Income Taxes |
6 Months Ended |
|---|---|
Jun. 27, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision, and estimate of the Company’s annual effective tax rate, are subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company conducts business, and tax law developments. During the three and six months ended June 27, 2026, the Company reassessed the realizability of its deferred tax assets in accordance with FASB Accounting Standards Codification Topic 740, Income Taxes. In evaluating the need for a valuation allowance, the Company considered all available positive and negative evidence, including recent operating results, cumulative earnings trends, forecasts of future taxable income, reversal patterns of existing taxable temporary differences, and tax planning strategies. Based upon all positive and negative evidence, including the achievement of three-year cumulative earnings during the three months ended June 27, 2026, management concluded that it is more likely than not that a portion of its deferred tax assets will be realized. As a result, during the three and six months ended June 27, 2026, the Company released a portion of its valuation allowance of approximately $24,639 related primarily to federal and state net operating loss carryforwards, tax credit carryforwards, and other deductible temporary differences. The release of the valuation allowance resulted in the recognition of an income tax benefit of approximately $24,639 during the quarter and reduced the Company's effective tax rate for the three and six months ended June 27, 2026. Following the release, the remaining valuation allowance was approximately $22,425 as of June 27, 2026, of which $18,064 is primarily related to capital loss carryforwards and foreign tax credits for which realization remains uncertain. The Company will continue to evaluate the realizability of its deferred tax assets in each reporting period. Changes in actual operating results, future taxable income projections, tax law changes, or other factors could affect the amount of valuation allowance recognized in future periods. The Company's effective tax rate was 136.5% and 102.5% for the three and six months ended June 27, 2026, respectively, compared with 10.1% and 13.7% for the three and six months ended June 28, 2025, respectively. The significant increase in the effective tax rate for both periods was primarily driven by the $24,639 income tax benefit recognized from the release of the valuation allowance described above, which had an outsized impact on the effective tax rate relative to pre-tax income. The prior year effective tax rates reflected income earned in foreign jurisdictions, partially offset, in the case of the six months ended June 28, 2025, by the release of certain reserves for uncertain tax positions. Tax Receivable Agreement The Company expects to obtain an increase in the share of the tax basis of the assets of BV LLC when LLC Interests are redeemed or exchanged by the Continuing LLC Owner and other qualifying transactions. This increase in tax basis may have the effect of reducing the amounts that the Company would otherwise pay in the future to various tax authorities. The increase in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. On February 16, 2021, the Company entered into a tax receivable agreement (“TRA”) with the Continuing LLC Owner that provides for the payment by the Company to the Continuing LLC Owner of 85% of the amount of tax benefits, if any, that the Company actually realizes as a result of (i) increases in the tax basis of assets of BV LLC resulting from any redemptions or exchanges of LLC Interests or any prior sales of interests in BV LLC; and (ii) certain other tax benefits related to the Company making payments under the TRA. As of June 27, 2026, the Continuing LLC Owner had not exchanged LLC Interests for shares of Class A common stock and therefore the Company had not recorded any liabilities under the TRA.
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