INCOME TAXES	3 Months Ended
Aug. 26, 2018
INCOME TAXES
INCOME TAXES	5. INCOME TAXES Income tax expense for the thirteen weeks ended August 26, 2018 and August 27, 2017, was $34.3 million and $44.1 million, respectively. The effective tax rate (calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings) was approximately 23.5% and 33.3% for the thirteen weeks ended August 26, 2018 and August 27, 2017, respectively, in our Consolidated Statements of Earnings. The lower rate in the thirteen weeks ended August 26, 2018, is primarily attributable to the U.S. Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017. Notably, the Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%, assessed a one-time transition tax on earnings of non-U.S. subsidiaries that have not been taxed previously in the U.S., limited the tax deductibility of interest, provided for immediate deductions for certain new investments instead of deductions for depreciation expense over time, modified or repealed many business deductions and credits, and created new taxes on certain future foreign sourced earnings. In connection with our initial analysis of the Tax Act, we recorded a provisional net tax benefit of $28.4 million in fiscal 2018. The net tax benefit consisted of a net tax benefit for the re-measurement of U.S. deferred taxes of $39.9 million and an expense for the transition tax of $11.5 million. The estimates reported in fiscal 2018 were not adjusted in the period ended August 26, 2018. There have been no changes or clarification in guidance issued or interpretations or assumptions we have made that caused a change to the estimates reported in fiscal 2018. These estimates may change due to, among other things, further clarification of existing guidance that may be issued by U.S. taxing authorities or regulatory bodies and/or changes in interpretations and assumptions we have preliminarily made. We will continue to analyze the Tax Act to finalize its financial statement impact, including the mandatory deemed repatriation of foreign earnings, re-measurement of deferred taxes and all other provisions of the legislation and will record the effects of any changes to provisional amounts in the period we complete our analysis or are able to make a reasonable estimate, but no later than the measurement period allowed by Staff Accounting Bulletin 118, or December 2018. Income Taxes Paid Income taxes paid, net of refunds, were $10.5 million and $30.0 million in the thirteen weeks ended August 26, 2018 and August 27, 2017, respectively. Unrecognized Tax Benefits There have been no material changes to the unrecognized tax benefits disclosed in Note 4, Income Taxes, of the Notes to Combined and Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of the Form 10-K, and we do not expect any significant changes to unrecognized tax benefits in the next 12 months.

5. INCOME TAXES

Income tax expense for the thirteen weeks ended August 26, 2018 and August 27, 2017, was $34.3 million and $44.1 million, respectively. The effective tax rate (calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings) was approximately 23.5% and 33.3% for the thirteen weeks ended August 26, 2018 and August 27, 2017, respectively, in our Consolidated Statements of Earnings. The lower rate in the thirteen weeks ended August 26, 2018, is primarily attributable to the U.S. Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017. Notably, the Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%, assessed a one-time transition tax on earnings of non-U.S. subsidiaries that have not been taxed previously in the U.S., limited the tax deductibility of interest, provided for immediate deductions for certain new investments instead of deductions for depreciation expense over time, modified or repealed many business deductions and credits, and created new taxes on certain future foreign sourced earnings.

In connection with our initial analysis of the Tax Act, we recorded a provisional net tax benefit of $28.4 million in fiscal 2018. The net tax benefit consisted of a net tax benefit for the re-measurement of U.S. deferred taxes of $39.9 million and an expense for the transition tax of $11.5 million. The estimates reported in fiscal 2018 were not adjusted in the period ended August 26, 2018. There have been no changes or clarification in guidance issued or interpretations or assumptions we have made that caused a change to the estimates reported in fiscal 2018. These estimates may change due to, among other things, further clarification of existing guidance that may be issued by U.S. taxing authorities or regulatory bodies and/or changes in interpretations and assumptions we have preliminarily made. We will continue to analyze the Tax Act to finalize its financial statement impact, including the mandatory deemed repatriation of foreign earnings, re-measurement of deferred taxes and all other provisions of the legislation and will record the effects of any changes to provisional amounts in the period we complete our analysis or are able to make a reasonable estimate, but no later than the measurement period allowed by Staff Accounting Bulletin 118, or December 2018.

Income Taxes Paid

Income taxes paid, net of refunds, were $10.5 million and $30.0 million in the thirteen weeks ended August 26, 2018 and August 27, 2017, respectively.

Unrecognized Tax Benefits

There have been no material changes to the unrecognized tax benefits disclosed in Note 4, Income Taxes, of the Notes to Combined and Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of the Form 10-K, and we do not expect any significant changes to unrecognized tax benefits in the next 12 months.