| Income Taxes |
The components of our income tax provision (benefit) were (in thousands):
June 1, 2024 Current: Federal $ 29,749 $ 312,000 $ 83,721 State (4,220) 61,340 9,640 25,529 373,340 93,361 Deferred: Federal 59,739 12,703 (7,371) State 7,624 (1,133) (2,301) 67,363 11,570 (9,672) Total income tax provision $ 92,892 $ 384,910 $ 83,689
Deferred Taxes The tax effects of significant temporary differences creating deferred tax assets and liabilities were (in thousands):
$ 3,985 $ 3,620 State operating loss carryforwards 2 6 Other comprehensive income 913 770 3,334 234 Other 12,969 13,239 Total deferred tax assets 21,203 17,869 Deferred tax liabilities: Property, plant and equipment $ (180,377) $ (128,789) Inventories (49,478) (35,041) (1,618) (2,205) (3,358) (240) Other (8,244) (6,245) Total deferred tax liabilities (243,075) (172,520) Net deferred tax liabilities $ (221,872) $ (154,651)
The company had income tax net operating loss carryforwards related to its state operations of approximately $ 96 May 30, 2026. The loss carryforwards are not subject to expiration. On July 4, 2025, H.R. 1, informally known as the One Big Beautiful Bill Act ("The Tax Act"), was enacted. The Tax Act extends and makes permanent several key provisions of the Tax Cuts and Jobs Act of 2017 previously set to expire as of December 31, 2025. The impacts of the Tax Act are reflected in our results for the year ended May 30, 2026, and had no material impact on our income tax expense or effective tax rate. Reconciliation of the U.S. Federal Statutory Rate to the Effective Rate The Company has elected to prospectively adopt the guidance in ASU 2023 -09, Income Taxes (Topic 740): Improvements to . The following table is a reconciliation of the U.S. federal statutory tax rate to the total effective tax rates for the year ended May 30, 2026 in accordance with the guidance in ASU 2023-09 (in thousands):
Fiscal year end May 30, 2026 Amount Percent U.S. federal statutory tax rate $ 86,226 21.0 % State and local income taxes* 4,290 1.1 (251) (0.1) Nontaxable or nondeductible items 2,627 0.7 Provision for income taxes $ 92,892 22.7 % *State taxes in Georgia, Florida, Mississippi, and Texas made up the majority (greater than 50%) of the tax effect in this category. The following table is a reconciliation of the federal statutory tax rate to the total effective tax rate for the years ended May 31, 2025 and June 1, 2024 in accordance with guidance prior to the adoption of ASU 2023-09 (in thousands):
June 1, 2024 Statutory federal income tax $ 337,042 $ 75,931 47,169 5,798 699 1,960 $ 384,910 $ 83,689
The following table is a summary of income taxes paid (net of refunds) by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended May 30, 2026 (in thousands):
Federal $ 89,583 State 30,344 $ 119,927 We paid income taxes, net of refunds, of $ 119.9 426.2 35.1 million during fiscal years 2026, 2025, and As of May 30, 2026, we had no significant unrecognized tax benefits. We accrued and paid no interest or penalties during 2026 or 2025 related to uncertain tax positions. We are subject to income tax in many jurisdictions within the U.S. We are currently not under audit by the Internal Revenue Service or by any state and local tax authorities. Tax periods for all years beginning with fiscal year 2021 remain open to examination by federal and state taxing jurisdictions to which we are subject. |