Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Feb. 01, 2019

Derivative Instruments and Hedging Activities [Abstract]

Interest Rate Swaps

A summary of the Company’s interest rate swaps at February 1, 2019 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	%
January 16, 2019	May 3, 2019		3		115,000		2.63	%
January 16, 2019	May 3, 2019		2		115,000		2.68	%

Estimated Fair Value of Derivative Instruments

The estimated fair values of the Company’s derivative instruments as of February 1, 2019 and August 3, 2018 were as follows:

(See Note 2)	Balance Sheet Location	February 1, 2019		August 3, 2018
Interest rate swaps	Prepaid expenses and other current assets	$	248	$	169
Interest rate swaps	Other assets		1,576		6,086
Total assets		$	1,824	$	6,255
Interest rate swaps	Other long-term obligations	$	513	$	--
Total liabilities		$	513	$	--

*These interest rate swap assets and liabilities are recorded at gross at both February 1, 2019 and August 3, 2018 since there were no offsetting assets and 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 six months ended February 1, 2019 and the year ended August 3, 2018:

	Amount of (Loss) Income Recognized in AOCI on Derivatives (Effective Portion)
	Six Months Ended February 1, 2019			Year Ended August 3, 2018
Cash flow hedges:
Interest rate swaps	$	(3,672	)	$	13,103

The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters and six-month periods ended February 1, 2019 and January 26, 2018:

	Location of Loss Reclassified from AOCI into Income (Effective Portion)	Amount of Loss Reclassified from AOCI into Income (Effective Portion)
		Quarter Ended				Six Months Ended
		February 1, 2019		January 26, 2018		February 1, 2019		January 26, 2018
Cash flow hedges:
Interest rate swaps	Interest expense	$	141	$	923	$	141	$	1,987

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 six months ended February 1, 2019 (see Notes 2 and 5):

	Changes in AOCI
AOCI balance at August 3, 2018	$	4,685
Other comprehensive loss before reclassifications		(2,640	)
Amounts reclassified from AOCI		(106	)
Other comprehensive loss, net of tax		(2,746	)
AOCI balance at February 1, 2019	$	1,939

Amounts Reclassified Out of AOCI Related to Interest Rate Swaps

The following table summarizes the amounts reclassified out of AOCI related to the Company’s interest rate swaps for the quarter and six months ended February 1, 2019:

	Amount Reclassified from AOCIL						Affected Line Item in the
	Quarter Ended			Six Months Ended			Condensed Consolidated Financial Statements
Loss on cash flow hedges:
Interest rate swaps	$	(141	)	$	(141	)	Interest expense
Tax benefit		35			35		Provision for income taxes
	$	(106	)	$	(106	)	Net of tax