INCOME TAXES

4 Months Ended

May 20, 2023

TAXES BASED ON INCOME

TAXES BASED ON INCOME

8. INCOME TAXES

The effective income tax rate was 22.9% for the first quarter of 2023 and 18.0% for the first quarter of 2022. The effective income tax rate for the first quarter of 2023 differed from the federal statutory rate due to the effect of state income taxes, partially offset by the utilization of tax credits and deductions. The effective income tax rate for the first quarter of 2022 differed from the federal statutory rate due to the utilization of tax credits and deductions, partially offset by the effect of state income taxes. The effective income tax rate increased in the first quarter of 2023, compared to the first quarter of 2022, primarily due to a decrease in deductions from share-based payments.