Income Taxes (Tables)

12 Months Ended

Aug. 26, 2020

Schedule of Deferred Tax Assets and Liabilities

The following table details the categories of total income tax assets and liabilities for both continuing and discontinued operations resulting from the cumulative tax effects of temporary differences:


	August 26, 2020		August 28, 2019
	(In thousands)
Deferred income tax assets:
Workers’ compensation, employee injury, and general liability claims	$	562	$	395
Deferred compensation	162		193
Net operating losses	9,916		5,541
General business and foreign tax credits	12,105		12,529
Depreciation, amortization and impairments	3,125		8,561
Interest expense	1,886		—
Lease liabilities	4,731		—
Straight-line rent, dining cards, accruals, and other	1,413		2,594
Subtotal	33,900		29,813
Valuation allowance	(29,478)		(28,865)
Total deferred income tax assets	4,422		948
Deferred income tax liabilities:
Property taxes and other	769		948
Lease assets	3,653		—
Total deferred income tax liabilities	4,422		948
Net deferred income tax asset	$	—	$	—

Schedule of Components of Income Tax Expense (Benefit)

An analysis of the provision for income taxes for continuing operations is as follows:


	August 26, 2020		August 28, 2019
	(In thousands)
Current federal and state income tax expense	$	327	$	418
Current foreign income tax expense	30		51

Provision for income taxes	$	357	$	469

Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation

Relative only to continuing operations, the reconciliation of the expense for income taxes to the expected income tax expense, computed using the statutory tax rate, was as follows:


	Fiscal Year Ended
	August 26, 2020				August 28, 2019
	Amount		%		Amount		%
	(in thousands, except percentages)
Income tax benefit from continuing operations at the federal rate	$	(6,104)	21.0	%	$	(3,098)	21.0	%
Permanent and other differences:
Federal jobs tax credits (wage deductions)	—		—		89		(0.6)
Stock options and restricted stock	17		(0.1)		19		(0.1)
Other permanent differences	3		—		31		(0.2)
State income tax, net of federal benefit	189		(0.7)		273		(1.9)
General Business Tax Credits	—		—		(422)		2.9

Other	580		(1.9)		117		(0.8)
Change in valuation allowance	5,672		(19.5)		3,460		(23.5)
Provision for income taxes from continuing operations	$	357	(1.2)	%	$	469	(3.2)	%

Schedule of Unrecognized Tax Benefits Reconciliation

The following table is a reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of fiscal 2019 and 2020 (in thousands):


Balance as of August 29, 2018	$	25
Decrease based on prior year tax positions	—
Interest Expense	—
Balance as of August 28, 2019	$	25
Decrease based on prior year tax positions	—
Interest Expense	—
Balance as of August 26, 2020	$	25