INCOME TAXES

12 Months Ended

Jul. 27, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The components of the provision for income taxes are:

	Years ended
	July 27, 2024		July 29, 2023
Federal:
Current	$	12,348	$	14,749
Deferred	1,148		(1,274)
State:
Current	10,077		10,348
Deferred	(1,318)		(814)
	$	22,255	$	23,009

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	July 27, 2024		July 29, 2023
Deferred tax assets:
Lease liabilities	$	91,188	$	89,638
Compensation related costs	5,513		4,705
Pension costs	1,691		1,544
Other	814		730
Total deferred tax assets	99,206		96,617
Deferred tax liabilities:
Tax over book depreciation	21,947		20,242
Lease assets	81,404		81,676
Patronage dividend receivable	4,615		3,457
Investment in partnerships	775		1,107
Other	2,794		3,079
Total deferred tax liabilities	111,535		109,561
Net deferred tax liability	$	(12,329)	$	(12,944)

Deferred income tax assets (liabilities) are included in the following captions on the consolidated balance sheets at July 27, 2024 and July 29, 2023:

	July 27, 2024	July 29, 2023
Other assets	2,584	1,245
Other liabilities	(14,913)	(14,189)

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In management’s opinion, in view of the Company’s previous, current and projected taxable income and reversal of deferred tax liabilities, such tax assets will more likely than not be fully realized. Accordingly, no valuation allowance was deemed to be required at July 27, 2024 and July 29, 2023.

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

	Years ended
	July 27, 2024		July 29, 2023
Statutory federal income tax rate	21.0	%	21.0	%
State income taxes, net of federal tax benefit	10.2	%	9.9	%
Other	(0.6)	%	0.7	%
Effective income tax rate	30.6	%	31.6	%

The Company is not currently under audit by any tax authorities, but is open to examination with varying statutes of limitations, generally ranging from three to four years.