Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jan. 31, 2020

Derivative Instruments and Hedging Activities [Abstract]

Interest Rate Swaps

A summary of the Company’s interest rate swaps at January 31, 2020 is as follows:

Trade Date	Effective Date	Term (in Years)		Notional Amount		Fixed Rate
January 30, 2015	May 3, 2019		2.0	$	60,000		2.16	%
January 30, 2015	May 4, 2021		3.0		120,000		2.41	%
January 30, 2015	May 3, 2019		2.0		60,000		2.15	%
January 30, 2015	May 4, 2021		3.0		80,000		2.40	%
January 16, 2019	May 3, 2019		3.0		115,000		2.63	%
January 16, 2019	May 3, 2019		2.0		115,000		2.68	%
August 6, 2019	November 4, 2019		2.5		50,000		1.50	%
August 7, 2019	May 3, 2021		1.0		35,000		1.32	%
August 7, 2019	May 3, 2022		2.0		100,000		1.40	%
August 7, 2019	May 3, 2022		2.0		100,000		1.36	%

Estimated Fair Value of Derivative Instruments

The estimated fair value of the Company’s derivative instruments as of January 31, 2020 and August 2, 2019 were as follows:

(See Note 4)	Balance Sheet Location	January 31, 2020		August 2, 2019
Interest rate swaps	Long-term interest rate swap liability	$	13,479	$	10,483
Total liabilities		$	13,479	$	10,483

**These interest rate swap liabilities are recorded gross at both January 31, 2020 and August 2, 2019 since there were no offsetting assets under the Company’s master netting agreements.

Pre-tax Effects of Derivative Instruments on AOCL and Income

The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCL for the six months ended January 31, 2020 and the year ended August 2, 2019:

	Amount of Loss Recognized in AOCL on Derivatives
	Six Months Ended January 31, 2020			Year Ended August 2, 2019
Cash flow hedges:
Interest rate swaps	$	(3,235	)	$	(15,466	)

The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters and six-month periods ended January 31, 2020 and February 1, 2019:

	Location of Loss Reclassified from AOCL into Income (Effective Portion)	Amount of Loss Reclassified from AOCL into Income (Effective Portion)
		Quarter Ended				Six Months Ended
		January 31, 2020		February 1, 2019		January 31, 2020		February 1, 2019
Cash flow hedges:
Interest rate swaps	Interest expense	$	176	$	141	$	94	$	141

Amounts Reclassified Out of AOCL Related to Interest Rate Swaps

The following table summarizes the amounts reclassified out of AOCL related to the Company’s interest rate swaps for the quarter and six months ended January 31, 2020:

	Amount Reclassified from AOCL						Affected Line Item in the
	Quarter Ended			Six Months Ended			Condensed Consolidated Financial Statements
Loss on cash flow hedges:
Interest rate swaps	$	(176	)	$	(94	)	Interest expense
Tax benefit		44			24		Provision for income taxes
	$	(132	)	$	(70	)	Net of tax

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

The following table summarizes the changes in AOCL, net of tax, related to the Company’s interest rate swaps for the six months ended January 31, 2020:

	Changes in AOCL
AOCL balance at August 2, 2019	$	(6,913	)
Other comprehensive loss before reclassifications		(2,417	)
Amounts reclassified from AOCL		(70	)
Other comprehensive loss, net of tax		(2,487	)
AOCL balance at January 31, 2020	$	(9,400	)