XML 34 R14.htm IDEA: XBRL DOCUMENT
v3.7.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Jun. 28, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income before provision for income taxes consists of the following (in thousands):
| 2017 |  | 2016 |  | 2015
Domestic | $ | 186,679 |  |  | $ | 258,905 |  |  | $ | 257,228 |
Foreign | 21,829 |  |  | 27,482 |  |  | 27,049 |
Total income before provision for income taxes | $ | 208,508 |  |  | $ | 286,387 |  |  | $ | 284,277 |
The provision for income taxes consists of the following (in thousands):
| 2017 |  | 2016 |  | 2015
Current income tax expense: |  |  |  |  |
Federal | $ | 64,407 |  |  | $ | 48,896 |  |  | $ | 60,575 |
State | 13,358 |  |  | 10,843 |  |  | 11,990 |
Foreign | 2,490 |  |  | 3,497 |  |  | 3,319 |
Total current income tax expense | 80,255 |  |  | 63,236 |  |  | 75,884 |
Deferred income tax (benefit) expense: |  |  |  |  |
Federal | (19,647 | ) |  | 21,842 |  |  | 11,674 |
State | (3,064 | ) |  | 704 |  |  | 2,156 |
Foreign | 141 |  |  | (15 | ) |  | (96 | )
Total deferred income tax (benefit) expense | (22,570 | ) |  | 22,531 |  |  | 13,734 |
| $ | 57,685 |  |  | $ | 85,767 |  |  | $ | 89,618 |
A reconciliation between the reported provision for income taxes and the amount computed by applying the statutory Federal income tax rate of 35% to income before provision for income taxes is as follows (in thousands):
| 2017 |  | 2016 |  | 2015
Income tax expense at statutory rate | $ | 72,978 |  |  | $ | 100,236 |  |  | $ | 99,496 |
FICA tax credit | (20,657 | ) |  | (20,497 | ) |  | (18,633 | )
State income taxes, net of Federal benefit | 5,928 |  |  | 9,614 |  |  | 8,646 |
Other | (564 | ) |  | (3,586 | ) |  | 109 |
| $ | 57,685 |  |  | $ | 85,767 |  |  | $ | 89,618 |
The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities as of June 28, 2017 and June 29, 2016 are as follows (in thousands):
| 2017 |  | 2016
Deferred income tax assets: |  |  |
Leasing transactions | $ | 32,019 |  |  | $ | 32,826 |
Stock-based compensation | 14,029 |  |  | 12,817 |
Restructure charges and impairments | 3,533 |  |  | 2,211 |
Insurance reserves | 19,700 |  |  | 18,015 |
Employee benefit plans | 288 |  |  | 501 |
Gift cards | 23,670 |  |  | 18,609 |
State net operating losses | 2,554 |  |  | 3,030 |
Federal credit carryover | 12,697 |  |  | 14,722 |
State credit carryover | 3,148 |  |  | 3,238 |
Other, net | 8,480 |  |  | 7,930 |
Less: Valuation allowance | (5,232 | ) |  | (5,315 | )
Total deferred income tax assets | 114,886 |  |  | 108,584 |
Deferred income tax liabilities: |  |  |
Prepaid expenses | 19,506 |  |  | 17,360 |
Goodwill and other amortization | 30,213 |  |  | 28,659 |
Depreciation and capitalized interest on property and equipment | 26,375 |  |  | 43,858 |
Other, net | 1,763 |  |  | 4,382 |
Total deferred income tax liabilities | 77,857 |  |  | 94,259 |
Net deferred income tax asset | $ | 37,029 |  |  | $ | 14,325 |
We have deferred tax assets of $6.4 million reflecting the benefit of state loss carryforwards, before federal benefit and valuation allowance, which expire at various dates between fiscal 2018 and fiscal 2037. We have deferred tax assets of $12.7 million of federal and $4.8 million state tax credits, before federal benefit and valuation allowance, which expire at various dates between fiscal 2024 and fiscal 2035. The recognized deferred tax asset for the state loss carryforwards is $0.5 million and the federal tax credits is $12.7 million. The federal credit carryover is limited by Section 382 of the Internal Revenue Code. The valuation allowance decreased by $0.1 million in fiscal 2017 to recognize certain state net operating loss benefits management believes are more-likely-than-not to be realized. No provision was made for the United States federal and state income taxes on certain outside basis differences, which primarily relate to accumulated unrepatriated foreign earnings of approximately $3.8 million as of June 28, 2017. It is not practicable to estimate the amount of tax that might be payable because our intent is to permanently reinvest these earnings or to repatriate earnings when it is tax effective to do so. A reconciliation of unrecognized tax benefits for the fiscal years ended June 28, 2017 and June 29, 2016 are as follows (in thousands):
| 2017 |  | 2016
Balance at beginning of year | $ | 4,989 |  |  | $ | 3,843 |
Additions based on tax positions related to the current year | 402 |  |  | 1,359 |
Additions based on tax positions related to prior years | 31 |  |  | 2,332 |
Settlements with tax authorities | (681 | ) |  | (1,963 | )
Expiration of statute of limitations | (679 | ) |  | (582 | )
Balance at end of year | $ | 4,062 |  |  | $ | 4,989 |
The total amount of unrecognized tax benefits that would affect income tax expense if resolved in our favor was $3.1 million and $3.9 million as of June 28, 2017 and June 29, 2016, respectively. We do not expect any material changes to our liability for uncertain tax positions during the next 12 months. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During fiscal 2017, we recognized approximately $0.2 million in interest expense. During fiscal 2016 and 2015, we recognized expenses of approximately $1.3 million and $0.2 million, respectively, in interest due to the reduction of accrued interest from statute expirations and settlements, net of accrued interest for remaining positions. As of June 28, 2017, we had $0.6 million ($0.4 million net of a $0.2 million Federal deferred tax benefit) of interest and penalties accrued, compared to $0.8 million ($0.6 million net of a $0.2 million Federal deferred tax benefit) at June 29, 2016. Our income tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate. The periods subject to examination for our federal return are fiscal 2015 to fiscal 2016 and fiscal 2013 to fiscal 2016 for our Canadian returns. State income tax returns are generally subject to examination for a period of three to five years after filing. We have various state income tax returns in the process of examination or settlements. Our federal return for fiscal 2015 and 2016 are currently under examination through the Internal Revenue Service: Compliance Assurance Process (CAP) program. There are no unrecorded liabilities associated with these examinations.

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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration