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Income Taxes
3 Months Ended
Oct. 25, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company accounts for income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The Company’s effective income tax rate differs from the statutory rate for the tax jurisdictions where it operates primarily as the result of the impact of state income taxes, non-deductible and non-taxable items and tax credits recognized in relation to pre-tax results. Measurement of certain aspects of the Company’s tax positions are based on interpretations of tax regulations, federal and state case law and the applicable statutes.

The Company is subject to federal income taxes in the United States, as well as income taxes of multiple state jurisdictions and in Canada. There were immaterial amounts of pre-tax income related to Canadian operations for the three months ended October 25, 2014 and October 26, 2013. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or Canadian income tax examinations for fiscal years ended 2010 and prior. The Company believes its provision for income taxes is adequate; however, any assessment would affect the Company’s results of operations and cash flows. Income tax receivables totaling less than $0.1 million and $2.2 million are included in other current assets as of October 25, 2014 and July 26, 2014, respectively. Income tax payables totaling $13.4 million and $5.2 million are included within other accrued liabilities as of October 25, 2014 and July 26, 2014, respectively.

As of both October 25, 2014 and July 26, 2014, the Company had total unrecognized tax benefits of $2.4 million that would reduce the Company’s effective tax rate during future periods if it is subsequently determined that those liabilities were not required. The Company had approximately $0.8 million for the payment of interest and penalties accrued at both October 25, 2014 and July 26, 2014. Interest expense related to unrecognized tax benefits was immaterial during the three months ended October 25, 2014 and October 26, 2013.