

Note 14	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 33.9% and 32.3%, respectively, for the thirteen weeks ended July 29, 2017 and July 30, 2016. During the thirteen weeks ended July 30, 2016, the Company recognized a discrete tax benefit of $0.2 million, reflecting the settlement of a federal tax audit issue. If the discrete tax benefit had not been recognized during the thirteen weeks ended July 30, 2016, the Company's effective tax rate would have been 33.0%. Excluding the discrete tax item, the Company's tax rate is higher for the thirteen weeks ended July 29, 2017, reflecting a lower mix of international earnings in our lowest tax rate jurisdictions.

For the twenty-six weeks ended July 29, 2017 and July 30, 2016, the Company's consolidated effective tax rates were 31.7% and 31.0%, respectively. As a result of the adoption of ASU 2016-09 during the first quarter of 2017, which requires prospective recognition of excess tax benefits and deficiencies in the statement of earnings, the Company recognized a discrete tax benefit of $1.1 million related to share-based compensation. Discrete tax benefits of $0.9 million were recognized during the twenty-six weeks ended July 30, 2016, reflecting the settlement of a federal tax audit issue. If these discrete tax benefits had not been recognized during the twenty-six weeks ended July 29, 2017 and July 30, 2016, the Company's effective tax rates would have been 33.9% and 32.7%, respectively. Excluding the discrete tax items, the Company's tax rate is higher for the twenty-six weeks ended July 29, 2017, reflecting a lower mix of international earnings in our lowest tax rate jurisdictions.