Income Taxes

6 Months Ended

Aug. 03, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate was 38.0 percent for the thirteen weeks ended August 3, 2019, compared with 23.5 percent for the thirteen weeks ended August 4, 2018. The effective income tax rate was 31.1 percent for the twenty-six weeks ended August 3, 2019, compared with 24.1 percent for the twenty-six weeks ended August 4, 2018. The increase in the effective tax rate is primarily due to adjustments to our fiscal 2017 tax liability for additional guidance issued by the U.S. Treasury Department regarding the Tax Cuts and Jobs Act of 2017 ("TCJA").

The Company conducts business globally, and as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, Canada, France, the United Kingdom, China, Hong Kong, Japan, and India. We are no longer subject to U.S. federal income tax examinations for fiscal years before 2009, and with few exceptions, we are also no longer subject to U.S. state, local, or non-U.S. income tax examinations for fiscal years before 2008.

The Company is in continual discussions with taxing authorities regarding tax matters in the various U.S. and foreign jurisdictions in the normal course of business. As of August 3, 2019, it is reasonably possible that we will recognize a decrease in gross unrecognized tax benefits within the next 12 months of up to $4 million, primarily due to the closing of audits. If we do recognize such a decrease, the net impact on the Condensed Consolidated Statements of Income would not be material.