Income Taxes (Tables)

12 Months Ended

Dec. 26, 2025

Income before provision for income taxes was generated from the following geographic areas:

The provision for income taxes consisted of the following:

The effective tax rate differs from the U.S. federal statutory tax rate as follows:


	Year Ended
	December 26, 2025
Tax provision at the U.S. federal statutory rate	$	(30.6)	21.0	%
State and local income taxes, net of federal (national) income tax effect (1)	(1.3)		0.9	%
Foreign tax effects
China
Withholding tax	4.9		(3.4)	%
Other	(0.4)		0.2	%
Czech Republic
Foreign exchange gain/(loss)	(2.3)		1.6	%
Other	0.4		(0.3)	%
Israel
Statutory tax rate difference between Israel and U.S.	(1.9)		1.3	%
Tax incentive rate	3.0		(2.1)	%
Goodwill impairment	17.9		(12.3)	%
Other	(1.0)		0.7	%
Malaysia
Malaysia Pioneer tax holiday incentive	2.1		(1.4)	%
Deferred tax true up	1.8		(1.2)	%
Change in valuation allowance	(1.8)		1.2	%
Singapore
Statutory tax rate difference between Singapore and U.S.	(2.0)		1.4	%
Development and expansion incentive tax rate	(2.2)		1.5	%
Other	0.7		(0.5)	%
Other foreign jurisdictions	1.4		(1.0)	%
Effect of cross-border tax laws
Global intangible low-taxed income	13.6		(9.3)	%
Subpart F income	2.2		(1.5)	%
Other	0.5		(0.3)	%
Tax credits
R&D tax credit	(1.1)		0.8	%
Changes in valuation allowances	10.7		(7.4)	%
Non-taxable or non-deductible items
Equity Compensation	1.7		(1.2)	%
Goodwill impairment	3.8		(2.6)	%
Other	1.0		(0.7)	%
Changes in unrecognized tax benefits	4.4		(3.0)	%
Other Adjustments	0.4		(0.2)	%
Effective Tax Rate	$	25.9	(17.8)	%

(1) California makes up the majority (greater than 50 percent) of the state income tax expense.


	Year Ended
	December 27, 2024		December 29, 2023
Federal income tax provision at statutory rate	21.0	%	21.0	%
State income taxes, net of federal benefit	(8.1)	%	48.5	%
Effect of foreign operations	(11.0)	%	21.5	%
Change in valuation allowance	37.4	%	(34.0)	%
Foreign income inclusions	18.9	%	(141.2)	%
Nondeductible executive compensation	1.4	%	(7.0)	%
Stock-based compensation	(0.5)	%	(3.7)	%
Acquisition related expenses	(9.1)	%	(8.0)
Tax credits	(0.7)	%	6.2	%
Tax reserves	(1.5)	%	(0.1)	%
Other	0.9	%	0.3	%
Effective Tax Rate	48.7	%	(96.5)	%

Income taxes paid are as follows ($ in millions):


	Year Ended
(In millions)	December 26, 2025
Federal	$	1.4
State	0.5
Foreign
Czech Republic	11.6
China	14.0
Singapore	5.6
Korea	4.6
Israel	2.6
Foreign other	1.7
Total cash tax paid for income taxes (net of refunds)	$	42.0

Significant components of deferred tax assets and liabilities are as follows:


	Year Ended
(In millions)	December 26, 2025		December 27, 2024
Deferred tax assets:
Interest expense limitation	$	44.8	$	39.5
Operating lease liabilities	27.7		28.3
Tax loss carryforwards	39.5		40.4
Capitalized research and development costs	9.1		12.5
Inventory valuation and basis difference	6.8		7.4
Accruals	4.2		4.6
Tax credits	7.5		6.5
Other timing differences	6.2		8.2
	145.8		147.4
Valuation allowance	(104.2)		(96.3)
Total deferred tax assets	41.6		51.1
Deferred tax liabilities:
Goodwill	(10.1)		(21.7)
Operating lease right-of-use assets	(25.4)		(27.2)
Intangibles	(7.6)		(9.6)
Depreciation	(6.6)		(3.6)
Other	(2.2)		(2.0)
Total deferred tax liabilities	(51.9)		(64.1)
Net deferred tax liabilities	$	(10.3)	$	(13.0)

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions):


Balance as of December 31, 2022	$	2.7
Increases related to current year tax positions	0.3
Settlements	(0.1)
Balance at December 29, 2023	$	2.9
Increases related to prior year tax positions	0.1
Increases related to current year tax positions	0.5
Reduction due to lapse statute of limitations	(1.2)
Balance at December 27, 2024	$	2.3
Increases related to prior year tax positions	3.7
Increases related to current year tax positions	0.6
Settlements	(1.0)
Balance at December 26, 2025	$	5.6