Income Taxes (Tables)

12 Months Ended

Jan. 03, 2026

Components of income from continuing operations before income taxes

The components of income before provision for income taxes are as follows:


(In thousands)	January 3, 2026		December 28, 2024		December 30, 2023
Domestic	$	55,000	$	51,417	$	57,810
Foreign	88,585		101,653		101,206
	$	143,585	$	153,070	$	159,016

Components of the provision for income taxes from continuing operations

The components of the provision for income taxes are as follows:


(In thousands)	January 3, 2026		December 28, 2024		December 30, 2023
Current Provision
Federal	$	7,572	$	7,051	$	12,402
Foreign	26,770		29,414		28,587
State	3,114		2,819		3,170
	37,456		39,284		44,159
Deferred Provision (Benefit)
Federal	3,194		2,094		48
Foreign	(1,738)		(1,222)		(2,594)
State	992		360		597
	2,448		1,232		(1,949)
	$	39,904	$	40,516	$	42,210

Income tax reconciliation

The provision for income taxes in the accompanying consolidated statement of income differs from the provision calculated by applying the U.S. federal statutory income tax rate of 21% to income before provision for income taxes in 2025 due to the following:


	January 3, 2026
(In thousands)	Amount		Percent
U.S. Federal Statutory Tax Rate	$	30,153	21.0	%
State and Local Income Tax, Net of Federal Benefit (a)	3,244		2.3	%
Foreign Tax Effects
Canada
Statutory tax rate difference between Canada and United States	(2,317)		(1.6	%)
State and local income tax	4,522		3.1	%
Withholding tax	1,668		1.2	%
Other	(32)		—	%
China	1,879		1.3	%
Other Foreign Jurisdictions	1,571		1.1	%
Effect of Cross-Border Tax Laws
Other	345		0.2	%
Tax Credits
Foreign Tax Credit	(2,352)		(1.6	%)
Other	(445)		(0.3	%)
Changes in Valuation Allowances	22		—	%
Nontaxable or Nondeductible Items
Nondeductible Compensation	1,657		1.1	%
Other	708		0.5	%
Changes in Unrecognized Tax Benefits	(293)		(0.2	%)
Other Adjustments
Other	(426)		(0.3	%)
	$	39,904	27.8	%

(a) State taxes in Mississippi, Oregon, Wisconsin, Alabama, and California made up the majority (greater than 50 percent) of the tax effect in this category.


(In thousands)	December 28, 2024		December 30, 2023
Provision for Income Taxes at Statutory Rate	$	32,145	$	33,393
Increases (Decreases) Resulting From:
Foreign tax rate differential	7,697		5,070
State income taxes, net of federal income tax	2,512		2,965
Nondeductible expenses	1,731		1,730
U.S. tax (benefit) cost of foreign earnings	(1,379)		1,270
(Reversal of) provision for tax benefit reserves, net	(65)		386
Research and development tax credits	(503)		(520)
Excess tax benefit related to stock-based compensation	(401)		(276)
Change in valuation allowance	(203)		(684)
Other	(1,018)		(1,124)
	$	40,516	$	42,210

Supplemental cash flow information

Supplemental Cash Flow Information


(In thousands)	January 3, 2026		December 28, 2024		December 30, 2023
Cash Paid for Interest	$	14,925	$	19,699	$	8,071


Non-Cash Investing Activities:
Fair value of assets acquired	$	255,375	$	360,694	$	1,338
Fair value of liabilities assumed	$	54,858	$	36,340	$	264
Fair value of noncontrolling interests acquired	$	—	$	9,319	$	—
Fair value of contingent consideration acquired	$	—	$	1,785	$	—

Purchases of property, plant and equipment in accounts payable	$	1,541	$	1,181	$	4,453

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	$	5,972	$	5,576	$	5,163
Dividends declared but unpaid	$	4,008	$	3,762	$	3,395

Cash paid for income taxes, net of refunds, by jurisdiction in 2025 is as follows:


(In thousands)	January 3, 2026
U.S. Federal	$	8,805
State
Other	3,337
Foreign
Canada	16,148
China	4,473
Finland	3,201
Brazil	2,225
Other	5,952
	$	44,141

Supplemental cash flow information related to leases is as follows:


(In thousands)	January 3, 2026		December 28, 2024		December 30, 2023
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	9,096	$	8,282	$	6,475
Operating cash flows from finance leases	$	96	$	100	$	74
Financing cash flows from finance leases	$	1,216	$	1,169	$	1,100

ROU Assets Obtained in Exchange for Lease Obligations:
Operating leases (a)	$	13,171	$	17,496	$	8,120
Finance leases	$	1,156	$	1,598	$	989

(a) Includes ROU assets of $4,425,000 in 2025 and $10,847,000 in 2024 obtained in connection with the Company's acquisitions.

Net deferred tax (liability) asset

The Company's net deferred tax liability consists of the following:


(In thousands)	January 3, 2026		December 28, 2024
Deferred Tax Asset
Net operating loss carryforwards	$	11,148	$	9,623
Lease liabilities	10,541		9,094
Inventory basis difference	6,107		5,589
Employee compensation	5,737		5,196
Interest expense disallowance	4,257		—
Capitalized research expenses	3,847		4,682
Reserves and accruals	3,515		3,125
Allowance for credit losses	953		822
Foreign, state, and alternative minimum tax credit carryforwards	756		344
Other	67		153
Deferred tax asset, gross	46,928		38,628
Less: valuation allowance	(8,739)		(7,570)
Deferred tax asset, net	38,189		31,058

Deferred Tax Liability
Goodwill and intangible assets	(66,809)		(44,027)
Fixed asset basis difference	(16,645)		(13,372)
ROU assets	(10,118)		(8,754)
Provision for unremitted foreign earnings	(1,555)		(1,135)
Other	(2,530)		(2,919)
Deferred tax liability	(97,657)		(70,207)
Net deferred tax liability	$	(59,468)	$	(39,149)

Unrecognized tax benefits

A reconciliation of unrecognized tax benefits is as follows:


(In thousands)	January 3, 2026		December 28, 2024
Unrecognized Tax Benefits, Beginning of Year	$	14,510	$	11,212
Gross Increases – Tax Positions in Prior Periods	1,101		80
Gross Increases – Tax Positions in Prior Periods Arising from Acquisitions (a)	77		4,372
Gross Decreases – Tax Positions in Prior Periods	(49)		(25)
Gross Increases – Current-Period Tax Positions	1,248		931
Settlements	—		(85)
Lapses of Statutes of Limitations	(3,136)		(1,624)
Currency Translation	396		(351)
Unrecognized Tax Benefits, End of Year	$	14,147	$	14,510

(a) No indemnification assets were recorded in 2025 and $4,372,000 were recorded in 2024.