Income Taxes (Tables)

12 Months Ended

Dec. 27, 2025

Schedule of components of income tax expense (benefit)

Domestic and foreign income (loss) before income taxes is as follows:


(in thousands)	2025		2024		2023
Domestic	$	(94,209)	$	3,151	$	40,571
Foreign	97,816		148,712		288,027
Income before income taxes	$	3,607	$	151,863	$	328,598

Federal, state, and foreign income tax expense (benefit) consists of the following:


(in thousands)	2025		2024		2023
Current:
Federal	$	3,875	$	(5,881)	$	8,188
State	3,449		1,826		2,880
Foreign	64,644		58,551		57,999
Subtotal	$	71,968	$	54,496	$	69,067
Deferred:
Federal (including State for 2024 and 2023)	$	1,304	$	4,091	$	1,751
State	$	(2,070)	$	—	$	—
Foreign	4,105		(6,914)		(1,705)
Subtotal	$	3,339	$	(2,823)	$	46
Provision for income taxes	$	75,307	$	51,673	$	69,113

Schedule of effective income tax rate reconciliation

As described above, the Company elected to prospectively adopt the guidance in ASU 2023-09. In accordance with the guidance in ASU 2023-09, for the ear ended December 27, 2025, a reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:


(in thousands)		2025		ETR%
Tax expense at statutory rate of 21%		$	757	21.0	%

Effect of Cross-Border Tax Laws:	US Tax on Non-US income (GILTI)	4,738		131.4	%
	US Tax on Non-US income (Subpart F)	6,760		187.4	%
	Other	(2,503)		(69.4)	%

Tax Credits:	Foreign Tax Credits	(4,301)		(119.2)	%
	Other	(1,106)		(30.7)	%

Nontaxable or Non-deductible items:	Non-deductible goodwill impairment	23,028		638.4	%
	Non-deductible expenses	3,378		93.7	%
	Other	397		11.0	%
Valuation Allowance		409		11.3	%
Other		138		3.8	%
State Taxes, Net of Federal Tax Effect (a)		1,089		30.2	%
Foreign Tax Effects:

China	Withholding Taxes	6,129		169.9	%
	Other	(2,895)		(80.2)	%

Germany	Non-U.S. income tax rate differential	10,079		279.4	%
	Non-deductible goodwill impairment	17,031		472.2	%
	Valuation allowance	26,839		744.1	%
	German Trade Tax	(13,740)		(380.9)	%
	Other	(674)		(18.7)	%

Korea	Withholding Taxes	4,752		131.7	%
	Other	611		17.0	%

Mexico	Non-U.S. income tax rate differential (b)	(4,604)		(127.6)	%

Netherlands	Valuation allowance	6,990		193.8	%
	Other	(462)		(12.8)	%

Philippines	Non-U.S. income tax rate differential (c)	(4,659)		(129.2)	%
	Withholding Taxes	4,712		130.6	%
	Other	288		8.1	%

Singapore	Non-U.S. income tax rate differential	(3,906)		(108.3)	%
	Nontaxable Income	(5,100)		(141.4)	%
	Other	(346)		(9.6)	%

United Kingdom	Non-deductible goodwill impairment	7,018		194.6	%
	Other	57		1.5	%
Other Foreign Jurisdictions		230		6.2	%
Worldwide Changes in Unrecognized Tax Benefits		(5,827)		(161.5)	%
Provision for income taxes		75,307		2,087.8	%

(a) In 2025, state and local income taxes in Illinois and Minnesota comprise the majority of the state and local income taxes, net of federal effect category.

(b) The Company operates certain manufacturing activities in Mexico under a Maquiladora structure. The non-U.S. income tax rate differential represents the tax benefits associated with the Maquiladora safe harbor as defined under Mexican tax law.

(c) The Company conducts certain operations in the Philippines under the Philippine Economic Zone Authority ("PEZA") regime. The non-U.S. income tax rate differential represents the preferential tax rate benefits associated with the PEZA regime as defined under Philippines tax law.

For the years 2024 and 2023, in accordance with the guidance in effect prior to ASU 2023-09, a reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:


(in thousands)	2024		2023
Tax expense at statutory rate of 21%	$	31,891	$	69,006
Non-U.S. income tax rate differential	(1,130)		(25,623)
Non-U.S. losses and expenses with no tax benefit	9,401		11,261
Tax on unremitted earnings	6,616		6,394
Non-deductible goodwill impairment	5,810		—
Net impact associated with U.S. tax on non-U.S. income, including GILTI	5,809		4,739
State and local taxes, net of federal tax benefit	2,533		1,503
Certain changes in unrecognized tax benefits and related accrued interest	(8,692)		(172)

Other, net	(565)		2,005
Provision for income taxes	$	51,673	$	69,113

Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 27, 2025 and December 28, 2024, were as follows:


(in thousands)	2025		2024
Deferred tax assets:
Net operating loss carryforwards	$	66,851	$	46,263
Interest expense carryforwards	47,581		34,800
Accrued expenses and reserves	42,154		32,336
Lease liabilities	16,559		13,016
Excess of tax basis over the book basis for intangible assets and goodwill	16,016		—
Capitalized expenses	11,032		18,939
U.S. foreign tax credit carryforwards	3,772		3,490
U.S. research and other general business tax credit carryforwards	1,222		1,252
Other	—		196
Deferred tax assets	205,187		150,292
Less: Valuation allowance	(97,557)		(55,468)
Total deferred tax assets	107,630		94,824

Deferred tax liabilities:
Excess of book basis over the tax basis for intangible assets and goodwill	134,666		133,701
Excess of book basis over the tax basis for property, plant, and equipment	34,448		24,238
Right of use lease assets	17,289		12,906
Tax on unremitted earnings	16,311		14,612
Other	1,996		—
Total deferred tax liabilities	204,710		185,457
Net deferred tax liabilities	$	97,080	$	90,633

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 27, 2025, December 28, 2024, and December 30, 2023 is as follows:


(in thousands)	Unrecognized Tax Benefits
Balance at December 30, 2023	$	31,449

Additions for tax positions taken in the current year	1,251
Additions for tax positions taken in the prior year	375
Decreases for lapses in statute of limitations	(7,650)

Other	574
Balance at December 28, 2024	$	25,999

Additions for tax positions taken in the current year	1,695
Additions for tax positions taken in the prior year	170
Decreases for lapses in statute of limitations	(5,850)
Decreases for settlements	(563)
Other	4,356
Balance at December 27, 2025	$	25,807

Schedule of Cash Flow, Supplemental Disclosures

In accordance with the guidance in ASU 2023-09, for the year ended December 27, 2025, a summary of income taxes paid net of refunds by jurisdiction is provided below:


Jurisdiction	2025
Federal	$	10,154

State	1,792

Foreign
China	25,016
Singapore	12,581
Philippines	8,141
Mexico	5,961
Korea	5,853

Other	$	12,103

Total income taxes paid net of refunds received	$	81,601