Income Taxes (Tables)

12 Months Ended

Aug. 31, 2013

Income Tax Disclosure [Abstract]

Components of Income from Continuing Operations

The components of income from continuing operations before income taxes are as follows:

	Year Ended
(in thousands)	August 31, 2013		August 25, 2012		August 27, 2011
Domestic	$	1,486,386	$	1,373,142	$	1,255,127
International		101,297		79,844		69,119
	$	1,587,683	$	1,452,986	$	1,324,246

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
(in thousands)	August 31, 2013			August 25, 2012			August 27, 2011
Current:
Federal	$	466,803		$	424,895		$	364,117
State		46,494			47,386			39,473
International		38,202			24,775			27,015
		551,499			497,056			430,605
Deferred:
Federal		16,816			33,679			57,625
State		3,139			(2,822	)		(5,031	)
International		(251	)		(5,300	)		(7,927	)
		19,704			25,557			44,667
Income tax expense	$	571,203		$	522,613		$	475,272

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
(in thousands)	August 31, 2013			August 25, 2012			August 27, 2011
Federal tax at statutory U.S. income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net		2.0	%		2.0	%		1.7	%
Other		(1.0	%)		(1.0	%)		(0.8	%)
Effective tax rate		36.0	%		36.0	%		35.9	%

Significant Components of Company's Deferred Tax Assets and Liabilities

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

(in thousands)	August 31, 2013			August 25, 2012
Deferred tax assets:
Net operating loss and credit carryforwards	$	41,785		$	36,605
Insurance reserves		16,237			18,185
Accrued benefits		67,350			63,320
Pension		18,004			43,904
Other		45,597			41,658
Total deferred tax assets		188,973			203,672
Less: Valuation allowances		(11,593	)		(9,532	)
		177,380			194,140
Deferred tax liabilities:
Property and equipment		(84,512	)		(67,480	)
Inventory		(262,653	)		(244,414	)
Other		(27,341	)		(31,437	)
Total deferred tax liabilities		(374,506	)		(343,331	)
Net deferred tax liability	$	(197,126	)	$	(149,191	)

Reconciliation of Unrecognized Tax Benefits

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

(in thousands)	August 31, 2013			August 25, 2012
Beginning balance	$	27,715		$	29,906
Additions based on tax positions related to the current year		7,015			6,869
Additions for tax positions of prior years		2,758			44
Reductions for tax positions of prior years		(470	)		(1,687	)
Reductions due to settlements		(3,019	)		(4,586	)
Reductions due to statute of limitations		(3,356	)		(2,831	)
Ending balance	$	30,643		$	27,715