INCOME TAXES |
9 Months Ended |
|---|---|
Oct. 29, 2016 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
INCOME TAXES
The Company's effective tax rate was 25.5% for the 13 weeks ended October 29, 2016 compared with 34.3% for the 13 weeks ended October 31, 2015 and 30.9% for the 39 weeks ended October 29, 2016 compared with 44.2% for the 39 weeks ended October 31, 2015. On August 2, 2016, the state of North Carolina announced that it would lower its corporate income tax rate from 4% to 3% for tax years beginning on or after January 1, 2017. This change in North Carolina’s statutory rate significantly decreased the deferred tax liability related to the trade name intangible asset and resulted in a $21.4 million decrease in tax expense in the third quarter of 2016. The effective tax rate for the 39 weeks ended October 29, 2016 is impacted by the change in North Carolina's corporate income tax rate, a one-time election allowing the Family Dollar acquisition to be treated as an asset purchase for certain state tax purposes and the adoption of ASU No. 2016-09 under which the incremental tax benefit recognized upon RSU vesting is recorded in income tax expense.
|