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INCOME TAXES
 9 Months Ended
Oct. 03, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company’s income tax provision and effective tax rates for the fiscal periods indicated were as follows:
Fiscal quarter endedThree fiscal quarters ended
(dollars in thousands)October 3, 2026September 27, 2025October 3, 2026September 27, 2025
Income tax provision$11,801 $3,241 $49,009 $10,308 
Effective income tax rate24.4 %21.8 %23.9 %27.2 %
The Company’s effective income tax rate was 24.4% for the third fiscal quarter ended October 3, 2026, compared to 21.8% for the third fiscal quarter ended September 27, 2025. The increase in the effective tax rate for the period was driven by a higher estimated annual effective tax rate, reflecting a larger proportion of income generated in higher tax jurisdictions, including income from IEEPA tariff refunds in the U.S., and net unfavorable discrete tax items compared to the prior-year period.
The Company’s effective income tax rate was 23.9% for the first three fiscal quarters ended October 3, 2026, compared to 27.2% for the first three fiscal quarters ended September 27, 2025. The decrease in the effective tax rate was driven by discrete tax items recognized in the prior-year period, including incremental tax expense related to expiring stock-based compensation, which had a disproportionate impact on that period’s rate given its lower level of pre-tax income. This was partially offset by a higher estimated annual effective tax rate, reflecting a larger proportion of income generated in higher tax jurisdictions.
As of October 3, 2026, the Company had gross unrecognized income tax benefits of $6.2 million, of which $5.2 million, if ultimately recognized, may affect the Company’s effective income tax rate in the periods settled. The Company has recorded tax positions for which the ultimate deductibility is more likely than not, but for which there is uncertainty about the timing of such deductions.