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v3.25.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 27, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes were as follows (in thousands):
| Fiscal Year Ended
| December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
United States | $ | 48,817 |  |  | $ | 66,953 |  |  | $ | (10,681) |
Foreign | 20,574 |  |  | 12,459 |  |  | 99,948 |
| $ | 69,391 |  |  | $ | 79,412 |  |  | $ | 89,267 |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes are as follows (in thousands):
| Fiscal Year Ended
| December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
Current provision: |  |  |  |  |
Federal | $ | 4,585 |  |  | $ | 15,688 |  |  | $ | 8,970 |
State | 647 |  |  | 1,703 |  |  | 835 |
Foreign | 5,845 |  |  | 5,762 |  |  | 9,175 |
| 11,077 |  |  | 23,153 |  |  | 18,980 |
Deferred provision (benefit): |  |  |  |  |
Federal | 2,699 |  |  | (11,446) |  |  | (10,810) |
State | (657) |  |  | (1,806) |  |  | (330) |
Foreign | (115) |  |  | (103) |  |  | (960) |
| 1,927 |  |  | (13,355) |  |  | (12,100) |
Total provision for income taxes: |  |  |  |  |
Federal | 7,284 |  |  | 4,242 |  |  | (1,840) |
State | (10) |  |  | (103) |  |  | 505 |
Foreign | 5,730 |  |  | 5,659 |  |  | 8,215 |
| $ | 13,004 |  |  | $ | 9,798 |  |  | $ | 6,880 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 21% and the provision from income taxes for fiscal 2025, 2024, and 2023 (dollars in thousands):
| Fiscal Year Ended
| December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
U.S. statutory federal tax | $ | 14,572 |  |  | 21.0 | % |  | $ | 16,676 |  |  | 21.0 | % |  | $ | 18,746 |  |  | 21.0 | %
State taxes and credits, net of federal benefit (1) | (1,457) |  |  | (2.1) |  |  | (1,309) |  |  | (1.6) |  |  | (891) |  |  | (1.0) |
Foreign tax effects: |  |  |  |  |  |  |  |  |  |  |
Germany: |  |  |  |  |  |  |  |  |  |  |
Foreign taxes at rates different than the U.S. | 1,657 |  |  | 2.4 |  |  | 1,099 |  |  | 1.4 |  |  | 8,615 |  |  | 9.7 |
Foreign gain exclusion | — |  |  | — |  |  | — |  |  | — |  |  | (21,568) |  |  | (24.2) |
Other | (274) |  |  | (0.4) |  |  | 800 |  |  | 1.0 |  |  | 24 |  |  | — |
China: |  |  |  |  |  |  |  |  |  |  |
Reversal of book gain/loss on China Sale | — |  |  | — |  |  | 1,072 |  |  | 1.4 |  |  | — |  |  | — |
Foreign Tax on China Sale | — |  |  | — |  |  | 2,395 |  |  | 3.0 |  |  | — |  |  | — |
Other | — |  |  | — |  |  | (129) |  |  | (0.2) |  |  | 21 |  |  | — |
Other foreign jurisdictions | 405 |  |  | 0.6 |  |  | 281 |  |  | 0.4 |  |  | 657 |  |  | 0.8 |
Effects of cross-border tax laws: |  |  |  |  |  |  |  |  |  |  |
Global intangible low-taxed income | — |  |  | — |  |  | 660 |  |  | 0.8 |  |  | 4,783 |  |  | 5.4 |
Foreign-derived intangible income | (1,515) |  |  | (2.2) |  |  | (3,774) |  |  | (4.8) |  |  | (2,986) |  |  | (3.3) |
Other | (18) |  |  | — |  |  | (26) |  |  | — |  |  | (19) |  |  | — |
Tax credits: |  |  |  |  |  |  |  |  |  |  |
Research tax credits | (5,858) |  |  | (8.3) |  |  | (4,857) |  |  | (6.1) |  |  | (7,406) |  |  | (8.3) |
Other credits | (240) |  |  | (0.3) |  |  | (241) |  |  | (0.3) |  |  | (306) |  |  | (0.3) |
Changes in valuation allowance | (160) |  |  | (0.2) |  |  | (196) |  |  | (0.2) |  |  | 181 |  |  | 0.2 |
Nontaxable or nondeductible items: |  |  |  |  |  |  |  |  |  |  |
Equity compensation | 850 |  |  | 1.2 |  |  | (2,833) |  |  | (3.6) |  |  | 1,424 |  |  | 1.6 |
Officer's compensation | 964 |  |  | 1.4 |  |  | 2,258 |  |  | 2.8 |  |  | 296 |  |  | 0.3 |
Reversal of book gain/loss on China sale | — |  |  | — |  |  | (4,790) |  |  | (6.0) |  |  | — |  |  | — |
Other | 421 |  |  | 0.6 |  |  | 212 |  |  | 0.3 |  |  | 432 |  |  | 0.5 |
Changes in unrecognized tax benefits | 3,745 |  |  | 5.4 |  |  | 2,669 |  |  | 3.4 |  |  | 5,107 |  |  | 5.7 |
Other adjustments | (88) |  |  | (0.4) |  |  | (169) |  |  | (0.4) |  |  | (230) |  |  | (0.4) |
Total | $ | 13,004 |  |  | 18.7 | % |  | $ | 9,798 |  |  | 12.3 | % |  | $ | 6,880 |  |  | 7.7 | %
(1) State taxes in Oregon made up the majority (greater than 50%) of the tax effect in this category for 2023-2025.
