Income Taxes

3 Months Ended

Apr. 29, 2023

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 across jurisdictions.

For the first quarter of fiscal year 2023 (the “first quarter”), the effective tax rate was 24.3% compared to 21.4% for the first quarter of fiscal year 2022 (“last year’s first quarter”). The first quarter effective tax rate of 24.3% primarily reflects favorable share-based compensation benefit. Last year’s first quarter effective tax rate of 21.4% primarily reflects favorable share-based compensation benefit and the reduction in the liability for future reversing deferred tax liabilities.

As of April 29, 2023, our unaudited condensed consolidated balance sheet reflected a $7.9 million income tax receivable related to the recovery of federal income taxes paid in prior years and other tax law changes as a result of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).