Income Taxes (Tables)

12 Months Ended

Aug. 26, 2017

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 26, 2017		August 27, 2016		August 29, 2015
Domestic	$	1,737,401	$	1,737,727	$	1,676,640
International		188,088		174,987		125,972
	$	1,925,489	$	1,912,714	$	1,802,612

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
(in thousands)	August 26, 2017			August 27, 2016			August 29, 2015
Current:
Federal	$	487,492		$	534,621		$	522,073
State		31,733			39,223			41,921
International		50,493			52,844			42,406
		569,718			626,688			606,400
Deferred:
Federal		72,208			48,509			38,299
State		7,769			9,453			941
International		(5,075	)		(12,943	)		(3,269	)
		74,902			45,019			35,971
Income tax expense	$	644,620		$	671,707		$	642,371

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 26, 2017			August 27, 2016			August 29, 2015
Federal tax at statutory U.S. income tax rate		35.0%			35.0%			35.0%
State income taxes, net		1.3%			1.6%			1.5%
Other		(2.8%	)		(1.5%	)		(0.9%	)
Effective tax rate		33.5%			35.1%			35.6%

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 26, 2017			August 27, 2016
Deferred tax assets:
Net operating loss and credit carryforwards	$	48,062		$	50,859
Accrued benefits		96,664			93,212
Other		56,052			68,600
Total deferred tax assets		200,778			212,671
Less: Valuation allowances		(13,501	)		(13,338	)
Net deferred tax asset		187,277			199,333
Deferred tax liabilities:
Property and equipment		(117,580	)		(93,943	)
Inventory		(333,422	)		(315,563	)
Prepaid Expenses		(60,920	)		(27,395	)
Other		(11,158	)		(10,077	)
Total deferred tax liabilities		(523,080	)		(446,978	)
Net deferred tax liability	$	(335,803	)	$	(247,645	)

Reconciliation of Unrecognized Tax Benefits

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

(in thousands)	August 26, 2017			August 27, 2016
Beginning balance	$	27,726		$	28,434
Additions based on tax positions related to the current year		7,089			7,172
Additions for tax positions of prior years		278			95
Reductions for tax positions of prior years		(6,954	)		(2,405	)
Reductions due to settlements		(1,964	)		(858	)
Reductions due to statute of limitations		(3,974	)		(4,712	)
Ending balance	$	22,201		$	27,726