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Income Taxes (Tables)

12 Months Ended

Dec. 28, 2025

Income before income taxes consisted of the following:


	Fiscal Year
	2025		2024		2023
	(in thousands)
U.S. operations	$	64,601	$	37,060	$	3,611
Foreign operations	72,250		76,494		60,043
Income before income taxes	$	136,851	$	113,554	$	63,654

Schedule of Provisions for Federal, Foreign and State Income Taxes

Provisions for federal, foreign and state income taxes in the consolidated statements of operations consisted of the following components:


	Fiscal Year
	2025		2024		2023
	(in thousands)
Current expense:
Federal	$	7,209	$	7,599	$	5,523
Foreign	23,235		20,982		18,330
State	2,843		2,481		2,167
Current expense	33,287		31,062		26,020

Deferred (benefit) expense:
Federal	182		(3,279)		(4,810)
Foreign	(12,846)		(841)		(1,212)
State	130		(334)		(861)
Deferred benefit	(12,534)		(4,454)		(6,883)

Total income tax expense	$	20,753	$	26,608	$	19,137

Schedule of Effective Income Tax Rate Reconciliation

We adopted ASU 2023-09 on a prospective basis beginning with fiscal year 2025. The following table reconciles the U.S. federal statutory rate of 21% to our effective income tax rate for fiscal year 2025 in accordance with ASU 2023-09:


	Fiscal Year
	2025
	(in thousands)
	Amount		Percent
Income taxes at U.S. federal statutory rate	$	28,739	21.0	%
State and local income taxes, net of federal income tax effect (1)	2,369		1.7	%
Foreign Tax Effects
Germany
Statutory tax rate difference between Germany and U.S.	(1,651)		(1.2)	%
Trade tax	5,974		4.4	%
Enacted changes in tax laws or rates	(6,331)		(4.6)	%
Remeasurement of deferred tax liability	(4,048)		(3.0)	%
Other	(1,207)		(0.9)	%
Other foreign jurisdictions	2,521		1.9	%
Effect of Cross-Border Tax Laws
Other	(1,506)		(1.1)	%
Tax credits
Other	(887)		(0.6)	%
Nontaxable or non-deductible items
Non-deductible employee compensation	1,823		1.3	%
Other	(1,383)		(1.0)	%
Changes in valuation allowances	(3,693)		(2.7)	%
Changes in unrecognized tax benefits	33		—	%
Income tax expense and effective tax rate	$	20,753	15.2	%

(1) State taxes in California, Georgia, Massachusetts, Minnesota, New Jersey, and New York comprise the majority (greater than 50 percent) of the tax effect in this category.

The following table reconciles the U.S. federal statutory income tax rate of 21% to our effective income tax rate for fiscal years 2024 and 2023 based on the required disclosure prior to our adoption of ASU 2023-09:


	Fiscal Year
	2024		2023
	(in thousands)
Income taxes at U.S. federal statutory rate	$	23,846	$	13,367
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax effect	2,319		(432)
Non-deductible business expenses	940		747
Non-deductible employee compensation	1,587		1,681
Tax effects of Company-owned life insurance	(576)		(587)
Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested	443		779
Foreign and U.S. tax effects attributable to foreign operations	4,532		1,537
Expiring tax attributes	4,125		3,780
Valuation allowance effect	(7,330)		(879)
Research and development tax credits	(703)		(820)
Foreign tax rate change related to UK pension	(2,493)		—
Unrecognized tax benefits	(135)		(79)
Other	53		43
Income tax expense	$	26,608	$	19,137

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:


	End of Fiscal Year
	2025		2024
	(in thousands)
Deferred tax assets
Lease liability	$	22,504	$	22,329
Net operating loss and interest carryforwards	5,091		7,964
Federal tax credit carryforwards	2,131		4,036
Deferred compensation	17,314		16,521
Pensions	4,155		4,982
Property and equipment	658		438
Inventory	2,516		3,121
Prepaids, accruals and reserves	10,493		9,235
Capitalized costs	11,727		10,327
Deferred tax assets, gross	76,589		78,953
Valuation allowance	(5,235)		(10,028)
Deferred tax assets, net	$	71,354	$	68,925

Deferred tax liabilities
Property and equipment	$	27,283	$	24,899
Inventory	3,152		4,014
Intangible assets	12,823		20,970
Lease asset	20,983		20,887
Pensions	3,694		3,866
Foreign currency	667		556
Foreign withholding and U.S. state taxes on unremitted earnings	681		773
Other	164		158
Deferred tax liabilities	69,447		76,123

Net deferred tax assets (liabilities)	$	1,907	$	(7,198)

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows:


	Fiscal Year
	2025		2024		2023
	(in thousands)
Balance at beginning of year	$	4,351	$	4,532	$	5,352
Increases related to tax positions taken during the current year	323		316		320
Increases related to tax positions taken during the prior years	55		—		19
Decreases related to tax positions taken during the prior years	(142)		(208)		(30)
Decreases related to lapse of applicable statute of limitations	(249)		(289)		(1,142)
Changes due to foreign currency translation	6		—		13
Balance at end of year	$	4,344	$	4,351	$	4,532

Income taxes paid, jurisdiction

Income taxes paid (net of refunds) consisted of the following:


	Fiscal Year
	2025
	(in thousands)
Federal	$	9,118
Foreign:
Germany	11,538
Netherlands	5,546
China	2,069
Other Foreign	5,684
State and local	3,384
Total Income taxes paid, net of refunds	$	37,339

Income tax payments amounted to approximately $37.8 million and $25.8 million for the years 2024 and 2023, respectively. During the years 2024 and 2023, the Company received income tax refunds of $3.3 million and $2.5 million, respectively.

Disaggregated income taxes paid by material jurisdictions