Income Taxes (Tables)

12 Months Ended

Aug. 30, 2014

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 30, 2014		August 31, 2013		August 25, 2012
Domestic	$	1,550,203	$	1,486,386	$	1,373,142
International		112,511		101,297		79,844
	$	1,662,714	$	1,587,683	$	1,452,986

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
(in thousands)	August 30, 2014			August 31, 2013			August 25, 2012
Current:
Federal	$	516,983		$	466,803		$	424,895
State		54,481			46,494			47,386
International		36,204			38,202			24,775
		607,668			551,499			497,056
Deferred:
Federal		(762	)		16,816			33,679
State		(7,752	)		3,139			(2,822	)
International		(6,184	)		(251	)		(5,300	)
		(14,698	)		19,704			25,557
Income tax expense	$	592,970		$	571,203		$	522,613

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 30, 2014			August 31, 2013			August 25, 2012
Federal tax at statutory U.S. income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net		1.8	%		2.0	%		2.0	%
Other		(1.1	%)		(1.0	%)		(1.0	%)
Effective tax rate		35.7	%		36.0	%		36.0	%

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 30, 2014			August 31, 2013
Deferred tax assets:
Net operating loss and credit carryforwards	$	40,507		$	41,785
Insurance reserves		16,354			16,237
Accrued benefits		79,932			67,350
Pension		21,493			18,004
Other		43,078			45,597
Total deferred tax assets		201,364			188,973
Less: Valuation allowances		(10,604	)		(11,593	)
		190,760			177,380
Deferred tax liabilities:
Property and equipment		(59,016	)		(84,512	)
Inventory		(273,005	)		(262,653	)
Other		(36,785	)		(27,341	)
Total deferred tax liabilities		(368,806	)		(374,506	)
Net deferred tax liability	$	(178,046	)	$	(197,126	)

Reconciliation of Unrecognized Tax Benefits

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

(in thousands)	August 30, 2014			August 31, 2013
Beginning balance	$	30,643		$	27,715
Additions based on tax positions related to the current year		7,857			7,015
Additions for tax positions of prior years		2,114			2,758
Reductions for tax positions of prior years		(1,355	)		(470	)
Reductions due to settlements		(2,074	)		(3,019	)
Reductions due to statute of limitations		(4,057	)		(3,356	)
Ending balance	$	33,128		$	30,643