XML 61 R14.htm IDEA: XBRL DOCUMENT
v3.3.0.814

INCOME TAXES | 12 Months Ended
--- | ---
Jul. 25, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of the provision for income taxes are:
| 2015 |  | 2014 |  | 2013
Federal: |  |  |  |  |
Current | $ | 2,424 |  |  | $ | 10,808 |  |  | $ | 17,215 |
Deferred | 13,954 |  |  | (6,938 | ) |  | (3,021 | )
State: |  |  |  |  |  |  |  |
Current | (6,490 | ) |  | 21,043 |  |  | 5,139 |
Deferred | 887 |  |  | (1,110 | ) |  | (478 | )
| $ | 10,775 |  |  | $ | 23,803 |  |  | $ | 18,855 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:
| July 25, 2015 |  | July 26, 2014
Deferred tax assets: |  |  |  |
Leasing activities | $ | 7,882 |  |  | $ | 7,814 |
Federal benefit of uncertain tax positions | 230 |  |  | 14,816 |
Compensation related costs | 3,696 |  |  | 1,548 |
Pension costs | 13,333 |  |  | 11,225 |
Other | 734 |  |  | 1,908 |
Total deferred tax assets | 25,875 |  |  | 37,311 |
Deferred tax liabilities: |  |  |  |  |
Tax over book depreciation | 16,559 |  |  | 16,153 |
Patronage dividend receivable | 5,193 |  |  | 5,223 |
Investment in partnerships | 1,418 |  |  | 1,423 |
Other | 172 |  |  | 170 |
Total deferred tax liabilities | 23,342 |  |  | 22,969 |
Net deferred tax asset | $ | 2,533 |  |  | $ | 14,342 |
Deferred income tax assets (liabilities) are included in the following captions on the consolidated balance sheets at July 25, 2015 and July 26, 2014:
| 2015 |  | 2014
Deferred tax assets | $ | — |  |  | $ | 12,077 |
Other assets | 4,546 |  |  | 3,037 |
Accounts payable and accrued expenses | (2,013 | ) |  | (772 | )
A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In management’s opinion, in view of the Company’s previous, current and projected taxable income and reversal of deferred tax liabilities, such tax assets will more likely than not be fully realized. Accordingly, no valuation allowance was deemed to be required at July 25, 2015 and July 26, 2014. The effective income tax rate differs from the statutory federal income tax rate as follows:
| 2015 |  | 2014 |  | 2013
Statutory federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal tax benefit | 6.1 | % |  | 6.4 | % |  | 5.2 | %
Unrecognized tax benefits, interest and penalties on prior year tax positions | (17.6 | )% |  | 34.9 | % |  | — | %
Current year interest and penalties on unrecognized tax benefits | 2.0 | % |  | 5.4 | % |  | 1.6 | %
Other | 0.5 | % |  | 0.8 | % |  | 0.4 | %
Effective income tax rate | 26.0 | % |  | 82.5 | % |  | 42.2 | %
In prior years, the state of New Jersey issued two separate tax assessments related to nexus beginning in fiscal 2000 and the deductibility of certain payments between subsidiaries beginning in fiscal 2002. Village contested both of these assessments through the state’s conference and appeals process and was subsequently denied. The Company then filed two complaints in Tax Court against the New Jersey Division of Taxation (the "Division") contesting these assessments and a trial limited to the nexus dispute was conducted in June 2013. On October 23, 2013, the Tax Court issued their opinion on the matter in favor of the Division. As a result, the Company recorded a $10,052 charge, net of federal benefit, to income tax expense in the fiscal quarter ended October 26, 2013, to increase unrecognized tax benefits and related interest and penalties for tax positions taken in prior years. This charge increased our fiscal 2014 beginning of year accrued tax liability to reflect the estimated total tax, interest and penalties due if the Company was unable to overturn the Court’s decision upon appeal. On February 27, 2015, the Company reached an agreement with the Division whereby the Company paid $33,000 in March 2015 to settle the disputes with the Division for fiscal years 2000 through 2014. Net of federal benefit, the total cash outflow as a result of the settlement is expected to be $21,000. Under the terms of the agreement, the Company withdrew its appeal of the Tax Court opinion on the nexus dispute. In addition, the case pending on the deductibility of certain payments between subsidiaries has been dismissed and the Division has withdrawn the related assessments. The Company recorded an income tax benefit of $7,293, net of federal taxes, in the fiscal quarter ending April 25, 2015 to reverse remaining unrecognized tax benefits and related interest and penalties in excess of the settlement. Under the terms of the agreement with the Division, the Company remains open to examination for all tax years related to the settlement. The Company is open to examination by the remaining relevant tax authorities with varying statutes of limitations, generally ranging from three to four years. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
| 2015 |  | 2014
Balance at beginning of year | $ | 28,993 |  |  | $ | 17,640 |
Reclassification to offset net operating loss carryforward (1) | (1,147 | ) |  | — |
Additions based on tax positions related to prior periods | — |  |  | 7,589 |
Additions based on tax positions related to the current year | 76 |  |  | 3,764 |
Reductions based on tax positions related to prior periods | (546 | ) |  | — |
Cash paid on settlements | (26,862 | ) |  | — |
Balance at end of year | $ | 514 |  |  | $ | 28,993 |
(1) In accordance with Accounting Standards Update 2013-11, unrecognized tax benefits of $1,147 were reclassified from income taxes payable to offset related net operating loss carryforward deferred tax assets at the beginning of fiscal 2015. Unrecognized tax benefits at July 25, 2015 and July 26, 2014 include tax positions of $334 and $18,845 (net of federal benefit), respectively, that would reduce the Company’s effective income tax rate, if recognized in future periods. The Company recognizes interest and penalties on income taxes in income tax expense. The Company recognized a benefit of $9,811 ($6,396 net of federal and state taxes) in fiscal 2015 and expense of $10,287 and $1,211, related to interest and penalties on income taxes in fiscal 2014 and 2013, respectively. The amount of accrued interest and penalties included in the consolidated balance sheet was $158 and $16,107 at July 25, 2015 and July 26, 2014, respectively.

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/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=26873400&loc=d3e23780-122690 Reference 2: 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 3: 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 4: 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 5: 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 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration