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DERIVATIVES AND FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended
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Oct. 27, 2018
Fair Value Disclosures [Abstract] |
Schedule of Fair Value of Interest Rate Swap Contracts | Details of outstanding swap contracts as of October 27, 2018, which are all pay fixed and receive floating, are as follows:
Swap Maturity |  | Notional Value (in millions) |  | Pay Fixed Rate |  | Receive Floating Rate |  | Floating Rate Reset Terms
March 21, 2019(1) |  | $ | 300.0 |  |  | 2.0075 | % |  | One-Month LIBOR |  | Monthly
June 9, 2019(2) |  | $ | 50.0 |  |  | 0.8725 | % |  | One-Month LIBOR |  | Monthly
June 28, 2019(2) |  | $ | 50.0 |  |  | 0.7265 | % |  | One-Month LIBOR |  | Monthly
April 29, 2021(2) |  | $ | 25.0 |  |  | 1.0650 | % |  | One-Month LIBOR |  | Monthly
April 29, 2021(2) |  | $ | 25.0 |  |  | 0.9260 | % |  | One-Month LIBOR |  | Monthly
August 15, 2022(3) |  | $ | 66.0 |  |  | 1.7950 | % |  | One-Month LIBOR |  | Monthly
August 15, 2022(3) |  | $ | 44.0 |  |  | 1.7950 | % |  | One-Month LIBOR |  | Monthly
October 30, 2020(4) |  | $ | 100.0 |  |  | 2.8240 | % |  | One-Month LIBOR |  | Monthly
October 31, 2022(4) |  | $ | 100.0 |  |  | 2.8915 | % |  | One-Month LIBOR |  | Monthly
October 31, 2023(4) |  | $ | 100.0 |  |  | 2.9210 | % |  | One-Month LIBOR |  | Monthly
October 22, 2025(4) |  | $ | 50.0 |  |  | 2.9550 | % |  | One-Month LIBOR |  | Monthly
(1) | On October 22, 2018, as a result of the acquisition of Supervalu, the Company assumed a pay fixed and receive floating interest rate swap agreement originally entered into by Supervalu to effectively convert $300 million of its variable rate debt to a fixed rate by swapping the variable LIBOR rate component to a fixed rate of 2.0075%. The Company entered into a novation agreement with the counterparty to novate this agreement to the Company, keeping it in place through its scheduled maturity date of March 2019. This interest rate swap contract was kept in place to fix the underlying variability in expected interest payment cash outflows on $300 million notional amount of its LIBOR based debt. This interest rate swap contract is not designated as a hedging instrument as of October 27, 2018, and as such gains or losses resulting from the change in fair value of the contract are reported as Interest expense within the Condensed Consolidated Statements of Income.
(2) | In June 2016, the Company entered into four pay fixed and receive floating interest rate swap contracts to effectively fix the underlying variability in expected interest payment cash outflows on its LIBOR based debt. The agreements were effective in June 2016 and expire at varied dates between June 2019 and April 2021. These interest rate swap contracts have an aggregate notional principal amount of $150 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 0.7265% and 1.0650%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
(3) | On January 23, 2015, the Company entered into two pay fixed and receive floating interest rate swap contracts with effective dates in August 2015, which expire in August 2022. The interest rate swap contracts have amortizing notional amounts which adjust down on a quarterly basis. These interest rate swap contracts require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates of 1.7950%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
(4) | On October 26, 2018, the Company entered into four pay fixed receive floating interest rate swap contracts to effectively fix the underlying variability in expected interest payment cash outflows on its LIBOR based debt. The agreements have an effective date of October 26, 2018 and expire at varied dates between October 2020 and October 2025. These interest rate swap contracts have an aggregate notional principal amount of $350 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 2.8240% and 2.9550%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
Schedule of gains (losses) of hedging activities | The location and amount of gains or losses recognized in the Condensed Consolidated Statements of Income for interest rate swap contracts for each of the periods, presented on a pretax basis, are as follows:
|  | 13-Week Period Ended
|  | October 27, 2018 |  | October 28, 2017
(In thousands) |  | Interest Expense |  | Interest Expense
Total amounts of expense presented in the consolidated results of operations in which the effects of cash flow hedges are recorded |  | $ | 7,671 |  |  | $ | 3,667 |
Gain or (loss) on cash flow hedging relationships: |  |  |  |
Gain or (loss) reclassified from comprehensive income into income |  | $ | 551 |  |  | $ | (30 | )
Gain or (loss) on interest rate swap contracts not designated as hedging instruments: |  |  |  |
Gain or (loss) recognized as interest expense |  | $ | (88 | ) |  | $ | — |
Schedule of fair value for financial assets and liabilities | The following table provides the fair value for financial assets and liabilities under the fair value hierarchy that are measured on a recurring basis:
|  |  |  | Fair Value at October 27, 2018
(In thousands) |  | Balance Sheet Location |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |
Interest rate swaps designated as hedging instruments |  | Prepaid expenses and other current assets |  | $ | — |  |  | $ | 1,148 |  |  | $ | — |
Interest rate swap not designated as a hedging instrument |  | Prepaid expenses and other current assets |  | $ | — |  |  | $ | 570 |  |  | $ | — |
Mutual funds |  | Prepaid expenses and other current assets |  | $ | 1,541 |  |  | $ | — |  |  | $ | — |
Interest rate swaps designated as hedging instruments |  | Other Assets |  | $ | — |  |  | $ | 5,886 |  |  | $ | — |
Mutual funds |  | Other Assets |  | $ | 1,856 |  |  | $ | — |  |  | $ | — |
|  |  |  | Fair Value at July 28, 2018
(in thousands) |  | Balance Sheet Location |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |
Interest rate swaps designated as hedging instruments |  | Prepaid expenses and other current assets |  | $ | — |  |  | $ | 1,459 |  |  | $ | — |
Interest rate swaps designated as hedging instruments |  | Other Assets |  | $ | — |  |  | $ | 5,860 |  |  | $ | — |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments |
|  | October 27, 2018 |  | July 28, 2018
(In thousands) |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Assets: |  |  |  |  |  |  |  |
Notes receivable |  | $ | 64,240 |  |  | $ | 64,240 |  |  | $ | — |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Long-term debt and capital lease obligations, including current portion |  | $ | 2,654,622 |  |  | $ | 2,674,688 |  |  | $ | 150,150 |  |  | $ | 155,317 |

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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
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