Income Taxes (Tables)

12 Months Ended

Aug. 25, 2018

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

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

Fiscal year	2018			2017			2016
Current:
Federal	$	23,815		$	37,027		$	54,654
Foreign	527			1,995			1,672
State	8,012			6,642			9,996
Total current	$	32,354		$	45,664		$	66,322
Deferred:
Federal	$	(11,517	)	$	(520	)	$	10,803
Foreign	363			123			(217		)
State	2,151			(340		)	1,437
Total deferred	$	(9,003	)	$	(737	)	$	12,023
Total	$	23,351		$	44,927		$	78,345

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:

Fiscal year	2018		2017		2016
Income taxes at the statutory federal income tax rate	25.9	%	35.0	%	35.0	%
State income taxes	4.1		3.5		3.5
Other (1)	(2.8	)	0.5		—
Deemed Repatriation of Non - U.S. Earnings, net foreign tax credits and other (collectively, Transition Tax)	1.4		—		—
Impact of U.S. tax reform federal tax rate reduction	(16.1	)	—		—
Total	12.5	%	39.0	%	38.5	%

(1) Fiscal 2018 includes the impact of ASU 2016-09.

Schedule of Tax Effect of Deferred Tax Assets and Liabilities

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

	August 25, 2018		August 26, 2017
Deferred Tax Assets
Payroll and benefit related	$	14,718	$	26,391
Insurance related	10,880		17,691
Environmental	6,593		9,945
Accrued expenses	3,513		4,542
Other	7,440		9,725
Total deferred tax assets	$	43,144	$	68,294
Deferred Tax Liabilities
Tax in excess of book depreciation	$	39,877	$	48,969
Purchased intangible assets	27,206		39,179
Rental merchandise in service	44,508		56,707
Other	318		25
Total deferred tax liabilities	111,909		144,880
Net deferred tax liability	$	68,765	$	76,586

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 27, 2016	$	3,743
Additions based on tax positions related to the current year	490
Additions for tax positions of prior years	331
Statute expirations	(350		)
Balance at August 26, 2017	4,214
Additions based on tax positions related to the current year	487
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(2,073		)
Statute expirations	(430		)
Balance at August 25, 2018	$	2,198