Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

May 03, 2019

Derivative Instruments and Hedging Activities [Abstract]

Interest Rate Swaps

A summary of the Company’s interest rate swaps at May 3, 2019 is as follows:

Trade Date	Effective Date	Term (in Years)		Notional Amount		Fixed Rate
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 May 3, 2019 and August 3, 2018 were as follows:

(See Note 2)	Balance Sheet Location	May 3, 2019		August 3, 2018
Interest rate swaps	Prepaid expenses and other current assets	$	--	$	169
Interest rate swaps	Other assets		38		6,086
Total assets		$	38	$	6,255
Interest rate swaps	Long-term interest rate swap liability	$	1,684	$	--
Total liabilities		$	1,684	$	--

Summary of Offsetting of Derivative Assets

The following table summarizes the offsetting of the Company’s derivative assets in the Condensed Consolidated Balance Sheets at May 3, 2019 and August 3, 2018:

	Gross Asset Amounts				Liability Amount Offset					Net Asset Amount Presented in the Balance Sheets
(See Note 2)	May 3, 2019		August 3, 2018		May 3, 2019			August 3, 2018		May 3, 2019		August 3, 2018
Interest rate swaps	$	295	$	6,255	$	(257	)	$	--	$	38	$	6,255

Summary of Offsetting of Derivative Liabilities

The following table summarizes the offsetting of the Company’s derivative liabilities in the Condensed Consolidated Balance Sheets at May 3, 2019 and August 3, 2018:

	Gross Liability Amounts				Asset Amount Offset					Net Liability Amount Presented in the Balance Sheets
(See Note 2)	May 3, 2019		August 3, 2018		May 3, 2019			August 3, 2018		May 3, 2019		August 3, 2018
Interest rate swaps	$	1,966	$	--	$	(282	)	$	--	$	1,684	$	--

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 the nine months ended May 3, 2019 and the year ended August 3, 2018:

	Amount of (Loss) Income Recognized in AOCIL on Derivatives (Effective Portion)
	Nine Months Ended May 3, 2019			Year Ended August 3, 2018
Cash flow hedges:
Interest rate swaps	$	(6,629	)	$	13,103

The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters and nine-month periods ended May 3, 2019 and April 27, 2018:

	Location of Loss (Gain) Reclassified from AOCIL into Income (Effective Portion)	Amount of Loss (Gain) Reclassified from AOCIL into Income (Effective Portion)
		Quarter Ended					Nine Months Ended
		May 3, 2019			April 27, 2018		May 3, 2019		April 27, 2018
Cash flow hedges:
Interest rate swaps	Interest expense	$	(99	)	$	865	$	43	$	2,852

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 nine months ended May 3, 2019 (see Notes 2 and 5):

	Changes in AOCIL
AOCIL balance at August 3, 2018	$	4,685
Other comprehensive loss before reclassifications		(4,934	)
Amounts reclassified from AOCIL		(32	)
Other comprehensive loss, net of tax		(4,966	)
AOCIL balance at May 3, 2019	$	(281	)

Amounts Reclassified Out of AOCIL Related to Interest Rate Swaps

The following table summarizes the amounts reclassified out of AOCIL related to the Company’s interest rate swaps for the quarter and nine months ended May 3, 2019:

	Amount Reclassified from AOCIL						Affected Line Item in the Condensed Consolidated Financial Statements
	Quarter Ended			Nine Months Ended
Gain (loss) on cash flow hedges:
Interest rate swaps	$	99		$	(43	)	Interest expense
Tax benefit (expense)		(25	)		11		Provision for income taxes
	$	74		$	(32	)	Net of tax