Income Taxes (Tables)

12 Months Ended

Aug. 27, 2011

Income Taxes [Abstract]

Provision for income tax expense

The provision for income tax expense consisted of the following:

	Year Ended
	August 27,			August 28,			August 29,
(in thousands)	2011			2010			2009
Current:
Federal	$	391,132		$	397,062		$	303,929
State		39,473			34,155			26,450
		430,605			431,217			330,379
Deferred:
Federal		49,698			(3,831	)		46,809
State		(5,031	)		(5,192	)		(491	)
		44,667			(9,023	)		46,318
Income tax expense	$	475,272		$	422,194		$	376,697

Reconciliation of provision for income taxes

A reconciliation of the provision for income taxes to the amount computed by applying the federal statutory tax rate of 35% to income before income taxes is as follows:

	Year Ended
	August 27,			August 28,			August 29,
(in thousands)	2011			2010			2009
Federal tax at statutory U.S. income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net		1.7	%		1.6	%		1.6	%
Other		(0.8	%)		(0.2	%)		(0.2	%)
Effective tax rate		35.9	%		36.4	%		36.4	%

Significant components of the Company's deferred tax assets and liabilities

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

	August 27,			August 28,
(in thousands)	2011			2010
Deferred tax assets:
Net operating loss and credit carryforwards	$	31,772		$	25,781
Insurance reserves		17,542			20,400
Accrued benefits		61,436			50,991
Pension		30,967			34,965
Other		39,878			34,764
Total deferred tax assets		181,595			166,901
Less: Valuation allowances		(7,973	)		(7,085	)
		173,622			159,816
Deferred tax liabilities:
Property and equipment		(64,873	)		(35,714	)
Inventory		(220,234	)		(205,000	)
Other		(44,303	)		(19,850	)
		(329,410	)		(260,564	)
Net deferred tax liability	$	(155,788	)	$	(100,748	)

Reconciliation of unrecognized tax benefits

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

	August 27,			August 28,
(in thousands)	2011			2010
Beginning balance	$	38,554		$	44,192
Additions based on tax positions related to the current year		6,205			16,802
Additions for tax positions of prior years		11,787			2,125
Reductions for tax positions of prior years		(20,998	)		(6,390	)
Reductions due to settlements		(3,829	)		(16,354	)
Reductions due to statue of limitations		(1,813	)		(1,821	)
Ending balance	$	29,906		$	38,554