Income Taxes

3 Months Ended

May 03, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The 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 2025, the Company’s effective tax rate was 28.4% compared to 26.8% in the first quarter of 2024. The 2025 and 2024 first quarter rates were higher than the Company’s combined estimated federal and state statutory rates primarily due to accrued interest expense related to unrecognized tax benefits.

Income taxes paid were $7 million and $6 million for the first quarters of 2025 and 2024, respectively.