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INCOME TAXES | 12 Months Ended
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Jul. 25, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of the provision for income taxes are:
| 2020 |  | 2019 |  |
Federal: |  |  |  |  |
Current | $ | (8,023) |  |  | $ | 7,669 |  |  |
Deferred | 10,846 |  |  | (1,149) |  |  |
State: |  |  |  |  |
Current | 3,627 |  |  | 4,198 |  |  |
Deferred | 344 |  |  | (734) |  |  |
| $ | 6,794 |  |  | $ | 9,984 |  |  |
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, 2020 |  | July 27, 2019
Deferred tax assets: |  |  |
Lease liabilities | $ | 98,149 |  |  | $ | 11,118 |
Tax credit carryforward | 508 |  |  | — |
Compensation related costs | 2,945 |  |  | 4,750 |
Pension costs | 1,881 |  |  | 1,474 |
Other | 752 |  |  | 406 |
Total deferred tax assets | 104,235 |  |  | 17,748 |
Deferred tax liabilities: |  |  |
Tax over book depreciation | 23,626 |  |  | 13,481 |
Lease assets | 92,021 |  |  | 3,302 |
Patronage dividend receivable | 3,133 |  |  | 3,270 |
Investment in partnerships | 1,076 |  |  | 1,034 |
Other | 178 |  |  | 123 |
Total deferred tax liabilities | 120,034 |  |  | 21,210 |
Net deferred tax liability | $ | (15,799) |  |  | $ | (3,462) |
Deferred income tax assets (liabilities) are included in the following captions on the consolidated balance sheets at July 25, 2020 and July 27, 2019:
| 2020 |  | 2019
Other assets | 702 |  |  | 1,406 |
Other liabilities | (16,501) |  |  | (4,868) |
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, 2020 and July 27, 2019. The effective income tax rate differs from the statutory federal income tax rate as follows:
| 2020 |  | 2019 |  |
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  |
State income taxes, net of federal tax benefit | 9.9 | % |  | 9.8 | % |  |
Settlement of tax audits | — | % |  | (2.2) | % |  |
Federal net operating loss carryback | (7.9) | % |  | — | % |  |
Other | (1.6) | % |  | (0.5) | % |  |
Effective income tax rate | 21.4 | % |  | 28.1 | % |  |
Fiscal 2020 includes a $2,512 incremental benefit from a federal net operating loss carryback at a rate higher than the current statutory tax rate. In June 2019, the Company reached an agreement with the New Jersey Division of Taxation to settle an audit of fiscal years 2011 through 2015 for all applicable entities and fiscal years 2000 through 2014 related to a settlement agreement reached in February 2015 regarding nexus of certain subsidiaries. The Company recorded an income tax benefit of $777, net of federal taxes, in fiscal 2019 related to the settlement and to reverse remaining unrecognized tax benefits and related interest and penalties in excess of the settlement. The New Jersey Department of Treasury is currently auditing the fiscal 2016 through 2018 tax years for all applicable entities. 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:
| 2020 |  | 2019
Balance at beginning of year | $ | — |  |  | $ | 648 |
Reductions based on settlement of tax audits | — |  |  | (648) |
Balance at end of year | $ | — |  |  | $ | — |
The Company recognizes interest and penalties on income taxes in income tax expense. The Company recognized a benefit of $242 in fiscal 2019 related to interest and penalties on income taxes.

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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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