Income Taxes

6 Months Ended

Jul. 16, 2022

Income Tax Disclosure [Abstract]

Income Taxes

17. INCOME TAXES

The company’s effective tax rate for the twelve weeks ended July 16, 2022 was 23.7% compared to 22.7% for the twelve weeks ended July 17, 2021. The increase in the rate was primarily due to larger favorable discrete items in the prior year quarter. During the twelve weeks ended July 16, 2022, the primary differences in the effective rate and the statutory rate were state income taxes including the recognition of discrete state credits

The company’s effective tax rate for the twenty-eight weeks ended July 16, 2022 was 22.8% compared to 23.7% for the twenty-eight weeks ended July 17, 2021. The decrease in the rate was primarily due to favorable windfalls on stock-based compensation recorded discretely in the current year. During the twenty-eight weeks ended July 16, 2022, the primary differences in the effective rate and the statutory rate were state income taxes including the recognition of discrete state credits and windfalls on stock-based compensation.

During the twenty-eight weeks ended July 16, 2022, the company’s activity with respect to its uncertain tax positions and related interest expense accrual was not significant to the Condensed Consolidated Financial Statements. As of July 16, 2022, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months.