INCOME TAXES (Tables)

12 Months Ended

Jul. 25, 2015

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes are:



	2015			2014			2013
Federal:
Current	$	2,424		$	10,808		$	17,215
Deferred	13,954			(6,938		)	(3,021		)

State:
Current	(6,490		)	21,043			5,139
Deferred	887			(1,110		)	(478		)

	$	10,775		$	23,803		$	18,855

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	July 25, 2015		July 26, 2014
Deferred tax assets:
Leasing activities	$	7,882	$	7,814
Federal benefit of uncertain tax positions	230		14,816
Compensation related costs	3,696		1,548
Pension costs	13,333		11,225
Other	734		1,908

Total deferred tax assets	25,875		37,311

Deferred tax liabilities:
Tax over book depreciation	16,559		16,153
Patronage dividend receivable	5,193		5,223
Investment in partnerships	1,418		1,423
Other	172		170

Total deferred tax liabilities	23,342		22,969

Net deferred tax asset	$	2,533	$	14,342

Deferred income tax assets (liabilities) are included in the following captions on the consolidated balance sheets at July 25, 2015 and July 26, 2014:



	2015			2014
Deferred tax assets	$	—		$	12,077
Other assets	4,546			3,037
Accounts payable and accrued expenses	(2,013		)	(772		)

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differs from the statutory federal income tax rate as follows:



	2015		2014		2013
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	6.1	%	6.4	%	5.2	%
Unrecognized tax benefits, interest and penalties on prior year tax positions	(17.6	)%	34.9	%	—	%
Current year interest and penalties on unrecognized tax benefits	2.0	%	5.4	%	1.6	%
Other	0.5	%	0.8	%	0.4	%

Effective income tax rate	26.0	%	82.5	%	42.2	%

Schedule of Unrecognized Tax Benefits Roll Forward

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



	2015			2014
Balance at beginning of year	$	28,993		$	17,640
Reclassification to offset net operating loss carryforward (1)	(1,147		)	—
Additions based on tax positions related to prior periods	—			7,589
Additions based on tax positions related to the current year	76			3,764
Reductions based on tax positions related to prior periods	(546		)	—
Cash paid on settlements	(26,862		)	—

Balance at end of year	$	514		$	28,993

(1) In accordance with Accounting Standards Update 2013-11, unrecognized tax benefits of $1,147 were reclassified from income taxes payable to offset related net operating loss carryforward deferred tax assets at the beginning of fiscal 2015.