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Income Taxes | 12 Months Ended
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Sep. 02, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of income before provision for income taxes were as follows:
| For the Fiscal Years Ended
| September 2, 2023 |  | September 3, 2022 |  | August 28, 2021
Domestic | $ | 453,563 |  | $ | 449,389 |  | $ | 282,478
Foreign | 2,593 |  | 1,743 |  | 5,901
Total | $ | 456,156 |  | $ | 451,132 |  | $ | 288,379
The provision for income taxes is comprised of the following:
| For the Fiscal Years Ended
| September 2, 2023 |  | September 3, 2022 |  | August 28, 2021
Current: |  |  |  |  |
Federal | $ | 81,187 |  | $ | 77,761 |  | $ | 60,988
State and local | 21,121 |  | 19,524 |  | 15,237
Foreign | 1,635 |  | 1,309 |  | 1,327
| 103,943 |  | 98,594 |  | 77,552
Deferred: |  |  |  |  |
Federal | 8,164 |  |  | 11,591 |  |  | (5,513)
State and local | 1,683 |  |  | 1,281 |  |  | (842)
Foreign | (741) |  |  | (816) |  |  | (755) |
| 9,106 |  |  | 12,056 |  |  | (7,110)
Total | $ | 113,049 |  | $ | 110,650 |  | $ | 70,442
Significant components of deferred tax assets and liabilities are as follows:
| September 2, 2023 |  | September 3, 2022
Deferred tax liabilities: |  |  |
Depreciation | $ | (40,137) |  |  | $ | (41,990) |
Right-of-use assets | (14,290) |  |  | (14,898) |
Goodwill | (118,015) |  |  | (111,471) |
Intangible amortization | (2,388) |  |  | (2,568) |
| (174,830) |  |  | (170,927) |
Deferred tax assets: |  |  |
Accounts receivable | 5,047 |  | 4,605
Lease liability | 14,595 |  | 14,766
Inventory | 10,356 |  | 13,476
Self-insurance liability | 2,988 |  | 1,605
Deferred compensation | 256 |  | 586
Stock-based compensation | 5,431 |  | 5,881
Other accrued expenses/reserves | 11,958 |  | 14,915
| 50,631 |  | 55,834
Net Deferred Tax Liabilities | $ | (124,199) |  |  | $ | (115,093) |
Reconciliation of the U.S. federal income tax rate to the Company’s effective income tax rate is as follows:
| For the Fiscal Years Ended
| September 2, 2023 |  | September 3, 2022 |  | August 28, 2021
U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 4.3 |  |  | 3.9 |  |  | 4.1 |
Other, net | (0.5) |  |  | (0.4) |  |  | (0.7) |
Effective income tax rate | 24.8 | % |  | 24.5 | % |  | 24.4 | %
The aggregate changes in the balance of gross unrecognized tax benefits during fiscal years 2023 and 2022 were as follows:
| September 2, 2023 |  | September 3, 2022
Beginning Balance | $ | 11,223 |  | $ | 6,119
Additions for tax positions relating to current year | 403 |  | 1,130
Additions for tax positions relating to prior years | — |  |  | 6,810
Reductions for tax positions relating to prior years | (816) |  |  | (626) |
Settlements | (178) |  | — |
Lapse of statute of limitations | (2,864) |  |  | (2,210) |
Ending Balance | $ | 7,768 |  | $ | 11,223
Included in the balance of gross unrecognized tax benefits at September 2, 2023 is $1,415 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 potential decrease in gross unrecognized tax benefits comprised primarily of items related to expiring statutes of limitations in state and foreign jurisdictions. The Company recognizes interest expense and penalties in the provision for income taxes. The provision for income taxes for fiscal years 2023, 2022 and 2021 included interest and penalties of $153, $7 and $689, respectively. The Company had accrued $1,973 and $2,490 for interest and penalties as of September 2, 2023 and September 3, 2022, respectively. The United States government enacted the CARES Act to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including the ERC, which allows for employers to claim a refundable tax credit against the employer share of social security taxes equal to 50% of qualified wages paid to qualified employees between March 13, 2020 and December 31, 2020 and 70% of qualified wages paid to qualified employees after December 31, 2020 through September 30, 2021. The ERC was designed to encourage businesses to keep employees on the payroll during the COVID-19 pandemic. During the fiscal year ended September 2, 2023, the Company received funds related to ERC claims previously submitted. As there is no authoritative guidance under accounting principles generally accepted in the United States of America on accounting for government assistance to for-profit business entities, the Company accounts for the ERC by analogy to International Accounting Standard 20, Accounting for Government Grants and Disclosure of Government Assistance. As such, the Company recorded $6,566 to Other (expense) income, net in the Consolidated Statement of Income for the fiscal year ended September 2, 2023, as the probability threshold had been met for these funds. Conversely, management determined the probability threshold had not been met for $5,129 of the funds received, and, as such, that portion of the funds was recorded to Accrued expenses and other current liabilities in the Consolidated Balance Sheet as of September 2, 2023. This amount will be recognized in the Consolidated Statement of Income when the probability threshold has been met, which is the earlier of a completed audit or the lapse of the relevant statute of limitations. The CARES Act provides for the deferral of the employer-paid portion of social security payroll taxes. The Company elected to defer the employer-paid portion of social security payroll taxes through December 31, 2020 of $18,887. Of this amount, half was remitted in December 2021 and the remaining half was remitted in December 2022. The Company is routinely examined by federal and state tax authorities. The Internal Revenue Service completed an examination of the Company’s U.S. income tax returns for fiscal years 2017, 2018 and 2019, which resulted in a settlement. The Company is subject to examination by the Internal Revenue Service from fiscal year 2020 to present. With limited exceptions, the Company is no longer subject to state income tax examinations prior to fiscal year 2020. The Company is also subject to examinations in various foreign jurisdictions. The statute of limitations may vary by jurisdiction. The Company has reinvested an immaterial amount of undistributed earnings of its foreign subsidiaries and may be subject to additional foreign withholding taxes and U.S. state income taxes if it reverses its indefinite reinvestment assertion on these foreign earnings in the future. All other outside basis differences not related to earnings were immaterial to account for at this period of time and are currently considered as being permanent in duration.

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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://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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