Schedule of Deferred Tax Assets and Liabilities | Significant deferred tax assets and liabilities consisted of the following (in thousands):
| As of |
| December 27, 2025 |  | December 28, 2024 |
Tax credits | $ | 33,886 |  |  | $ | 31,196 |  |
Inventory reserve | 12,126 |  |  | 12,818 |  |
Other reserves and accruals | 11,168 |  |  | 10,600 |  |
Non-statutory stock options | 1,905 |  |  | 2,213 |  |
Lease liability | 3,481 |  |  | 4,857 |  |
Research and development expenditures capitalization | 63,372 |  |  | 65,520 |  |
Net operating loss carryforwards | 17,125 |  |  | 17,295 |  |
Gross deferred tax assets | 143,063 |  |  | 144,499 |  |
Valuation allowance | (50,418) |  |  | (47,938) |  |
Total deferred tax assets | 92,645 |  |  | 96,561 |  |
Right-of-use assets | (2,803) |  |  | (4,104) |  |
Acquired intangibles and fixed assets | (1,918) |  |  | (445) |  |
Total deferred tax liabilities | (4,721) |  |  | (4,549) |  |
Net deferred tax assets | $ | 87,924 |  |  | $ | 92,012 |  |
Summary of Tax Credit Carryforwards | Tax credits and carryforwards available to us at December 27, 2025 consisted of the following (in thousands):
|  | Amount |  | Expiration Date(s)
Federal research and development tax credit |  | $ | 12,042 |  |  | 2043-2045
Foreign tax credit carryforwards |  | 592 |  |  | 2026-2027
California research credits |  | 66,627 |  |  | Indefinite
State net operating loss carryforwards |  | 239,068 |  |  | 2026-Indefinite
Singapore net operating loss carryforwards |  | 2,900 |  |  | Indefinite
Schedule of Unrecognized Tax Benefits | The following table reflects changes in the unrecognized tax benefits (in thousands):
| Fiscal Year Ended
| December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
Unrecognized tax benefit, beginning balance | $ | 48,364 |  |  | $ | 45,574 |  |  | $ | 40,098 |
Additions based on tax positions related to the current year | 3,504 |  |  | 3,813 |  |  | 4,726 |
Additions based on tax positions from prior years | 163 |  |  | — |  |  | 858 |
Reductions for tax positions of prior years | (7) |  |  | (990) |  |  | — |
Reductions due to lapse of the applicable statute of limitations | (36) |  |  | (33) |  |  | (108) |
Unrecognized tax benefit, ending balance | $ | 51,988 |  |  | $ | 48,364 |  |  | $ | 45,574 |
Interest and penalties recognized as a component of provision (benefit) for income taxes | $ | 728 |  |  | $ | 205 |  |  | $ | 34 |
Interest and penalties accrued at period end | 997 |  |  | 269 |  |  | 63 |
Schedule of Cash Flow, Supplemental Disclosures | Income taxes paid, net of refunds received, by jurisdiction are as follows (in thousands):
| Fiscal Year Ended
| December 27, 2025 |  | December 28, 2024 |  | December 30, 2023
US federal | $ | 1,859 |  |  | $ | 2,246 |  |  | $ | 4,184 |
Domestic state and local |  |  |  |  |
Oregon | * |  | 1,229 |  |  | *
Other | 605 |  |  | 339 |  |  | 304 |
Foreign |  |  |  |  |
Germany - Federal | 3,093 |  |  | 4,332 |  |  | 7,152 |
Germany - Thiendorf | 2,149 |  |  | 3,911 |  |  | 3,087 |
Germany - Bergisch Gladbach | * |  | * |  | 1,765 |
China | * |  | 2,120 |  |  | *
Other | 1,226 |  |  | 1,407 |  |  | 893 |
Total | $ | 8,932 |  |  | $ | 15,584 |  |  | $ | 17,385 |
* The amount of income taxes paid during the year does not meet the five percent disaggregation threshold.

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