INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2026

Income Tax Disclosure [Abstract]

Schedule of Consolidated Income Before Income Taxes

Consolidated earnings before income taxes consists of the following:

	Year Ended
	2025		2024		2023
United States	$	(56,248)	$	(35,274)	$	(19,988)
Foreign	97,775		111,625		122,441
Total earnings before income taxes	$	41,527	$	76,351	$	102,453

Schedule of Income Tax Expense (Benefit) Included in Income From Continuing Operations

Income tax expense (benefit) included in income from continuing operations consists of the following:

	Year Ended
	2025		2024		2023
Current
Federal	$	—	$	—	$	(42)
State	855		330		469
Foreign	36,331		40,699		40,913
Total current	37,186		41,029		41,340
Deferred
Federal	(6,853)		(6,803)		(4,031)
State	(628)		(100)		(59)
Foreign	345		165		1,415
Total deferred	(7,136)		(6,738)		(2,675)
	$	30,050	$	34,291	$	38,665

Schedule of Effective Income Tax Rate

The effective tax rate for 2024 and 2023 reconciled to the statutory U.S. federal tax rate is as follows:

	Year Ended
		2024		2023
Statutory U.S. federal income tax rate		21.0	%	21.0	%
State income taxes, net of federal tax benefit		0.5		0.5
Permanent tax differences		0.9		0.7
Excess foreign tax credits		(26.3)		(16.4)
Net increase in valuation allowance		24.4		13.0
Foreign income tax rate differences		15.2		8.7
Foreign withholding taxes		12.3		10.6
Uncertain tax position reserve		0.6		(0.4)
Change in U.S. tax laws		(2.6)		—
All other, net		(1.0)		—
		44.9	%	37.7	%

The effective tax rate for 2025 is disaggregated and reconciled to the statutory U.S. federal tax rate according to the new requirements of ASU 2023-09 as follows:

	Year Ended
	2025
	Amount		Percent
U.S. federal statutory tax rate	$	8,721	21.0%
State and local income taxes, net of federal income tax effect(1)	684		1.6%
Foreign tax effects
China
Statutory income tax rate difference	3,635		8.8%
Withholding taxes	8,293		20.0%
Other	577		1.4%
India
Changes in valuation allowances	469		1.1%
Other	(39)		(0.1)%
Other foreign jurisdictions	1,303		3.1%
Effects of cross-border tax laws
U.S. taxation of foreign disregarded entities	20,692		49.8%
Tax credits
Foreign tax credits	(37,651)		(90.6)%
Changes in valuation allowances	21,487		51.7%
Nontaxable and nondeductible items
Share-based payment awards	1,375		3.3%
Non-deductible compensation	513		1.2%
Other	(554)		(1.2)%
Changes in unrecognized tax benefits	545		1.3%
Effective tax rate	$	30,050	72.4%

______________________________

(1)State and local taxes in New York and California comprise the majority (greater than 50%) of the tax effect in this category.

Schedule of Cash Flow, Supplemental Disclosures

Income taxes paid (net of refunds received) for 2025 were as follows:

	Year Ended
	2025
U.S. federal	$	—
U.S. state and local	683
Foreign
China	32,800
All other foreign	3,697
	36,497
Total	$	37,180

Schedule of Deferred Taxes

The significant categories of deferred taxes are as follows:

	January 3, 2026		December 28, 2024
Deferred tax assets
Inventory	$	6,222	$	4,749
Accruals not currently deductible	6,543		6,869
Equity-based compensation	2,304		2,438
Depreciation and amortization	834		777
Intangible assets	6,436		6,162
Foreign currency translation	1,713		2,066
Capitalized R&D expenses	18,163		16,450
Tax credit carry forwards	173,927		152,951
Net operating losses	2,770		2,348
Other	5,654		5,343
Gross deferred tax assets	224,566		200,153
Valuation allowance	(178,670)		(156,669)
Net deferred tax assets	45,896		43,484
Deferred tax liabilities
Depreciation and amortization	(4,972)		(6,653)
Prepaid expenses	(1,587)		(1,992)
Intangible assets	(6,436)		(6,162)
Withholding tax on unremitted earnings	(7,868)		(9,899)
Other	(2,716)		(3,207)
Gross deferred tax liabilities	(23,579)		(27,913)
Net deferred taxes	$	22,317	$	15,571

The components of net deferred taxes are as follows:

	January 3, 2026		December 28, 2024
Net noncurrent deferred tax assets	$	27,209	$	19,644
Net noncurrent deferred tax liabilities	(4,892)		(4,073)
Net deferred taxes	$	22,317	$	15,571

Schedule of Unrecognized Tax Benefits Reconciliation

The following reconciliation provides the changes in unrecognized tax benefits for the years presented:

	Year Ended
	2025		2024		2023
Beginning balance of unrecognized tax benefits	$	1,187	$	1,074	$	1,450
Increases related to prior year tax positions	—		43		30
Decreases related to prior year tax positions	(26)		(69)		(363)
Increases related to current year tax positions	384		139		409
Decreases for settlements with taxing authorities	—		—		(452)
Ending balance of unrecognized tax benefits	$	1,545	$	1,187	$	1,074