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INCOME TAXES	9 Months Ended
Nov. 01, 2020
INCOME TAXES
INCOME TAXES	NOTE 6 — INCOME TAXES For the nine months ended November 1, 2020 and November 3, 2019, the Company’s combined federal, state, and foreign effective tax rate for continuing operations was 25.8% and 25.1%, respectively. The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and the related tax rates in the jurisdictions where it operates, restructuring and other one-time charges, as well as discrete events, such as audit settlements. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act contains significant business tax provisions, including modifications to the rules limiting the deductibility of net operating losses (“NOLs”), expensing of qualified improvement property and business interest in Internal Revenue Code Sections 172(a) and 163(j), respectively. The effects of the new legislation were recognized upon enactment. The Company did not recognize any significant impact to income tax expense for the nine months ended November 1, 2020 related to the CARES Act. As of November 1, 2020 and February 2, 2020, the Company’s unrecognized tax benefits in accordance with the income taxes principles of GAAP (ASC 740, “Income Taxes”) was $17.1 million. The Company’s ending net accrual for interest and penalties related to unrecognized tax benefits as of November 1, 2020 and February 2, 2020 was zero. As of November 1, 2020 and February 2, 2020, the Company’s valuation allowance on its U.S. deferred tax assets was approximately $5.4 million, and $6.0 million, respectively. Each reporting period, the Company assesses available positive and negative evidence and estimates if sufficient future taxable income will be generated to utilize the existing deferred tax assets.

INCOME TAXES

9 Months Ended

Nov. 01, 2020

NOTE 6 — INCOME TAXES

For the nine months ended November 1, 2020 and November 3, 2019, the Company’s combined federal, state, and foreign effective tax rate for continuing operations was 25.8% and 25.1%, respectively.

The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and the related tax rates in the jurisdictions where it operates, restructuring and other one-time charges, as well as discrete events, such as audit settlements.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act contains significant business tax provisions, including modifications to the rules limiting the deductibility of net operating losses (“NOLs”), expensing of qualified improvement property and business interest in Internal Revenue Code Sections 172(a) and 163(j), respectively. The effects of the new legislation were recognized upon enactment. The Company did not recognize any significant impact to income tax expense for the nine months ended November 1, 2020 related to the CARES Act.

As of November 1, 2020 and February 2, 2020, the Company’s unrecognized tax benefits in accordance with the income taxes principles of GAAP (ASC 740, “Income Taxes”) was $17.1 million. The Company’s ending net accrual for interest and penalties related to unrecognized tax benefits as of November 1, 2020 and February 2, 2020 was zero. As of November 1, 2020 and February 2, 2020, the Company’s valuation allowance on its U.S. deferred tax assets was approximately $5.4 million, and $6.0 million, respectively. Each reporting period, the Company assesses available positive and negative evidence and estimates if sufficient future taxable income will be generated to utilize the existing deferred tax assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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