INCOME TAXES (Tables)

12 Months Ended

Jul. 27, 2019

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes are:



	2019			2018
Federal:
Current	$	7,669		$	5,546
Deferred	(1,149		)	(915		)

State:
Current	4,198			3,262
Deferred	(734		)	(135		)

	$	9,984		$	7,758

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	July 27, 2019			July 28, 2018
Deferred tax assets:
Leasing activities	$	7,816		$	7,396
Federal benefit of uncertain tax positions	—			182
Compensation related costs	4,750			2,795
Pension costs	1,474			1,673
Other	406			456

Total deferred tax assets	14,446			12,502

Deferred tax liabilities:
Tax over book depreciation	13,481			13,557
Patronage dividend receivable	3,270			3,281
Investment in partnerships	1,034			1,030
Other	123			47

Total deferred tax liabilities	17,908			17,915

Net deferred tax liability	$	(3,462	)	$	(5,413	)

Deferred income tax assets (liabilities) are included in the following captions on the consolidated balance sheets at July 27, 2019 and July 28, 2018:



	2019		2018
Other assets	1,406		646
Other liabilities	(4,868	)	(6,059	)

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differs from the statutory federal income tax rate as follows:



	2019		2018
Statutory federal income tax rate	21.0	%	26.9	%
State income taxes, net of federal tax benefit	9.8	%	7.0	%
Settlement of tax audits	(2.2	)%	—	%
Deferred tax revaluation due to Tax Act	—	%	(10.0	)%
Other	(0.5	)%	(0.3	)%

Effective income tax rate	28.1	%	23.6	%

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:



	2019			2018
Balance at beginning of year	$	648		$	648
Reductions based on settlement of tax audits	(648		)	—

Balance at end of year	$	—		$	648