Income Taxes (Tables)

12 Months Ended

Aug. 31, 2024

Income Taxes

Components of Income from Continuing Operations

The components of operating income before income taxes are as follows:

		Year Ended
	August 31,		August 26,		August 27,
(in thousands)	2024		2023		2022
Domestic	$	2,663,148	$	2,621,714	$	2,429,262
International		673,982		545,900		649,829
	$	3,337,130	$	3,167,614	$	3,079,091

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
	August 31,		August 26,		August 27,
(in thousands)	2024		2023		2022
Current tax provision (benefit):
Federal	$	846,176	$	491,338	$	341,462
State		54,837		86,687		48,490
International		193,794		154,907		122,381
Purchased tax credits		(368,870)		(68,037)		(48,440)
		725,937		664,895		463,893
Deferred tax provision (benefit):
Federal		(163,775)		26,858		157,807
State		12,264		(21,847)		34,564
International		(10,616)		(24,126)		(9,719)
Purchased tax credits		110,893		(6,592)		2,942
		(51,234)		(25,707)		185,594
Income tax expense	$	674,703	$	639,188	$	649,487

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 31,		August 26,		August 27,
(in thousands)	2024		2023		2022
Federal tax at statutory U.S. income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net	1.6	%	1.6	%	2.1	%
Share-based compensation	(1.9)	%	(2.3)	%	(1.6)	%
US Tax on Non-U.S. Income (Subpart F)	2.9	%	2.5	%	2.3	%
US Tax on Non-U.S. Income (GILTI)	1.2	%	0.8	%	0.8	%
Non-U.S. Permanent Differences	(1.3)	%	(1.4)	%	(1.5)	%
Non-US Rate Differences	1.1	%	0.4	%	1.0	%
Foreign Tax Credits	(2.9)	%	(2.3)	%	(1.9)	%
Other	(1.5)	%	(0.1)	%	(1.1)	%
Effective tax rate	20.2	%	20.2	%	21.1	%

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 31,		August 26,
(in thousands)	2024		2023
Deferred tax assets:
Net operating loss and credit carryforwards	$	47,030	$	45,081
Accrued benefits		86,119		82,318
Operating lease liabilities		722,156		698,728
Federal credit carryforwards		131,895		—
Other		102,820		90,897
Total deferred tax assets		1,090,020		917,024
Valuation allowances		(26,922)		(24,940)
Net deferred tax assets		1,063,098		892,084
Deferred tax liabilities:
Property and equipment		(228,184)		(194,686)
Inventory		(499,022)		(451,360)
Operating lease assets		(660,949)		(652,652)
Other		(38,320)		(43,662)
Deferred tax liabilities		(1,426,475)		(1,342,360)
Net deferred tax liabilities	$	(363,377)	$	(450,276)

Reconciliation of Unrecognized Tax Benefits

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

	August 31,		August 26,
(in thousands)	2024		2023
Beginning balance	$	49,487	$	49,316
Additions based on tax positions related to the current year		5,386		9,416
Additions for tax positions of prior years		5,373		8,012
Reductions for tax positions of prior years		(8,595)		(5,336)
Reductions due to settlements		(8,600)		(6,800)
Reductions due to statute of limitations		(5,065)		(5,121)
Ending balance	$	37,986	$	49,487