COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Apr. 30, 2022

Equity [Abstract]

COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS

NOTE 9—COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in Accumulated other comprehensive income (loss) by component, net of tax, for fiscal 2022 year-to-date are as follows:

(in millions)	Other Cash Flow Derivatives		Benefit Plans		Foreign Currency Translation		Swap Agreements		Total
Accumulated other comprehensive income (loss) at July 31, 2021	$	—	$	37	$	(16)	$	(60)	$	(39)
Other comprehensive income (loss) before reclassifications	1		—		(3)		36		34
Amortization of amounts included in net periodic benefit income	—		2		—		—		2
Amortization of cash flow hedges	3		—		—		22		25
Net current period Other comprehensive income (loss)	4		2		(3)		58		61
Accumulated other comprehensive income (loss) at April 30, 2022	$	4	$	39	$	(19)	$	(2)	$	22

Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2021 year-to-date are as follows:

(in millions)	Benefit Plans		Foreign Currency Translation		Swap Agreements		Total
Accumulated other comprehensive loss at August 1, 2020	$	(116)	$	(21)	$	(102)	$	(239)
Other comprehensive income before reclassifications	—		6		10		16
Amortization of amounts included in net periodic benefit income	(1)		—		—		(1)
Amortization of cash flow hedges	—		—		26		26
Net current period Other comprehensive (loss) income	(1)		6		36		41
Accumulated other comprehensive loss at May 1, 2021	$	(117)	$	(15)	$	(66)	$	(198)

Items reclassified out of Accumulated other comprehensive income (loss) had the following impact on the Condensed Consolidated Statements of Operations:

	13-Week Period Ended				39-Week Period Ended				Affected Line Item on the Condensed Consolidated Statements of Operations
(in millions)	April 30, 2022		May 1, 2021		April 30, 2022		May 1, 2021
Pension and postretirement benefit plan net assets:
Amortization of amounts included in net periodic benefit income(1)	$	—	$	—	$	2	$	(1)	Net periodic benefit income, excluding service cost
Income tax expense (benefit)	—		—		—		—		Provision for income taxes
Total reclassifications, net of tax	$	—	$	—	$	2	$	(1)
Swap agreements:
Reclassification of cash flow hedges	$	9	$	11	$	30	$	35	Interest expense, net
Income tax benefit	(2)		(2)		(8)		(9)		Provision for income taxes
Total reclassifications, net of tax	$	7	$	9	$	22	$	26
Other cash flow hedges:
Reclassification of cash flow hedge	$	2	$	—	$	4	$	—	Cost of sales
Income tax benefit	—		—		(1)		—		Provision for income taxes
Total reclassification, net of tax	$	2	$	—	$	3	$	—

(1)Reclassification of amounts included in net periodic benefit income include reclassification of prior service cost and reclassification of net actuarial loss as reflected in Note 11—Benefit Plans.

As of April 30, 2022, the Company expects to reclassify $2 million related to unrealized derivative gains out of Accumulated other comprehensive income (loss) and primarily into Interest expense, net during the following twelve-month period.