Income Taxes |
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Jun. 28, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes Our income tax expense (benefit) and effective income tax rate were as follows (amounts in thousands, except percentages):
Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete events arising in each respective fiscal quarter. Our effective income tax rate for the 13 weeks ended June 28, 2025 was lower than the combined U.S. federal and state statutory income tax rates primarily due to changes in our level of earnings, partially offset by non-deductible executive compensation. Our effective income tax rate for the 26 weeks ended June 28, 2025 was lower than the combined U.S. federal and state statutory income tax rates primarily due to a pretax book loss, partially offset by non-deductible executive compensation and excess tax expense from share-based compensation awards. The change in our effective income tax rate for the 13 weeks ended June 28, 2025 compared to the 13 weeks ended June 29, 2024 was primarily due to changes in our level of earnings, partially offset by non-deductible executive compensation. The change in our effective income tax rate for the 26 weeks ended June 28, 2025 compared to the 26 weeks ended June 29, 2024 was primarily driven by a pretax book loss combined with excess tax expense from share-based compensation awards during the 26 weeks ended June 28, 2025, compared to pretax book income combined with excess tax benefits from share-based compensation awards during the 26 weeks ended June 29, 2024. Our policy is to recognize interest and penalties associated with uncertain tax positions as part of the income tax provision in our condensed consolidated statements of operations and comprehensive income (loss) and include accrued interest and penalties with the related income tax liability on our condensed consolidated balance sheets. To date, we have not recognized any interest and penalties, nor have we accrued for or made payments for interest and penalties. We had no uncertain tax positions as of June 28, 2025 and December 28, 2024, respectively. On July 4, 2025, the One Big Beautiful Bill Act was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. We are assessing the legislation and its effects on our consolidated financial statements, which we expect to begin reflecting in the 13 weeks ended September 27, 2025.
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