Note 11 - Income Taxes

9 Months Ended

Sep. 27, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

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 2025, we recorded an income tax benefit of approximately $3.7 million, and for the third quarter of fiscal 2024, we recorded income tax expense of approximately $1.0 million. For the first nine months of fiscal 2025 and 2024, we recorded income tax expense of approximately $1.4 million and $5.2 million, respectively. Income taxes for the three and nine-month periods ended September 27, 2025 and September 28, 2024 represent tax at the federal, state, and foreign statutory tax rates in addition to federal tax credits, stock-based compensation and other non-deductible items in federal, state, and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rates for the three and nine months ended September 27, 2025 and the three and nine months ended September 28, 2024 was driven by stock-based compensation, partially offset by certain discrete items in the period.

The portion of our uncertain tax positions (including penalties and interest) recorded as a liability was $2.6 million and $2.5 million at September 27, 2025 and December 28, 2024, respectively, and is included as a component of Other long-term liabilities on our Consolidated Balance Sheets. The resolution of audits or expiration of statute of limitations could reduce our uncertain tax positions.

On  July 4, 2025, the United States enacted tax legislation (the “Tax Act”). The Tax Act 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. The impacts of provisions effective in 2025 have been incorporated into the income tax provision in the third quarter and first nine months of fiscal 2025 and did not have a material impact on our effective tax rate.