Income Taxes (Tables)

12 Months Ended

Aug. 26, 2023

Income Taxes

Components of Income from Continuing Operations

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

		Year Ended
	August 26,		August 27,		August 28,
(in thousands)	2023		2022		2021
Domestic	$	2,621,714	$	2,429,262	$	2,436,548
International		545,900		649,829		312,642
	$	3,167,614	$	3,079,091	$	2,749,190

Provision for Income Tax Expense

The provision for income tax expense consisted of the following:

	Year Ended
	August 26,		August 27,		August 28,
(in thousands)	2023		2022		2021
Current:
Federal	$	423,301	$	293,022	$	438,686
State		86,687		48,490		79,271
International		154,907		122,381		95,351
		664,895		463,893		613,308
Deferred:
Federal		20,266		160,749		(21,366)
State		(21,847)		34,564		(1,707)
International		(24,126)		(9,719)		(11,359)
		(25,707)		185,594		(34,432)
Income tax expense	$	639,188	$	649,487	$	578,876

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
	August 26,		August 27,		August 28,
(in thousands)	2023		2022		2021
Federal tax at statutory U.S. income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net	1.6	%	2.1	%	2.2	%
Share-based compensation	(2.3)	%	(1.6)	%	(1.7)	%
US Tax on Non-U.S. Income (GILTI and Subpart F)	3.3	%	3.1	%	2.8	%
Non-U.S. Permanent Differences	(1.4)	%	(1.5)	%	(0.4)	%
Foreign Tax Credits	(2.3)	%	(1.9)	%	(1.7)	%
Other	0.3	%	(0.1)	%	(1.1)	%
Effective tax rate	20.2	%	21.1	%	21.1	%

Significant Components of Company's Deferred Tax Assets and Liabilities

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

	August 26,		August 27,
(in thousands)	2023		2022
Deferred tax assets:
Net operating loss and credit carryforwards	$	45,081	$	33,924
Accrued benefits		82,318		60,561
Operating lease liabilities		698,728		692,730
Other		90,897		79,850
Total deferred tax assets		917,024		867,065
Valuation allowances		(24,940)		(27,790)
Net deferred tax assets		892,084		839,275
Deferred tax liabilities:
Property and equipment		(194,686)		(197,482)
Inventory		(451,360)		(448,273)
Operating lease assets		(652,652)		(650,145)
Other		(43,662)		(25,211)
Deferred tax liabilities		(1,342,360)		(1,321,111)
Net deferred tax liabilities	$	(450,276)	$	(481,836)

Reconciliation of Unrecognized Tax Benefits

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

	August 26,		August 27,
(in thousands)	2023		2022
Beginning balance	$	49,316	$	39,797
Additions based on tax positions related to the current year		9,416		17,488
Additions for tax positions of prior years		8,012		3,008
Reductions for tax positions of prior years		(5,336)		(6,806)
Reductions due to settlements		(6,800)		(1,539)
Reductions due to statute of limitations		(5,121)		(2,632)
Ending balance	$	49,487	$	49,316