Income Taxes |
3 Months Ended | ||||||||||||||||||||
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Apr. 30, 2025 | |||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||
| Income Taxes | Note 16– Income Taxes Our effective tax rates are as follows:
We determine our estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the fiscal quarter in which the change is determined. The tax effect of significant unusual items is reflected in the period in which they occur. During the three months ended April 30, 2025, we recognized an income tax expense of $75,000. The effective tax rate in this period was directly impacted by a $109,000 tax expense related to the return to provision associated with our fiscal 2023 amended state tax returns. Additional impacts on the effective tax rate included a $62,000 tax expense arising from shortfall tax expense related to our stock and a $26,000 tax benefit related to the expiration of the statute of limitations on a previously uncertain tax position. During the three months ended April 27, 2024, we recognized an income tax benefit of $434,000. The effective tax rate in this period was directly impacted by a $572,000 tax benefit related to a previously unrecorded reduction in our future income taxes payable balance that should have been discretely recognized in the fourth quarter of fiscal year 2024 when we completed our domestic return to accrual process. Additional impacts on the effective tax rate included a $75,000 tax benefit arising from windfall tax benefits related to our stock. |
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