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Income Taxes | 12 Months Ended
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Dec. 27, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 9 — Income Taxes Provision for Income Taxes Income (loss) from continuing operations before provision for income taxes was as follows (in thousands):
|  | Years Ended |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Domestic |  | $ | (52,859 | ) |  | $ | (46,388 | ) |  | $ | (25,366 | )
Foreign |  |  | 43,807 |  |  |  | 80,084 |  |  |  | 70,918 |
Income (loss) before income taxes |  | $ | (9,052 | ) |  | $ | 33,696 |  |  | $ | 45,552 |
The provision for income taxes consisted of the following (in thousands):
|  | Years Ended |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current tax provision: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | 27 |  |  |  | 21 |  |  |  | — |
Foreign |  |  | 7,539 |  |  |  | 9,064 |  |  |  | 8,141 |
Total current provision |  |  | 7,566 |  |  |  | 9,085 |  |  |  | 8,141 |
Deferred tax provision (benefit): |  |  |  |  |  |  |  |  |
U.S. federal |  |  | 3,738 |  |  |  | 3,306 |  |  |  | (1,821 | )
State |  |  | 137 |  |  |  | 12 |  |  |  | 82 |
Foreign |  |  | (285 | ) |  |  | (54 | ) |  |  | (515 | )
Total deferred provision (benefit) |  |  | 3,590 |  |  |  | 3,264 |  |  |  | (2,254 | )
Provision for income taxes |  | $ | 11,156 |  |  | $ | 12,349 |  |  | $ | 5,887 |
A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate was as follows (dollars in thousands):
|  | Years Ended |
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | Amount |  |  | Amount |  |  | Amount |
Income (loss) before income taxes |  | $ | (9,052 | ) |  | $ | 33,696 |  |  | $ | 45,552 |
Income tax expense: |  |  |  |  |  |  |  |  |
Taxes at federal statutory tax rate |  |  | (1,901 | ) |  |  | 7,076 |  |  |  | 9,566 |
State taxes, net of federal income tax benefit |  |  | (330 | ) |  |  | 440 |  |  |  | 3,673 |
Equity compensation |  |  | 2,237 |  |  |  | 1,035 |  |  |  | (331 | )
Foreign rate differential |  |  | (3,902 | ) |  |  | (7,611 | ) |  |  | (6,997 | )
Foreign income inclusion |  |  | 9,659 |  |  |  | 16,922 |  |  |  | 14,583 |
Net operating loss adjustments |  |  | — |  |  |  | — |  |  |  | 532 |
Valuation allowance |  |  | 4,060 |  |  |  | (4,233 | ) |  |  | (15,560 | )
Tax credits |  |  | (277 | ) |  |  | (930 | ) |  |  | (39 | )
Return to provision adjustment |  |  | 100 |  |  |  | (284 | ) |  |  | 314 |
Uncertain tax positions |  |  | 1,450 |  |  |  | — |  |  |  | — |
Non-deductible expenses |  |  | 163 |  |  |  | 134 |  |  |  | 108 |
Other |  |  | (103 | ) |  |  | (200 | ) |  |  | 38 |
Total income tax expense |  | $ | 11,156 |  |  | $ | 12,349 |  |  | $ | 5,887 |
Effective tax rate |  |  | (123.2 | )% |  |  | 36.6 | % |  |  | 12.9 | %
Note 9 — Income Taxes (Continued) Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) were as follows (in thousands):
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Accrued expenses |  | $ | 1,230 |  |  | $ | 1,435 |
Stock-based compensation |  |  | 6,103 |  |  |  | 4,010 |
Operating lease liability |  |  | 6,466 |  |  |  | 6,162 |
Net operating loss and other credit carryforwards |  |  | 44,083 |  |  |  | 44,998 |
Other deferred tax assets |  |  | 2,776 |  |  |  | 2,376 |
Gross deferred tax assets |  |  | 60,658 |  |  |  | 58,981 |
Valuation allowance |  |  | (46,804 | ) |  |  | (42,744 | )
Total deferred tax assets |  | $ | 13,854 |  |  | $ | 16,237 |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant, equipment and intangibles |  | $ | (5,976 | ) |  | $ | (4,222 | )
Operating lease ROU assets |  |  | (6,066 | ) |  |  | (6,019 | )
Foreign taxes |  |  | (1,321 | ) |  |  | (1,883 | )
Total deferred tax liabilities |  |  | (13,363 | ) |  |  | (12,124 | )
Total net deferred tax assets |  | $ | 491 |  |  | $ | 4,113 |
The ultimate realization of deferred tax assets is dependent upon future generation of income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the projected future income and tax planning strategies in making this assessment. In addition, management considers all other available positive and negative evidence in its analysis. This includes existing profits in foreign jurisdiction as well as projected future profits. Under the incremental cash tax savings approach, the total net deferred assets represent the Company’s net cash tax savings and benefit at December 27, 2024. Under the incremental cash tax savings approach, the deferred tax asset valuation allowance activity was as follows (in thousands):
|  | Years Ended |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Balance at beginning of period |  | $ | (42,744 | ) |  | $ | (46,977 | ) |  | $ | (62,860 | )
Release (recapture) due to incremental cash tax savings |  |  | (4,456 | ) |  |  | (3,318 | ) |  |  | 910 |
Current year change due to deferred tax asset realization |  |  | 396 |  |  |  | 7,551 |  |  |  | 14,973 |
Balance at end of period |  | $ | (46,804 | ) |  | $ | (42,744 | ) |  | $ | (46,977 | )
As of December 27, 2024, the Company had U.S. net operating loss (“NOL”) carryforwards consisting of the following (in thousands):
|  | 2024 |  |  | Expiration Date
Pre-2018 federal NOL carryforwards |  | $ | 49,783 |  |  | will begin to expire in 2027
Post-2018 federal NOL carryforwards |  |  | 124,895 |  |  | indefinite
State NOL carryforwards |  |  | 54,184 |  |  | will begin to expire in 2025
Post-2020 State NOL carryforwards that follow the federal NOL |  |  | 2,297 |  |  | indefinite
Note 9 — Income Taxes (Continued) Deferred Tax Assets and Liabilities (Continued) As of December 27, 2024, the Company had U.S. tax credit carryforwards consisting of the following (in thousands):
|  | 2024 |  |  | Expiration Date
Federal credit carryforwards |  | $ | 2,056 |  |  | will begin to expire in 2030
State research tax credit carryforwards |  |  | 916 |  |  | indefinite
Federal foreign tax credit carryforwards |  |  | 2,013 |  |  | will begin to expire in 2028
The Company files income tax returns in the U.S. federal, various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The following tax years remain subject to examination:
Significant jurisdictions |  | Open Years
U.S. Federal |  | 2021 – 2023
U.S. States |  | 2020 – 2023
Foreign |  | 2020 – 2023
In various jurisdictions, years prior to 2020 remain open solely for the purposes of examination of the Company’s NOL and credit carryforwards. Tax Holiday The Company operates under a tax holiday in Switzerland from 2020 through 2029, which consists of two consecutive five year periods: 2020 - 2024 and 2025 - 2029. The tax holiday is conditional upon the Company meeting specific activity and investment requirements as outlined by the Swiss Tax Authorities. The impact of this tax holiday is as follows (in thousands, except per share amounts):
|  | Years Ended |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Tax impact related to tax holidays |  | $ | 4,466 |  |  | $ | 8,683 |  |  | $ | 7,394 |
Impact of tax holidays on diluted earnings (loss) per share |  | $ | 0.09 |  |  | $ | 0.17 |  |  | $ | 0.15 |
Uncertain Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of interest, are included in other current liabilities as income taxes payable, is as follows (in thousands):
|  | Year Ended |
|  | 2024 |
Balance at beginning of period |  | $ | — |
Increases (decreases) - tax positions in prior period |  |  | 910 |
Increases (decreases) - tax positions in current period |  |  | — |
Balance at end of period |  | $ | 910 |
Interest of $540,000 was recognized for the year ended 2024 related to the 2024 uncertain tax positions. The Company expects a reduction of these uncertain tax positions within the next twelve months. There were no uncertain tax positions in 2023 or 2022.

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