
AOCI balance at November 2, 2018	$	5,978

Amounts Reclassified Out of AOCI Related to Interest Rate Swaps

The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters ended November 2, 2018 and October 27, 2017:

	Location of Loss Reclassified from AOCI into Income (Effective Portion)	Amount of Loss Reclassified from AOCI into Income (Effective Portion)
		Quarter Ended
		November 2, 2018		October 27, 2017
Cash flow hedges:
Interest rate swaps	Interest expense	$	--	$	1,064