Income Taxes

3 Months Ended

Apr. 29, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income TaxesThe provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events.

For the first quarter of 2023, the Company’s effective tax rate was 34.0% compared to 2.4% in the first quarter of 2022. The first quarter of 2023 rate differed from the Company's combined estimated federal and state statutory rate primarily due to non-deductible further cash consideration liability under the terms of the Merger Agreement. The first quarter of 2022 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to the recognition of excess tax benefits related to share-based compensation awards that vested in the first quarter of 2022.

The Company paid income taxes in the amount of $16 million and $10 million for the first quarter of 2023 and 2022, respectively.