Income Taxes (Tables)

12 Months Ended

Aug. 31, 2019

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, 2019		August 25, 2018		August 26, 2017
Domestic	$	1,745,625	$	1,412,963	$	1,737,401
International		285,708		223,366		188,088
	$	2,031,333	$	1,636,329	$	1,925,489

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
(in thousands)	August 31, 2019		August 25, 2018			August 26, 2017
Current:
Federal	$	274,504	$	328,963		$	487,492
State		45,457		36,389			31,733
International		59,100		57,702			50,493
		379,061		423,054			569,718
Deferred:
Federal		25,757		(131,926	)		72,208
State		6,914		8,167			7,769
International		2,380		(502	)		(5,075	)
		35,051		(124,261	)		74,902
Income tax expense	$	414,112	$	298,793		$	644,620

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 to income before income taxes is as follows:

	Year Ended
(in thousands)	August 31, 2019			August 25, 2018			August 26, 2017
Federal tax at statutory U.S. income tax rate		21.0%			25.9%			35.0%
State income taxes, net		2.0%			1.9%			1.3%
Transition tax		—			1.6%			—
Share-based compensation		(1.8%	)		(1.6%	)		(1.4%	)
Impact of tax reform		(0.4%	)		(9.6%	)		—
Other		(0.4%	)		0.1%			(1.4%	)
Effective tax rate		20.4%			18.3%			33.5%

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, 2019			August 25, 2018
Deferred tax assets:
Net operating loss and credit carryforwards	$	42,958		$	47,190
Accrued benefits		58,900			62,867
Other		59,237			46,375
Total deferred tax assets		161,095			156,432
Less: Valuation allowances		(23,923	)		(19,619	)
Net deferred tax assets		137,172			136,813
Deferred tax liabilities:
Property and equipment		(114,956	)		(101,049	)
Inventory		(259,827	)		(242,138	)
Prepaid expenses		(46,487	)		(42,019	)
Other		(1,021	)		(2,191	)
Total deferred tax liabilities		(422,291	)		(387,397	)
Net deferred tax liabilities	$	(285,119	)	$	(250,584	)

Reconciliation of Unrecognized Tax Benefits

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

(in thousands)	August 31, 2019			August 25, 2018
Beginning balance	$	26,077		$	22,201
Additions based on tax positions related to the current year		8,621			8,184
Additions for tax positions of prior years		2,115			1,404
Reductions for tax positions of prior years		(1,219	)		(482	)
Reductions due to settlements		(1,918	)		(1,930	)
Reductions due to statute of limitations		(2,784	)		(3,300	)
Ending balance	$	30,892		$	26,077