Income Taxes |
3 Months Ended |
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May 02, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company projects the estimated annual effective tax rate for fiscal year 2026 to be 27.4%, excluding the tax effect of discrete events, such as excess tax benefits from stock-based compensation, changes in tax legislation, settlements of tax audits and changes in uncertain tax positions, among others. The Company’s effective income tax rate was 27.0% and 22.2% for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. The increase in the effective income tax rate was primarily attributable to lower excess tax benefits from stock-based compensation compared to the prior year period. Cash taxes paid as presented in the supplemental cash flow information section of the condensed consolidated statements of cash flows includes $91.2 million paid for transferable credits during the thirteen weeks ended May 2, 2026. The Company is subject to taxation in the U.S. federal and various state taxing jurisdictions. The Company’s tax years from 2022 forward remain open and subject to examination by the Internal Revenue Service and various state taxing authorities. On July 4, 2025, new legislation, commonly known as the One Big Beautiful Bill Act (the “Act”), was signed into law. Among other provisions, the Act reestablished and made permanent 100% initial-year bonus depreciation on qualifying property, as well as the immediate deduction for domestic research and development expenses. The Company has quantified the impact of the Act to our financial statements and has reflected the effects within the consolidated financial statements as of and for the thirteen weeks ended May 2, 2026.
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