Income Taxes

6 Months Ended

Aug. 03, 2024

Income Taxes

Income Taxes

Note 15  Income Taxes

The Company’s consolidated effective tax rate can vary considerably from period to period, depending on a number of factors.  The Company’s consolidated effective tax rates were 25.0% and 25.6% for the thirteen weeks ended August 3, 2024 and July 29, 2023, respectively.  The Company’s consolidated effective tax rates were 24.0% and 24.5% for the twenty-six weeks ended August 3, 2024 and July 29, 2023, respectively.  The lower effective tax rate for the twenty-six weeks ended August 3, 2024 was primarily driven by discrete tax benefits of $1.0 million related to the Company’s share-based compensation, compared to discrete tax benefits of $0.6 million for the twenty-six weeks ended July 29, 2023.

As of August 3, 2024, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s foreign subsidiaries that are not subject to United States income tax, beyond the amounts recorded for the one-time transition tax for the mandatory deemed repatriation of cumulative international earnings, as required by the Tax Cuts and Jobs Act.  The Company periodically evaluates its international investment opportunities and plans, as well as its international working capital needs, to determine the level of investment required and, accordingly, determines the level of international earnings that is considered indefinitely reinvested.  Based upon that evaluation, earnings of the Company’s international subsidiaries that are not otherwise subject to United States taxation are considered to be indefinitely reinvested, and accordingly, deferred taxes have not been provided.  If changes occur in future investment opportunities and plans, those changes will be reflected when known and may result in providing residual United States deferred taxes on unremitted international earnings.