Income Taxes	3 Months Ended
May 02, 2020
Income Taxes
Income Taxes	8. Income Taxes: Our effective income tax rate for the First Quarter of Fiscal 2020 and the First Quarter of Fiscal 2019 was a benefit of 22.5% and an expense of 25.5%, respectively. The difference between the U.S. federal statutory income tax rate of 21% and our effective income tax rate for the First Quarter of Fiscal 2020 and the First Quarter of Fiscal 2019 was impacted by a variety of factors, including those discussed in the following paragraph, as well as the impact of state income taxes, impact of foreign operations rate differential, valuation allowances and other carry-forwards, the deductibility of certain charges and changes in enacted tax regulations. The income tax benefit in the First Quarter of Fiscal 2020 reflects the income tax benefit on the operating losses at the statutory rate of 21% decreased by certain unfavorable items including (1) certain non-deductible impairment charges, resulting in an estimated effective income tax benefit rate of approximately 17% on the impairment charges, and (2) restricted stock which vested in the period with a vesting date price lower than the grant date price. These unfavorable items in the First Quarter of Fiscal 2020 were partially offset by the favorable impact of the CARES Act providing for additional income tax benefit for the carry back of the substantial majority of our Fiscal 2020 net operating losses to years prior to U.S. Tax Reform, which had a federal income tax rate of 35%. The income tax expense in the First Quarter of Fiscal 2019 was not impacted by any significant or unusual discrete or other items. On March 27, 2020, the CARES Act was signed into law, with applicable provisions reflected in our financial statements for the First Quarter of Fiscal 2020. This law includes several taxpayer favorable provisions which may impact us including allowing the carryback of net operating losses to periods prior to U.S. tax reform, accelerated depreciation of certain leasehold improvement costs and relaxed interest expense limitations, as well as non-income tax benefits including deferral of employer FICA payments and an employee retention credit.

Income Taxes

3 Months Ended

May 02, 2020

8. Income Taxes: Our effective income tax rate for the First Quarter of Fiscal 2020 and the First Quarter of Fiscal 2019 was a benefit of 22.5% and an expense of 25.5%, respectively. The difference between the U.S. federal statutory income tax rate of 21% and our effective income tax rate for the First Quarter of Fiscal 2020 and the First Quarter of Fiscal 2019 was impacted by a variety of factors, including those discussed in the following paragraph, as well as the impact of state income taxes, impact of foreign operations rate differential, valuation allowances and other carry-forwards, the deductibility of certain charges and changes in enacted tax regulations.

The income tax benefit in the First Quarter of Fiscal 2020 reflects the income tax benefit on the operating losses at the statutory rate of 21% decreased by certain unfavorable items including (1) certain non-deductible impairment charges, resulting in an estimated effective income tax benefit rate of approximately 17% on the impairment charges, and (2) restricted stock which vested in the period with a vesting date price lower than the grant date price. These unfavorable items in the First Quarter of Fiscal 2020 were partially offset by the favorable impact of the CARES Act providing for additional income tax benefit for the carry back of the substantial majority of our Fiscal 2020 net operating losses to years prior to U.S. Tax Reform, which had a federal income tax rate of 35%. The income tax expense in the First Quarter of Fiscal 2019 was not impacted by any significant or unusual discrete or other items.

On March 27, 2020, the CARES Act was signed into law, with applicable provisions reflected in our financial statements for the First Quarter of Fiscal 2020. This law includes several taxpayer favorable provisions which may impact us including allowing the carryback of net operating losses to periods prior to U.S. tax reform, accelerated depreciation of certain leasehold improvement costs and relaxed interest expense limitations, as well as non-income tax benefits including deferral of employer FICA payments and an employee retention credit.