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DERIVATIVES (Notes) | 6 Months Ended
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Jan. 26, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVES Management of Interest Rate Risk The Company enters into interest rate swap contracts from time to time to mitigate its exposure to changes in market interest rates as part of its overall strategy to manage its debt portfolio to achieve an overall desired position of notional debt amounts subject to fixed and floating interest rates. Interest rate swap contracts are entered into for periods consistent with related underlying exposures and do not constitute positions independent of those exposures. The Company’s interest rate swap contracts are designated as cash flow hedges at January 26, 2019, except for one interest rate swap contract which matures on March 21, 2019 and is described in more detail in footnote 1 to the table below. Interest rate swap contracts are reflected at their fair values in the Condensed Consolidated Balance Sheets. Refer to Note 8. “Fair Value Measurements of Financial Instruments” for further information on the fair value of interest rate swap contracts. Details of outstanding swap contracts as of January 26, 2019, 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
April 29, 2021(2) |  | 25.0 |  |  | 1.0650 | % |  | One-Month LIBOR |  | Monthly
June 30, 2019(3) |  | 50.0 |  |  | 0.7265 | % |  | One-Month LIBOR |  | Monthly
April 29, 2021(3) |  | 25.0 |  |  | 0.9260 | % |  | One-Month LIBOR |  | Monthly
August 15, 2022(4) |  | 64.5 |  |  | 1.7950 | % |  | One-Month LIBOR |  | Monthly
August 15, 2022(5) |  | 43.0 |  |  | 1.7950 | % |  | One-Month LIBOR |  | Monthly
October 31, 2020(6) |  | 100.0 |  |  | 2.8240 | % |  | One-Month LIBOR |  | Monthly
October 31, 2022(6) |  | 100.0 |  |  | 2.8915 | % |  | One-Month LIBOR |  | Monthly
October 31, 2023(6) |  | 100.0 |  |  | 2.9210 | % |  | One-Month LIBOR |  | Monthly
October 22, 2025(6) |  | 50.0 |  |  | 2.9550 | % |  | One-Month LIBOR |  | Monthly
March 31, 2023(7) |  | 150.0 |  |  | 2.8950 | % |  | One-Month LIBOR |  | Monthly
October 22, 2025(7) |  | 50.0 |  |  | 2.9580 | % |  | One-Month LIBOR |  | Monthly
October 22, 2025(7) |  | 50.0 |  |  | 2.9590 | % |  | One-Month LIBOR |  | Monthly
October 29, 2021(8) |  | 100.0 |  |  | 2.8084 | % |  | One-Month LIBOR |  | Monthly
September 30, 2023(8) |  | 50.0 |  |  | 2.8315 | % |  | One-Month LIBOR |  | Monthly
October 31, 2024(8) |  | 100.0 |  |  | 2.8480 | % |  | One-Month LIBOR |  | Monthly
October 31, 2022(9) |  | 50.0 |  |  | 2.4678 | % |  | One-Month LIBOR |  | Monthly
March 28, 2024(9) |  | 100.0 |  |  | 2.4770 | % |  | One-Month LIBOR |  | Monthly
October 31, 2024(9) |  | 100.0 |  |  | 2.5010 | % |  | One-Month LIBOR |  | Monthly
April 29, 2021(10) |  | 50.0 |  |  | 2.5500 | % |  | One-Month LIBOR |  | Monthly
October 31, 2022(10) |  | 50.0 |  |  | 2.5255 | % |  | One-Month LIBOR |  | Monthly
March 31, 2023(10) |  | 50.0 |  |  | 2.5292 | % |  | One-Month LIBOR |  | Monthly
March 28, 2024(10) |  | 100.0 |  |  | 2.5420 | % |  | One-Month LIBOR |  | Monthly
October 31, 2024(11) |  | 50.0 |  |  | 2.5210 | % |  | One-Month LIBOR |  | Monthly
October 22, 2025(11) |  | 50.0 |  |  | 2.5558 | % |  | One-Month LIBOR |  | Monthly
|  | $ | 2,007.5 |  |  |  |  |  |  |
(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 contract originally entered into by Supervalu to effectively fix the underlying variability in expected interest payment cash outflows on its LIBOR based debt. 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. The interest rate swap contract has a notional principal amount of $300 million and requires the Company to pay interest payments during the duration of the contract at a fixed annual rate of 2.0075%, while receiving interest for the same respective contract period at one-month LIBOR on the same notional principal amount. This interest rate swap contract is not designated as a hedging instrument as of January 26, 2019, 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) | On June 7, 2016, the Company entered into two 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 have an effective date of June 9, 2016 and expire at varied dates between June 2019 and April 2021. These interest rate swap contracts have an aggregate notional principal amount of $75 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 0.8725% 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 June 24, 2016, the Company entered into two 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 have an effective date of June 24, 2016 and expire at varied dates between June 2019 and April 2021. These interest rate swap contracts have an aggregate notional principal amount of $75 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 0.7265% and 0.9260%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
(4) | On January 23, 2015, the Company entered into a pay fixed and receive floating interest rate swap contract to effectively fix the underlying variability in expected interest payment cash outflows on its LIBOR based debt. The agreement has an effective date of August 3, 2015 and expires in August 2022. On March 31, 2015, the Company amended the original contract to reduce the beginning notional principal amount from $140 million to $84 million. The interest rate swap contract has an amortizing notional principal amount which adjusts down on a quarterly basis and requires the Company to pay interest payments during the duration of the contract at a fixed annual rate of 1.7950%, while receiving interest for the same respective contract period at one-month LIBOR on the same notional principal amount.
(5) | On March 31, 2015, the Company entered into a pay fixed and receive floating interest rate swap contract to effectively fix the underlying variability in expected interest payment cash outflows on its LIBOR based debt. The agreement has an effective date of August 3, 2015 and expires in August 2022. The interest rate swap contract has an amortizing notional principal amount which adjusts down on a quarterly basis and requires the Company to pay interest payments during the duration of the contract at a fixed annual rate of 1.7950%, while receiving interest for the same respective contract period at one-month LIBOR on the same notional principal amount.
(6) | 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.
(7) | On November 16, 2018, the Company entered into three 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 November 16, 2018 and expire at varied dates between March 2023 and October 2025. These interest rate swap contracts have an aggregate notional principal amount of $250 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 2.8950% and 2.9590%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
(8) | On November 30, 2018, the Company entered into three 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 November 30, 2018 and expire at varied dates between October 2021 and October 2024. These interest rate swap contracts have an aggregate notional principal amount of $250 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 2.8084% and 2.8480%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
(9) | On January 11, 2019, the Company entered into three 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 January 11, 2019 and expire at varied dates between October 2022 and October 2024. These interest rate swap contracts have an aggregate notional principal amount of $250 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 2.4678% and 2.5010%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
(10) | On January 23, 2019, 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 January 23, 2019 and expire at varied dates between April 2021 and March 2024. These interest rate swap contracts have an aggregate notional principal amount of $250 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 2.5255% and 2.5500%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
(11) | On January 24, 2019, the Company entered into two 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 January 24, 2019 and expire at varied dates between October 2024 and October 2025. These interest rate swap contracts have an aggregate notional principal amount of $100 million and require the Company to pay interest payments during the duration of the respective contracts at fixed annual rates between 2.5210% and 2.5558%, while receiving interest for the same respective contract periods at one-month LIBOR on the same aggregate notional principal amounts.
The Company performs an initial quantitative assessment of hedge effectiveness using the “Hypothetical Derivative Method” in the period in which the hedging transaction is entered. Under this method, the Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. In future reporting periods, the Company performs a qualitative analysis for quarterly prospective and retrospective assessments of hedge effectiveness. The Company also monitors the risk of counterparty default on an ongoing basis and noted that the counterparties are reputable financial institutions. The entire change in the fair value of the derivative is initially reported in Other comprehensive income (outside of earnings) and subsequently reclassified to earnings in interest expense when the hedged transactions affect earnings. 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 |  | 26-Week Period Ended
|  | January 26, 2019 |  | January 27, 2018 |  | January 26, 2019 |  | January 27, 2018
(In thousands) |  | Interest Expense, net |  | Interest Expense, net |  | Interest Expense, net |  | Interest Expense, net
Total amounts of expense presented in the consolidated statements of income in which the effects of cash flow hedges are recorded |  | $ | 58,707 |  |  | $ | 4,137 |  |  | $ | 66,232 |  |  | $ | 7,713 |
Gain or (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |
Gain or (loss) reclassified from comprehensive income into income |  | $ | (108 | ) |  | $ | 81 |  |  | $ | 443 |  |  | $ | 51 |
Gain or (loss) on interest rate swap contracts not designated as hedging instruments: |  |  |  |  |  |  |  |
Gain or (loss) recognized as interest expense |  | $ | 22 |  |  | $ | — |  |  | $ | (66 | ) |  | $ | — |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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