Income Tax - Notes to the Financial Statements

9 Months Ended

Nov. 03, 2018

IncomeTaxDisclosureAbstract

Income Tax Disclosure [Text Block]

The Company had an effective tax rate for the first nine months of 2018 of 7.9% compared to a tax benefit for the first nine months of 2017. The increasein the effective tax rate for the first nine months is attributable to higher pre-tax earnings and a higher proportion of income being generated from jurisdictions with higher tax rates, partially offset by ongoing savings from tax initiatives. The tax benefit for the three months ended November 3, 2018 was due to favorable discrete items, partially offset by taxes from jurisdictions with lower tax rates. Our estimated annual effective tax rate for the current year includes the impact of the new tax on Global Intangible Low Taxed Income (“GILTI”). We continue evaluating the accounting policy election for deferred taxes under GILTI.