Income Taxes |
9 Months Ended | ||||||||||||||||||||||||||||||
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Oct. 29, 2022 | |||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||
| Income Taxes |
The provision for income taxes is based on a current estimate of the annual effective tax rate, adjusted to reflect the effect of discrete items. The Company’s effective income tax rate may fluctuate from quarter to quarter as a result of a variety of factors, including the estimate of annual pre-tax income, the related changes in the estimate, and the effect of discrete items. The impact of these items on the effective tax rate will be greater at lower levels of pre-tax earnings. The Company evaluates whether deferred tax assets are realizable on a quarterly basis. The Company considers all available positive and negative evidence, including past operating results and expectations of future operating income. Accordingly, the Company continues to maintain a full valuation allowance on deferred tax assets as of October 29, 2022. The Company’s effective tax rate was (2.3)% and 2.2% for the thirteen weeks ended October 29, 2022 and October 30, 2021, respectively. The effective tax rate for the thirteen weeks ended October 29, 2022 reflects the impact of non-deductible executive compensation and the recording of an additional valuation allowance against the Company's current year losses. The effective tax rate for the thirteen weeks ended October 30, 2021 was driven by an improved full-year operational forecast, offset by a reduction to the valuation allowance needed for current year results. The effective tax rate was (1.4)% and (1.0)% for the thirty-nine weeks ended October 29, 2022 and October 30, 2021, respectively. The effective tax rate for the thirty-nine weeks ended October 29, 2022 reflects the impact of non-deductible executive compensation and the recording of an additional valuation allowance against current year losses. The effective tax rate for the thirty-nine weeks ended October 30, 2021 reflects the impact of non-deductible executive compensation and the release of a valuation allowance against forecasted taxable earnings. The Company's unaudited Consolidated Balance Sheets as of October 29, 2022 and January 29, 2022 reflect $52.3 million of income tax receivable. The Company reclassified the receivable from current to non-current income tax receivable as of April 30, 2022 based on information received from the Internal Revenue Service ("IRS") during the thirteen weeks ended April 30, 2022 that indicated the receivable will not be collected in the next twelve months.
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