XML 25 R19.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Income Taxes
 6 Months Ended
Aug. 02, 2024
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 33.4% for the 13 weeks ended August 2, 2024, and a tax expense at an overall effective tax rate of (32.4)% for the 13 weeks ended July 28, 2023. The Company recorded a tax benefit at an overall rate of 26.4% for the 26 weeks ended August 2, 2024 and a tax expense at an overall rate of (17.5)% for the 26 weeks ended July 28, 2023. The overall effective tax rates for the 13 and 26 weeks ended August 2, 2024 vary from the U.S. federal statutory rate of 21% as a result of state taxes, non-deductible expenses, and the impact of stock-based compensation adjustments. The overall effective tax rate for the 13 and 26 weeks ended July 28, 2023 reflects a one-time tax expense related to the write-off of deferred tax benefits for stock-based compensation.