Income Taxes |
9 Months Ended |
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Sep. 25, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | INCOME TAXES The Company recorded an income tax provision of $10.3 million and $8.7 million for the three months ended September 25, 2026 and September 26, 2025, respectively, and $47.5 million and $23.3 million for the nine months ended September 25, 2026 and September 26, 2025, respectively. The Company’s effective tax rate was 20.2% and 1450.0% for the three months ended September 25, 2026 and September 26, 2025, respectively, and 55.7% and (15.8)% for the nine months ended September 25, 2026 and September 26, 2025, respectively. The change in the respective tax rates for the three months ended September 25, 2026 compared to the three months ended September 26, 2025 primarily reflects the increase in worldwide pretax book income, changes in the geographic mix of worldwide earnings and financial results in jurisdictions which are taxed at different rates, and the impact of losses in jurisdictions with valuation allowances on deferred tax assets. The change in the respective tax rates for the nine months ended September 25, 2026 compared to the nine months ended September 26, 2025 primarily reflects the tax effects of a distribution of earnings from, and a change in ownership of, one of the Company’s foreign subsidiaries in the current year, changes in the geographic mix of worldwide earnings and financial results in jurisdictions which are taxed at different rates, and the impact of losses in jurisdictions with valuation allowances on deferred tax assets. Management continuously evaluates the need for a valuation allowance and, as of September 25, 2026, concluded that a valuation allowance on its U.S. federal, state and certain foreign deferred tax assets was still appropriate. During the nine months ended September 25, 2026, the Company recorded discrete income tax expense of $15.1 million related to a distribution of earnings from one of its China subsidiaries and $9.6 million related to a change in ownership of one of its foreign subsidiaries. As of September 25, 2026 and December 26, 2025, the Company’s gross liability for unrecognized tax benefits, excluding interest, was $9.0 million and $5.6 million, respectively. Increases or decreases to interest and penalties on uncertain tax positions are included in the income tax provision in the Condensed Consolidated Statements of Operations. Although it is possible that some of the unrecognized tax benefits could be settled within the next twelve months, the Company cannot reasonably estimate the outcome at this time. The Organization for Economic Cooperation and Development (“OECD”) reached agreement among certain member countries to implement a global minimum tax framework, commonly referred to as Pillar Two, which established a minimum 15 percent income tax rate. Pillar Two did not have a significant impact on the Company's financial statements for fiscal year 2025. This legislation is effective for the Company in additional jurisdictions beginning in fiscal 2026, most notably in Singapore and Malaysia, where the Company currently benefits from a low tax rate under certain tax incentives. The Company has accounted for the impacts of Pillar Two in its provision for income taxes for the three and nine months ended September 25, 2026. In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the U.S. The OBBBA included numerous provisions that affect corporate taxation, including changes to bonus depreciation, the expensing of domestic research costs, and modifications to certain U.S. international tax rules. Certain of the U.S. international provisions of the OBBBA became effective in the Company's fiscal 2026. The Company has analyzed the impacts of the OBBBA and reflected them in the current period. These impacts did not have a material effect on the provision for income taxes for the three and nine months ended September 25, 2026.
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