Income Taxes

9 Months Ended

Oct. 07, 2023

Income Tax Disclosure [Abstract]

Income Taxes

19. INCOME TAXES

The company’s effective tax rate for the twelve weeks ended October 7, 2023 was 26.2% compared to 25.3% for the twelve weeks ended October 8, 2022. The increase in the rate was primarily due to larger net favorable discrete items applied to the loss in the current year quarter. During the twelve weeks ended October 7, 2023, the primary differences in the effective rate and the statutory rate were state income taxes and windfall benefits on stock-based compensation.

The company's effective tax rate for the forty weeks ended October 7, 2023 was 21.0% compared to 23.4% for the forty weeks ended October 8, 2022. The decrease in the rate was primarily due to year-over-year differences in the impact of the net favorable discrete items. During the forty weeks ended October 7, 2023, the primary differences in the effective rate and the statutory rate were state income taxes including the recognition of discrete tax credits and windfall tax benefits on stock-based compensation.

During the forty weeks ended October 7, 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 October 7, 2023, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months.