XML 33 R15.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Income Taxes | 12 Months Ended
--- | ---
Mar. 30, 2024
Income Taxes [Abstract] |
Income Taxes | Note 8 – Income Taxes
Provision for Income Taxes |  |  |  |  |  |  |  |  |
(thousands) |  |  | 2024 |  |  | 2023 |  |  | 2022
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,910 |  | $ | 11,174 |  | $ | 256
State |  |  | 368 |  |  | 2,703 |  |  | 1,442
Total current |  |  | 5,278 |  |  | 13,877 |  |  | 1,698
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 5,649 |  |  | 1,855 |  |  | 12,602
State |  |  | 3,382 |  |  | 2,387 |  |  | 1,417
Total deferred |  |  | 9,031 |  |  | 4,242 |  |  | 14,019
Total provision |  | $ | 14,309 |  | $ | 18,119 |  | $ | 15,717
Income Tax Rate Reconciliation |  | 2024 |  |  | 2023 |  |  | 2022 |
Expected U.S. federal income taxes at statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit |  | 5.7 |  |  | 4.9 |  |  | 3.0 |
Tax adjustments (a) |  | 0.0 |  |  | 5.3 |  |  | (4.0) |
Other |  | 0.9 |  |  | 0.5 |  |  | 0.3 |
Effective tax rate |  | 27.6 | % |  | 31.7 | % |  | 20.3 | %
(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. 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 30, 2024 |  |  | March 25, 2023
Deferred tax assets: |  |  |  |  |  |
Lease liabilities |  | $ | 155,158 |  | $ | 174,055
Insurance Accrual |  |  | 11,304 |  |  | 10,288
Other |  |  | 15,060 |  |  | 15,670
Total gross deferred tax assets |  |  | 181,522 |  |  | 200,013
Valuation allowance |  |  | (162) |  |  | —
Total deferred tax assets |  |  | 181,360 |  |  | 200,013
Deferred tax liabilities: |  |  |  |  |  |
Leased assets |  |  | (120,479) |  |  | (136,057)
Goodwill |  |  | (79,895) |  |  | (70,145)
Property and equipment |  |  | (16,099) |  |  | (20,631)
Other |  |  | (1,849) |  |  | (878)
Total deferred tax liabilities |  |  | (218,322) |  |  | (227,711)
Total net deferred tax liability |  | $ | (36,962) |  | $ | (27,698)
We have $6.1 million of state net operating loss carryforwards available as of March 30, 2024. The state net operating loss carryforwards expire in varying amounts through 20 44. 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 30, 2024, we concluded, based on the weight of all available positive and negative evidence, that most of our deferred tax assets are more likely than not to be realized.
Changes in Liability for Unrecognized Tax Benefits |  |  |  |  |  |  |  |  |
(thousands) |  |  | 2024 |  |  | 2023 |  |  | 2022
Balance at beginning of period |  | $ | 3,709 |  | $ | 5,006 |  | $ | 5,035
Additions based on tax positions related to the current year |  |  | — |  |  | 97 |  |  | 1,271
Additions for tax positions of prior years |  |  | 67 |  |  | — |  |  | 49
Reductions for tax positions of prior years |  |  | — |  |  | (224) |  |  | —
Lapse in statutes of limitation |  |  | (1,391) |  |  | (1,170) |  |  | (1,349)
Balance at end of period |  | $ | 2,385 |  | $ | 3,709 |  | $ | 5,006
The total amount of unrecognized tax benefits was $2.4 million, $3.7 million, and $5.0 million at March 30, 2024, March 25, 2023, and March 26, 2022, 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. We did no t have any interest and penalties associated with uncertain tax benefits accrued as of March 30, 2024. We file U.S. federal income tax returns and income tax returns in certain state jurisdictions. Our U.S. federal income tax returns for 2021 – 2023 and various state tax years remain subject to income tax examinations by tax authorities.

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 -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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration