v3.25.4
INCOME TAXES
 3 Months Ended
Jan. 03, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES . INCOME TAXES
The following table reflects the provision for income taxes and the effective tax rate for the three months ended January 3, 2026 and December 28, 2024: 
Three months ended
(dollar amounts in thousands)January 3, 2026December 28, 2024
Provision for income taxes$5,743 $11,332 
Effective tax rate25.5 %12.2 %
As previously disclosed in fiscal 2025, the Company received reimbursement from the cancellation of a prior project, for which the Company was engaged by one of its customers to support the customer with the development and future mass production of certain technologies (the "Project").
For the three months ended January 3, 2026, the decrease in provision for income taxes and the increase in the effective tax rate was primarily due to the reimbursement from cancellation of the Project, which was recorded as a discrete item in the first quarter of the prior fiscal year, partially offset by an increase in profitability.
For the three months ended January 3, 2026, the effective tax rate is higher than the U.S. federal statutory tax rate primarily due to nondeductible expenses, deemed income, and taxes on undistributed foreign earnings, partially offset by tax credits.