Income Taxes

6 Months Ended

Jul. 15, 2023

Income Tax Disclosure [Abstract]

Income Taxes

19. INCOME TAXES

The company’s effective tax rate for the twelve weeks ended July 15, 2023 was 24.4% compared to 23.7% for the twelve weeks ended July 16, 2022. The increase in the rate was primarily due to larger net favorable discrete items in the prior year quarter. During the twelve weeks ended July 15, 2023, the primary differences in the effective rate and the statutory rate were state income taxes.

The company's effective tax rate for the twenty-eight weeks ended July 15, 2023 was 22.9% compared to 22.8% for the twenty-eight weeks ended July 16, 2022. The increase in the rate was primarily due to year-over-year differences in state income taxes recorded discretely. During the twenty-eight weeks ended July 15, 2023 and July 16, 2022, the primary differences in the effective rate and the statutory rate were state income taxes and windfall tax benefits on stock-based compensation.

During the twenty-eight weeks ended July 15, 2023, 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 15, 2023, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months.