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Income Taxes | 12 Months Ended
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Aug. 29, 2020
Income Taxes [Abstract] |
Income Taxes | 7. INCOME TAXES The provision for income taxes is comprised of the following:
|  | For the Fiscal Years Ended
|  | August 29, |  | August 31, |  | September 1,
|  | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 59,574 |  | $ | 66,161 |  | $ | 85,205
State and local |  |  | 14,564 |  |  | 16,239 |  |  | 16,108
|  |  | 74,138 |  |  | 82,400 |  |  | 101,313
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 7,263 |  |  | 10,622 |  |  | (27,372)
State and local |  |  | 1,091 |  |  | 1,310 |  |  | 3,025
|  |  | 8,354 |  |  | 11,932 |  |  | (24,347)
Total |  | $ | 82,492 |  | $ | 94,332 |  | $ | 76,966
Significant components of deferred tax assets and liabilities are as follows:
|  | August 29, |  | August 31,
|  | 2020 |  | 2019
Deferred tax liabilities: |  |  |  |  |  |
Depreciation |  | $ | (41,049) |  | $ | (40,602)
Deferred catalog costs |  |  | — |  |  | (546)
Right of use asset |  |  | (14,260) |  |  | —
Goodwill |  |  | (96,303) |  |  | (86,707)
Intangible amortization |  |  | (1,478) |  |  | (143)
|  |  | (153,090) |  |  | (127,998)
Deferred tax assets: |  |  |  |  |  |
Accounts receivable |  |  | 4,109 |  |  | 3,823
Lease liability |  |  | 14,231 |  |  | —
Inventory |  |  | 8,430 |  |  | 6,529
Deferred compensation |  |  | 753 |  |  | 853
Stock-based compensation |  |  | 6,224 |  |  | 5,887
Foreign Tax Credit |  |  | 2,159 |  |  | 2,712
Less: Valuation Allowance |  |  | (1,403) |  |  | (1,762)
Other accrued expenses/reserves |  |  | 8,440 |  |  | 8,164
|  |  | 42,943 |  |  | 26,206
Net Deferred Tax Liabilities |  | $ | (110,147) |  | $ | (101,792)
Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
|  | For the Fiscal Years Ended
|  | August 29, |  | August 31, |  | September 1,
|  | 2020 |  | 2019 |  | 2018
U.S. Federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 25.6 | %
State income taxes, net of Federal benefit |  | 3.7 |  |  | 3.7 |  |  | 3.4 |
Revaluation of Net Deferred Tax Liabilities |  | — |  |  | — |  |  | (10.0) |
Other, net |  | — |  |  | (0.1) |  |  | (0.1) |
Effective income tax rate |  | 24.7 | % |  | 24.6 | % |  | 18.9 | %
The aggregate changes in the balance of gross unrecognized tax benefits during fiscal years 2020 and 2019 were as follows:
|  | August 29, |  | August 31,
|  | 2020 |  | 2019
Beginning Balance |  | $ | 13,297 |  | $ | 11,943
Additions for tax positions relating to current year |  |  | 1,682 |  |  | 2,203
Additions for tax positions relating to prior years |  |  | 29 |  |  | 2,201
Reductions for tax positions relating to prior years |  |  | (25) |  |  | (409)
Settlements |  |  | (956) |  |  | (1,371)
Lapse of statute of limitations |  |  | (1,465) |  |  | (1,270)
Ending Balance |  | $ | 12,562 |  | $ | 13,297
Included in the balance of unrecognized tax benefits at August 29, 2020 is $1,311 related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next 12 months. This amount represents a decrease in unrecognized tax benefits comprised primarily of items related to expiring statutes of limitations in state jurisdictions. The Company recognizes interest expense and penalties in the provision for income taxes. The fiscal years 2020, 2019 and 2018 provisions include interest and penalties of $23, $27 and $44, respectively. The Company has accrued $585 and $521 for interest and penalties as of August 29, 2020 and August 31, 2019, respectively. The Company has a foreign tax credit carryover of $2,159 of which a valuation allowance of $1,403 has been provided. This foreign tax credit carryover expires beginning fiscal year 2024. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into legislation which includes business tax provisions that will impact taxes related to 2018, 2019 and 2020. The Company has analyzed the various provisions under the CARES Act and as of August 29, 2020 there is no significant impact to be recorded. On December 22, 2017, the TCJA was enacted. The TCJA made significant changes to U.S. federal income tax laws including permanently lowering the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. As the Company has a fiscal August year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory rate of 25.6% for the fiscal year ending September 1, 2018. The Company’s statutory federal tax rate is 21.0% for fiscal years 2019 and beyond. U.S. GAAP required that the impact of tax legislation be recognized in the period in which the law was enacted. In December 2017, the SEC issued Staff Accounting Bulletin No. 118, which allowed a company to report provisional numbers related to the TCJA and adjust those amounts during a measurement period not to extend beyond one year. The Company recorded a net tax benefit of $40,464 due to the revaluation of its net deferred tax liabilities primarily related to the lower federal corporate tax rate, partially offset by the lower federal benefit for state taxes and the change from a worldwide tax system to a territorial tax system in fiscal year 2018. The amounts recorded are provisional and are subject to change due to further interpretations of the TCJA, legislative action to address questions that arise because of the TCJA, and/or any updates or changes to estimates the Company has utilized to calculate the impacts, such as return to accrual adjustments and/or changes to current year earnings estimates and the Company’s ongoing analysis of the TCJA. The Company is routinely examined by federal and state tax authorities. The Company is subject to examination by the Internal Revenue Service from fiscal 2017 to present. With limited exceptions, the Company is no longer subject to state income tax examinations prior to fiscal 2017.

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- 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
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