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Income Taxes | 12 Months Ended
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Mar. 25, 2023
Income Taxes [Abstract] |
Income Taxes | Note 8 – Income Taxes
Provision for Income Taxes |  |  |  |  |  |  |  |  |
(thousands) |  |  | 2023 |  |  | 2022 |  |  | 2021
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 11,174 |  | $ | 256 |  | $ | (1,809)
State |  |  | 2,703 |  |  | 1,442 |  |  | 827
Total current |  |  | 13,877 |  |  | 1,698 |  |  | (982)
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 1,855 |  |  | 12,602 |  |  | 10,169
State |  |  | 2,387 |  |  | 1,417 |  |  | 685
Total deferred |  |  | 4,242 |  |  | 14,019 |  |  | 10,854
Total provision |  | $ | 18,119 |  | $ | 15,717 |  | $ | 9,872
Income Tax Rate Reconciliation |  | 2023 |  |  | 2022 |  |  | 2021 |
Expected U.S. federal income taxes at statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit |  | 4.9 |  |  | 3.0 |  |  | 2.9 |
Tax adjustments (a) |  | 5.3 |  |  | (4.0) |  |  | (1.1) |
Other |  | 0.5 |  |  | 0.3 |  |  | (0.5) |
Effective tax rate |  | 31.7 | % |  | 20.3 | % |  | 22.3 | %
(a)The 2023 adjustments reflect expense due to the sale of our wholesale tire locations and tire distribution assets as well as the revaluation of deferred tax balances due to changes in the mix of pre-tax income in various U.S. state jurisdictions because of the sale. The 2022 adjustments reflect benefit due to differences in statutory tax rates from a loss year to years in which such net operating loss may be carried back. As provided under the Coronavirus Aid, Relief and Economic Security Act, a taxpayer must carry net operating losses generated in certain tax years to the earliest tax year in the five-year carryback period. However, these net operating losses are not subject to the 80% of income limitation if they are exhausted during the five-year carryback. Under this provision, Monro has carried back a net operating loss generated in fiscal 2021 to carryback years within the five-year carryback period with a 35% U.S. federal statutory tax rate.
Net Deferred Tax Asset/(Liability) |  |  |  |  |  |
(thousands) |  |  | March 25, 2023 |  |  | March 26, 2022
Gross deferred tax assets: |  |  |  |  |  |
Lease liabilities |  | $ | 174,055 |  | $ | 187,559
Other |  |  | 25,958 |  |  | 26,382
Total gross deferred tax assets |  |  | 200,013 |  |  | 213,941
Gross deferred tax liabilities: |  |  |  |  |  |
Leased assets |  |  | (136,057) |  |  | (147,764)
Goodwill |  |  | (70,145) |  |  | (66,153)
Property and equipment |  |  | (20,631) |  |  | (22,251)
Other |  |  | (878) |  |  | (1,180)
Total deferred tax liabilities |  |  | (227,711) |  |  | (237,348)
Total net deferred tax liability |  | $ | (27,698) |  | $ | (23,407)
We have $8.0 million of state net operating loss carryforwards available as of March 25, 2023. The state net operating loss carryforwards expire in varying amounts through 20 43. We evaluate the realizability of our deferred tax assets on a quarterly basis and establish valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of March 25, 2023, we concluded, based on the weight of all available positive and negative evidence, that all our deferred tax assets are more likely than not to be realized.
Changes in Liability for Unrecognized Tax Benefits |  |  |  |  |  |  |  |  |
(thousands) |  |  | 2023 |  |  | 2022 |  |  | 2021
Balance at beginning of period |  | $ | 5,006 |  | $ | 5,035 |  | $ | 5,212
Additions based on tax positions related to the current year |  |  | 97 |  |  | 1,271 |  |  | 915
Additions for tax positions of prior years |  |  | — |  |  | 49 |  |  | —
Reductions for tax positions of prior years |  |  | (224) |  |  | — |  |  | —
Lapse in statutes of limitation |  |  | (1,170) |  |  | (1,349) |  |  | (1,092)
Balance at end of period |  | $ | 3,709 |  | $ | 5,006 |  | $ | 5,035
The total amount of unrecognized tax benefits was $3.7 million, $5.0 million, and $5.0 million at March 25, 2023, March 26, 2022, and March 27, 2021, respectively, the majority of which, if recognized, would affect the effective tax rate. In the normal course of business, Monro provides for uncertain tax positions and the related interest and penalties and adjusts its unrecognized tax benefits and accrued interest and penalties and, accordingly, we had approximately $0.1 million of interest and penalties associated with uncertain tax benefits accrued as of March 25, 2023 and March 26, 2022. We file U.S. federal income tax returns and income tax returns in certain state jurisdictions. Our U.S. federal income tax returns for 2020 – 2022 and various state tax years remain subject to income tax examinations by tax authorities.

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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 -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
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