INCOME TAXES (Tables)

12 Months Ended

Aug. 01, 2020

Schedule of Components of Income Tax Expense (Benefit)

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



(in thousands)	Current			Deferred			Total
Fiscal 2020
U.S. Federal	$	(22,681	)	$	(45,315	)	$	(67,996	)
State and Local	654			(23,058		)	(22,404		)
Foreign	2,515			(2,560		)	(45		)
	$	(19,512	)	$	(70,933	)	$	(90,445	)
Fiscal 2019
U.S. Federal	$	11,402		$	(59,528	)	$	(48,126	)
State and Local	(11,049		)	(1,767		)	(12,816		)
Foreign	1,919			87			2,006
	$	2,272		$	(61,208	)	$	(58,936	)
Fiscal 2018
U.S. Federal	$	46,210		$	(16,508	)	$	29,702
State and Local	13,310			1,878			15,188
Foreign	2,374			(49		)	2,325
	$	61,894		$	(14,679	)	$	47,215

The income tax expense (benefit) in continuing operations for fiscal 2020, 2019 and 2018 was allocated as follows:



(in thousands)	2020			2019			2018
Income tax expense	$	(90,445	)	$	(58,936	)	$	47,215
Other comprehensive income	(45,700		)	(33,854		)	1,561
Total	$	(136,145	)	$	(92,790	)	$	48,776

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



(in thousands)	2020			2019			2018
Continuing operations	$	(90,445	)	$	(58,936	)	$	47,215
Discontinued operations	(4,465		)	(3,723		)	—
Total	$	(94,910	)	$	(62,659	)	$	47,215

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)	2020			2019			2018
Computed “expected” tax expense	$	(72,335	)	$	(70,740	)	$	57,499
State and local income tax, net of Federal income tax benefit	(19,344		)	(17,524		)	10,501
Non-deductible expenses	3,033			5,670			955
Tax effect of share-based compensation	2,715			125			149
General business credits	(1,855		)	(1,757		)	(552		)
Unrecognized tax benefits	(7,441		)	(8,130		)	618
Nondeductible goodwill impairment	44,226			32,619			—
Impacts related to the TCJA	—			—			(21,719		)
Impacts related to the CARES Act	(39,497		)	—			—
Other, net	53			801			(236		)
Total income tax expense	$	(90,445	)	$	(58,936	)	$	47,215

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)	2020			2019			2018
Unrecognized tax benefits at beginning of period	$	40,142		$	1,104		$	478
Unrecognized tax benefits added during the period	5,950			—			626
Unrecognized tax benefits assumed in a business combination	—			49,566			—
Decreases in unrecognized tax benefits due to statute expiration	(1,595		)	(10,528		)	—
Decreases in unrecognized tax benefits due to settlements	(12,375		)	—			—
Unrecognized tax benefits at end of period	$	32,122		$	40,142		$	1,104

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 1, 2020 and August 3, 2019 are presented below:



(in thousands)	August 1, 2020			August 3, 2019
Deferred tax assets:
Inventories, principally due to additional costs inventoried for tax purposes	$	78		$	2
Compensation and benefits related	103,312			100,942
Accounts receivable, principally due to allowances for uncollectible accounts	12,217			3,355
Accrued expenses	32,844			15,022
Net operating loss carryforwards	13,464			44,396
Other tax carryforwards (interest, charitable contributions)	6,971			10,143
Foreign tax credits	445			445
Intangible assets	67,226			5,869
Interest rate swap agreements	36,949			20,518
Other deferred tax assets	5,258			2,946
Total gross deferred tax assets	278,764			203,638
Less valuation allowance	(3,098		)	(445		)
Net deferred tax assets	$	275,666		$	203,193
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation	$	125,463		$	117,195
Inventories	42,579			51,392
Intangible assets	—			1,016
Other	—			370
Total deferred tax liabilities	168,042			169,973
Net deferred tax assets	$	107,624		$	33,220