Income Taxes

6 Months Ended

Jun. 28, 2025

Income Tax Disclosure [Abstract]

Income Taxes

11. INCOME TAXES

The effective income tax rate for the fiscal quarter and two fiscal quarters ended June 28, 2025 was 24.3% and 9.5%, respectively, compared to 3.2% and 15.2%, respectively, for the fiscal quarter and two fiscal quarters ended June 29, 2024. The differences between the U.S. federal statutory income tax rate and the Company’s effective income tax rates for the fiscal quarter ended June 28, 2025 and the fiscal quarter ended June 29, 2024 were primarily attributable to the discrete impact of stock-based compensation expense for which there is no associated tax benefit and the effects of branch accounting for Latham Canada.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the 2017 Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing OBBBA’s impact on its consolidated financial statements.