Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Aug. 02, 2019

Derivative Instruments and Hedging Activities [Abstract]

Interest Rate Swaps

A summary of the Company’s interest rate swaps at August 2, 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 were as follows:

(See Note 4)	Balance Sheet Location	August 2, 2019		August 3, 2018
Interest rate swaps	Prepaid expenses and other current assets	$	—	$	169
Interest rate swaps	Other assets		—		6,086
Total assets		$	—	$	6,255
Interest rate swaps	Long-term interest rate swap liability	$	10,483		—
Total liabilities		$	10,483	$	—

**These interest rate swap assets and liabilities are recorded at gross at both August 2, 2019 and August 3, 2018 since there were no offsetting assets and liabilities under the Company’s master netting agreements.

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 each of the three years:

	Amount of Income (Loss) Recognized in AOCIL on Derivatives (Effective Portion)
	2019			2018		2017
Cash flow hedges:
Interest rate swaps	$	(15,466	)	$	13,103	$	15,402

The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for each of the three years:

	Location of (Income) Loss Reclassified from AOCIL into Income (Effective Portion)	Amount of (Income) Loss Reclassified from AOCIL into Income (Effective Portion)
		2019			2018		2017
Cash flow hedges:
Interest rate swaps	Interest expense	$	(206	)	$	3,398	$	4,163

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 years ended August 2, 2019, August 3, 2018 and July 28, 2017:

	August 2, 2019			August 3, 2018			July 28, 2017
Beginning AOCIL balance	$	4,685		$	(4,229	)	$	(13,740	)
Other comprehensive income (loss) before reclassifications		(11,752	)		11,274			12,082
Amounts reclassified from AOCIL into earnings		154			(2,360	)		(2,571	)
Other comprehensive income (loss), net of tax		(11,598	)		8,914			9,511
Ending AOCIL balance	$	(6,913	)	$	4,685		$	(4,229	)

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 years ended August 2, 2019, August 3, 2018 and July 28, 2017:

Details about AOCIL	August 2, 2019			August 3, 2018			July 28, 2017			Affected Line Item in the Consolidated Statement of Income
Loss on cash flow hedges:
Interest rate swaps	$	206		$	(3,398	)	$	(4,163	)	Interest expense
Tax benefit		(52	)		1,038			1,592		Provision for income taxes
	$	154		$	(2,360	)	$	(2,571	)	Net of tax