INCOME TAXES

6 Months Ended

Feb. 01, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 14—INCOME TAXES

The effective income tax rate for continuing operations was a benefit of 35.5% compared to a benefit of 20.2% on pre-tax losses for the second quarter of fiscal 2020 and 2019, respectively. The change in the effective income tax rate for the second quarter of fiscal 2020 was primarily driven by a tax benefit on the impairment of goodwill and a tax benefit on the release of unrecognized tax positions that both occurred in the second quarter of fiscal 2019 but did not recur in the second quarter of fiscal 2020.

The tax provision included $0.2 million and $77.0 million of discrete tax benefit for the second quarter of fiscal 2020 and fiscal 2019, respectively. The discrete tax benefit for the second quarter of fiscal 2019 was primarily due to a tax benefit of approximately $68.4 million related to the goodwill impairment charge, as well as a tax benefit related to unrecognized tax positions of approximately $8.7 million.

The effective income tax rate for continuing operations was a benefit of 17.2% compared to a benefit of 20.0% on pre-tax losses for fiscal 2020 year-to-date and fiscal 2019 year-to-date, respectively. The decrease in the effective income tax benefit rate was primarily driven by a tax benefit of approximately $8.7 million recorded in fiscal 2019 for the release of unrecognized tax positions that did not recur in fiscal 2020.