Income Taxes |
9 Months Ended |
|---|---|
Sep. 26, 2026 | |
| Income Taxes | |
| Income Taxes | Note 5—Income Taxes We recorded income tax benefit of $44.0 million and $44.0 million for the three and nine months ended September 26, 2026, respectively. We recorded no income tax provision for the three and nine months ended September 27, 2025. Our effective tax rate was (85.4)% and (85.4)% for the three and nine months ended September 26, 2026, respectively, and 0% for the three and nine months ended September 27, 2025. The effective tax rate for the 2026 periods differs from the U.S. statutory rate of 21% primarily due to the discrete benefit from the release of valuation allowance described below. During the third quarter of 2026, we released $56.5 million of its valuation allowance on federal and state deferred tax assets. Of this amount, $48.6 million was recognized as a discrete benefit resulting from a change in judgment about the realizability of beginning-of-year deferred tax assets. The remaining $7.9 million is reflected in the estimated annual effective tax rate. Management based this conclusion on all available positive and negative evidence, including cumulative income in recent years and projected future taxable income, and concluded it is more likely than not that these deferred tax assets will be realized. As of September 26, 2026, we maintained a valuation allowance of $23.0 million, primarily against federal net operating loss carryforwards expected to be utilized against projected 2026 taxable income and foreign tax credits that are not expected to be utilized due to limitation. The remainder relates to certain state and China deferred tax assets. We will continue to evaluate the realizability of its deferred tax assets in future periods. |