Income Taxes

9 Months Ended

Oct. 03, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Note 11 - Income Taxes

We are subject to federal and state income tax as well as income tax in the foreign jurisdictions in which we operate. For the third quarter of fiscal 2026, we recorded income tax expense of $2.6 million, and for the third quarter of fiscal 2025, we recorded an income tax benefit of approximately $3.7 million. For the first nine months of fiscal 2026 and 2025, we recorded income tax expense of approximately $5.9 million and $1.4 million, respectively. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rates for the three and nine months ended October 3, 2026 and the three and nine months ended September 27, 2025 resulted primarily from stock-based compensation expense, partially offset by foreign rate differentials and federal tax credits.

The amount of deferred tax assets that are more likely than not to be realized increased by $1.2 million related to a valuation allowance release resulting from the acquisition of AMI.

The portion of our uncertain tax positions (including penalties and interest) recorded as a liability was $1.9 million and $2.1 million at October 3, 2026 and January 3, 2026, respectively, and is included as a component of Other long-term liabilities on our Consolidated Balance Sheets.