Income Taxes

9 Months Ended

Sep. 28, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the quarter and year-to-date period ended September 28, 2025, the Company’s effective tax rate was 21.4% and 20.4%, respectively, resulting in an income tax provision of $31.0 million and $81.3 million, respectively. For the quarter and year-to-date period ended September 29, 2024, the Company’s effective tax rate was 24.6% and 22.7%, respectively, resulting in an income tax provision of $28.3 million and $70.5 million, respectively. The effective tax rate for the quarter ended September 28, 2025 included discrete tax expense of $2.8 million, primarily related to return-to-provision adjustments for limitations of permanent benefits due to decreased taxable income, and the effective tax rate for the year-to-date period ended September 28, 2025 included discrete tax benefits of $1.7 million, primarily for share-based compensation. Excluding discrete tax impacts, the Company’s effective tax rate for the quarter and year-to-date period ended September 28, 2025 was 19.5% and 20.8%, respectively. The effective tax rate for the quarter ended September 29, 2024 included discrete tax expense of $0.2 million and the effective tax rate for the year-to-date period ended September 29, 2024 included discrete tax benefits of $4.5 million. Excluding discrete tax impacts, the Company’s effective tax rate for the quarter and year-to-date period ended September 29, 2024 was 24.5% and 24.1%, respectively.

On July 4, 2025, the One Big Beautiful Bill Act, which includes permanent extensions of most expiring Tax Cuts and Jobs Act provisions and international tax changes, was enacted. Pursuant to ASC 740, Income Taxes, the effects of changes in tax law are recognized in the period of enactment, the impact of which are not material and are reflected in the Company’s effective tax rate in the quarter. The Company anticipates that the impacts related to the tax law changes will be favorable to future years’ cash tax payments due to changes in bonus depreciation, domestic research expensing and certain international provisions.