INCOME TAXES (Tables)

12 Months Ended

Dec. 28, 2024

Schedule of Components of Income Before Income Taxes

The components of income before income taxes were as follows for the periods indicated (in thousands):


	Fiscal Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Domestic	$	219,941	$	215,490	$	107,578
Foreign	12,907		10,456		8,599
Income before income taxes	$	232,848	$	225,946	$	116,177

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense were as follows for the periods indicated (in thousands):


	Fiscal Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Current tax expense:
U.S. federal	$	51,532	$	21,139	$	43,967
State	12,976		7,659		11,761
Foreign	3,844		1,936		3,372
Total current tax expense	68,352		30,734		59,100
Deferred tax expense (benefit):
U.S. federal	(9,700)		20,136		(26,783)
State	(1,333)		4,230		(4,499)
Foreign	(160)		961		(1,334)
Total deferred tax expense (benefit)	(11,193)		25,327		(32,616)
Total income tax expense	$	57,159	$	56,061	$	26,484

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the effective income tax rate is as follows for the periods indicated (in thousands):


	Fiscal Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Income taxes at the statutory rate	$	48,898	$	47,449	$	24,397
Increase (decrease) resulting from:
State income taxes, net of federal tax effect	10,170		8,532		4,454

Foreign-derived intangible income	(4,166)		(3,192)		(2,878)
Research and development tax credits	(1,751)		(681)		(742)

Tax expense (benefit) related to stock-based compensation	1,054		713		(472)



Other	2,954		3,240		1,725
Income tax expense	$	57,159	$	56,061	$	26,484

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands):


	Fiscal Year Ended
	December 28, 2024		December 30, 2023
Deferred tax assets:
Accrued liabilities	$	8,986	$	7,688
Allowances and other reserves	3,819		3,450
Inventory	3,563		2,974
Stock-based compensation	6,929		5,857
Operating lease liabilities	22,704		22,280


Capitalized research and development expenditures	13,407		9,276
Other	4,916		2,647
Total deferred tax assets	$	64,324	$	54,172
Deferred tax liabilities:
Operating lease assets	$	(19,022)	$	(19,047)
Prepaid expenses	(32)		(1,279)
Property and equipment	(8,227)		(11,469)
Intangible assets	(28,249)		(24,645)
Other	(40)		(60)
Total deferred tax liabilities	(55,570)		(56,500)
Net deferred tax liabilities	$	8,754	$	(2,328)
Amounts included in the Consolidated Balance Sheets:
Deferred income taxes	$	9,060	$	1,692
Other liabilities	(306)		(4,020)
Net deferred income tax liabilities	$	8,754	$	(2,328)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands):


	Fiscal Year Ended
	December 28, 2024		December 30, 2023
Balance, beginning of year	$	14,336	$	12,591
Gross increases related to current year tax positions	2,924		1,318
Gross increases related to prior year tax positions	896		1,060
Gross decreases related to prior year tax positions	(17)		(141)
Decreases as a result of settlements during the current period	(9)		—
Lapse of statute of limitations	(1,273)		(492)

Balance, end of year	$	16,857	$	14,336