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Income Taxes
 6 Months Ended
Jul. 29, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 10. INCOME TAXES

 

Provision for Income Taxes

 

At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period.  

 

The Company recorded a tax benefit at an overall effective tax rate of 29.8% for the 13 weeks ended July 29, 2022 and a tax expense at an overall effective tax rate of 28.3% for the 13 weeks ended July 30, 2021. The Company recorded a tax benefit at an overall rate of 36.9% for the 26 weeks ended July 29, 2022 and tax expense at an overall effective tax rate of 26.4% for the 26 weeks ended July 30, 2021. The overall effective tax rate for the 26 weeks ended July 29, 2022 reflects a tax benefit as a result of stock-based compensation recorded in the first quarter.

 

On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law. Provisions of the IRA include a 15% corporate minimum tax and a 1% excise tax on stock buybacks amongst others. The Company is assessing the impacts, if any, the IRA will have on its financial statements.