Income taxes

3 Months Ended

May 04, 2024

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

	13 weeks ended
	May 4, 2024		April 29, 2023
Estimated annual effective tax rate before discrete items	17.4	%	18.6	%
Discrete items recognized	(6.3)	%	(9.7)	%
Effective tax rate recognized in statements of operations	11.1	%	8.9	%

During the 13 weeks ended May 4, 2024, the Company’s effective tax rate was lower than the US federal income tax rate, primarily as a result of the favorable impact of foreign rate differences and benefits from global reinsurance arrangements, as well as the discrete tax benefits recognized in the 13 weeks ended May 4, 2024. The discrete tax benefits to date during Fiscal 2025 primarily relate to the excess tax benefit for share-based compensation which vested during the quarter of $4.7 million.

The Company’s effective tax rate for the same period during the prior year was lower than the US federal income tax rate, primarily as a result of the favorable impact of foreign rate differences and benefits from global reinsurance arrangements, as well as the discrete tax benefits related to the reclassification of the remaining pension settlement loss out of AOCI of $4.1 million and the excess tax benefit for share-based compensation which vested during the quarter of $7.6 million.

As of May 4, 2024, there has been no material change in the amounts of unrecognized tax benefits, or the related accrued interest and penalties (where appropriate), in respect of uncertain tax positions identified and recorded as of February 3, 2024.