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Note 14 - Income Taxes
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

14.    Income Taxes

 

The Company recognized $3.2 million of income tax expense for the thirty-nine weeks ended September 30, 2023, as compared to $6.0 million for the comparable prior-year period.  The consolidated effective income tax rate for the current period was 21.9% as compared to 27.1% for the comparable prior-year period. The effective fiscal 2023 income tax rates as of September 30, 2023, were approximately 21.5%, 26.1% and 13.3% in the United States, Canada and Europe, respectively. The relative income or loss generated in each jurisdiction can materially impact the overall effective income tax rate of the Company, particularly the ratio of Canadian and European pretax income versus U.S. pretax income.  The comparable prior-year period estimated income tax rates were 27.5%, 25.1% and 15.7% in the United States, Canada and Europe, respectively. The primary reason for the decrease in the consolidated effective rate in the current period was due to a permanent tax difference associated with the tax deduction for equity grants in the United States that vested during the thirteen weeks ended September 30, 2023.

 

Differences between the effective tax rate and the applicable U.S. federal statutory rate may arise, primarily from the effect of state and local income taxes, share-based compensation, and potential tax credits available to the Company. The actual 2023 effective tax rate may vary from the estimate depending on the actual operating income earned in various jurisdictions, the potential availability of tax credits, and the exercise of stock options and vesting of share-based awards.