XML 129 R23.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Jan. 25, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the provision (benefit) for income taxes were as follows (dollars in thousands):
| Fiscal Year Ended |  | Six Months Ended |  | Fiscal Year Ended
| January 25, 2020 |  | January 26, 2019 |  | January 27, 2018 |  | July 29, 2017
Current: |  |  |  |  |  |  |
Federal | $ | 8,389 |  |  | $ | 9,507 |  |  | $ | (4,384 | ) |  | $ | 62,455 |
Foreign | (56 | ) |  | 2,204 |  |  | 598 |  |  | 176 |
State | 3,727 |  |  | 4,897 |  |  | 1,166 |  |  | 12,344 |
| 12,060 |  |  | 16,608 |  |  | (2,620 | ) |  | 74,975 |
Deferred: |  |  |  |  |  |  |
Federal | 7,257 |  |  | 8,706 |  |  | (21,332 | ) |  | 17,051 |
Foreign | 568 |  |  | (446 | ) |  | (37 | ) |  | (35 | )
State | 1,436 |  |  | 263 |  |  | 1,704 |  |  | 1,217 |
| 9,261 |  |  | 8,523 |  |  | (19,665 | ) |  | 18,233 |
Provision (benefit) for income taxes | $ | 21,321 |  |  | $ | 25,131 |  |  | $ | (22,285 | ) |  | $ | 93,208 |
The Tax Cu ts and Jobs Act of 2017 (“Tax Reform”) was enacted in December 2017 and includes significant changes to U.S. income tax law. Tax Reform, among other things, reduced the U.S. federal corporate tax rate from 35% to 21% percent. Our effective income tax rate differs from the statutory rate for the tax jurisdictions where we operate primarily as the result of the impact of non-deductible and non-taxable items, tax credits recognized in relation to pre-tax results, certain tax impacts from the vesting and exercise of share-based awards, and impacts from Tax Reform. We were subject to a blended statutory tax rate of approximately 33% for the six months ended January 27, 2018 resulting from Tax Reform taking effect for a portion of the period based on our fiscal year end. A reconciliation of the amount computed by applying our statutory income tax rate to pre-tax income to the total tax provision is as follows (dollars in thousands):
| Fiscal Year Ended |  | Six Months Ended |  | Fiscal Year Ended
| January 25, 2020 |  | January 26, 2019 |  | January 27, 2018 |  | July 29, 2017
Statutory rate applied to pre-tax income | $ | 16,495 |  |  | $ | 18,488 |  |  | $ | 15,334 |  |  | $ | 87,649 |
State taxes, net of federal tax benefit | 4,282 |  |  | 4,004 |  |  | 1,406 |  |  | 9,868 |
Tax Reform and related effects | 1,093 |  |  | — |  |  | (32,249 | ) |  | — |
Federal deficiency (benefit) of vesting and exercise of share-based awards | 875 |  |  | (200 | ) |  | (7,067 | ) |  | — |
Non-deductible and non-taxable items, net | 1,433 |  |  | 2,433 |  |  | 1,585 |  |  | (4,686 | )
Change in accruals for uncertain tax positions | 891 |  |  | 464 |  |  | 250 |  |  | 632 |
Tax credits | (2,801 | ) |  | (1,835 | ) |  | (1,596 | ) |  | — |
Change in valuation allowance | 722 |  |  | 291 |  |  | — |  |  | — |
Effect of rates other than statutory | (197 | ) |  | 1,537 |  |  | 557 |  |  | 6 |
Other items, net | (1,472 | ) |  | (51 | ) |  | (505 | ) |  | (261 | )
Provision (benefit) for income taxes | $ | 21,321 |  |  | $ | 25,131 |  |  | $ | (22,285 | ) |  | $ | 93,208 |
During the six months ended January 27, 2018, we recognized an income tax benefit of approximately $32.2 million primarily resulting from the re-measurement our net deferred tax liabilities to reflect the reduced rate under Tax Reform. Additionally, we recognized an income tax benefit (including federal and state tax benefits) of approximately $7.8 million during the six months ended January 27, 2018 for certain tax effects of the vesting and exercise of share-based awards. During fiscal 2017, non-taxable and non-deductible items consisted of a production related tax deduction of $6.0 million, offset by $1.3 million of non-deductible items. There was no production related tax deduction for the six months ended January 27, 2018. Additionally, beginning in fiscal 2019, the production related tax deduction is no longer permitted as a result of changes from Tax Reform. During fiscal 2017, tax credits of $1.0 million were presented within Non-deductible and non-taxable items, net in the table above. Deferred Income Taxes The deferred tax provision represents the change in the deferred tax assets and the liabilities representing the tax consequences of changes in the amount of temporary differences and changes in tax rates during the year. The significant components of deferred tax assets and liabilities consisted of the following (dollars in thousands):
| January 25, 2020 |  | January 26, 2019
Deferred tax assets: |  |  |
Insurance and other reserves | $ | 22,489 |  |  | $ | 22,885 |
Allowance for doubtful accounts and reserves | 2,342 |  |  | 5,323 |
Net operating loss carryforwards | 1,487 |  |  | 5,515 |
Stock-based compensation | 2,961 |  |  | 3,324 |
Leases | 18,002 |  |  | — |
Other | 3,098 |  |  | 3,764 |
Total deferred tax assets | 50,379 |  |  | 40,811 |
Valuation allowance | (1,126 | ) |  | (418 | )
Deferred tax assets, net of valuation allowance | $ | 49,253 |  |  | $ | 40,393 |
Deferred tax liabilities: |  |  |
Property and equipment | $ | 76,385 |  |  | $ | 77,490 |
Goodwill and intangibles | 29,563 |  |  | 27,780 |
Leases | 17,856 |  |  | — |
Other | 976 |  |  | 1,086 |
Deferred tax liabilities | $ | 124,780 |  |  | $ | 106,356 |
Net deferred tax liabilities | $ | 75,527 |  |  | $ | 65,963 |
The valuation allowance above reduces the deferred tax asset balances to the amount that we have determined is more likely than not to be realized. The valuation allowance primarily relates to immaterial foreign net operating loss carryforwards and immaterial state net operating loss carryforwards, which generally begin to expire in fiscal 2022 and fiscal 2023, respectively. Uncertain Tax Positions As of January 25, 2020 and January 26, 2019, we had total unrecognized tax benefits of $4.7 million and $3.8 million, respectively, resulting from uncertain tax positions. Our effective tax rate will be reduced during future periods if it is determined these unrecognized tax benefits are realizable. We had approximately $1.7 million and $1.4 million accrued for the payment of interest and penalties as of January 25, 2020 and January 26, 2019, respectively. Interest expense related to unrecognized tax benefits for the Company was not material during fiscal 2020, fiscal 2019, the 2018 transition period, or fiscal 2017. A summary of unrecognized tax benefits is as follows (dollars in thousands):
| Fiscal Year Ended |  | Six Months Ended |  | Fiscal Year Ended
| January 25, 2020 |  | January 26, 2019 |  | January 27, 2018 |  | July 29, 2017
Balance at beginning of year | $ | 3,786 |  |  | $ | 3,322 |  |  | $ | 3,072 |  |  | $ | 2,440 |
Additions based on tax positions related to the fiscal year | 696 |  |  | 444 |  |  | 283 |  |  | 441 |
Additions (reductions) based on tax positions related to prior years | 358 |  |  | 77 |  |  | (33 | ) |  | 229 |
Reductions related to the expiration of statutes of limitation | (98 | ) |  | (57 | ) |  | — |  |  | (38 | )
Balance at end of year | $ | 4,742 |  |  | $ | 3,786 |  |  | $ | 3,322 |  |  | $ | 3,072 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration