XML 47 R25.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Income Taxes | 12 Months Ended
--- | ---
Aug. 27, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense consisted of the following:
| 2022 |  | 2021 |  | 2020
Current |  |  |  |  |
Federal | $ | 105,863 |  |  | $ | 71,579 |  |  | $ | 14,318 |
State | 24,868 |  |  | 16,179 |  |  | 2,806 |
Total | 130,731 |  |  | 87,758 |  |  | 17,124 |
Deferred |  |  |  |  |
Federal | (5,553) |  |  | 737 |  |  | (790) |
State | (1,092) |  |  | (2,916) |  |  | (500) |
Total | (6,645) |  |  | (2,179) |  |  | (1,290) |
Provision for income taxes | $ | 124,086 |  |  | $ | 85,579 |  |  | $ | 15,834 |
A reconciliation of the U.S. statutory income tax rate to our effective income tax rate is as follows:
| 2022 |  | 2021 |  | 2020
U.S. federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit | 3.5 | % |  | 3.3 | % |  | 1.9 | %
Income tax credits | (0.5) | % |  | (0.6) | % |  | (2.5) | %
Nondeductible compensation | 0.9 | % |  | 0.5 | % |  | 0.9 | %
Tax-free and dividend income | (0.1) | % |  | (0.1) | % |  | (0.6) | %
Uncertain tax position settlements and adjustments | (0.1) | % |  | (0.1) | % |  | 0.1 | %
Other items | (0.6) | % |  | (0.7) | % |  | (0.3) | %
Effective tax provision rate | 24.1 | % |  | 23.3 | % |  | 20.5 | %
Our effective tax rate increased to 24.1% in Fiscal 2022 compared to 23.3% in Fiscal 2021 primarily due to consistent tax credits year-over-year over increased income in the current year and a net unfavorable expense in the current year related to nondeductible compensation. On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States. Among other provisions, the IRA includes a 15% corporate minimum tax rate applied to certain large corporations and a 1% excise tax on corporate stock repurchases made after December 31, 2022. We do not expect the IRA to have a material impact on our consolidated financial statements. The tax effects of temporary differences that give rise to deferred income taxes were as follows:
| August 27, 2022 |  | August 28, 2021
Warranty reserves | $ | 30,690 |  |  | $ | 22,450 |
Deferred compensation | 2,978 |  |  | 5,224 |
Self-insurance reserve | 4,884 |  |  | 4,336 |
Stock-based compensation | 5,534 |  |  | 4,607 |
Leases | 12,868 |  |  | 8,422 |
Other(1) | 9,108 |  |  | 7,170 |
Total deferred tax assets | 66,062 |  |  | 52,209 |
Convertible notes | 1,993 |  |  | 2,608 |
Intangibles | 39,493 |  |  | 39,940 |
Depreciation | 19,036 |  |  | 15,161 |
Leases | 11,648 |  |  | 7,929 |
Total deferred tax liabilities | 72,170 |  |  | 65,638 |
Total deferred income tax liabilities, net | $ | 6,108 |  |  | $ | 13,429 |
(1) Other includes $113 and $400 related to state net operating losses as of August 27, 2022 and August 28, 2021, respectively. These net operating losses are subject to various expiration periods from 5 years to no expiration. We have evaluated all the positive and negative evidence and consider it more likely than not that these carryforwards can be realized before expiration. Changes in the unrecognized tax benefits are as follows:
| 2022 |  | 2021 |  | 2020
Balance at beginning of year | $ | 5,537 |  |  | $ | 5,830 |  |  | $ | 2,822 |
Gross increases-tax positions in a prior year | — |  |  | — |  |  | 2,486 |
Gross decreases-tax positions in a prior year | (1,156) |  |  | (872) |  |  | — |
Gross increases-current year tax positions | 610 |  |  | 579 |  |  | 522 |
Balance at end of year | 4,991 |  |  | 5,537 |  |  | 5,830 |
Accrued interest and penalties | 753 |  |  | 946 |  |  | 681 |
Total unrecognized tax benefits | $ | 5,744 |  |  | $ | 6,483 |  |  | $ | 6,511 |
The amount of unrecognized tax benefits is not expected to change materially within the next 12 months. If the remaining uncertain tax positions are ultimately resolved favorably, $5.3 million of unrecognized tax benefits would have a favorable impact on our effective tax rate. It is our policy to recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense. We file a U.S. Federal tax return, as well as returns in various international and state jurisdictions. Although certain years are no longer subject to examination by the Internal Revenue Service ("IRS") and various state taxing authorities, net operating loss carryforwards generated in those years may still be adjusted upon examination by the IRS or state taxing authorities. As of August 27, 2022, our federal returns from Fiscal 2019 to present are subject to review by the IRS. With limited exception, state returns from Fiscal 2018 to present continue to be subject to review by state taxing jurisdictions. Several years may lapse before an uncertain tax position is audited and finally resolved and it is difficult to predict the outcome of such audits. We believe we have adequately reserved for our exposure to potential additional payments for uncertain tax positions in our liability for unrecognized tax benefits.

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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration