Income Taxes

9 Months Ended

Nov. 02, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The provision for income taxes is based on a current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. Our effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including changes in our assessment of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits, the impact of discrete items and the mix of earnings.

For the thirteen weeks ended November 2, 2019 and November 3, 2018, the Company's effective tax rate was 14.7% and (141.7)%, respectively. The effective tax rate of 14.7% for the thirteen weeks ended November 2, 2019 was primarily the result of an income tax benefit on the third quarter operating loss, offset by an unfavorable fiscal 2018 provision-to-return adjustment, and a valuation allowance on certain deferred tax assets for charitable contributions with limitations. The favorable effective tax rate of (141.7)% for the thirteen weeks ended November 3, 2018 was primarily due to the Company’s ability to accelerate certain income tax deductions into the 2017 federal tax return as a result of the Tax Cuts and Jobs Act of 2017 (the "Tax Act").

For the thirty-nine weeks ended November 2, 2019 and November 3, 2018, the Company's effective tax rate was (31.2)% and 20.0%, respectively. The effective tax rate of (31.2)% for the thirty-nine weeks ended November 2, 2019 was primarily the result of an income tax benefit on the year-to-date operating loss, offset by additional tax expense related to employee share-based awards, an unfavorable fiscal 2018 provision-to-return adjustment, and a valuation allowance on certain deferred tax assets for charitable contributions with limitations. The effective rate of 20.0% for the thirty-nine weeks ended November 3, 2018 was primarily due to the Company's ability to accelerate certain income tax deductions into the 2017 federal tax return as a result of the Tax Act, partially offset by additional tax expense related to employee share-based awards.