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Income Taxes (Tables) | 12 Months Ended
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Aug. 31, 2024
Income Tax Disclosure [Abstract] |
Components of Provision / (Benefit) for Income Taxes | The provision for income taxes consists of the following (in thousands):
Year ended |  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 30,932 |  |  | $ | 7,269 |  |  | $ | 7,655 |
Foreign |  |  | 1,231 |  |  |  | 2,519 |  |  |  | 1,839 |
State |  |  | 6,007 |  |  |  | 2,695 |  |  |  | 3,701 |
Total current |  | $ | 38,170 |  |  | $ | 12,483 |  |  | $ | 13,195 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,027 |  |  | $ | 19,227 |  |  | $ | 13,883 |
Foreign |  |  | 1,269 |  |  |  | 568 |  |  |  | 180 |
State |  |  | 439 |  |  |  | 2,885 |  |  |  | 3,663 |
Total deferred |  | $ | 5,735 |  |  | $ | 22,680 |  |  | $ | 17,726 |
Total provision for income taxes |  | $ | 43,905 |  |  | $ | 35,163 |  |  | $ | 30,921 |
Reconciliation of Provision for Income Taxes | The following table reconciles the provision for income taxes using the statutory federal income tax rate to the actual provision for income taxes:
Year ended |  | 2024 |  |  | 2023 |  |  | 2022 |
Income taxes at the statutory federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes |  |  | 3.6 |  |  |  | 3.8 |  |  |  | 4.7 |
Adjustments to tax reserve |  |  | (0.5 | ) |  |  | 0.8 |  |  |  | (2.1 | )
Other |  |  | (0.9 | ) |  |  | (0.3 | ) |  |  | (0.6 | )
Effective income tax rate |  |  | 23.2 | % |  |  | 25.3 | % |  |  | 23.0 | %
Components of Deferred Income Taxes | The components of deferred income taxes included on the Consolidated Balance Sheets are as follows (in thousands):
|  | August 31, 2024 |  |  | August 26, 2023 |
Deferred tax assets: |  |  |  |  |  |
Payroll and benefit related |  | $ | 16,009 |  |  | $ | 15,284 |
Insurance related |  |  | 14,067 |  |  |  | 14,347 |
Environmental |  |  | 7,807 |  |  |  | 7,542 |
Accrued expenses |  |  | 8,169 |  |  |  | 7,847 |
Operating lease liabilities |  |  | 17,083 |  |  |  | 16,162 |
Research and development |  |  | 6,243 |  |  |  | 3,628 |
Other |  |  | 12,884 |  |  |  | 11,916 |
Total deferred tax assets |  | $ | 82,262 |  |  | $ | 76,726 |
Deferred tax liabilities: |  |  |  |  |  |
Payroll and benefit related |  | $ | 24,655 |  |  | $ | 22,230 |
Tax in excess of book depreciation |  |  | 59,113 |  |  |  | 53,597 |
Purchased intangible assets |  |  | 48,908 |  |  |  | 43,994 |
Rental merchandise in service |  |  | 59,692 |  |  |  | 62,562 |
Operating lease right-of-use assets |  |  | 16,575 |  |  |  | 15,600 |
Other |  |  | 320 |  |  |  | 488 |
Total deferred tax liabilities |  |  | 209,263 |  |  |  | 198,471 |
Net deferred tax liability |  | $ | 127,001 |  |  | $ | 121,745 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows (in thousands):
Balance at August 27, 2022 |  | $ | 6,417 |
Additions based on tax positions related to the current year |  |  | 1,042 |
Additions for tax positions of prior years |  |  | 840 |
Reduction for tax positions of prior years |  |  | (219 | )
Statute expirations |  |  | (329 | )
Balance at August 26, 2023 |  |  | 7,751 |
Additions based on tax positions related to the current year |  |  | 1,069 |
Additions for tax positions of prior years |  |  | 142 |
Reduction for tax positions of prior years |  |  | (4,257 | )
Statute expirations |  |  | (67 | )
Balance at August 31, 2024 |  | $ | 4,638 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
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