

Note 13	Income Taxes

The Company’s effective tax rate can vary considerably from period to period, depending on a number of factors. The Company’s consolidated effective tax rates were 26.7% and 30.9% for the thirteen weeks and 26.4% and 31.8% for the thirty-nine weeks ended October 31, 2015 and November 1, 2014, respectively.

During thirteen weeks ended October 31, 2015, the Company recognized discrete tax benefits of $1.3 million related to the anticipated utilization of certain tax asset carryforwards that were previously fully reserved. If these discrete tax benefits had not been recognized during the thirteen weeks ended October 31, 2015, the Company's effective tax rate would have been 29.5%.

During the thirty-nine weeks ended October 31, 2015, the Company recognized discrete tax benefits of $4.2 million. The discrete tax benefits related to a number of factors, including the conversion of one of the Company's operating subsidiaries to an LLC and $1.7 million of tax asset carryforwards that were previously fully reserved related to the disposition of Shoes.com, as further discussed in Note 3 to the condensed consolidated financial statements. If these discrete tax benefits had not been recognized during the thirty-nine weeks ended October 31, 2015, the Company's effective tax rate would have been 30.8%.