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Long-Term Debt | 6 Months Ended
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Jan. 31, 2023
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The components of long-term debt are as follows:
|  | January 31, 2023 |  | July 31, 2022
Term loan |  | $ | 1,139,714 |  |  | $ | 1,124,209 |
Asset-based credit facility |  | 85,000 |  |  | 100,000 |
Senior unsecured notes |  | 500,000 |  |  | 500,000 |
Unsecured notes |  | 27,083 |  |  | 25,495 |
Other debt |  | 46,600 |  |  | 50,207 |
Gross long-term debt |  | 1,798,397 |  |  | 1,799,911 |
Debt issuance costs, net of amortization |  | (28,775) |  |  | (32,482) |
Total long-term debt, net of debt issuance costs |  | 1,769,622 |  |  | 1,767,429 |
Less: current portion of long-term debt |  | (11,116) |  |  | (13,190) |
Total long-term debt, net, less current portion |  | $ | 1,758,506 |  |  | $ | 1,754,239 |
As discussed in Note 12 to the Company’s Consolidated Financial Statements included in the Fiscal 2022 Form 10-K, the Company is a party to a seven-year term loan (“term loan”) agreement, which consists of both a U.S. Dollar-denominated term loan tranche and a Euro-denominated term loan tranche, and a $1,000,000 revolving asset-based credit facility (“ABL”). Subject to earlier termination, the term loan matures on February 1, 2026 and the ABL matures on September 1, 2026, subject to a springing maturity at an earlier date if the maturity date of the Company's term loan has not been extended or refinanced. As of January 31, 2023, the entire outstanding U.S. term loan tranche balance of $661,900 was subject to a LIBOR-based rate totaling 7.563%. The interest rate on $165,263 of that balance, however, was fixed at 5.466% through an interest rate swap, dated March 18, 2019, by swapping the underlying 1-month LIBOR rate for a fixed rate of 2.466% plus a 3.000% interest rate spread. As of July 31, 2022, the entire outstanding U.S. term loan tranche balance of $671,900 was subject to a LIBOR-based rate totaling 5.375%, but the interest rate on $273,325 of that balance was fixed at 5.466% through an interest rate swap, dated March 18, 2019. The total interest rate on the January 31, 2023 outstanding Euro term loan tranche balance of $477,814 was 5.125%, and the total interest rate on the July 31, 2022 outstanding Euro term loan tranche of $452,309 was 3.000%. The Company must make mandatory prepayments of principal under the term loan agreement upon the occurrence of certain specified events, including certain asset sales, debt issuances and receipt of annual cash flows in excess of certain amounts. No such specified events occurred during the three or six months ended January 31, 2023 or 2022. As of January 31, 2023, the total weighted-average interest rate on the outstanding ABL borrowings of $85,000 was 5.634%. As of July 31, 2022, the total weighted-average interest rate on the outstanding ABL borrowings of $100,000 was 3.048%. The Company may, generally at its option, pay any borrowings under the ABL, in whole or in part, at any time and from time to time, without penalty or premium. Availability under the ABL agreement is subject to a borrowing base based on a percentage of applicable eligible receivables and eligible inventory. The ABL carries interest at an annual base rate plus 0.25% to 0.50%, or LIBOR plus 1.25% to 1.50%, based on adjusted excess availability as defined in the ABL agreement. This agreement also includes a 0.20% unused facility fee. The unused availability under the ABL is generally available to the Company for general operating purposes and, based on January 31, 2023 eligible accounts receivable and inventory balances, net of amounts drawn, totaled approximately $915,000. As discussed in Note 12 to the Company’s Consolidated Financial Statements included in the Fiscal 2022 Form 10-K, on October 14, 2021, the Company issued an aggregate principal amount of $500,000 of 4.000% Senior Unsecured Notes due 2029 (“Senior Unsecured Notes”) that will mature on October 15, 2029 unless redeemed or repurchased earlier. Interest on the Senior Unsecured Notes is payable in semi-annual installments on April 15 and October 15 of each year. The unsecured notes of 25,000 Euro ($27,083) relate to long-term debt of our European segment. There are two series, 20,000 Euro ($21,666) with an interest rate of 1.945% maturing in March 2025, and 5,000 Euro ($5,417) with an interest rate of 2.534% maturing March 2028. Other debt relates primarily to real estate loans with varying maturity dates through September 2032 and interest rates ranging from 2.380% to 2.870%. Total contractual gross debt maturities are as follows:
For the remainder of the fiscal year ending July 31, 2023 | $ | 5,451
For the fiscal year ending July 31, 2024 | 10,991
For the fiscal year ending July 31, 2025 | 32,538
For the fiscal year ending July 31, 2026 | 1,227,838
For the fiscal year ending July 31, 2027 | 2,654
For the fiscal year ending July 31, 2028 and thereafter | 518,925
| $ | 1,798,397
For the three and six months ended January 31, 2023, interest expense on the term loan, ABL, Senior Unsecured Notes and other debt facilities was $24,064 and $44,243, respectively, and also included the amortization of capitalized fees to secure the term loan, ABL and Senior Unsecured Notes, which are being amortized over the respective terms of those arrangements, of $2,862 and $5,697, respectively. For the three and six months ended January 31, 2022, interest expense on the term loan, ABL and other debt facilities was $20,812 and $38,455, respectively, and also included the amortization of capitalized fees to secure the term loan, ABL and Senior Unsecured Notes, which are being amortized over the respective terms of those arrangements, of $3,144 and $5,568, respectively. The fair value of the Company’s term-loan debt at January 31, 2023 and July 31, 2022 was $1,139,777 and $1,097,136, respectively, and the fair value of the Company’s Senior Unsecured Notes at January 31, 2023 and July 31, 2022 was $415,700 and $405,000, respectively. The fair values of the Company’s term-loan debt and Senior Unsecured Notes are primarily estimated using Level 2 inputs as defined by ASC 820, based on quoted prices in markets that are not active. The fair value of other debt held by the Company approximates carrying value. Subsequent to January 31, 2023, we made principal payments of $15,000 on our ABL and $15,000 on our U.S. term loan.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
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