Income Taxes

9 Months Ended

Oct. 29, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The provision for income taxes was based on a current estimate of the annual effective tax rate, adjusted to reflect the effect of discrete items.

For the year-to-date 2022, the Company determined it could estimate the effective income tax rate with sufficient precision. Therefore, the income tax benefit was based on the estimated annual effective tax rate, adjusted to reflect the effect of discrete items.

We have estimated the reasonably possible expected net change in unrecognized tax benefits through October 28, 2023, based on (1) expected cash and noncash settlements or payments of uncertain tax positions, and (2) lapses of the applicable statutes of limitations for unrecognized tax benefits. The estimated net decrease in unrecognized tax benefits for the next 12 months is approximately $1.0 million. Actual results may differ materially from this estimate.

As of October 29, 2022, the net deferred tax assets were $54.0 million compared to net deferred tax liabilities of $10.4 million as of January 29, 2022. The change was primarily driven by deferred tax assets recorded during year-to-date 2022 as a result of the net operating losses generated during fiscal 2022.