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Income Taxes
 6 Months Ended
Sep. 26, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

The Company recorded the following income tax benefit in its condensed consolidated statements of operations:

 

 

Three-Month Period Ended

 

 

Six-Month Period Ended

 

 

September 26,
2025

 

 

September 27,
2024

 

 

September 26,
2025

 

 

September 27,
2024

 

Income tax benefit

 

$

(9,298

)

 

$

(9,470

)

 

$

(6,129

)

 

$

(8,430

)

Effective tax rate

 

 

342.5

%

 

 

22.0

%

 

 

48.2

%

 

 

14.1

%

 

The Company’s income tax benefit is comprised of the year-to-date taxes based on an estimate of the annual effective tax rate plus the tax impact of discrete items.

The Company is subject to tax in the U.S. and various foreign jurisdictions. The Company’s effective income tax rate fluctuates primarily because of the change in the mix of its U.S. and foreign income, the impact of discrete transactions and law changes, tax benefits generated by the foreign derived intangible income deduction (“FDII”), including the permanent impacts of capitalized domestic and foreign research expenses, and research credits; offset by non-deductible stock-based compensation and other charges.

In 2017, the Tax Cuts and Jobs Act (“TCJA”) introduced significant U.S. corporate tax reform to the U.S. Internal Revenue Code (the “Code”), including a requirement to capitalize domestic and foreign research and development expenditures incurred in fiscal years 2023 through 2025. The capitalized amounts were required to be amortized over five and 15 years, respectively. On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was enacted into law, and in general, it extended and modified many of the TCJA provisions of the Code. Specifically, the OBBB provided options to taxpayers such as (i) restoring the ability to immediately expense domestic research and development expenditures (“R&D”), (ii) providing a one-time election to accelerate the deduction of previously capitalized domestic R&D over a two-tax year period (“Accelerated R&D Amortization Election”), (iii) reinstating Section 59(e) of the Code to allow R&D to be capitalized and amortized over 10 years, and (iv) updating Section 280(c) of the Code, which reduces the benefit of the Code’s Section 41 R&D Credit. The changes, especially the Accelerated R&D Amortization Election, result in a current year reduction of the U.S. cash taxes, FDII deduction, and R&D credit benefits. The Company continues to evaluate the tax impact of the various OBBB provisions, elections, and forthcoming guidance.

The increase in the effective tax rate for the three- and six-month periods, primarily results from a decrease in GAAP loss before taxes and the OBBB tax impacts described above.