Derivative Financial Instruments

6 Months Ended

Jan. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

13. Derivative Financial Instruments

The Company held certain derivative instruments that were accounted for pursuant to ASC 815, Derivatives and Hedging (ASC 815). The Company entered into certain interest rate swaps with notional amounts totaling $243.0 million, to limit its exposure to variability of the one-month LIBOR floating interest rate on a significant portion of the outstanding balance of its Term Loans. See Note 11, Long-Term Debt. The interest rate swap agreements are in place with two U.S.-based counterparties, with expected termination dates of June 15, 2024.

Every derivative instrument is required to be recorded on the balance sheet as either an asset or a liability measured at its fair value. If the derivative does not qualify as a hedge or is not designated as a hedge, changes in fair value of these non-hedge derivatives are recognized in earnings in derivative fair value income or loss.

None of the derivative instruments are used for trading purposes. The effects of the derivative instruments on the condensed consolidated financial statements were as follows as of or for each of the period presented below (amounts presented exclude any income tax effects):

The combined fair value of derivatives not designated as hedging instruments included in the accompanying condensed consolidated balance sheet as of January 31, 2018 is summarized below (in thousands).

		Fair Value as of
Description	Location	January 31, 2018
Derivative instruments – interest rate swaps	Other assets, net	$	3,873

The effects of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and six months ended January 31, 2017 are summarized below (in thousands).

		Three Months Ended		Six Months Ended
Description	Location	January 31, 2018		January 31, 2018
Derivative instruments – interest rate swaps	Derivative fair value gain	$	3,024	$	3,873