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Income Taxes (Tables)

12 Months Ended

Aug. 27, 2011

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

Year ended	August 27, 2011			August 28, 2010		August 29, 2009
Current:
Federal	$	22,372		$	34,373	$	37,843
Foreign		3,664			4,336		3,835
State		5,089			6,871		7,886
Total current		31,125			45,580		49,564

Deferred:
Federal		11,424			154		1,769
Foreign		(94	)		366		(563	)
State		1,631			344		(157	)
Total deferred		12,961			864		1,049

Total	$	44,086		$	46,444	$	50,613

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 (in thousands):

	August 27, 2011			August 28, 2010		August 29, 2009
Income taxes at the statutory federal income tax rate		35.0	%	35.0	%	35.0	%
State income taxes		3.7		3.8		4.0
Adjustments to tax reserves		-1.1		-0.7		1.0
Foreign tax rate differential		-1.0		-0.6		-0.3
Permanent and other		0.0		0.3		0.3
Total		36.6	%	37.8	%	40.0	%

Components of deferred tax (assets) liabilities

The tax effect of items giving rise to the Company's deferred tax (assets) liabilities is as follows (in thousands):

	August 27, 2011		August 28, 2010
Deferred Tax Assets
Payroll and benefit related	$	14,171	$	13,145
Insurance related		11,831		9,521
Environmental		7,235		7,349
Other		10,207		8,635
		43,444		38,650

Deferred Tax Liabilities
Tax in excess of book depreciation		39,317		32,535
Purchased intangible assets		24,619		22,167
Rental merchandise in service		21,325		11,511
Other		145		205
		85,406		66,418

Net deferred tax liability	$	41,962	$	27,768

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 29, 2009	$	4,978
Additions based on tax positions related to the current year		184
Additions for tax positions of prior years		199
Statute expirations		(1,805	)

Balance at August 28, 2010	$	3,556
Additions based on tax positions related to the current year		253
Statute expirations		(1,256	)
Other adjustments		(233	)

Balance at August 27, 2011	$	2,320

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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