Income Taxes (Tables)

12 Months Ended

Aug. 31, 2024

Income Tax Disclosure [Abstract]

Components of Provision / (Benefit) for Income Taxes

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

Year ended	2024		2023		2022
Current:
Federal	$	30,932	$	7,269	$	7,655
Foreign		1,231		2,519		1,839
State		6,007		2,695		3,701
Total current	$	38,170	$	12,483	$	13,195
Deferred:
Federal	$	4,027	$	19,227	$	13,883
Foreign		1,269		568		180
State		439		2,885		3,663
Total deferred	$	5,735	$	22,680	$	17,726
Total provision for income taxes	$	43,905	$	35,163	$	30,921

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	2024			2023			2022
Income taxes at the statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State income taxes		3.6			3.8			4.7
Adjustments to tax reserve		(0.5	)		0.8			(2.1	)
Other		(0.9	)		(0.3	)		(0.6	)
Effective income tax rate		23.2	%		25.3	%		23.0	%

Components of Deferred Income Taxes

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

	August 31, 2024		August 26, 2023
Deferred tax assets:
Payroll and benefit related	$	16,009	$	15,284
Insurance related		14,067		14,347
Environmental		7,807		7,542
Accrued expenses		8,169		7,847
Operating lease liabilities		17,083		16,162
Research and development		6,243		3,628
Other		12,884		11,916
Total deferred tax assets	$	82,262	$	76,726
Deferred tax liabilities:
Payroll and benefit related	$	24,655	$	22,230
Tax in excess of book depreciation		59,113		53,597
Purchased intangible assets		48,908		43,994
Rental merchandise in service		59,692		62,562
Operating lease right-of-use assets		16,575		15,600
Other		320		488
Total deferred tax liabilities		209,263		198,471
Net deferred tax liability	$	127,001	$	121,745

Reconciliation of Unrecognized Tax Benefits

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

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
Additions based on tax positions related to the current year		1,069
Additions for tax positions of prior years		142
Reduction for tax positions of prior years		(4,257	)
Statute expirations		(67	)
Balance at August 31, 2024	$	4,638