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v3.25.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 27, 2025
Income Tax Disclosure [Abstract] |
Components of Income Before Income Taxes | The components of Income before income taxes was as follows:
(In millions) |  |  | 2025 |  |  |  | 2024 |  |  | 2023 |
Domestic operations |  |  | $ | 330.2 |  |  |  | $ | 518.8 |  |  | $ | 418.1 |
Foreign operations |  |  |  | 74.8 |  |  |  |  | 86.7 |  |  |  | 99.8 |
Income before income taxes |  |  | $ | 405.0 |  |  |  | $ | 605.5 |  |  | $ | 517.9 |
Summary of Income Tax Expense | Income tax expense in the Consolidated Statement of Income consisted of the following:
(In millions) |  |  | 2025 |  |  |  | 2024 |  |  | 2023 |
Current |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | $ | 25.0 |  |  |  | $ | 97.3 |  |  | $ | 86.9 |
Foreign |  |  |  | 37.0 |  |  |  |  | 20.7 |  |  |  | 38.3 |
State and other |  |  |  | 10.4 |  |  |  |  | 15.6 |  |  |  | 15.2 |
Deferred |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  | 35.2 |  |  |  |  | 1.4 |  |  |  | (21.2 | )
Foreign |  |  |  | (4.6 | ) |  |  |  | 0.2 |  |  |  | (3.5 | )
State and Local |  |  |  | 3.2 |  |  |  |  | (1.6 | ) |  |  | (3.3 | )
Total income tax expense |  |  | $ | 106.2 |  |  |  | $ | 133.6 |  |  | $ | 112.4 |
Reconciliation Between Federal Statutory Tax Rate to Effective Tax Rate from Continuing Operations | The following table is the required disclosure pursuant to ASU 2023-09 and is a reconciliation between the federal statutory tax rate and the effective tax rate.
(In millions) |  |  | 2025 |
|  |  | Amount |  |  | Percentage |
U.S. federal statutory tax rate |  |  | $ | 85.1 |  |  |  | 21.0 | %
State and local income taxes, net of federal effect (1) |  |  |  | 16.5 |  |  |  | 4.1 |
Foreign Tax Effects |  |  |  |  |  |  |
China withholding tax |  |  |  | 11.4 |  |  |  | 2.8 |
Other foreign jurisdictions |  |  |  | 3.9 |  |  |  | 1.0 |
Effects of cross-border tax laws |  |  |  | (6.1 | ) |  |  | (1.5 | )
Tax credits |  |  |  | (2.7 | ) |  |  | (0.7 | )
Valuation allowance increase |  |  |  | 1.3 |  |  |  | 0.3 |
Nontaxable or nondeductible items |  |  |  | 4.3 |  |  |  | 1.1 |
Changes in unrecognized tax benefits |  |  |  | (6.1 | ) |  |  | (1.5 | )
Other |  |  |  | (1.4 | ) |  |  | (0.4 | )
Income tax expense as reported |  |  | $ | 106.2 |  |  |  | 26.2 | %
(1) State taxes in California, Pennsylvania, Florida, Texas, and Wisconsin made up the majority (greater than 50%) of the Company’s State and local income taxes. The following table is the required reconciliation between the federal statutory tax rate and the effective tax rate prior to the adoption of ASU 2023-09.
