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Income Taxes
 6 Months Ended
Jul. 29, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

Note 14 – Income Taxes

Our effective tax rates are as follows:

 

 

 

Three Months
Ended

 

 

Six Months
Ended

 

 

Fiscal 2024

 

19.4%

 

 

21.5 %

 

 

Fiscal 2023

 

27.4%

 

 

21.7%

 

 

 

We determine our estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the fiscal quarter in which the change is determined. The tax effect of significant unusual items is reflected in the period in which they occur.

During the three months ended July 29, 2023, we recognized an income tax benefit of $390,000. The effective tax rate in this period was directly impacted by our jurisdictional mix of earnings, a $29,000 tax expense related to foreign return to provision differences and a $20,675 tax arising from windfall tax benefits related to our stock. During the three months ended July 30, 2022, we recognized an income tax expense of $220,000. The effective tax rate in this period was directly impacted by our jurisdictional mix of earnings and a $13,000 tax expense relating to a revaluation of deferred taxes.

During the six months ended July 29, 2023, we recognized an income tax benefit of $211,000. The effective tax rate in this period was directly impacted by our jurisdictional mix of earnings, a $77,000 tax benefit related to the expiration of the statute of limitations on a previously uncertain tax position, a $49,000 tax benefit arising from windfall tax benefits related to the Company’s stock, and a $29,000 tax expense related to foreign return to provision differences. During the six months ended July 30, 2022, we recognized an income tax expense of $280,000. The effective tax rate in this period was directly impacted by our jurisdictional mix of earnings, a $38,000 tax benefit related to the expiration of the statute of limitations on previously uncertain tax positions, a $21,000 tax benefit arising from windfall tax expense related to our stock, and a $13,000 tax expense relating to a revaluation of deferred taxes.