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INCOME TAXES | 3 Months Ended
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Apr. 03, 2026
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including discrete items, changes in the mix and amount of pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. In addition, the Company continues to explore tax planning opportunities that may have a material impact on its effective tax rate.
| Three Months Ended |  |
| April 3, 2026 |  | March 28, 2025 |  |  |  |
Income (loss) from continuing operations before taxes | $ | 20,351 |  |  | $ | (12,999) |  |  |  |  |
Provision for income taxes | 3,845 |  |  | 9,466 |  |  |  |  |
Effective tax rate | 18.9 | % |  | (72.8) | % |  |  |  |
The difference between the Company’s effective tax rates and the U.S. federal statutory income tax rate of 21% for the first quarter of 2026 is due principally to the net impact of the Company’s earnings outside the U.S., which are generally taxed at rates that differ from the U.S. federal rate, the Net CFC Tested Income (“NCTI”), (formerly Global Intangible Low-Taxed Income (“GILTI”) tax), the Foreign Derived Deduction Eligible Income (“FDDEI”), (formerly, Foreign Derived Intangible Income (“FDII”) deduction), the availability of tax credits and the recognition of certain discrete tax items. The difference between the Company’s effective tax rates and the U.S. federal statutory income tax rate of 21% for the first quarter of 2025 is due principally to the impact of the Convertible Notes Exchange Transactions, including the nondeductible induced conversion expense and reduction of future original issue discount amortization for U.S. income tax purposes. To a lesser extent, the remaining difference between the Company’s effective tax rate and the U.S. federal statutory income tax rate for the first quarter of 2025 is consistent with the differences recognized in the first quarter of 2026. For the first quarter of 2026, the Company recorded discrete tax expense of $0.1 million, compared to a discrete tax benefit of $1.5 million for the first quarter of 2025. The discrete tax expense for the first quarter of 2026 relates predominantly to shortfalls recognized upon the vesting of RSUs and the discrete tax benefits for the first quarter 2025 are predominately related to excess tax benefits, net of deductibility limitations, recognized upon vesting of RSUs. Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts reflected in the financial statements. As of April 3, 2026, the Company had unrecognized tax benefits of approximately $2.9 million, substantially all of which would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized. For a description of the Company’s significant tax matters, reference is made to the financial statements as of and for the year ended December 31, 2025 and Note 13 thereto included in the Company’s 2025 Annual Report.

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