Income Taxes

9 Months Ended

Oct. 05, 2024

Income Tax Disclosure [Abstract]

Income Taxes

19. INCOME TAXES

The company’s effective tax rate for the twelve weeks ended October 5, 2024 was 24.0% compared to 26.2% for the twelve weeks ended October 7, 2023. The increased rate in the prior year quarter was due to a tax benefit associated with a pre-tax loss, coupled with other net discrete tax benefits, whereas the current year quarter rate resulted from tax expense associated with a pre-tax income, coupled with other net discrete tax benefits. During the twelve weeks ended October 5, 2024 and October 7, 2023, the primary differences in the effective rate and the statutory rate were state income taxes.

The company’s effective tax rate for the forty weeks ended October 5, 2024 was 24.6% compared to 21.0% for the forty weeks ended October 7, 2023. The increase in the rate was primarily due to year-over-year differences in state income taxes and stock-based compensation recorded discretely. During the forty weeks ended October 5, 2024 and October 7, 2023, the primary differences in the effective rate and the statutory rate were state income taxes.

During the forty weeks ended October 5, 2024, 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 5, 2024, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months.