Income Taxes (Tables)

12 Months Ended

Aug. 26, 2023

Income Tax Disclosure [Abstract]

Components of Provision / (Benefit) for Income Taxes

The provision for income taxes consists of the following (in thousands):

Year ended	2023		2022		2021
Current:
Federal	$	7,269	$	7,655	$	35,267
Foreign		2,519		1,839		1,714
State		2,695		3,701		9,873
Total current	$	12,483	$	13,195	$	46,854
Deferred:
Federal	$	19,227	$	13,883	$	(1,421	)
Foreign		568		180		848
State		2,885		3,663		(521	)
Total deferred	$	22,680	$	17,726	$	(1,094	)
Total	$	35,163	$	30,921	$	45,760

Reconciliation of Provision for Income Taxes

The following table reconciles the provision for income taxes using the statutory federal income tax rate to the actual provision for income taxes:

Year ended	2023			2022			2021
Income taxes at the statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State income taxes		3.8			4.7			4.2
Adjustments to tax reserve		0.8			(2.1	)		(0.3	)
Other		(0.3	)		(0.6	)		(1.7	)
Effective income tax rate		25.3	%		23.0	%		23.2	%

Components of Deferred Income Taxes

The components of deferred income taxes included on the Consolidated Balance Sheets are as follows (in thousands):

	August 26, 2023		August 27, 2022
Deferred tax assets:
Payroll and benefit related	$	15,284	$	14,923
Insurance related		14,347		15,035
Environmental		7,542		8,212
Accrued expenses		7,847		8,170
Operating lease liabilities		16,162		11,471
Research and development		3,628		—
Other		11,916		9,841
Total deferred tax assets	$	76,726	$	67,652
Deferred tax liabilities:
Payroll and benefit related	$	22,230	$	20,588
Tax in excess of book depreciation		53,597		40,016
Purchased intangible assets		43,994		39,747
Rental merchandise in service		62,562		55,287
Operating lease right-of-use assets		15,600		11,111
Other		488		232
Total deferred tax liabilities		198,471		166,981
Net deferred tax liability	$	121,745	$	99,329

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at August 28, 2021	$	9,321
Additions based on tax positions related to the current year		489
Additions for tax positions of prior years		107
Reduction for tax positions of prior years		(3,013	)
Statute expirations		(487	)
Balance at August 27, 2022		6,417
Additions based on tax positions related to the current year		1,042
Additions for tax positions of prior years		840
Reduction for tax positions of prior years		(219	)
Statute expirations		(329	)
Balance at August 26, 2023	$	7,751