Income Taxes

9 Months Ended

Feb. 01, 2020

The provision for income taxes for an interim period is based on an estimated effective income tax rate for the full fiscal year and applies that rate to ordinary year-to-date earnings or losses. The estimated annual effective income tax rate is determined excluding the effects of unusual or significant discrete items that are reported net of the related tax effects and in the period in which they occur. In addition, any material effects of enacted tax law or rate changes as well as the Company’s ability to utilize various tax assets is recognized in the period in which the change occurs.



	Three Months Ended						Nine Months Ended
	February 1, 2020			January 26, 2019			February 1, 2020			January 26, 2019
(Dollars in Millions)	(14 Weeks)			(13 Weeks)			(40 Weeks)			(39 Weeks)
Income before Income Taxes	$	44.0		$	27.7		$	108.6		$	73.5
Income Tax Expense (Benefit)	$	2.8		$	(3.0	)	$	15.3		$	4.5
Effective Tax Rate	6.4		%	(10.4		)%	14.1		%	6.1		%

The income tax provision in both the three and nine months ended February 1, 2020 was lower than the U.S. statutory tax rate primarily due to changes related to U.S. Tax Reform and foreign operations with lower statutory rates. The income tax provision for both the three and nine months ended January 26, 2019 was lower than the U.S. statutory tax rate primarily due to foreign investment tax credits, foreign operations with lower statutory rates, finalization of U.S. Tax Reform and the release of a tax reserve.

The Company's unrecognized income tax benefits were $5.1 million and $3.1 million as of February 1, 2020 and April 27, 2019, respectively. If any portion of the Company’s unrecognized tax benefits is recognized, it would impact the Company’s effective tax rate. The unrecognized tax benefits are reviewed periodically and adjusted for changing facts and circumstances, such as tax audits, lapse of applicable statutes of limitations and changes in tax law.