(In millions) |  |  | 2024 |  |  | 2023 |
Income tax expense computed at federal statutory income tax rate |  |  | $ | 127.2 |  |  | $ | 108.8 |
State and local income taxes, net of federal tax benefit |  |  |  | 18.9 |  |  |  | 13.2 |
Foreign taxes at a different rate than U.S. federal statutory income tax rate |  |  |  | 4.6 |  |  |  | 5.2 |
Net adjustments for uncertain tax positions |  |  |  | (4.7 | ) |  |  | (8.0 | )
Share-based compensation |  |  |  | (2.0 | ) |  |  | (1.3 | )
Valuation allowance (decrease) increase |  |  |  | (7.8 | ) |  |  | 1.7 |
Non-deductible executive compensation |  |  |  | 3.9 |  |  |  | 3.5 |
Research and development credit |  |  |  | (4.4 | ) |  |  | (5.1 | )
Miscellaneous other, net |  |  |  | (2.1 | ) |  |  | (5.6 | )
Income tax expense as reported |  |  | $ | 133.6 |  |  | $ | 112.4 |
Effective income tax rate |  |  |  | 22.1 | % |  |  | 21.7 | %
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) is as follows:
(In millions) |  |  | 2025 |  |  |  | 2024 |  |  | 2023 |
Unrecognized tax benefits—beginning of year |  |  | $ | 25.2 |  |  |  | $ | 25.6 |  |  | $ | 33.4 |
Gross additions—current year tax positions |  |  |  | 1.9 |  |  |  |  | 1.9 |  |  |  | 2.1 |
Gross additions—prior year tax positions |  |  |  | 0.3 |  |  |  |  | 5.7 |  |  |  | 0.2 |
Gross reductions—prior year tax positions |  |  |  | (6.3 | ) |  |  |  | (8.0 | ) |  |  | (10.1 | )
Gross reductions—settlements with taxing authorities |  |  |  | — |  |  |  |  | — |  |  |  | — |
Unrecognized tax benefits—end of year |  |  | $ | 21.1 |  |  |  | $ | 25.2 |  |  | $ | 25.6 |
Components of Net Deferred Tax Assets Liabilities | The components of net deferred tax assets (liabilities) as of December 27, 2025 and December 28, 2024 were as follows:
(In millions) |  |  | 2025 |  |  |  | 2024 |
Deferred tax assets: |  |  |  |  |  |  |  |
Compensation and benefits |  |  | $ | 20.4 |  |  |  | $ | 27.2 |
Defined benefit plans |  |  |  | 7.3 |  |  |  |  | 7.7 |
Capitalized inventories |  |  |  | 26.7 |  |  |  |  | 18.1 |
Capitalized research and development costs |  |  |  | 31.0 |  |  |  |  | 54.0 |
Accounts receivable |  |  |  | 3.7 |  |  |  |  | 6.5 |
Operating lease liabilities |  |  |  | 65.1 |  |  |  |  | 37.7 |
Other accrued expenses |  |  |  | 42.0 |  |  |  |  | 35.8 |
Net operating loss and other tax carryforwards |  |  |  | 33.6 |  |  |  |  | 29.1 |
Miscellaneous |  |  |  | 7.3 |  |  |  |  | 7.8 |
Total deferred tax assets |  |  |  | 237.1 |  |  |  |  | 223.9 |
Less: valuation allowance |  |  |  | (9.6 | ) |  |  |  | (8.0 | )
Deferred tax assets, net of valuation allowance |  |  |  | 227.5 |  |  |  |  | 215.9 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed assets |  |  |  | (82.2 | ) |  |  |  | (81.3 | )
Intangible assets |  |  |  | (184.2 | ) |  |  |  | (163.5 | )
Operating lease assets |  |  |  | (61.9 | ) |  |  |  | (36.4 | )
Other investments |  |  |  | (20.0 | ) |  |  |  | (24.8 | )
Miscellaneous |  |  |  | (6.2 | ) |  |  |  | (7.9 | )
Total deferred tax liabilities |  |  |  | (354.5 | ) |  |  |  | (313.9 | )
Net deferred tax liability |  |  | $ | (127.0 | ) |  |  | $ | (98.0 | )
In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the Consolidated Balance Sheets as of December 27, 2025 and December 28, 2024 as follows:
(In millions) |  |  | 2025 |  |  |  | 2024 |
Other assets |  |  | $ | 19.9 |  |  |  | $ | 19.4 |
Deferred income taxes |  |  |  | (146.9 | ) |  |  |  | (117.4 | )
Net deferred tax liability |  |  | $ | (127.0 | ) |  |  | $ | (98.0 | )
Schedule of Income Taxes Paid | ASU 2023-09, which the Company adopted prospectively for the year ended December 27, 2025, requires the disclosure of income taxes paid (net of refunds received) as follows:
(In millions) |  |  | 2025 |
U.S. federal |  |  | $ | 31.5 |
U.S. state and local |  |  |  | 14.8 |
Foreign |  |  |  |
Canada |  |  |  | 13.4 |
China |  |  |  | 14.9 |
All other foreign |  |  |  | 4.4 |
Total |  |  | $ | 79.0 |

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