Income Taxes |
6 Months Ended |
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Jun. 28, 2025 | |
| Income Taxes [Abstract] | |
| Income Taxes |
Note 4 – Income Taxes
The provision for income taxes consists of provisions for federal, state, and foreign income taxes. The effective tax rates for the periods ended June 28, 2025 and June 29, 2024 reflect
the Company’s expected tax rate on reported income before income tax and tax adjustments. The Company operates in a global environment with significant operations in various jurisdictions outside the United States. Accordingly, the consolidated income
tax rate is a composite rate reflecting the Company’s earnings and the applicable tax rates in the various jurisdictions where the Company operates.
In December 2021, the Organization for Economic Co-operation and Development (“OECD”) issued model rules for a new global minimum tax (“Pillar Two”). Various
jurisdictions around the world have passed legislation to enact Pillar Two and certain Pillar Two rules are in effect for 2025. The United States has not adopted Pillar Two. The Company does not anticipate a material increase in income tax expense
for 2025 due to Pillar Two and the Company is continuing to monitor Pillar Two developments and the potential future impact on its operations and income tax expense.
On July 4, 2025, H.R. 1 (“the Act”), a tax reconciliation act, was enacted into law in the United States. Under U.S. GAAP
(specifically, Accounting Standards Codification Topic 740), the effects of changes in tax rates and laws on deferred tax balances are recognized in the period in which the new legislation is enacted. Accordingly, the Company will account for the
Act in the third fiscal quarter. The Company is evaluating the Act’s provisions, but is not currently able to estimate the impact of the Act on its deferred tax balances and future income tax expense. Certain provisions of the Act, particularly
the international tax provisions, may have a material impact on the Company’s deferred tax balances and future income tax expense.
The Company repatriated $75,000
of accumulated earnings to the United States in the second fiscal quarter of 2025 and paid withholding taxes, in Israel, of $9,375. The
withholding tax expense for the repatriation was recorded in prior years.
During the six fiscal months ended June 28, 2025,
the liabilities for unrecognized tax benefits decreased $744 on a net basis, primarily due to statute expirations, settlements, and payments,
partially offset by accruals for the current period.
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