Income Taxes
Income tax expense (benefit) consisted of the following:
|
| | | | | | | | | | | | |
| | Fiscal year ended |
| | June 3,
2017 | | May 28,
2016 | | May 30,
2015 |
Current: | | | | | | |
Federal | | $ | (48,030 | ) | | $ | 132,250 |
| | $ | 70,900 |
|
State | | (6,670 | ) | | 17,560 |
| | 8,260 |
|
| | (54,700 | ) | | 149,810 |
| | 79,160 |
|
Deferred: | | |
| | |
| | |
|
Federal | | 13,076 |
| | 17,096 |
| | 4,503 |
|
State | | 1,757 |
| | 2,296 |
| | 605 |
|
| | 14,833 |
| | 19,392 |
| | 5,108 |
|
| | $ | (39,867 | ) | | $ | 169,202 |
| | $ | 84,268 |
|
Significant components of the Company’s deferred tax liabilities and assets were as follows:
|
| | | | | | | | |
| | June 3,
2017 | | May 28,
2016 |
Deferred tax liabilities: | | |
| | |
|
Property, plant and equipment | | $ | 68,830 |
| | $ | 60,998 |
|
Inventories | | 38,270 |
| | 39,068 |
|
Investment in affiliates | | 8,563 |
| | 1,438 |
|
Other comprehensive income | | 290 |
| | 223 |
|
Other | | 4,656 |
| | 4,343 |
|
Total deferred tax liabilities | | 120,609 |
| | 106,070 |
|
| | |
| | |
|
Deferred tax assets: | | |
| | |
|
Accrued expenses | | 4,308 |
| | 3,374 |
|
Other | | 6,019 |
| | 7,314 |
|
Total deferred tax assets | | 10,327 |
| | 10,688 |
|
Net deferred tax liabilities | | $ | 110,282 |
| | $ | 95,382 |
|
The differences between income tax expense (benefit) at the Company’s effective income tax rate and income tax expense at the statutory federal income tax rate were as follows:
|
| | | | | | | | | | | | |
| | Fiscal year end |
| | June 3,
2017 | | May 28,
2016 | | May 30,
2015 |
| | | | | | |
Statutory federal income tax (benefit) | | $ | (39,950 | ) | | $ | 169,835 |
| | $ | 85,933 |
|
State income tax (benefit) | | (3,193 | ) | | 12,906 |
| | 5,762 |
|
Domestic manufacturers deduction | | 4,095 |
| | (13,332 | ) | | (7,308 | ) |
Tax exempt interest income | | (206 | ) | | (233 | ) | | (184 | ) |
Other, net | | (613 | ) | | 26 |
| | 65 |
|
| | $ | (39,867 | ) | | $ | 169,202 |
| | $ | 84,268 |
|
We had no significant unrecognized tax benefits at June 3, 2017 or at May 28, 2016. Accordingly, we do not have any accrued interest or penalties related to uncertain tax positions. However, if interest or penalties were to be incurred related to uncertain tax positions, such amounts would be recognized in income tax expense.
We are under a limited scope audit by the IRS for the fiscal years 2013 through 2015. We are subject to income tax in many jurisdictions within the U.S., and certain jurisdictions are under audit by state and local tax authorities. The resolutions of these audits are not expected to be material to our consolidated financial statements. Tax periods for all years after fiscal year 2013 remain open to examination by the federal and state taxing jurisdictions to which we are subject.