Income Taxes

6 Months Ended

Feb. 24, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

	Three Months Ended				Six Months Ended
	February 24, 2023		February 25, 2022		February 24, 2023		February 25, 2022
Income (loss) before taxes	$	(28,502)	$	10,558	$	(18,288)	$	39,011
Income tax provision (benefit)	(1,716)		7,586		3,174		15,341

Income tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to us and our subsidiaries, adjusted for certain discrete items which are fully recognized in the period they occur. Accordingly, the interim effective tax rate may not be reflective of the annual estimated effective tax rate.

Our provision for income taxes for the first six months of 2023 decreased by $12.2 million as compared to the same period in the prior year, primarily due to a decrease in profit before tax.

As of February 24, 2023 and August 26, 2022, we had a full valuation allowance for net deferred tax assets associated with our U.S. operations. Management continues to evaluate future projected financial performance to determine whether such performance is sufficient evidence to support a reduction in or reversal of the valuation allowances. The amount of the deferred tax asset considered realizable could be adjusted if significant positive evidence increases.

Determining the consolidated provision for income tax expense, income tax liabilities and deferred tax assets and liabilities involves judgment. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates, which involves estimating current tax exposures as well as making judgments regarding the recoverability of deferred tax assets in each jurisdiction. The estimates used could differ from actual results, which may have a significant impact on operating results in future periods.