v3.26.1
Income Taxes
 12 Months Ended
Dec. 27, 2025
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures (Topic 740), which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The new guidance requires consistent categorization and greater disaggregation of information in the rate reconciliation, as well as further disaggregation of income taxes paid. This change was effective for annual periods beginning after December 15, 2024. The Company adopted this ASU in 2025 and applied it on a prospective basis to annual financial statements. The Company did not adjust prior periods as permitted.

The provision (benefit) for income taxes on income (loss) from continuing operations consists of the following:

 20252024
Current  
Federal$1 $(51)
State72 22 
Total current73 (29)
Deferred  
Federal— — 
State— — 
Total deferred— — 
Income tax provision (benefit)$73 $(29)
The reconciliation of the tax provision (benefit) at the U.S. federal statutory rate to income tax expense (benefit) is presented in the following table.
 20252024
U.S. federal statutory tax rate$(1,512)21.00 %$(2,570)21.00 %
State and local income tax, net of federal income tax effect (1)
57 (0.79)%17 (0.14)%
Tax Credits
   Federal tax credits(209)2.90 %(220)1.80 %
   State tax credits— — %(22)0.18 %
Change in valuation allowance1,630 (22.63)%2,573 (21.02)%
Nontaxable or nondeductible items
   Nondeductible meals and entertainment38 (0.53)%38 (0.31)%
   Executive compensation limitation— — %24 (0.20)%
   Stock-based compensation43 (0.59)%125 (1.02)%
Changes in unrecognized tax benefits16 (0.22)%5 (0.04)%
Other items10 (0.15)%1 (0.01)%
Income tax provision (benefit)$73 (1.01)%$(29)0.24 %

(1) State taxes in Oregon and Texas comprised the majority (greater than 50%) of the tax effect in this category in 2025.

The Company has a full valuation allowance against its deferred tax assets. The Company intends to maintain this position until there is sufficient evidence to support the reversal of all or some portion of these allowances. The Company also has certain assets with indefinite lives for which the basis is different for book and tax. In accordance with ASC 740-10-30-18, the deferred tax liability related to these intangible assets cannot be used to offset deferred tax assets when determining the amount of the valuation allowance for deferred tax assets which are not more-likely-than-not to be realized. The result is that the Company is in a net deferred tax liability position of $91 at December 27, 2025 and December 28, 2024, which is recorded in other long-term liabilities in the Company's Consolidated Balance Sheets.

Due to its full valuation allowance against its deferred tax balances, the Company is only able to recognize refundable credits and a small amount of federal and state taxes in the tax provision (benefit) for 2025 and 2024.

Significant components of the Company's deferred tax assets and liabilities are as follows:
 20252024
Deferred tax assets:  
Inventories$1,984 $1,916 
Retirement benefits580 436 
State net operating losses3,624 3,502 
Federal net operating losses6,783 6,309 
Federal tax credit carryforwards4,958 4,778 
Allowances for bad debts, claims and discounts1,613 1,806 
Other9,459 8,597 
Total deferred tax assets29,001 27,344 
Valuation allowance(26,841)(24,737)
Net deferred tax assets2,160 2,607 
Deferred tax liabilities: 
Property, plant and equipment2,251 2,698 
Total deferred tax liabilities2,251 2,698 
Net deferred tax liability$(91)$(91)
At December 27, 2025, the Company had approximately $32,299 of federal net operating loss carryforwards and approximately $65,185 of state net operating loss carryforwards available from both continuing and discontinued operations. In addition, $4,958 of federal tax credit carryforwards were available to the Company. The federal tax credit carryforwards will expire between 2030 and 2045. The federal net operating loss carryforwards have no expiration date. The state net operating loss carryforwards will expire between 2025 and 2045. A valuation allowance is recorded to reflect the estimated amount of deferred tax assets attributable to continuing operations that are estimated not to be realizable based on the available evidence. At December 27, 2025, the Company is in a net deferred tax liability position of $91 which is included in other long-term liabilities in the Company's Consolidated Balance Sheets.

Beginning in 2022, the Tax Cuts and Jobs Act (the "TCJA") amended Section 174 to eliminate current year deductibility of research and experimentation ("R&E") expenditures and software development costs (collectively, "R&E expenditures") and instead requires taxpayers to charge their R&E expenditures to a capital account amortized over 5 years. With the passage of the One Big Beautiful Bill Act signed into law on July 4, 2025, taxpayers have the option to deduct previously capitalized domestic research costs in the first tax year after December 31, 2024 or take the deduction over the first two tax years beginning after December 31, 2024. Total unamortized cost at December 28, 2024 were $9,085. The Company has tentatively chosen to deduct the expenses over two years starting in 2025.

Tax Uncertainties

The Company accounts for uncertainty in income tax positions according to FASB guidance relating to uncertain tax positions. Unrecognized tax benefits, if recognized, would affect the Company's effective tax rate. There were no significant interest or penalties accrued as of December 27, 2025 or December 28, 2024.

The following is a summary of the change in the Company's unrecognized tax benefits:
 20252024
Balance at beginning of year$560 $555 
Additions based on tax positions taken during a current period16 5 
Balance at end of year$576 $560 

The Company and its subsidiaries are subject to United States federal income taxes, as well as income taxes in a number of state jurisdictions. The tax years subsequent to 2021 remain open to examination for U.S. federal income taxes. The majority of state jurisdictions remain open for tax years subsequent to 2021. A few state jurisdictions remain open to examination for tax years subsequent to 2020.