Income Taxes (Tables)

12 Months Ended

Feb. 25, 2017

Income Tax Disclosure [Abstract]

Components of Income Taxes

The following table sets forth the components of income tax expense from continuing operations for each of the following fiscal years (in thousands):

	2017		2016			2015
Currently payable:
Federal	$	9,422	$	13,553		$	21,055
State	1,115		579			1,713
	10,537		14,132			22,768
Deferred:
Federal	6,944		533			20,567
State	1,279		(1,103		)	1,856
	8,223		(570		)	22,423
Total income tax expense	$	18,760	$	13,562		$	45,191

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	February 25, 2017			February 27, 2016
Deferred tax assets:
Deferred credits from landlords	$	3,243		$	10,719
Share-based compensation	8,655			6,462
Compensation accrual	1,253			1,091
Deferred compensation	2,151			2,149
Other	9,199			8,692
Total deferred tax assets	24,501			29,113
Deferred tax liabilities:
Property and equipment	(38,094		)	(39,350		)
Merchandise inventories	(18,520		)	(12,286		)
Other	(113		)	(2,918		)
Total deferred tax liabilities	(56,727		)	(54,554		)
Net deferred tax liability	$	(32,226	)	$	(25,441	)

Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate

The effective income tax rate from continuing operations varies from the statutory federal income tax rate for fiscal 2017, 2016, and 2015 due to the following:

	2017		2016		2015
Tax at statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	4.1		0.7		2.0
Tax contingencies	(0.7	)	—		(0.3	)
Research and development tax credits	(0.6	)	(4.4	)	—
Benefit of worthless stock deduction	—		—		(3.2	)
Retired executive officer’s compensation	(2.9	)	—		—
Other	(0.1	)	0.6		0.2
	34.8	%	31.9	%	33.7	%

Activity Related to Unrecognized Tax Benefits for U.S. Federal and State Tax Jurisdictions and Excludes Accrued Interest and Penalties

The following table summarizes by fiscal year the activity related to the Company’s unrecognized tax benefits for U.S. federal and state tax jurisdictions and excludes accrued interest and penalties (in thousands):

	2017			2016			2015
Unrecognized tax benefits at beginning of year	$	2,485		$	1,999		$	7,638
Increases in tax positions for prior years	212			1,167			—
Decreases in tax positions for prior years	(26		)	(259		)	(5,595		)
Increases in unrecognized tax benefits as a result of current year activity	19			176			50
Decreases to unrecognized tax benefits relating to settlements with taxing authorities	—			—			(29		)
Decreases to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations	(535		)	(598		)	(65		)
Unrecognized tax benefits at end of year	$	2,155		$	2,485		$	1,999