

Note 12	Income Taxes

The Company’s effective tax rate can vary considerably from period to period, depending on a number of factors. The Company’s consolidated effective tax rates were 33.6% and 26.7% for the thirteen weeks and 32.3% and 26.4% for the thirty-nine weeks ended October 29, 2016 and October 31, 2015, respectively.

During the thirteen and thirty-nine weeks ended October 29, 2016, the Company recognized discrete tax benefits of $0.3 million and $1.1 million, respectively, related to the settlement of certain federal tax matters. If these discrete tax benefits had not been recognized, the Company's effective tax rates would have been 34.1% and 33.4%, respectively. During the thirteen and thirty-nine weeks ended October 31, 2015, the Company recognized discrete tax benefits of $1.3 million and $4.2 million, respectively. If these discrete tax benefits had not been recognized, the Company's effective tax rates would have been 29.5% and 30.8%, respectively. On a year-to-date basis, excluding the discrete tax items described above, our higher effective tax rate reflects a greater anticipated mix of domestic earnings, which carry a higher effective tax rate than earnings in our international subsidiaries.

In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which requires entities to present all deferred tax assets and liabilities as noncurrent on the balance sheet. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2015-17 on a retrospective basis during the fourth quarter of 2015, resulting in a reclassification of $0.8 million from current deferred tax assets to noncurrent deferred tax assets as of January 30, 2016 and a reclassification of $21.3 million and $32.5 million from current deferred tax liabilities to noncurrent deferred tax liabilities as of October 31, 2015 and January 30, 2016, respectively, on the condensed consolidated balance sheets.