Income Taxes |
6 Months Ended |
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Jul. 03, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 13. INCOME TAXES For the second quarter of 2026, our effective income tax rate was (6.0)%, as compared to 21.3% in the corresponding period in 2025. For the first two quarters, our effective income tax rate was (18.9)%, as compared to 21.9% in the prior year. The negative effective income tax rates were due to an income tax expense against a pre-tax loss that primarily resulted from a non-deductible goodwill impairment recognized during the second quarter of 2026. Unrecognized tax benefits of $40.0 million at both the end of the second quarter of 2026 and the end of 2025, if recognized, would favorably affect the effective income tax rate in future periods. At the end of the second quarter of 2026 and at the end of 2025, we accrued interest and penalties of $11.0 million and $9.3 million. We accounted for the tax implications of the enacted OBBBA, and the impact to our 2026 tax rate is immaterial. The OBBBA permanently repeals the domestic R&D capitalization requirement. As a result, we expect cash tax reductions of approximately $53 million in 2026.
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