Income Taxes |
9 Months Ended |
|---|---|
Oct. 03, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 14. INCOME TAXES The Company’s effective tax rates were 8.8% and 26.7% for the three months ended October 3, 2026 and September 27, 2025, respectively, and 2.7% and 27.2% for the nine months ended October 3, 2026 and September 27, 2025, respectively. The Company was in an overall tax benefit position for both the three and nine months ended October 3, 2026. Compared to the statutory rate, the reduction in the effective tax rate for the three months ended October 3, 2026 was primarily due to nondeductible goodwill impairment during the third quarter, combined with the relative impact of recurring nondeductible expenses which had a proportionally greater impact on the effective tax rate when applied to the loss before income taxes for the three months ended October 3, 2026. Additionally, the effective tax rate for the nine months ended October 3, 2026, was impacted by the nondeductible goodwill impairment during the first and third quarters of the fiscal year ending January 2, 2027. The Company's interim tax provision is calculated using the estimated annual effective tax rate applied to year-to-date pre-tax activity, adjusted for discrete items recognized in the period. The Company considers all available positive and negative evidence when assessing the carrying amount of its deferred tax assets. Evidence includes the anticipated impact on future taxable income arising from the reversal of temporary differences, actual operating results for the trailing twelve quarters, the ongoing assessment of financial performance, and available tax planning strategies, if any, that management considers prudent and feasible. No valuation allowance was required as of October 3, 2026 and January 3, 2026. The Company will continue to reassess the carrying amount of its deferred tax assets. The Company is subject to taxation in the United States, including various state and local jurisdictions. The Company is no longer subject to examination by tax authorities for years before 2022. |