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DERIVATIVES AND FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

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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Tabular disclosure of information pertaining to carrying amount and estimated fair value of short-term and long-term debt instruments or arrangements, including but not limited to, identification of terms, features, and collateral requirements.

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624171-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
-Paragraph 4A
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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624163-113959

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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).

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-Name Accounting Standards Codification
-Topic 820
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