Income Taxes |
9 Months Ended |
|---|---|
Sep. 28, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 17. Income Taxes The Company’s effective tax rate for the 13-week periods ended September 28, 2025 and September 29, 2024 was approximately 25% and 28%, respectively. The Company’s effective tax rate for the 39-week periods ended September 28, 2025 and September 29, 2024 was approximately 27% and 20%, respectively. The Company’s effective tax rates for the 13-week and 39-week periods ended September 28, 2025 and September 29, 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 39-week periods ended September 28, 2025 were impacted by a discrete tax item primarily associated with an uncertain tax position related to state income taxes. As of September 28, 2025 and December 29, 2024, the Company had uncertain tax positions of $2.2 million and $0.6 million and deferred tax liabilities of $1.4 million and $0, 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, President Donald Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law, which is considered the enactment date under GAAP. Key corporate tax provisions of OBBBA include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to Section 163(j) interest limitations, amendments to energy credits, and expanded Section 162(m) aggregation requirements. In accordance with ASC 740, the Company has recognized the effects of the new tax law in the period of enactment. The impact of OBBBA for the 13-week period ended September 28, 2025 resulted in a reduction to current income tax expense, primarily due to the restoration of 100% bonus depreciation. This reduction was substantially offset by a corresponding increase in deferred income tax expense. The net effect of OBBBA did not have a material impact on the Company’s effective tax rate for the period. The Company continues to evaluate the impact of OBBBA on its consolidated financial statements and will update its estimates as additional guidance becomes available. |