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v3.26.1

INCOME TAXES (Tables) | 12 Months Ended
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Jan. 03, 2026
Income Tax Disclosure [Abstract] |
Schedule of Consolidated Income Before Income Taxes | Consolidated earnings before income taxes consists of the following:
| Year Ended
| 2025 |  | 2024 |  | 2023
United States | $ | (56,248) |  |  | $ | (35,274) |  |  | $ | (19,988) |
Foreign | 97,775 |  |  | 111,625 |  |  | 122,441 |
Total earnings before income taxes | $ | 41,527 |  |  | $ | 76,351 |  |  | $ | 102,453 |
Schedule of Income Tax Expense (Benefit) Included in Income From Continuing Operations | Income tax expense (benefit) included in income from continuing operations consists of the following:
| Year Ended
| 2025 |  | 2024 |  | 2023
Current |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | (42) |
State | 855 |  |  | 330 |  |  | 469 |
Foreign | 36,331 |  |  | 40,699 |  |  | 40,913 |
Total current | 37,186 |  |  | 41,029 |  |  | 41,340 |
Deferred |  |  |  |  |
Federal | (6,853) |  |  | (6,803) |  |  | (4,031) |
State | (628) |  |  | (100) |  |  | (59) |
Foreign | 345 |  |  | 165 |  |  | 1,415 |
Total deferred | (7,136) |  |  | (6,738) |  |  | (2,675) |
| $ | 30,050 |  |  | $ | 34,291 |  |  | $ | 38,665 |
Schedule of Effective Income Tax Rate | The effective tax rate for 2024 and 2023 reconciled to the statutory U.S. federal tax rate is as follows:
|  |  | Year Ended
|  |  |  | 2024 |  | 2023
Statutory U.S. federal income tax rate |  |  |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit |  |  |  | 0.5 |  |  | 0.5 |
Permanent tax differences |  |  |  | 0.9 |  |  | 0.7 |
Excess foreign tax credits |  |  |  | (26.3) |  |  | (16.4) |
Net increase in valuation allowance |  |  |  | 24.4 |  |  | 13.0 |
Foreign income tax rate differences |  |  |  | 15.2 |  |  | 8.7 |
Foreign withholding taxes |  |  |  | 12.3 |  |  | 10.6 |
Uncertain tax position reserve |  |  |  | 0.6 |  |  | (0.4) |
Change in U.S. tax laws |  |  |  | (2.6) |  |  | — |
All other, net |  |  |  | (1.0) |  |  | — |
|  |  |  | 44.9 | % |  | 37.7 | %
The effective tax rate for 2025 is disaggregated and reconciled to the statutory U.S. federal tax rate according to the new requirements of ASU 2023-09 as follows:
|  | Year Ended
|  | 2025
|  | Amount |  | Percent
U.S. federal statutory tax rate |  | $ | 8,721 |  |  | 21.0%
State and local income taxes, net of federal income tax effect(1) |  | 684 |  |  | 1.6%
Foreign tax effects |  |  |  |
China |  |  |  |
Statutory income tax rate difference |  | 3,635 |  |  | 8.8%
Withholding taxes |  | 8,293 |  |  | 20.0%
Other |  | 577 |  | 1.4%
India |  |  |  |
Changes in valuation allowances |  | 469 |  |  | 1.1%
Other |  | (39) |  |  | (0.1)%
Other foreign jurisdictions |  | 1,303 |  |  | 3.1%
Effects of cross-border tax laws |  |  |  |
U.S. taxation of foreign disregarded entities |  | 20,692 |  |  | 49.8%
Tax credits |  |  |  |
Foreign tax credits |  | (37,651) |  |  | (90.6)%
Changes in valuation allowances |  | 21,487 |  |  | 51.7%
Nontaxable and nondeductible items |  |  |  |
Share-based payment awards |  | 1,375 |  |  | 3.3%
Non-deductible compensation |  | 513 |  |  | 1.2%
Other |  | (554) |  |  | (1.2)%
Changes in unrecognized tax benefits |  | 545 |  |  | 1.3%
Effective tax rate |  | $ | 30,050 |  |  | 72.4%
______________________________ (1)State and local taxes in New York and California comprise the majority (greater than 50%) of the tax effect in this category.
Schedule of Cash Flow, Supplemental Disclosures | Income taxes paid (net of refunds received) for 2025 were as follows:
|  | Year Ended
|  | 2025 |  |  |  |
U.S. federal |  | $ | — |  |  |  |  |
U.S. state and local |  | 683 |  |  |  |  |
Foreign |  |  |  |  |  |
China |  | 32,800 |  |  |  |  |
All other foreign |  | 3,697 |  |  |  |  |
|  | 36,497 |  |  |  |  |
Total |  | $ | 37,180 |  |  |  |  |
Schedule of Deferred Taxes | The significant categories of deferred taxes are as follows:
| January 3, 2026 |  | December 28, 2024
Deferred tax assets |  |  |
Inventory | $ | 6,222 |  |  | $ | 4,749 |
Accruals not currently deductible | 6,543 |  |  | 6,869 |
Equity-based compensation | 2,304 |  |  | 2,438 |
Depreciation and amortization | 834 |  |  | 777 |
Intangible assets | 6,436 |  |  | 6,162 |
Foreign currency translation | 1,713 |  |  | 2,066 |
Capitalized R&D expenses | 18,163 |  |  | 16,450 |
Tax credit carry forwards | 173,927 |  |  | 152,951 |
Net operating losses | 2,770 |  |  | 2,348 |
Other | 5,654 |  |  | 5,343 |
Gross deferred tax assets | 224,566 |  |  | 200,153 |
Valuation allowance | (178,670) |  |  | (156,669) |
Net deferred tax assets | 45,896 |  |  | 43,484 |
Deferred tax liabilities |  |  |
Depreciation and amortization | (4,972) |  |  | (6,653) |
Prepaid expenses | (1,587) |  |  | (1,992) |
Intangible assets | (6,436) |  |  | (6,162) |
Withholding tax on unremitted earnings | (7,868) |  |  | (9,899) |
Other | (2,716) |  |  | (3,207) |
Gross deferred tax liabilities | (23,579) |  |  | (27,913) |
Net deferred taxes | $ | 22,317 |  |  | $ | 15,571 |
The components of net deferred taxes are as follows:
| January 3, 2026 |  | December 28, 2024
Net noncurrent deferred tax assets | $ | 27,209 |  |  | $ | 19,644 |
Net noncurrent deferred tax liabilities | (4,892) |  |  | (4,073) |
Net deferred taxes | $ | 22,317 |  |  | $ | 15,571 |
Schedule of Unrecognized Tax Benefits Reconciliation | The following reconciliation provides the changes in unrecognized tax benefits for the years presented:
| Year Ended
| 2025 |  | 2024 |  | 2023
Beginning balance of unrecognized tax benefits | $ | 1,187 |  |  | $ | 1,074 |  |  | $ | 1,450 |
Increases related to prior year tax positions | — |  |  | 43 |  |  | 30 |
Decreases related to prior year tax positions | (26) |  |  | (69) |  |  | (363) |
Increases related to current year tax positions | 384 |  |  | 139 |  |  | 409 |
Decreases for settlements with taxing authorities | — |  |  | — |  |  | (452) |
Ending balance of unrecognized tax benefits | $ | 1,545 |  |  | $ | 1,187 |  |  | $ | 1,074 |

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