INCOME TAXES (Tables)

12 Months Ended

Aug. 03, 2019

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense (benefit) in continuing operations for fiscal 2019, 2018 and 2017 was allocated as follows:



(in thousands)	2019			2018		2017
Income tax expense	$	(84,609	)	$	47,075	$	84,268
Stockholders’ equity, difference between compensation expense for tax purposes and amounts recognized for financial statement purposes	—			—		1,320
Other comprehensive income	(33,854		)	1,561		3,222
Total	$	(118,463	)	$	48,636	$	88,810

Total federal and state income tax (benefit) expense in continuing operations consists of the following:



(in thousands)	Current			Deferred			Total
Fiscal 2019
U.S. Federal	$	(7,652	)	$	(59,528	)	$	(67,180	)
State and Local	1,351			(20,786		)	(19,435		)
Foreign	1,919			87			2,006
	$	(4,382	)	$	(80,227	)	$	(84,609	)
Fiscal 2018
U.S. Federal	$	46,210		$	(16,648	)	$	29,562
State and Local	13,310			1,878			15,188
Foreign	2,374			(49		)	2,325
	$	61,894		$	(14,819	)	$	47,075
Fiscal 2017
U.S. Federal	$	70,669		$	(1,874	)	$	68,795
State and Local	14,653			(82		)	14,571
Foreign	837			65			902
	$	86,159		$	(1,891	)	$	84,268

The total (benefit) provision for income taxes included in the Consolidated Statements of Operations consisted of the following:



(in thousands)	2019			2018		2017
Continuing operations	$	(84,609	)	$	47,075	$	84,268
Discontinued operations	21,840			—		—
Total	$	(62,769	)	$	47,075	$	84,268

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense (benefit) in continuing operations was different than the amounts computed by applying the statutory federal income tax rate to income before income taxes because of the following:



(in thousands)	2019			2018			2017
Computed “expected” tax expense	$	(91,411	)	$	57,359		$	75,048
State and local income tax, net of Federal income tax benefit	(24,124		)	10,501			9,694
Non-deductible expenses	5,433			955			1,951
Tax effect of share-based compensation	125			149			29
General business credits	(629		)	(552		)	(915		)
Unrecognized tax benefits	(8,146		)	618			118
Nondeductible goodwill impairment	32,619			—			—
Impacts related to the TCJA	—			(21,719		)	—
Other, net	1,524			(236		)	(1,657		)
Total income tax expense	$	(84,609	)	$	47,075		$	84,268

Summary of Unrecognized Tax Benefits Roll Forward

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



(in thousands)	2019			2018		2017
Unrecognized tax benefits at beginning of period	$	1,104		$	478	$	360
Unrecognized tax benefits added during the period	—			626		583
Unrecognized tax benefits assumed in a business combination	49,566			—		—
Decreases in unrecognized tax benefits due to statute expiration and payments	(10,528		)	—		(465		)
Unrecognized tax benefits at end of period	$	40,141		$	1,104	$	478

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets and deferred tax liabilities at August 3, 2019 and July 28, 2018 are presented below:



(in thousands)	August 3, 2019			July 28, 2018
Deferred tax assets:
Inventories, principally due to additional costs inventoried for tax purposes	$	2		$	7,265
Compensation and benefits related	100,942			25,740
Accounts receivable, principally due to allowances for uncollectible accounts	3,355			4,269
Accrued expenses	12,659			119
Net operating loss carryforwards	44,396			482
Non-loss tax carryforwards	10,143			—
Foreign tax credits	445			445
Intangible assets	5,869			—
Interest rate swap agreements	20,518			—
Other deferred tax assets	2,134			117
Total gross deferred tax assets	200,463			38,437
Less valuation allowance	(445		)	(445		)
Net deferred tax assets	$	200,018		$	37,992
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation	$	117,195		$	39,978
Inventories, principally due to additional costs inventoried for tax purposes	51,392			—
Intangible assets	1,016			36,544
Interest rate swap agreements				2,000
Accrued expenses				3,854
Other	370			—
Total deferred tax liabilities	169,973			82,376
Net deferred tax assets (liabilities)	$	30,045		$	(44,384	)