v3.26.1
INCOME TAXES
 6 Months Ended
Jul. 04, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company’s income tax provision and effective tax rates for the fiscal periods indicated were as follows:
Fiscal quarter endedTwo fiscal quarters ended
(dollars in thousands)July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Income tax provision$31,687 $1,257 $37,207 $7,067 
Effective income tax rate23.2 %73.8 %23.8 %30.7 %
The Company’s effective income tax rate was 23.2% for the second fiscal quarter ended July 4, 2026, compared to 73.8% for the second fiscal quarter ended June 28, 2025. The Company’s effective income tax rate was 23.8% for the first two fiscal quarters ended July 4, 2026, compared to 30.7% for the first two fiscal quarters ended June 28, 2025. The decrease in the effective tax rate for each period was driven by discrete tax items recognized in the prior-year periods, including incremental tax expense related to expiring stock-based compensation, which had a disproportionate impact on those rates given the lower level of pre-tax income in the prior year.
As of July 4, 2026, the Company had gross unrecognized income tax benefits of $6.0 million, of which $5.0 million, if ultimately recognized, may affect the Company’s effective income tax rate in the periods settled. The Company has recorded tax positions for which the ultimate deductibility is more likely than not, but for which there is uncertainty about the timing of such deductions.