Income Taxes

3 Months Ended

Apr. 27, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 – Income Taxes

Our effective tax rates are as follows:

	Three Months Ended
Fiscal 2025		(58.1	)%
Fiscal 2024		17.4	%

We determine our estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the fiscal quarter in which the change is determined. The tax effect of significant unusual items is reflected in the period in which they occur.

During the three months ended April 27, 2024, we recognized an income tax benefit of $434,000. The effective tax rate in this period was directly impacted by a $572,000 tax benefit related to a previously unrecorded reduction in our future income taxes payable balance that should have been discretely recognized in the fourth quarter of fiscal year 2024 when we completed our domestic return to accrual process. Additional impacts on the effective tax rate included a $75,000 tax benefit arising from windfall tax benefits related to our stock. During the three months ended April 29, 2023, we recognized an income tax expense of approximately $179,000. The effective tax rate in this period was directly impacted by a $77,000 tax benefit related to the expiration of the statute of limitations on a previously uncertain tax position and a $29,000 tax benefit arising from windfall tax benefits related to our stock.