Income Taxes (Tables)

12 Months Ended

Aug. 27, 2022

Income Taxes

Components of Income from Continuing Operations

The components of income from continuing operations before income taxes are as follows:

		Year Ended
	August 27,		August 28,		August 29,
(in thousands)	2022		2021		2020
Domestic	$	2,429,262	$	2,436,548	$	1,960,320
International		649,829		312,642		256,194
	$	3,079,091	$	2,749,190	$	2,216,514

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
	August 27,		August 28,		August 29,
(in thousands)	2022		2021		2020
Current:
Federal	$	293,022	$	438,686	$	324,156
State		48,490		79,271		47,880
International		122,381		95,351		60,429
		463,893		613,308		432,465
Deferred:
Federal		160,749		(21,366)		43,706
State		34,564		(1,707)		12,544
International		(9,719)		(11,359)		(5,173)
		185,594		(34,432)		51,077
Income tax expense	$	649,487	$	578,876	$	483,542

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 to income before income taxes is as follows:

	Year Ended
	August 27,		August 28,		August 29,
(in thousands)	2022		2021		2020
Federal tax at statutory U.S. income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net	2.1	%	2.2	%	2.2	%
Share-based compensation	(1.6)	%	(1.7)	%	(0.7)	%
US Tax on Non-US Income (GILTI and Subpart F)	3.1	%	2.8	%	3.2	%
Non-US Permanent Differences	(1.5)	%	(0.4)	%	(0.5)	%
Foreign Tax Credits	(1.9)	%	(1.7)	%	(1.1)	%
Other	(0.1)	%	(1.1)	%	(2.3)	%
Effective tax rate	21.1	%	21.1	%	21.8	%

Significant Components of Company's Deferred Tax Assets and Liabilities

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

	August 27,		August 28,
(in thousands)	2022		2021
Deferred tax assets:
Net operating loss and credit carryforwards	$	33,924	$	41,825
Accrued benefits		60,561		126,086
Operating lease liabilities		692,730		646,938
Other		79,850		69,340
Total deferred tax assets		867,065		884,189
Valuation allowances		(27,790)		(31,098)
Net deferred tax assets		839,275		853,091
Deferred tax liabilities:
Property and equipment		(197,482)		(185,985)
Inventory		(448,273)		(316,736)
Operating lease assets		(650,145)		(609,336)
Other		(25,211)		(37,116)
Deferred tax liabilities		(1,321,111)		(1,149,173)
Net deferred tax liabilities	$	(481,836)	$	(296,082)

Reconciliation of Unrecognized Tax Benefits

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

	August 27,		August 28,
(in thousands)	2022		2021
Beginning balance	$	39,797	$	31,942
Additions based on tax positions related to the current year		17,488		10,806
Additions for tax positions of prior years		3,008		4,009
Reductions for tax positions of prior years		(6,806)		(886)
Reductions due to settlements		(1,539)		(2,204)
Reductions due to statute of limitations		(2,632)		(3,870)
Ending balance	$	49,316	$	39,797