v3.25.4
Income Taxes
 12 Months Ended
Dec. 27, 2025
Income Taxes  
Income Taxes

Note 10    Income Taxes

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​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

(amounts in thousands)

  ​ ​ ​

2025

  ​ ​ ​

(As restated)

  ​ ​ ​

(As restated)

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

6,414

​

$

33,979

​

$

28,392

State

​

​

5,083

​

​

11,699

​

​

9,521

Deferred:

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​

​

​

​

​

​

​

​

Federal

​

​

16,966

​

​

(7,058)

​

​

106

State

​

​

1,794

​

​

303

​

​

3,778

Total

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$

30,256

​

$

38,923

​

$

41,797

​

The following table presents the effective income tax rate reconciliation for the year ended December 27, 2025:

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(amounts in thousands)

  ​ ​ ​

2025

​

​

US federal statutory tax rate

​

$

26,029

21.0

%

State and local income tax, net of federal income tax effect (1)

​

​

5,252

4.2

​

Nontaxable or nondeductible items

​

​

​

​

​

Limitations on executive compensation

​

​

1,246

1.0

​

Other

​

​

(1,217)

(1.0)

​

Tax credits

​

​

(1,682)

(1.4)

​

Changes in unrecognized tax benefits

​

​

(58)

-

​

Other

​

​

687

0.6

​

Effective tax rate

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$

30,256

24.4

%

​

(1)The state that contributes to the majority (greater than 50%) of the tax effect in this category is Pennsylvania for 2025.

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Note 10    Income Taxes (continued)

The reconciliation of income taxes has been computed at the federal statutory rate of 21% in 2025, 2024 and 2023.

The following table presents the effective income tax reconciliation for the years ended December 28, 2024, and December 30, 2023:

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​

​

​

2024

​

2023

(amounts in thousands)

​

(As restated)

​

(As restated)

Income taxes at federal statutory rate

​

$

30,452

​

$

29,957

State income taxes, net of federal income tax benefit

​

​

8,594

​

​

9,579

Nondeductible employee-related expenses

​

​

2,137

​

​

2,709

Tax credits

​

​

(1,450)

​

​

-

Other

​

​

(810)

​

​

(448)

Provision for income taxes

​

$

38,923

​

$

41,797

​

The effective income tax rate was 24.4%, 26.9% and 29.3% in 2025, 2024, and 2023, respectively. The effective income tax rate differs from the federal statutory rate of 21% primarily due to state taxes, federal and state tax credits, and nondeductible employee-related expenses. Pennsylvania House Bill 1342 made significant changes to the Commonwealth’s corporate income tax laws which included lowering the tax rate gradually from 9.99% in 2022 to 4.99% in 2031, offset by taxable income changes, inclusive of, updating market sourcing rules, and codifying the economic nexus standard. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law.  This legislation includes provisions that permanently extend the expiring elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation on qualifying property placed in service after January 19, 2025, and full expensing of domestic research and development expenditures.  As a result, the 2025 cash taxes decreased with no material impact to its effective tax rate.

Cash paid for federal income taxes was $13.8 million, $34.4 million and $23.0 million in 2025, 2024 and 2023, respectively. Cash paid for state income taxes was $7.0 million, $8.7 million and $20.8 million in 2025, 2024 and 2023, respectively.

The following table presents the income taxes paid by jurisdiction for the year ended December 27, 2025:

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(amounts in thousands)

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​

​

Jurisdiction

Cash Payments (Refunds)

Percentage of Total

Federal

$

13,800

66.2

%

Pennsylvania

​

4,016

19.3

​

Maryland

​

2,224

10.7

​

All other states

​

805

3.8

​

Total taxes paid

$

20,845

100.0

%

​

Note 10    Income Taxes (continued)

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 27, 2025, and December 28, 2024, are:

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​

​

​

​

​

​

​

​

​

2024

(amounts in thousands)

  ​ ​ ​

2025

  ​ ​ ​

(As restated)

Deferred tax assets:

​

​

​

​

​

​

Accounts receivable

​

$

869

​

$

794

Employment incentives

​

​

3,412

​

​

4,300

Self-insurance liability

​

​

9,107

​

​

9,283

Postretirement benefit obligations

​

​

7,000

​

​

6,454

Net operating loss and credit carryforwards

​

​

1,849

​

​

1,533

Unrecognized tax benefits

​

​

-

​

​

549

174 R&D capitalization

​

​

1,422

​

​

6,411

Unrealized (gains) or losses on marketable securities

​

​

626

​

​

-

Other

​

​

-

​

​

116

Total deferred tax assets

​

​

24,285

​

​

29,440

Deferred tax liabilities:

​

​

​

​

​

​

Inventories

​

​

(13,451)

​

​

(7,348)

Unrealized (gains) or losses on marketable securities

​

​

-

​

​

(223)

Prepaids

​

​

(10,765)

​

​

(9,895)

Nondeductible accruals and other

​

​

(380)

​

​

382

Depreciation

​

​

(126,539)

​

​

(120,042)

Total deferred tax liabilities

​

​

(151,135)

​

​

(137,126)

Net deferred tax liability

​

$

(126,850)

​

$

(107,686)

​

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

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​

(amounts in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

Unrecognized tax benefits at beginning of year

​

$

2,616

​

$

6,384

Reductions for tax positions of prior years

​

​

(74)

​

​

(1,042)

Settlements

​

​

(2,542)

​

​

(2,726)

Unrecognized tax benefits at end of year

​

$

—

​

$

2,616

​

The Company or one of its subsidiaries files tax returns in the United States and various state jurisdictions. The tax years subject to examination in the United States and in Pennsylvania, where the majority of the Company’s revenues are generated, are 2022 to 2024.

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