Income Taxes

3 Months Ended

Apr. 29, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events.

For the first quarter of 2023, the Company’s effective tax rate was 27.7% compared to 19.4% in the first quarter of 2022. The first quarter of 2023 rate was higher than the Company's combined estimated federal and state statutory rate primarily due to accrued interest expense related to unrecognized tax benefits. The first quarter of 2022 rate was lower than the Company's combined estimated federal and state statutory rates primarily due to the recognition of excess tax benefits recorded through the Consolidated Statements of Income on share-based awards that vested.

Income taxes paid were $7 million and $8 million for the first quarters of 2023 and 2022, respectively.