XML 41 R23.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 27, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes 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 |
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 |
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. Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed. 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 |  |
We are required to evaluate the realizability of our deferred tax assets in both our U.S. and non-U.S. jurisdictions on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. As of December 27, 2025, we maintained a valuation allowance of $50.4 million, primarily related to California deferred tax assets and foreign tax credit carryovers, due to uncertainty about the future realization of these assets. We believe that future reversals of taxable temporary differences, and our forecast of continued earnings in both our U.S. and non-U.S. jurisdictions, support our decision to not record a valuation allowance on other deferred tax assets. Tax Credits and 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
Undistributed Earnings As of December 27, 2025, unremitted earnings of foreign subsidiaries was estimated at $37.7 million. We intend to permanently invest $15.0 million of undistributed earnings indefinitely outside of the U.S. To the extent we repatriate the remaining $22.7 million of undistributed foreign earnings to the U.S., we have not established a deferred tax liability for foreign withholding taxes. Foreign earnings that can be remitted back to the U.S. are from jurisdictions with current tax treaties, which exempt us from withholding taxes. Our estimates are provisional and subject to further analysis. Unrecognized Tax Benefits We recognize the benefits of tax return positions if we determine that the positions are “more-likely-than-not” to be sustained by the taxing authority. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense in the period incurred. 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 |
Of the unrecognized tax benefits at December 27, 2025, $27.2 million would impact the effective tax rate if recognized. The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities which might result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is judgmental in nature. However, we believe we have adequately provided for any reasonably foreseeable outcome related to those matters. Our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. At December 27, 2025, our tax years 2022 through 2025, 2021 through 2025 and 2020 through 2025, remain open for examination in the federal, state and foreign jurisdictions, respectively. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and credits were generated and carried forward, and make adjustments up to the net operating loss and credit carryforward amounts. Cash Taxes Paid 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.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration