XML 73 R21.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Taxes
3 Months Ended
Oct. 24, 2015
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 non-deductible and non-taxable items and tax credits recognized in relation to pre-tax results. Measurement of the Company's tax position is based on the applicable statutes, federal and state case law, and its interpretations of tax regulations.

The Company is subject to federal income taxes in the United States, the 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 24, 2015 and October 25, 2014. 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 2011 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 $0.4 million and $2.1 million are included in other current assets as of October 24, 2015 and July 25, 2015, respectively. Income tax payables totaling $18.7 million and $8.9 million are included in other accrued liabilities as of October 24, 2015 and July 25, 2015, respectively.

As of both October 24, 2015 and July 25, 2015, the Company had total unrecognized tax benefits of $2.3 million, resulting from uncertain tax positions. The Company's effective tax rate will be reduced during future periods if it is determined these tax benefits are realizable. The Company had approximately $0.9 million for the payment of interest and penalties accrued as of both October 24, 2015 and July 25, 2015, respectively. Interest expense related to unrecognized tax benefits for the Company was immaterial.