Income Taxes |
6 Months Ended |
|---|---|
Jun. 29, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 16. Income Taxes The Company’s effective tax rate for the 13-week periods ended June 29, 2025 and June 30, 2024 was approximately 32% and 10%, respectively. The Company’s effective tax rate for the 26-week periods ended June 29, 2025 and June 30, 2024 was approximately 28% and 17%, respectively. The Company’s effective tax rates for the 13-week and 26-week periods ended June 29, 2025 and June 30, 2024 differ from the statutory rate due primarily to discrete tax benefits related to the exercise of non-qualified stock options and the vesting of RSUs. In addition, the effective tax rates for the 13-week and 26-week periods ended June 29, 2025 were impacted by a discrete tax item primarily associated with an uncertain tax position related to state income taxes. As of June 29, 2025 and December 29, 2024, the Company had uncertain tax positions of $2.3 million and $0.6 million, respectively, under the heading “other liabilities” in the condensed consolidated balance sheets. For interim periods, the Company’s income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions, and other items. The Company’s estimated annual effective tax rate differs from the federal statutory rate of 21% due to state income taxes, permanent differences related to the exercise of stock options and the impact of compensation deduction limitations under Internal Revenue Code Section 162(m). On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the 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 and others implemented through 2027. The Company is currently assessing the OBBBA’s impact on its consolidated financial statements. |