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ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

12 Months Ended

Dec. 27, 2025

ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

K.ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

ASC 740, Income Taxes (“ASC 740”) clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740 also provides guidance on derecognition, measurement, classification, interest and penalties, and disclosure requirements.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	2025			2024			2023
Gross unrecognized tax benefits beginning of year	$	5,507		$	4,771		$	3,217
(Decrease) Increase in tax positions for prior years		(393)			469			943
Increase in tax positions for current year		1,243			947			1,286
Lapse in statute of limitations		(703)			(680)			(675)
Gross unrecognized tax benefits end of year	$	5,654		$	5,507		$	4,771

Our effective tax rate would have been affected by the unrecognized tax benefits had this amount been recognized as a reduction to income tax expense.

We recognized interest and penalties for unrecognized tax benefits in our provision for income taxes. The liability for unrecognized tax benefits included accrued interest and penalties of $0.5 million for the year December 27, 2025, $0.6 million for the year December 28, 2024, and $0.4 million for the year December 30, 2023.