Note 11 - Income Taxes |
6 Months Ended |
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Jun. 28, 2025 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
We are subject to federal and state income tax as well as income tax in the foreign jurisdictions in which we operate. For the second quarter of fiscal 2025 and 2024, we recorded income tax expense of approximately $2.2 million and $1.1 million, respectively. For the first six months of fiscal 2025 and 2024, we recorded income tax expense of approximately $5.1 million and $4.2 million, respectively. Income taxes for the three- and six-month periods ended June 28, 2025 and June 29, 2024 represent tax at the federal, state, and foreign statutory tax rates in addition to stock-based compensation and other non-deductible items in federal, state, and foreign jurisdictions, as well as federal tax credits. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rates for the three and six months ended June 28, 2025 and the three and six months ended June 29, 2024 resulted primarily from stock-based compensation and other non-deductible items in federal, state, and foreign jurisdictions.
The portion of our uncertain tax positions (including penalties and interest) recorded as a liability was $2.6 million and $2.5 million at June 28, 2025 and December 28, 2024, respectively, and is included as a component of Other long-term liabilities on our Consolidated Balance Sheets. The resolution of audits or expiration of statute of limitations could reduce our uncertain tax positions.
On July 4, 2025, the United States enacted tax legislation (the “Tax Act”). The Tax Act includes significant provisions, such as the permanent extension of certain expiring provisions of The 2017 Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates with certain provisions effective in 2025. We are in the process of assessing the impact of the Tax Act to our consolidated financial statements.
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