Income Taxes |
9 Months Ended |
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Sep. 26, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | ASC 740 requires companies to apply their estimated annual effective tax rate on a year-to-date basis in each interim period. These rates are derived, in part, from expected annual pre-tax income or loss. In the thirteen and thirty-nine weeks ended September 26, 2026, the Company applied an estimated annual effective tax rate based on expected annual pre-tax income to the interim period pre-tax income to calculate the income tax expense. For the thirteen and thirty-nine weeks ended September 26, 2026, the effective income tax rate was 37.4% and 29.5%, respectively. The Company recorded an income tax provision for the thirteen and thirty-nine weeks ended September 26, 2026 of $3,755 and $9,467, respectively. The difference between the expected statutory tax rate and the effective tax rate for the thirteen and thirty-nine weeks ended September 26, 2026 was the result of non-deductible expenses and state and foreign income taxes, partially offset by the non-taxable gain on the acquisition of Campbell Chain and Fittings. The increase in the effective tax rate during the quarter was primarily due to a decrease in forecasted pre-tax income, which increased the relative impact of non-deductible expenses and state and foreign income taxes on the estimated annual effective tax rate. For the thirteen and thirty-nine weeks ended September 27, 2025, the effective income tax rate was 25.7% and 27.4%, respectively. The Company recorded an income tax provision for the thirteen and thirty-nine weeks ended September 27, 2025 of $8,020 and $14,579, respectively. The effective tax rate for the thirteen and thirty-nine weeks ended September 27, 2025 was the result of certain non-deductible expenses and state and foreign income taxes. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including, among others, making 100% bonus depreciation permanent, allowing for the expensing of domestic research costs, and modifying the business interest expense limitation calculation. These changes were incorporated into our income tax provision for the thirteen and thirty-nine weeks ended September 26, 2026. Although we do not expect the OBBBA to have a material impact on our effective tax rate, we do expect favorable changes to the timing of cash tax payments in the current fiscal year and future periods.
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