Income Taxes (Tables)

12 Months Ended

Jul. 02, 2016

Income tax expense for fiscal 2016, fiscal 2015, and fiscal 2014 consisted of the following:


(In millions)	For the fiscal year ended July 2, 2016			For the fiscal year ended June 27, 2015			For the fiscal year ended June 28, 2014
Current income tax expense:
Federal	$	40.2		$	40.7		$	12.8
State		6.4			5.5			3.3

Total current income tax expense		46.6			46.2			16.1

Deferred income tax expense (benefit):
Federal		(1.1	)		(7.5	)		(1.6	)
State		0.7			1.4			0.2

Total deferred income tax benefit		(0.4	)		(6.1	)		(1.4	)

Total income tax expense, net	$	46.2		$	40.1		$	14.7

Schedule of Effective Income Tax Rate from Continuing Operation

Actual income tax expense differs from the amount computed by applying the applicable U.S. federal corporate income tax rate of 35% to earnings before income taxes as follows:


(In millions)	For the fiscal year ended July 2, 2016		For the fiscal year ended June 27, 2015		For the fiscal year ended June 28, 2014
Federal income tax expense computed at statutory rate	$	40.0	$	33.8	$	10.6
Increase in income taxes resulting from:
State income taxes, net of federal income tax benefit		4.8		4.2		2.0
Non-deductible expenses and other		1.4		2.1		2.1

Total income tax expense, net	$	46.2	$	40.1	$	14.7

Schedule of Significant Deferred Tax Assets and Liabilities

Temporary differences and carry-forwards that created significant deferred tax assets and liabilities were as follows:


(In millions)	As of July 2, 2016			As of June 27, 2015
Deferred tax assets:
Allowance for doubtful accounts	$	3.7		$	3.7
Inventories		6.1			4.5
Accrued employee benefits		9.6			8.4
Self-insurance reserves		3.3			3.5
Net operating loss carry-forwards		5.4			6.1
Stock options		8.6			2.5
Deferred rent		1.0			1.2
Other comprehensive income		3.7			2.9
Other assets		3.3			4.0

Total gross deferred tax assets		44.7			36.8
Less: Valuation allowance		(0.1	)		—

Total net deferred tax assets		44.6			36.8

Deferred tax liabilities:
Property, plant, and equipment		75.5			66.2
Basis difference in intangible assets		41.2			46.1
Prepaid expenses		8.9			7.3
Other		0.1			—

Total deferred tax liabilities		125.7			119.6

Total net deferred income tax liability	$	81.1		$	82.8

Summary of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits:


(In millions)
Balance as of June 29, 2013	$	5.8
Increases due to current year positions		0.4
Expiration of statutes of limitations		(5.5	)

Balance as of June 28, 2014		0.7
Increases due to current year positions		0.2
Expiration of statutes of limitations		—

Balance as of June 27, 2015		0.9
Increases due to current year positions		—
Settlements with taxing authorities		(0.1	)
Expiration of statutes of limitations		(0.4	)

Balance as of July 2, 2016	$	0.4