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Income Taxes
 9 Months Ended
Sep. 28, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
14. Income Taxes
Income tax expense was $46.4 million and income tax benefit was $2.6 million for the third quarter of 2025 and 2024, respectively. Income tax expense was $49.1 million and $2.5 million for September year-to-date 2025 and 2024, respectively. The quarterly and year-to-date variances were driven by the valuation allowance and goodwill impairment charges.

The Company's interim tax provision is calculated using the estimated annual effective tax rate applied to year-to-date income, adjusted for recurring items, such as the amount of pretax income and its mix by jurisdiction, U.S. work opportunity credits and the change in cash surrender value of tax-exempt investments in life insurance policies. It is also adjusted for discrete items that may occur in any given period but are not consistent from period to period, such as tax law changes, changes in judgment regarding the realizability of deferred tax assets and the tax effects of stock compensation. The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

In the third quarter of 2025, the Company recorded a net charge of $69.7 million to establish a valuation allowance against a portion of its work opportunity credit carryforwards. This allowance was established principally due to cumulative losses in recent years, which were driven by goodwill impairment charges. Cumulative losses are a significant piece of negative evidence that limits the ability to consider other evidence, such as projections for future growth. The Company will continue to evaluate the need for the valuation allowances against deferred tax assets on a quarterly basis and may adjust the allowance as circumstances change.

The work opportunity credit program is a temporary provision in the U.S. tax law and expires for employees hired after 2025. While the work opportunity credit has routinely been extended, it is uncertain whether it will again be extended. In the event the program is not renewed, we will continue to receive credits for qualified employees hired prior to 2026.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing multiple changes to the U.S. tax code. The OBBBA did not have any material impact on the Company’s consolidated financial statements and related disclosures.