v3.26.1
Income Taxes (Tables)
12 Months Ended
Jun. 27, 2026
Income Tax Disclosure [Abstract]  
Components of Earnings Before Income Taxes

The components of earnings before income taxes, by tax jurisdiction, are as follows:

 

 

For the Fiscal Year Ended

 

(In millions)

 

June 27, 2026

 

 

June 28, 2025

 

 

June 29, 2024

 

United States

 

$

479.0

 

 

$

461.6

 

 

$

579.6

 

Foreign

 

 

6.8

 

 

 

(2.8

)

 

 

17.2

 

Income before income tax expense

 

$

485.8

 

 

$

458.8

 

 

$

596.8

 

Schedule of Income Tax Expense

Income tax expense for fiscal 2026, fiscal 2025, and fiscal 2024 consisted of the following:

 

 

For the Fiscal Year Ended

 

(In millions)

 

June 27, 2026

 

 

June 28, 2025

 

 

June 29, 2024

 

Current income tax expense:

 

 

 

 

 

 

 

 

 

Federal

 

$

2.7

 

 

$

79.2

 

 

$

109.2

 

State

 

 

21.6

 

 

 

27.9

 

 

 

36.2

 

Foreign

 

 

10.2

 

 

 

11.7

 

 

 

4.8

 

Total current income tax expense

 

 

34.5

 

 

 

118.8

 

 

 

150.2

 

Deferred income tax expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

 

100.5

 

 

 

10.5

 

 

 

10.3

 

State

 

 

3.4

 

 

 

2.6

 

 

 

0.2

 

Foreign

 

 

(11.9

)

 

 

(13.3

)

 

 

0.2

 

Total deferred income tax expense (benefit)

 

 

92.0

 

 

 

(0.2

)

 

 

10.7

 

Total income tax expense, net

 

$

126.5

 

 

$

118.6

 

 

$

160.9

 

Schedule of Effective Income Tax Rate from Continuing Operation

A reconciliation of income taxes at the federal statutory corporate rate to the effective rate is as follows:

 

 

For the Fiscal Year Ended
June 27, 2026

 

(In millions)

 

Amount

 

 

Percent

 

US federal statutory income tax rate

 

$

102.0

 

 

 

21.0

%

State and local income taxes, net of federal income tax effect(1)

 

 

20.6

 

 

 

4.2

 

Foreign tax effects

 

 

3.4

 

 

 

0.7

 

Effect of cross-border tax laws

 

 

(0.2

)

 

 

 

Tax credits:

 

 

 

 

 

 

Foreign tax credit

 

 

(7.6

)

 

 

(1.6

)

Other

 

 

(3.8

)

 

 

(0.8

)

Changes in valuation allowance

 

 

6.3

 

 

 

1.3

 

Nontaxable or nondeductible items:

 

 

 

 

 

 

Stock-based compensation

 

 

(11.0

)

 

 

(2.3

)

Non-deductible compensation

 

 

9.4

 

 

 

1.9

 

Other

 

 

7.4

 

 

 

1.6

 

Changes in unrecognized tax benefits

 

 

 

 

 

 

Effective income tax rate

 

$

126.5

 

 

 

26.0

%

(1)
State taxes in California, Florida, Tennessee, Texas, and Oregon make up the majority of the tax effect in this category.

 

 

For the Fiscal Year Ended

 

(In millions)

 

June 28, 2025

 

 

June 29, 2024

 

Federal income tax expense computed at statutory rate

 

$

96.3

 

 

$

125.3

 

Increase (decrease) in income taxes resulting from:

 

 

 

 

 

 

State income taxes, net of federal income tax benefit

 

 

27.3

 

 

 

30.0

 

Non-deductible expenses and other

 

 

15.3

 

 

 

10.9

 

Valuation allowance

 

 

7.5

 

 

 

(0.6

)

Foreign taxes

 

 

4.3

 

 

 

5.2

 

Tax credits

 

 

(18.9

)

 

 

(5.8

)

Stock-based compensation

 

 

(13.7

)

 

 

(4.5

)

Other

 

 

0.5

 

 

 

0.4

 

Total income tax expense, net

 

$

118.6

 

 

$

160.9

 

 

Income Taxes Paid (Net of Refunds Received )

The Company’s income taxes paid (net of refunds received), are as follows:

(In millions)

 

For the Fiscal Year Ended
June 27, 2026

 

Federal

 

$

(23.2

)

US state and local:

 

 

 

California

 

 

2.6

 

Texas

 

 

1.6

 

Oregon

 

 

1.3

 

North Carolina

 

 

1.0

 

Minnesota

 

 

1.0

 

Michigan

 

 

0.9

 

New York

 

 

0.9

 

Illinois

 

 

0.9

 

New Jersey

 

 

0.8

 

South Carolina

 

 

0.7

 

Massachusetts

 

 

0.7

 

Kentucky

 

 

0.6

 

Tennessee

 

 

0.5

 

Other

 

 

3.8

 

Total US state and local

 

 

17.3

 

Foreign:

 

 

 

Puerto Rico

 

 

11.3

 

Canada

 

 

2.8

 

Other

 

 

0.3

 

Total foreign

 

 

14.4

 

Income taxes (net of refunds received)

 

$

8.5

 

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
June 27, 2026

 

 

As of
June 28, 2025

 

Deferred tax assets:

 

 

 

 

 

 

Lease obligations

 

$

170.2

 

 

$

151.5

 

Accrued employee benefits

 

 

25.0

 

 

 

26.9

 

Tax credit carry-forwards

 

 

17.4

 

 

 

9.8

 

Allowance for doubtful accounts

 

 

13.6

 

 

 

13.5

 

Other assets, including interest expense limitation

 

 

10.3

 

 

 

23.2

 

Insurance reserves

 

 

10.2

 

 

 

7.1

 

Stock-based compensation

 

 

7.1

 

 

 

7.5

 

Net operating loss carry-forwards

 

 

6.5

 

 

 

7.2

 

Other comprehensive income

 

 

1.1

 

 

 

0.9

 

Total gross deferred tax assets

 

 

261.4

 

 

 

247.6

 

Less: Valuation allowance

 

 

(19.0

)

 

 

(11.8

)

Total net deferred tax assets

 

 

242.4

 

 

 

235.8

 

Deferred tax liabilities:

 

 

 

 

 

 

Property, plant, and equipment

 

 

606.7

 

 

 

502.5

 

Basis difference in intangible assets

 

 

312.7

 

 

 

345.8

 

 Right of use assets

 

 

163.1

 

 

 

144.4

 

Inventories

 

 

104.3

 

 

 

101.9

 

Prepaid expenses

 

 

26.2

 

 

 

24.0

 

Other Liabilities

 

 

4.2

 

 

 

4.3

 

Total deferred tax liabilities

 

 

1,217.2

 

 

 

1,122.9

 

Total net deferred income tax liability

 

$

974.8

 

 

$

887.1