v3.26.1
Subsequent Events
3 Months Ended
Mar. 28, 2026
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS
On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”), which the U.S. administration relied on to impose certain tariffs, does not authorize the administration to impose tariffs. On March 4, 2026, the U.S. Court of International Trade ("CIT") issued an order directing the U.S. Customs and Border Protection (“CBP”) agency to begin formalizing a process for refunds. On April 20, 2026, the CBP launched an online portal that can be used to submit IEEPA tariff refund requests. All requests will be reviewed by the CBP to determine validity prior to the issuance of refunds. The Company was able to submit its IEEPA tariff refund request on April 20, 2026 through the portal. The Company has paid IEEPA tariffs to the U.S. government since the enactment on February 1, 2025, and accordingly the Company submitted its request for refund of $3,318 related to IEEPA tariffs paid during the period from February 1, 2025 to February 20, 2026.

Based on the U.S. Supreme Court's ruling, related CIT proceedings, and the Company's submission of tariff refund requests and assessment of the recoverability of amounts paid, the Company has concluded as of March 28, 2026 that the recovery of previously incurred IEEPA tariffs is probable. Under a loss recovery accounting method, the Company recognized a receivable of $3,318 for the IEEPA tariffs incurred in Receivables - tariff refund within the condensed consolidated balance sheet and a corresponding reversal of Cost of sales for $3,318 within the condensed consolidated statement of income for the three-month period ended March 28, 2026.

Notwithstanding the Company’s conclusion that recovery is probable, the timing and amount of cash receipt remain uncertain and depend on the completion of applicable CBP refund claim procedures, including validation and processing of claims, as well as any further legal, procedural or governmental developments. The Company will continue to monitor guidance issued by and actions taken by the CBP and CIT regarding the refund process. As a result, the recovery of IEEPA tariffs represents a known uncertainty that could materially affect the Company’s future results of operations and cash flows. If the amount ultimately recovered is less than the amount recorded, or if recovery is materially delayed, the Company may be required to record an unfavorable adjustment in a future period.