XML 28 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Income Taxes
9 Months Ended
Oct. 29, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 11—INCOME TAXES

The Company recorded income tax expense of $1.8 million and $13.2 million in the three months ended October 29, 2016 and October 31, 2015, respectively. The Company recorded an income tax benefit of $2.6 million in the nine months ended October 29, 2016 compared to income tax expense of $36.5 million in the nine months ended October 31, 2015. The effective tax rate was 41.4% and 38.9% for the three months ended October 29, 2016 and October 31, 2015, respectively. The increase in the effective tax rate is primarily due to lower net income before tax for the three months ended October 29, 2016 as compared to the income before tax for the three months ended October 31, 2015, which causes the non-deductible items to have a larger impact on the effective tax rate. The effective tax rate was 38.9% and 38.7% for the nine months ended October 29, 2016 and October 31, 2015, respectively.

As of October 29, 2016 and January 30, 2016, $1.7 million and $0.9 million, respectively, of the exposures related to unrecognized tax benefits would affect the effective tax rate if realized and are included in other non-current obligations on the condensed consolidated balance sheets. These amounts are primarily associated with foreign tax exposures. As of October 29, 2016, the Company does not have any exposures related to unrecognized tax benefits that are expected to decrease in the next 12 months.