v3.23.2
Income Taxes (Tables)
12 Months Ended
Jul. 01, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) for fiscal 2023, fiscal 2022 and fiscal 2021 consisted of the following:

 

(In millions)

 

For the fiscal
year ended
July 1, 2023

 

 

For the fiscal
year ended
July 2, 2022

 

 

For the fiscal
year ended
July 3, 2021

 

Current income tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

95.3

 

 

$

38.2

 

 

$

(10.6

)

State

 

 

28.8

 

 

 

10.6

 

 

 

3.4

 

Foreign

 

 

2.7

 

 

 

1.0

 

 

 

-

 

Total current income tax expense (benefit)

 

 

126.8

 

 

 

49.8

 

 

 

(7.2

)

Deferred income tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

 

17.8

 

 

 

1.0

 

 

 

19.9

 

State

 

 

2.3

 

 

 

4.4

 

 

 

1.3

 

Foreign

 

 

(0.1

)

 

 

(0.6

)

 

 

-

 

Total deferred income tax expense

 

 

20.0

 

 

 

4.8

 

 

 

21.2

 

Total income tax expense (benefit), net

 

$

146.8

 

 

$

54.6

 

 

$

14.0

 

Schedule of Effective Income Tax Rate from Continuing Operation Actual income tax expense (benefit) differs from the amount computed by applying the applicable U.S. federal statutory corporate income tax rate of 21% in fiscal 2023, fiscal 2022, and fiscal 2021 to earnings before income taxes as follows:

(In millions)

 

For the fiscal
year ended
July 1, 2023

 

 

For the fiscal
year ended
July 2, 2022

 

 

For the fiscal
year ended
July 3, 2021

 

Federal income tax expense computed at statutory rate

 

$

114.2

 

 

$

35.1

 

 

$

11.5

 

Increase (decrease) in income taxes resulting from:

 

 

 

 

 

 

 

 

 

State income taxes, net of federal income tax benefit

 

 

25.3

 

 

 

13.1

 

 

 

4.1

 

Foreign taxes

 

 

2.5

 

 

 

—

 

 

 

—

 

Non-deductible expenses and other

 

 

6.9

 

 

 

9.6

 

 

 

2.1

 

 Net Operating Loss Carryback - Rate Differential

 

 

—

 

 

 

—

 

 

 

(2.1

)

Stock-based compensation

 

 

(1.2

)

 

 

(1.9

)

 

 

(1.5

)

Other

 

 

(0.9

)

 

 

(1.3

)

 

 

(0.1

)

Total income tax expense, net

 

$

146.8

 

 

$

54.6

 

 

$

14.0

 

Schedule of Significant Deferred Tax Assets and Liabilities Temporary differences and carry-forwards that created significant deferred tax assets and liabilities were as follows:

 

(In millions)

 

As of
July 1, 2023

 

 

As of
July 2, 2022

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for doubtful accounts

 

$

9.3

 

 

$

8.7

 

Inventories

 

 

4.1

 

 

 

7.4

 

Accrued employee benefits

 

 

2.0

 

 

 

26.9

 

Insurance reserves

 

 

4.5

 

 

 

3.6

 

Net operating loss carry-forwards

 

 

8.5

 

 

 

10.3

 

Stock-based compensation

 

 

8.7

 

 

 

10.1

 

Lease obligations

 

 

132.9

 

 

 

137.2

 

Tax credit carry-forwards

 

 

3.5

 

 

 

4.0

 

Other assets

 

 

7.1

 

 

 

6.7

 

Total gross deferred tax assets

 

 

180.6

 

 

 

214.9

 

Less: Valuation allowance

 

 

(2.1

)

 

 

(2.6

)

Total net deferred tax assets

 

 

178.5

 

 

 

212.3

 

Deferred tax liabilities:

 

 

 

 

 

 

Property, plant, and equipment

 

 

310.7

 

 

 

307.8

 

 Right of use assets

 

 

131.4

 

 

 

140.5

 

Other comprehensive income

 

 

4.9

 

 

 

3.9

 

Basis difference in intangible assets

 

 

93.9

 

 

 

102.3

 

Inventories

 

 

82.6

 

 

 

81.3

 

Branch Taxes

 

 

1.0

 

 

 

0.7

 

Other Liabilities

 

 

0.2

 

 

 

0.1

 

Total deferred tax liabilities

 

 

624.7

 

 

 

636.6

 

Total net deferred income tax liability

 

$

446.2

 

 

$

424.3