XML 37 R17.htm IDEA: XBRL DOCUMENT
v3.22.2.2

DERIVATIVES | 12 Months Ended
--- | ---
Jul. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | NOTE 8—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. Interest rate swap contracts are reflected at their fair values in the Consolidated Balance Sheets. Refer to Note 7—Fair Value Measurements of Financial Instruments for further information on the fair value of interest rate swap contracts. Details of active swap contracts as of July 30, 2022, which are all pay fixed and receive floating, are as follows:
Effective Date | Swap Maturity |  | Notional Value (in millions) |  | Pay Fixed Rate(2) |  | Receive Floating Rate(2) |  | Floating Rate Reset Terms
August 3, 2015(1) | August 15, 2022 |  | $ | 29 |  |  | 1.7950 | % |  | One-Month Term SOFR |  | Monthly
October 26, 2018 | October 31, 2022 |  | 100 |  |  | 2.8170 | % |  | One-Month Term SOFR |  | Monthly
January 11, 2019 | October 31, 2022 |  | 50 |  |  | 2.3770 | % |  | One-Month Term SOFR |  | Monthly
January 23, 2019 | October 31, 2022 |  | 50 |  |  | 2.2740 | % |  | One-Month Term SOFR |  | Monthly
November 16, 2018 | March 31, 2023 |  | 150 |  |  | 2.7770 | % |  | One-Month Term SOFR |  | Monthly
January 23, 2019 | March 31, 2023 |  | 50 |  |  | 2.4245 | % |  | One-Month Term SOFR |  | Monthly
November 30, 2018 | September 30, 2023 |  | 50 |  |  | 2.6980 | % |  | One-Month Term SOFR |  | Monthly
October 26, 2018 | October 31, 2023 |  | 100 |  |  | 2.7880 | % |  | One-Month Term SOFR |  | Monthly
January 11, 2019 | March 28, 2024 |  | 100 |  |  | 2.3600 | % |  | One-Month Term SOFR |  | Monthly
January 23, 2019 | March 28, 2024 |  | 100 |  |  | 2.4250 | % |  | One-Month Term SOFR |  | Monthly
November 30, 2018 | October 31, 2024 |  | 100 |  |  | 2.7385 | % |  | One-Month Term SOFR |  | Monthly
January 11, 2019 | October 31, 2024 |  | 100 |  |  | 2.4025 | % |  | One-Month Term SOFR |  | Monthly
January 24, 2019 | October 31, 2024 |  | 50 |  |  | 2.4090 | % |  | One-Month Term SOFR |  | Monthly
October 26, 2018 | October 22, 2025 |  | 50 |  |  | 2.8725 | % |  | One-Month Term SOFR |  | Monthly
November 16, 2018 | October 22, 2025 |  | 50 |  |  | 2.8750 | % |  | One-Month Term SOFR |  | Monthly
November 16, 2018 | October 22, 2025 |  | 50 |  |  | 2.8380 | % |  | One-Month Term SOFR |  | Monthly
January 24, 2019 | October 22, 2025 |  | 50 |  |  | 2.4750 | % |  | One-Month Term SOFR |  | Monthly
|  |  | $ | 1,229 |  |  |  |  |  |  |
(1)The swap contract has an amortizing notional principal amount which is reduced by $1 million on a quarterly basis. (2)In fiscal 2022, the Company amended the reference rate in all of its outstanding interest rate swap contracts to replace One-Month LIBOR with One-Month Term SOFR and certain credit spread adjustments. The Company did not record any gains or losses upon the conversion of the reference rates in these interest rate swap contracts, and the Company believes these amendments will not have a material impact on its Consolidated Financial Statements. In fiscal 2021, in order to reduce its exposure to pay fixed and receive floating interest rate swap contracts due to lower levels of debt balances with floating interest rates, the Company paid $6 million to terminate certain outstanding interest rate swaps with a notional amount of $250 million. In addition, in fiscal 2021, in conjunction with the $500 million fixed rate senior unsecured notes offering described below in Note 9—Long-Term Debt, the Company paid $11 million to terminate or novate certain outstanding interest rate swaps with a notional amount of $504 million and certain forward starting interest rate swaps with a notional amount of $450 million. The payments equaled the fair value of the interest rate swaps at the time of their termination or novation. No gain or loss was recorded as a result of the swap terminations and novations. Since the hedged interest payments remain probable of occurring, the unrecognized gains and losses that existed as of the early termination or novation of these interest rate swap agreements will be amortized out of Accumulated other comprehensive loss and into Interest expense, net over the remaining period of the original terminated or novated interest rate swap agreements. If any of the hedged interest payments were not probable of occurring, then a charge representing an accelerated amortization of the unrecognized gains and losses would be recorded. Cash payments resulting from the termination or novation of interest rate swaps are classified as operating activities in the Company’s Consolidated Statements of Cash Flows. 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) in the Consolidated Statements of Comprehensive Income and subsequently reclassified to earnings in Interest expense, net in the Consolidated Statements of Operations when the hedged transactions affect earnings. The location and amount of gains or losses recognized in the Consolidated Statements of Operations for interest rate swap contracts for each of the periods, presented on a pre-tax basis, are as follows:
|  | Interest Expense, net
(In millions) |  | 2022 |  | 2021 |  | 2020
Total amounts of expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded |  | $ | 155 |  |  | $ | 204 |  |  | $ | 192 |
Loss on cash flow hedging relationships: |  |  |  |  |  |
Loss reclassified from comprehensive income into earnings |  | $ | (36) |  |  | $ | (46) |  |  | $ | (25) |
(Loss) gain on interest rate swap contracts not designated as hedging instruments: |  |  |  |  |  |
(Loss) gain recognized in earnings |  | $ | — |  |  | $ | — |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration