Income Taxes |
9 Months Ended |
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Jul. 04, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Income tax expense for the three and nine months ended July 4, 2026 was $13.5 million and $31.4 million, respectively, compared to $4.7 million and $16.9 million for the three and nine months ended June 28, 2025, respectively. The effective tax rates for the three and nine months ended July 4, 2026 were 23.8% and 19.0%, respectively, compared to the effective tax rates of 9.5% and 12.2% for the three and nine months ended June 28, 2025, respectively. The effective tax rates for the three and nine months ended July 4, 2026 were higher than the effective tax rates for the three and nine months ended June 28, 2025 primarily due to the implementation of the global minimum tax across several jurisdictions in which the Company operates, as well as a $3.3 million discrete tax benefit recorded for the three months ended June 28, 2025, related to the release of a state valuation allowance. The amount of unrecognized tax benefits recorded for uncertain tax positions decreased by $1.8 million for the three months ended July 4, 2026. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three and nine months ended July 4, 2026 were $0.2 million and $0.5 million, respectively. Within the next 12 months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce unrecognized tax benefits by approximately $2.9 million, either because the Company’s tax positions are sustained on audit, the Company agrees to their disallowance or the statute of limitations closes. The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended July 4, 2026, the Company continued to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the EMEA and APAC segments and a partial valuation allowance against its net deferred tax assets in certain jurisdictions within the AMER segment, as it was more likely than not that these assets would not be fully realized based primarily on historical performance. The Company will continue to record a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until it determines it is more likely than not that the deferred tax assets will be realized.
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