Income Taxes |
6 Months Ended |
|---|---|
Jun. 28, 2026 | |
| Income Taxes [Abstract] | |
| Income Taxes | (12) Income Taxes
The Company’s income tax expense for interim periods is computed using an estimated annual effective tax rate applied to year-to-date ordinary income or loss, adjusted for the tax effects of discrete items recognized in the period in which they occur.
The Company recognized an income tax benefit of million and in the twenty-six week periods ended June 28, 2026, and June 29, 2025, respectively.
The Company’s effective tax rate was 0.8% and for the twenty-six week periods ended June 28, 2026 and June 29, 2025, respectively. The effective tax rate for the twenty-six week periods ended June 28, 2026 and June 29, 2025 differ from the U.S. statutory rate of primarily because of permanent differences due to fair value adjustments and the valuation allowance against most of the deferred tax assets.
As a result of the Company’s history of net operating losses, the Company has provided a full valuation allowance against its deferred tax assets. During the twenty-six week periods ended June 28, 2026 and June 29, 2025, the Company recorded a decrease in its valuation allowance of million and , respectively. The decrease in its valuation allowance during the twenty-six week period ended June 28, 2026 primarily related to recognition of deferred tax liabilities in connection with the Cobalt acquisition in the first quarter.
As of the twenty-six week periods ended June 28, 2026 and June 29, 2025, the Company had no unrecognized tax benefits. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. |