Income Taxes |
6 Months Ended |
|---|---|
Jun. 28, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 8. Income Taxes The income tax provision for the three and six months ended June 28, 2026 was $0.5 million, or an effective tax rate of (7.6)%, and $1.5 million, or an effective tax rate of (8.2)%, respectively. The income tax provision for the three and six months ended June 29, 2025 was $0.9 million, or an effective tax rate of (15.5)%, and $2.3 million, or an effective tax rate of (22.3)%, respectively. The decreases in income tax expense for the three and six months ended June 28, 2026, compared with the prior-year periods, were primarily attributable to lower income in foreign jurisdictions. During the second fiscal quarter of 2026, the Company also recorded a discrete tax benefit related to the completion of its fiscal 2024 Pillar Two filings. Because the Company maintains a full valuation allowance against its U.S. federal and state deferred tax assets, no tax benefit is recognized on forecasted U.S. tax and its income tax expense continues to be driven primarily by earnings in foreign jurisdictions. The prior-year periods also reflected tax effects associated with the deferred tax liability established for intangible assets recognized in connection with the Exium acquisition. The Company is under examination in various U.S. and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as a long-term liability, as payments cannot be anticipated over the next twelve months. The possible reduction in liabilities for uncertain tax positions in multiple jurisdictions in the next twelve months is approximately $1.2 million excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. The Company maintains a full valuation allowance on its U.S. federal and state net deferred tax assets, initially established in the fourth quarter of fiscal 2023. Based on an evaluation of current results as of June 28, 2026 and expectations for the remainder of the year, the Company determined that it continues to not be more likely than not that these deferred tax assets would be realized. Accordingly, no benefit has been recorded for the forecasted U.S. tax loss for the three months ended June 28, 2026. The Company will continue to assess the realizability of its deferred tax assets each reporting period and will adjust the valuation allowance as warranted. |