Income Taxes |
6 Months Ended |
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Jun. 29, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company’s effective tax rate was approximately 25.4% for the six months ended June 29, 2025 and approximately 23.0% for the six months ended June 30, 2024. The increase in the effective rate was primarily due to a decrease in the amount of excess tax benefits from stock-based compensation recognized as a component of Income tax expense in the Company’s Consolidated Statements of Operations. The Company recognized tax deficiencies of $0.3 million for the six months ended June 29, 2025, as compared to excess tax benefits of $2.8 million for the six months ended June 30, 2024. The Company’s effective tax rate differs from its statutory rate based on a variety of factors, including overall profitability, the geographical mix of income taxes, and the related tax rates in the jurisdictions in which it operates. The Company provides a valuation allowance against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The assessment considers all available positive and negative evidence and is measured quarterly. The Company maintains a valuation allowance against certain state deferred tax assets where sufficient negative evidence exists to require a valuation allowance. During the six months ended June 29, 2025 and June 30, 2024, the Company recorded no material increases or decreases to the valuation allowance against deferred tax assets. Tax Equity Investment: In November 2024, the Company entered into an agreement to become a limited partner in a tax-advantaged limited partnership for an interest in an approved qualified renewable energy project. This investment qualified for the application of PAM. During the year ended December 29, 2024, the Company amortized the initial cost of the investment, inclusive of the delayed equity contribution, in proportion to the income tax credits and other income tax benefits that were allocated to the Company. As of June 29, 2025 and December 29, 2024, the carrying value of the tax equity investment was approximately $0.5 million and $0.5 million, respectively, and was recorded in Other assets on the Consolidated Balance Sheets. There was no impairment of the Company’s tax equity investment during the six months ended June 29, 2025.
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