XML 73 R10.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Aug. 25, 2012
Income Taxes [Abstract] |
Income Taxes | 4. Income Taxes The provision for income taxes consists of the following (in thousands):
Year ended |  | August 25, 2012 |  |  | August 27, 2011 |  |  | August 28, 2010 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 43,470 |  |  | $ | 22,372 |  |  | $ | 34,373 |
Foreign |  |  | 3,604 |  |  |  | 3,664 |  |  |  | 4,336 |
State |  |  | 8,066 |  |  |  | 5,089 |  |  |  | 6,871 |
Total current |  |  | 55,140 |  |  |  | 31,125 |  |  |  | 45,580 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 540 |  |  |  | 11,424 |  |  |  | 154 |
Foreign |  |  | 90 |  |  |  | (94 | ) |  |  | 366 |
State |  |  | (25 | ) |  |  | 1,631 |  |  |  | 344 |
Total deferred |  |  | 605 |  |  |  | 12,961 |  |  |  | 864 |
Total |  | $ | 55,745 |  |  | $ | 44,086 |  |  | $ | 46,444 |
The following table reconciles the provision for income taxes using the statutory federal income tax rate to the actual provision for income taxes (in thousands):
|  | August 25, 2012 |  |  | August 27, 2011 |  |  | August 28, 2010 |
Income taxes at the statutory federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes |  |  | 3.5 |  |  |  | 3.7 |  |  |  | 3.8 |
Adjustments to tax reserves |  |  | -0.6 |  |  |  | -1.1 |  |  |  | -0.7 |
Foreign tax rate differential |  |  | -1.0 |  |  |  | -1.0 |  |  |  | -0.6 |
Permanent and other |  |  | 0.1 |  |  |  | 0.0 |  |  |  | 0.3 |
Total |  |  | 37.0 | % |  |  | 36.6 | % |  |  | 37.8 | %
The tax effect of items giving rise to the Company's deferred tax assets and liabilities is as follows (in thousands):
|  | August 25, 2012 |  |  | August 27, 2011 |
Deferred Tax Assets |  |  |  |  |  |
Payroll and benefit related |  | $ | 15,577 |  |  | $ | 14,171 |
Insurance related |  |  | 12,928 |  |  |  | 11,831 |
Environmental |  |  | 7,886 |  |  |  | 7,235 |
Other |  |  | 12,588 |  |  |  | 10,207 |
|  |  | 48,979 |  |  |  | 43,444 |
Deferred Tax Liabilities |  |  |  |  |  |  |  |
Tax in excess of book depreciation |  |  | 42,282 |  |  |  | 39,317 |
Purchased intangible assets |  |  | 26,666 |  |  |  | 24,619 |
Rental merchandise in service |  |  | 20,992 |  |  |  | 21,325 |
Other |  |  | - |  |  |  | 145 |
|  |  | 89,940 |  |  |  | 85,406 |
Net deferred tax liability |  | $ | 40,961 |  |  | $ | 41,962 |
The Company has evaluated its deferred tax assets and believes that they will be fully recovered. As a result, the Company has not established a valuation allowance. As of August 25, 2012 and August 27, 2011, there was $0.8 million and $1.7 million, respectively, in total unrecognized tax benefits, which if recognized, would favorably impact the Company's effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense which is consistent with the recognition of these items in prior reporting periods. As of August 25, 2012 and August 27, 2011, the Company had accrued a total of $0.1 million and $0.6 million in interest and penalties, respectively, in its long-term accrued liabilities. For the years ended August 25, 2012, and August 27, 2011 the Company recognized a benefit in its Consolidated Statement of Income related to interest and penalties totaling $0.5 million and $0.9 million, respectively. For the year ended August 28, 2010, the Company recognized expense in its Consolidated Statements of Income related to interest and penalties totaling $0.3 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
Balance at August 28, 2010 |  | $ | 3,556 |
Additions based on tax positions related to the current year |  |  | 253 |
Statute expirations |  |  | (1,256 | )
Other adjustments |  |  | (233 | )
Balance at August 27, 2011 |  | $ | 2,320 |
Additions based on tax positions related to the current year |  |  | 137 |
Statute expirations |  |  | (1,406 | )
Balance at August 25, 2012 |  | $ | 1,051 |
The Company has a significant portion of its operations in the United States and Canada. It is required to file federal income tax returns as well as state income tax returns in a majority of the U.S. states and also in the Canadian provinces of Alberta, British Columbia, Ontario, Saskatchewan and Quebec. At times, the Company is subject to audits in these jurisdictions, which typically are complex and can require several years to resolve. The final resolution of any such tax audit could result in either a reduction in the Company's accruals or an increase in its income tax provision, both of which could have a material impact on the consolidated results of operations in any given period. All U.S. and Canadian federal income tax examinations have substantially concluded through fiscal years 2008 and 2005, respectively, and we are currently under audit for U.S. federal income taxes for 2010 and 2011. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2007. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months. The Company has undistributed earnings of its international subsidiaries that it considers indefinitely reinvested and therefore has not provided for U.S. income taxes that could result from any future distribution of such earnings to the U.S. parent. If these earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of its international subsidiaries were sold or transferred, the Company would likely be subject to additional U.S. income taxes, net of the impact of any available foreign tax credits. It is not practicable to estimate the amount of unrecognized deferred U.S. taxes on these undistributed earnings. On December 23, 2011, the U.S. Department of the Treasury and the Internal Revenue Service issued temporary regulations (Regulations Section 2011-14) that provide guidance on amounts paid to improve tangible property, and acquire or produce tangible property, as well as guidance regarding the disposition of property and the expensing of supplies and materials. The final regulations are effective for the Company's fiscal year ending August 31, 2013. The Company continues to review these regulations for their impact on its consolidated financial statements.

X
- 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 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: 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=6907707&loc=d3e32559-109319 Reference 6: 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=6907707&loc=d3e32639-109319 Reference 7: 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=6907707&loc=d3e32718-109319 Reference 8: 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=6881521&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration