Income Taxes (Tables)

12 Months Ended

Aug. 03, 2018

The components of the provision for income taxes for each of the three years were as follows:

	2018			2017		2016
Current:
Federal	$	40,761		$	83,743	$	62,054
State		6,099			7,567		6,447
Deferred:
Federal		(16,779	)		4,696		12,477
State		722			982		(3,858	)
Total provision for income taxes	$	30,803		$	96,988	$	77,120

Reconciliation of Provision for Income Taxes

A reconciliation of the Company’s provision for income taxes and income taxes based on the statutory U.S. federal rate of 26.9%, 35.0% and 35.0% in 2018, 2017 and 2016, respectively, was as follows:

	2018			2017			2016
Provision computed at federal statutory income tax rate	$	74,859		$	104,611		$	93,247
State and local income taxes, net of federal benefit		5,066			5,856			1,427
Revaluation of deferred taxes due to a reduction in the federal tax rate at the enactment date of the Tax Act		(26,772	)		--			--
Revaluation of deferred taxes due to the impact of the change in rate on 2018 temporary items		(3,710	)		--			--
Employer tax credits for FICA taxes paid on employee tip income		(13,707	)		(11,543	)		(11,048	)
Other employer tax credits		(4,476	)		(2,814	)		(7,326	)
Other-net		(457	)		878			820
Total provision for income taxes	$	30,803		$	96,988		$	77,120

Significant Components of Net Deferred Tax Liability

Significant components of the Company’s net deferred tax liability consisted of the following at:

	August 3, 2018		July 28, 2017
Deferred tax assets:
Compensation and employee benefits	$	6,342	$	10,110
Deferred rent		12,667		18,270
Accrued liabilities		8,546		13,233
Insurance reserves		7,291		12,401
Inventory		3,106		4,411
Other		--		2,767
Deferred tax assets	$	37,952	$	61,192

Deferred tax liabilities:
Property and equipment	$	75,433	$	100,373
Inventory		7,448		10,906
Other		7,232		12,273
Deferred tax liabilities		90,113		123,552
Net deferred tax liability	$	52,161	$	62,360

Total Gross Liability for Uncertain Tax Positions Exclusive of Interest and Penalties

Summarized below is a tabular reconciliation of the beginning and ending balance of the Company’s total gross liability for uncertain tax positions exclusive of interest and penalties:

	August 3, 2018			July 28, 2017			July 29, 2016
Balance at beginning of year	$	20,731		$	21,899		$	25,507
Tax positions related to the current year:
Additions		3,029			4,003			4,860
Reductions		--			--			--
Tax positions related to the prior year:
Additions		610			582			2,186
Reductions		(575	)		(2,966	)		(6,896	)
Settlements		(3,878	)		(1,027	)		(2,324	)
Expiration of statute of limitations		(1,283	)		(1,760	)		(1,434	)
Balance at end of year	$	18,634		$	20,731		$	21,899

Uncertain Tax Positions that, if Recognized, Would Affect Effective Tax Rate

The following table highlights the amount of uncertain tax positions, exclusive of interest and penalties, which, if recognized, would affect the effective tax rate for each of the three years:

		2018				2017				2016
Uncertain tax positions		$	14,721			$	13,475			$	14,234