Income Taxes |
6 Months Ended |
|---|---|
Jun. 28, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 9. INCOME TAXES On July 4, 2025, H.R. 1., also known as the One Big Beautiful Bill Act ("OBBBA) was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses. The Company is evaluating the full effects of the legislation on its estimated annual effective tax rate and cash tax position. As the legislation was signed into law after the close of our second quarter, the impacts are not included in the operating results for the three and six-month periods ended June 28, 2025. The Company records its provision for income taxes on an interim basis based upon the estimate of the annual effective income tax rate for the full year applied to “ordinary” income or loss, adjusted each quarter for discrete items. The Company analyzes various factors to determine the estimated annual effective income tax rate, including projections of annual earnings, the impact of state and local income taxes, its ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. The Company recorded income tax expense of $17.1 million and $22.1 million for the three and six-month periods ended June 28, 2025, respectively, and income tax benefit of $9.9 million and income tax expense of $2.7 million for the three and six-month periods ended June 29, 2024, respectively. The Company’s effective tax rate was 38.8% and 40.7% for the three and six-month periods ended June 28, 2025, respectively, and negative 249.5% and 50.0% for the three and six-month periods ended June 29, 2024, respectively. The effective tax rates for the three and six-month periods ended June 28, 2025 and June 29, 2024 differed from the statutory rate of 21% primarily due to certain non-deductible expenses, most notably interest expense, and the changes in the valuation allowance recorded against certain deferred tax assets. For the three and six-month periods ended June 28, 2025, there were no material changes to the Company's uncertain tax positions. There has been no change to the Company’s policy that recognizes potential interest and penalties related to uncertain tax positions in income tax expense in the accompanying consolidated statements of operations. |