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Income Taxes
 12 Months Ended
Aug. 25, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
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 25,
2021		August 26,
2020
 (In thousands)
Deferred income tax assets:  
Workers’ compensation, employee injury, and general liability claims$402 $562 
Deferred compensation80 162 
Net operating losses10,603 9,916 
General business and foreign tax credits12,105 12,105 
Depreciation, amortization and impairments2,291 3,125 
Interest expense1,953 1,886 
Lease liabilities1,551 4,731 
Straight-line rent, dining cards, accruals, and other416 1,413 
Subtotal29,401 33,900 
Valuation allowance(28,506)(29,478)
Total deferred income tax assets895 4,422 
Deferred income tax liabilities:  
Property taxes and other680 769 
Lease assets924 3,653 
Total deferred income tax liabilities1,604 4,422 
Net deferred income tax asset$(709)$— 

At August 25, 2021, we recognized a net deferred tax liability of $0.7 million after valuation allowance as a result of anticipated taxable gains to be generated from future property sales as part of our Plan of Liquidation and our ability to utilize our deferred
tax assets. The most significant deferred tax asset prior to valuation allowance is our general business tax credits carryovers to future years of $12.1 million. This item may be carried forward up to twenty years for possible utilization in the future. The carryover of general business tax credits, beginning in fiscal 2002, will begin to expire at the end of fiscal 2022 through 2039, if not utilized by then.The utilization of general business credits is subject to limitations based on the federal income tax liability before applying the general business credits within a tax year. Deferred tax assets available to be utilized against state taxable gains generated on future property sales will differ per state jurisdiction. The net deferred tax liability is included in other liabilities on our consolidated statement of net assets in liquidation at August 25, 2021.
Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future, as well as from tax net operating losses and tax credit carryovers. We establish a valuation allowance when we no longer consider it more likely than not that a deferred tax asset will be realized. In evaluating our ability to recover our deferred tax assets, we consider available positive and negative evidence, including scheduled reversals of deferred tax liabilities, tax-planning strategies and existing business conditions, including the Plan of Liquidation. In the third quarter of fiscal 2018, we concluded that a full valuation allowance on our net deferred tax assets was necessary. As of August 25, 2021, we recognized a deferred tax liability due to our expectation that we will be able to utilize our deferred tax assets as a result of implementing our Plan of Liquidation.
An analysis of the provision for income taxes for continuing operations is as follows: 
12 Week Period EndedFiscal Year Ended
 November 18,
2020		August 26,
2020
 (In thousands)
Current federal and state income tax expense$54 $327 
Current foreign income tax expense4 30 
Provision for income taxes$58 $357 

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: 
 12 Week Period Ended
Fiscal Year Ended
 November 18,
2020		August 26,
2020
 Amount%Amount%
 (in thousands, except percentages)
Income tax benefit from continuing operations at the federal rate$(618)21.0 %$(6,104)21.0 %
Permanent and other differences:    
Federal jobs tax credits (wage deductions)— — — — 
Stock options and restricted stock4 (0.1)17 (0.1)
Other permanent differences1 — 3 — 
State income tax, net of federal benefit53 (1.8)189 (0.7)
General Business Tax Credits— — — — 
Other70 (2.4)580 (1.9)
Change in valuation allowance548 (18.7)5,672 (19.5)
Provision for income taxes from continuing operations$58 (2.0)%$357 (1.2)%
 
For the fiscal year ended August 25, 2021, including both continuing and discontinued operations, the Company is estimated to report a federal taxable loss of $3.4 million. For the fiscal year ended August 26, 2020, including both continuing and discontinued operations, the Company generated federal taxable loss of $19.3 million.
Our income tax filings are periodically examined by various federal and state jurisdictions. There are no open examinations by federal and state income tax jurisdictions. The Company's U.S. federal income tax return remains open to examination for fiscal 2018 through fiscal 2020.
There were no payments of federal income taxes in fiscal 2021 or fiscal 2020. The Company has income tax filing requirements in over 30 states. State income tax payments were $0.3 million and $0.4 million in fiscal 2021 and 2020, respectively.
The following table is a reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of fiscal 2020 and 2021 (in thousands): 
Balance as of August 28, 2019$25 
Decrease based on prior year tax positions— 
Interest Expense— 
Balance as of August 26, 2020$25 
Decrease based on prior year tax positions— 
Interest Expense— 
Balance as of August 25, 2021$25 
The unrecognized tax benefits would favorably affect the Company’s effective tax rate in future periods if they are recognized. There is no interest associated with unrecognized benefits as of August 25, 2021. Under the going concern basis of accounting, the Company had included interest or penalties related to income tax matters as part of income tax expense. It is reasonably possible that the amount of unrecognized tax benefits with respect to our uncertain tax positions could significantly increase or decrease within 12 months. However, based on the current status of examinations, it is not possible to estimate the future impact, if any, to recorded uncertain tax positions as of August 25, 2021.
Management believes that adequate provisions for income taxes have been reflected in the financial statements and is not aware of any significant exposure items that have not been reflected in the financial statements.