Income Taxes |
6 Months Ended |
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Jun. 28, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Income tax expense was $13.2 million for the three months ended June 28, 2025, compared with income tax benefit of $1.1 million for the same period one year ago. Income tax expense totaled $12.6 million for six months ended June 28, 2025, compared with income tax benefit of $0.4 million for the same period one year ago. The Company evaluates its deferred income taxes quarterly to determine if valuation allowances are required. As part of this evaluation, the Company assess whether valuation allowances should be established for any deferred tax assets that are not considered more likely than not to be realized, using all available evidence, both positive and negative. This assessment considers, among other matters, the nature, frequency, and severity of historical losses, forecasts of future profitability, taxable income in available carryback periods and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. During the three months ended June 28, 2025, the Company recorded a change in valuation allowance of $14 million on the basis of management’s reassessment of the amount of its deferred tax assets primarily related to interest expense that are more likely than not to not be realized. This decreased the effective tax rate by 66.5% for the three months ended June 28, 2025. The Company continues to assess the need for the valuation allowance and will make adjustments when appropriate.
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