Income Taxes

6 Months Ended

May 02, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

On December 2, 2019, the U.S. Department of the Treasury released final regulations and proposed regulations under Section 59A of the Internal Revenue Code, the Base Erosion and Anti-Abuse Tax (“BEAT”). BEAT, which requires certain U.S. corporations to pay a minimum tax associated with deductible payments to non-U.S. related parties, was enacted as part of the Tax Cuts and Jobs Act (the “Tax Act”). Also, on December 2, 2019, the U.S. Department of the Treasury released final regulations that provide additional guidance with respect to the foreign tax credit regime under the Tax Act.

The effective tax rate for the second quarter and six months ended May 2, 2020 was lower than the effective tax rate for the second quarter and six months ended May 4, 2019, primarily due to reduced BEAT and the effect of the final regulations released on December 2, 2019.