v3.26.3
Income Taxes
 12 Months Ended
Aug. 29, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense consisted of the following:
(in millions)202620252024
Current
Federal$— $(0.8)$10.4 
State3.6 2.3 6.9 
Total3.6 1.5 17.3 
Deferred
Federal5.5 5.3 7.1 
State0.8 (2.4)1.0 
Total6.3 2.9 8.1 
Income tax provision$9.9 $4.4 $25.4 

As of August 29, 2026 and August 30, 2025, $4.0 million and $7.3 million of U.S. federal income taxes receivable was included in prepaid expenses and other current assets on the Consolidated Balance Sheets, respectively.
The following table provides a reconciliation of the U.S. statutory income tax rate to our effective income tax rate:
202620252024
U.S. federal statutory rate$9.3 21.0 %$6.3 21.0 %$8.0 21.0 %
State taxes, net of federal benefit (1)(2)(3)
3.9 8.8 %(0.8)(2.5)%6.1 15.9 %
Effect of cross border tax laws
Foreign-derived intangible income— — %— — %(0.4)(0.9)%
Income tax credits
R&D tax credit(2.7)(6.3)%(1.9)(6.4)%(3.3)(8.8)%
FMLA tax credit(0.3)(0.7)%(0.4)(1.3)%(0.3)(0.7)%
Other income tax credits— (0.1)%— (0.2)%(0.1)(0.4)%
Changes in valuation allowance(0.5)(1.1)%— — %0.6 1.6 %
Nontaxable or nondeductible items
Nondeductible executive compensation2.1 4.8 %2.3 7.6 %2.5 6.6 %
Nontaxable life insurance income(0.4)(1.0)%(0.4)(1.2)%(0.4)(1.1)%
Nondeductible debt inducement— — %— — %7.5 19.4 %
Nondeductible goodwill impairment— — %— — %6.4 16.6 %
Changes in unrecognized tax benefits(1.4)(3.1)%(1.3)(4.4)%(1.5)(3.9)%
Other items(0.1)— %0.6 1.9 %0.3 0.9 %
Effective tax provision rate$9.9 22.3 %$4.4 14.5 %$25.4 66.2 %
(1) State taxes in California, Florida, Tennessee, Alabama, Indiana, and Iowa made up the majority (greater than 50%) of the tax effect in this category in Fiscal 2026.
(2) State taxes in California, Iowa, and Indiana made up the majority (greater than 50%) of the tax effect in this category in Fiscal 2025.
(3) State taxes in Indiana, Florida, Texas, California, Iowa, and Tennessee made up the majority (greater than 50%) of the tax effect in this category in Fiscal 2024.


Our effective tax rate increased to 22.3% in Fiscal 2026 compared to 14.5% in Fiscal 2025. The increase was primarily driven by current year state tax adjustments, increased valuation allowances, and a reduced benefit from favorable items due to higher pre-tax income.
The tax effects of temporary differences that give rise to deferred income taxes were as follows:
(in millions)August 29, 2026August 30, 2025
Warranty reserves$17.4 $17.9 
Deferred compensation1.6 1.7 
Self-insurance reserve2.6 3.6 
Stock-based compensation4.9 4.2 
Leases12.4 13.4 
Convertible notes11.1 13.7 
Capitalized research and development costs22.9 29.6 
Credit carryforwards8.3 4.5 
NOL carryforwards15.4 3.4 
Interest limitation10.1 12.5 
Other7.7 7.7 
Valuation allowance(1.9)(1.8)
Total deferred tax assets112.5 110.4 
Intangibles85.2 73.3 
Depreciation28.3 30.9 
Leases11.3 12.1 
Total deferred tax liabilities124.8 116.3 
Total deferred income tax liabilities, net$12.3 $5.9 

Changes in the unrecognized tax benefits are as follows:
(in millions)202620252024
Balance at beginning of year$4.4 $4.9 $5.5 
Gross decreases-tax positions in a prior year(1.7)(1.3)(1.7)
Gross increases-tax positions in a prior year0.2 — 0.2 
Gross increases-current year tax positions1.0 0.8 0.9 
Balance at end of year3.9 4.4 4.9 
Accrued interest and penalties0.2 0.4 0.5 
Total unrecognized tax benefits$4.1 $4.8 $5.4 

If the remaining uncertain tax positions are ultimately resolved favorably, $3.9 million of unrecognized tax benefits would have a favorable impact on our effective tax rate. It is our policy to recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense.

We file a U.S. Federal tax return, as well as returns in various international and state jurisdictions. Although certain years are no longer subject to examination by the Internal Revenue Service ("IRS") and various state taxing authorities, net operating loss carryforwards generated in those years may still be adjusted upon examination by the IRS or state taxing authorities. As of August 29, 2026, our federal returns from Fiscal 2023 to present are subject to review by the IRS. With limited exception, state returns from Fiscal 2022 to present continue to be subject to review by state taxing jurisdictions. Several years may lapse before an uncertain tax position is audited and finally resolved and it is difficult to predict the outcome of such audits. We believe we have adequately reserved for our exposure to potential additional payments for uncertain tax positions in our liability for unrecognized tax benefits.

Income taxes paid, net, consisted of the following:

202620252024
Federal$— $— $8.2 
State 0.9 2.5 6.2 
Total$0.9 $2.5 $14.4 
Income tax paid, net of refunds, exceeded 5% of total income taxes paid, net of refunds, in the following jurisdictions:

(in millions)202620252024
Alabama$0.1 $0.3 *
California0.1 0.1 *
Florida0.3 0.3 1.0 
Georgia0.1 0.2 *
Idaho(0.1)**
Indiana(0.1)**
Iowa(0.2)(0.2)*
Louisiana0.1 **
Maryland0.1 **
Massachusetts(0.5)**
Missouri0.1 0.2 *
New York(0.1)**
North Carolina0.2 0.1 *
Pennsylvania0.1 0.2 *
South Carolina0.1 0.2 *
Tennessee0.4 0.2 *
Texas0.3 0.2 0.7 
Wisconsin(0.1)**
*Jurisdiction below the threshold for the period presented.

Recent Tax Legislation

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which included various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in Fiscal 2025 and others implemented through Fiscal 2027.

During Fiscal 2026, none of the relevant provisions of the OBBBA had a significant impact on our consolidated financial statements. The OBBBA is not expected to have a material impact on our consolidated financial statements in future periods.