Helios Technologies Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Jan. 03, 2026

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income before income taxes includes the following components:


	For the year ended
	January 3, 2026		December 28, 2024		December 30, 2023
United States	$	17.2	$	10.8	$	12.8
Foreign		45.2		39.7		36.4
Total	$	62.4	$	50.5	$	49.2

Schedule of Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:


	For the year ended
	January 3, 2026			December 28, 2024			December 30, 2023
Current tax expense (benefit):
United States	$	0.2		$	6.7		$	6.7
State and local		1.1			0.5			1.5
Foreign		13.5			12.9			11.4
Total current		14.8			20.1			19.6
Deferred tax expense (benefit):
United States		—			(6.5	)		(3.6	)
State and local		0.2			—			(1.4	)
Foreign		(1.0	)		(2.1	)		(2.9	)
Total deferred		(0.8	)		(8.6	)		(7.9	)
Total income tax provision	$	14.0		$	11.5		$	11.7

A reconciliation of the provision for the income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:

Schedule of Effective Income Tax Rate Reconciliation


	For the year ended
	January 3, 2026			Percent
Tax at U.S. statutory rate	$	13.1			21.0	%
State and local income taxes(1)		1.1			1.7	%
Foreign tax effects
Italy
Regional tax		0.8			1.3	%
Other		(0.4	)		-0.6	%
China
Effect of rates different than statutory		0.8			1.2	%
Other		(0.6	)		-0.9	%
Canada
Changes in valuation allowance		0.9			1.4	%
Other		(0.1	)		-0.1	%
Other foreign jurisdictions		0.3			0.5	%
Effects of cross-border tax laws
Foreign-derived intangible income		(1.0	)		-1.5	%
Foreign tax credits		(1.2	)		-2.0	%
Global intangible low-taxed Income		1.4			2.3	%
Other		0.9			1.4	%
Tax credits
Research and development tax credits		(0.6	)		-1.0	%
Changes in valuation allowance		(0.4	)		-0.7	%
Nontaxable and nondeductible items
Executive compensation - 162(m)		0.3			0.5	%
Stock-based compensation		0.3			0.4	%
Changes in unrecognized tax benefits		(0.4	)		-0.6	%
Other
Gain on divestiture		(1.1	)		-1.7	%
Other adjustments		(0.1	)		-0.2	%
Effective tax rate	$	14.0			22.5	%

(1) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include Florida and Oklahoma.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes before the adoption of ASU 2023-09 is as follows:


	For the year ended
	December 28, 2024			December 30, 2023
U.S. federal taxes at statutory rate	$	10.6		$	10.3
Increase(decrease)
Foreign withholding tax		0.1			—
Capitalized transaction costs		—			0.2
Foreign income taxed at different rate		1.5			1.4
FDII deduction		(1.1	)		(1.2	)
Changes in estimates related to prior years including foreign		0.8			0.7
Goodwill impairment		—			—
State and local taxes, net		0.5			(0.3	)
Foreign tax expense		0.7			0.7
Current year tax credits		(1.1	)		(1.0	)
Foreign permanent items		(0.5	)		(1.8	)
Change in reserve		0.2			0.2
Executive comp - 162m		(0.3	)		1.3
Valuation allowance		(0.7	)		0.7
Stock-based compensation		0.5			—
Other		0.3			0.5
Income tax provision	$	11.5		$	11.7

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities are provided to reflect the future tax consequences of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of January 3, 2026 and December 28, 2024, are presented below:


	For the year ended
	January 3, 2026			December 28, 2024
Deferred tax assets:
Foreign tax benefit of US reserves	$	0.8		$	1.0
Net operating losses		6.1			6.2
Inventory		2.8			3.0
Intangible assets and goodwill DTA		1.2			0.7
Lease liability		3.3			3.9
Capitalized research expenditures		4.3			8.1
Interest expense limitation carryforward		8.2			8.6
Accrued compensation		2.6			3.0
Accrued expenses and other		3.3			3.8
Other comprehensive income -DTA		1.2			8.9
Total deferred tax assets		33.8			47.2
Less: valuation allowance		(3.2	)		(2.3	)
Net deferred tax assets		30.6			44.9
Deferred tax liabilities:
Depreciation		(3.6	)		(3.8	)
Right of use asset		(3.1	)		(3.7	)
Intangible assets and goodwill		(73.3	)		(76.3	)
Other deferred tax liabilities		(0.7	)		(0.1	)
Other comprehensive income		(0.4	)		—
Total deferred tax liabilities		(81.1	)		(83.9	)
Net deferred tax liabilities	$	(50.5	)	$	(39.0	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a roll-forward of the Company’s unrecognized tax benefits:


Unrecognized tax benefits - January 1, 2023	$	7.9
Increases from positions taken during prior periods		1.1
Increases from positions taken during current period		0.2
Settled positions		(2.7	)
Lapse of statute of limitations		(0.4	)
Unrecognized tax benefits - December 30, 2023	$	6.1
Increases from positions taken during prior periods		(0.5	)
Increases from positions taken during current period		0.2
Settled positions		—
Lapse of statute of limitations		(0.4	)
Unrecognized tax benefits - December 28, 2024	$	5.4
Increases from positions taken during prior periods		1.1
Increases from positions taken during current period		0.1
Settled positions		—
Lapse of statute of limitations		(0.8	)
Unrecognized tax benefits - January 3, 2026	$	5.8