Income Taxes |
6 Months Ended |
|---|---|
Jul. 04, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 9. INCOME TAXES On July 4, 2025, H.R. 1., also known as the One Big Beautiful Bill Act ("OBBBA), was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses. Among other changes, OBBBA provides full bonus depreciation for certain assets placed into service after January 19, 2025, an election to expense current U.S. incurred research or experimental expenditures, and a new calculation allowing companies to deduct additional interest expense. The Company records its provision for income taxes on an interim basis based upon the estimate of the annual effective income tax rate for the full year applied to “ordinary” income or loss, adjusted each quarter for discrete items. The Company analyzes various factors to determine the estimated annual effective income tax rate, including projections of annual earnings, the impact of state and local income taxes, its ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. The Company recorded income tax expense of $16.2 million and $19.5 million for the three and six-month periods ended July 4, 2026, respectively, and income tax expense of $17.1 million and $22.1 million for the three and six-month periods ended June 28, 2025, respectively. The Company’s effective tax rate was 28.7% and 19.2% for the three and six-month periods ended July 4, 2026, respectively, and 38.8% and 40.7% for the three and six-month periods ended June 28, 2025, respectively. The effective tax rates for the three and six-month periods ended July 4, 2026 and June 28, 2025 differed from the statutory rate of 21% primarily due to certain non-deductible expenses, most notably interest expense and executive compensation, and the changes in the valuation allowance recorded against certain deferred tax assets. The three and six-month periods ended July 4, 2026 also included a discrete benefit that resulted in the effective rate differing from the statutory rate. For the three and six-month periods ended July 4, 2026, there were no material changes to the Company's uncertain tax positions. There has been no change to the Company’s policy that recognizes potential interest and penalties related to uncertain tax positions in income tax expense in the accompanying consolidated statements of operations. |