Income Taxes (Tables)

12 Months Ended

Aug. 25, 2012

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
(in thousands)	August 25, 2012			August 27, 2011			August 28, 2010
Current:
Federal	$	449,670		$	391,132		$	397,062
State		47,386			39,473			34,155
		497,056			430,605			431,217
Deferred:
Federal		28,379			49,698			(3,831	)
State		(2,822	)		(5,031	)		(5,192	)
		25,557			44,667			(9,023	)
Income tax expense	$	522,613		$	475,272		$	422,194

Reconciliation of Provision for Income Taxes

A reconciliation of the provision for income taxes to the amount computed by applying the federal statutory tax rate of 35% to income before income taxes is as follows:

	Year Ended
(in thousands)	August 25, 2012			August 27, 2011			August 28, 2010
Federal tax at statutory U.S. income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net		2.0	%		1.7	%		1.6	%
Other		(1.0	%)		(0.8	%)		(0.2	%)
Effective tax rate		36.0	%		35.9	%		36.4	%

Significant Components of Company's Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities were as follows:

(in thousands)	August 25, 2012			August 27, 2011
Deferred tax assets:
Net operating loss and credit carryforwards	$	36,605		$	31,772
Insurance reserves		18,185			17,542
Accrued benefits		63,320			61,436
Pension		43,904			30,967
Other		41,658			39,878
Total deferred tax assets		203,672			181,595
Less: Valuation allowances		(9,532	)		(7,973	)
Net deferred tax assets		194,140			173,622
Deferred tax liabilities:
Property and equipment		(67,480	)		(64,873	)
Inventory		(244,414	)		(220,234	)
Other		(31,437	)		(44,303	)
Total deferred tax liabilities		(343,331	)		(329,410	)
Net deferred tax liability	$	(149,191	)	$	(155,788	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)	August 25, 2012			August 27, 2011
Beginning balance	$	29,906		$	38,554
Additions based on tax positions related to the current year		6,869			6,205
Additions for tax positions of prior years		44			11,787
Reductions for tax positions of prior years		(1,687	)		(20,998	)
Reductions due to settlements		(4,586	)		(3,829	)
Reductions due to statute of limitations		(2,831	)		(1,813	)
Ending balance	$	27,715		$	29,906