XML 36 R24.htm IDEA: XBRL DOCUMENT v3.20.4
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jan. 29, 2021
Derivative Instruments and Hedging Activities [Abstract]  
Interest Rate Swaps

A summary of the Company’s interest rate swaps at January 29, 2021 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 29, 2021 and July 31, 2020 were as follows:

(See Note 3)
Balance Sheet Location
  
January 29, 2021
    
July 31, 2020
  
Interest rate swaps
Other current liabilities
  
$
1,349
    
$
3,886
  
Interest rate swaps
Long-term interest rate swap liability
    
21,193
      
23,860
  
Total liabilities**
    
$
22,542
    
$
27,746
  

**These interest rate swap liabilities are recorded gross at both January 29, 2021 and July 31, 2020 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 29, 2021 and the year ended July 31, 2020:

  
Amount of Income (Loss) Recognized
in AOCL on Derivatives
  
   
Six Months Ended
January 29, 2021
    
Year Ended
July 31, 2020
  
Cash flow hedges:
            
Interest rate swaps
  
$
4,886
    
$
(17,740
)


The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters and six months ended January 29, 2021 and January 31, 2020:
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 29,
2021
 
January 31,
2020
 
January 29,
2021
 
January 31,
2020
Cash flow hedges:
 
 
 
 
 
 
 
 
 
Interest rate swaps
Interest expense
  
$
2,158
  
$
176
  
$
3,984
  
$
94
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 29, 2021:
 
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
 
$
(2,158)
 
 
$
(3,984)
  
Interest expense
Tax benefit
 
 
538
  
 
 
994
 
Provision for income taxes
 
 
$
(1,620)
 
 
$
(2,990)
  
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 29, 2021:

  
Changes in AOCL
  
AOCL balance at July 31, 2020
  
$
(20,346
)
Other comprehensive income before reclassifications
    
6,657
  
Amounts reclassified from AOCL
    
(2,990
)
Other comprehensive income, net of tax
    
3,667
  
AOCL balance at January 29, 2021
  
$
(16,679
)