Janus International Group 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 the years ended January 3, 2026, December 28, 2024 and December 30, 2023, income before taxes consist of the following:


	Year Ended
(dollar amounts in millions)	January 3, 2026		December 28, 2024		December 30, 2023
US operations	$	74.8	$	105.7	$	178.7
Foreign operations	1.6		(5.4)		4.1
Total	$	76.4	$	100.3	$	182.8

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) attributable to income from operations consists of:


(dollar amounts in millions)	Current		Deferred		Total
Year ended January 3, 2026:
U.S. federal	$	(2.6)	$	21.5	$	18.9
State and local	—		1.9		1.9
Foreign jurisdiction	(0.2)		2.0		1.8
Total	$	(2.8)	$	25.4	$	22.6


(dollar amounts in millions)	Current		Deferred		Total
Year ended December 28, 2024:
U.S. federal	$	22.8	$	(0.5)	$	22.3
State and local	7.1		1.1		8.2
Foreign jurisdiction	(0.1)		(0.5)		(0.6)
Total	$	29.8	$	0.1	$	29.9


(dollar amounts in millions)	Current		Deferred		Total
Year ended December 30, 2023:
U.S. federal	$	27.8	$	9.5	$	37.3
State and local	7.6		0.5		8.1
Foreign jurisdiction	2.2		(0.5)		1.7
Total	$	37.6	$	9.5	$	47.1

Schedule of Effective Income Tax Rate Reconciliation

In accordance with the updated requirements of ASU 2023-09 for the year ended January 3, 2026, a reconciliation of the U.S. federal statutory income tax rate to the effective tax rate was as follows:


(dollar amounts in millions)	Amount		Percent
U.S. Federal statutory tax rate	$	16.0	21.0	%
Domestic federal reconciling items
Effect of changes in tax laws or rates enacted in the current period	0.7		0.9	%
Effect of cross-border tax laws
Net controlled foreign corporation tested income	0.4		0.5	%
Tax credits
Federal research and development	(0.8)		(1.0)	%
Nontaxable or nondeductible items
Compensation	0.1		0.1	%
Share-based payments	2.3		3.0	%
Other	0.3		0.4	%
Other	0.4		0.5	%
State and local income taxes, net of federal benefit (1)	2.7		3.5	%
Foreign tax effects
United Kingdom
Statutory rate difference between the United Kingdom and United States	(0.1)		(0.1)	%
Other foreign jurisdictions
Statutory rate difference between other foreign jurisdictions and United States	0.2		0.3	%
Other	0.3		0.4	%
Change in unrecognized tax benefits	0.1		0.1	%

Total	$	22.6	29.6	%

(1) State and local taxes in California, Florida, New Jersey, Tennessee, and Texas comprise the majority of the state taxes, net of federal benefit category.

As previously disclosed for the years ended December 28, 2024 and December 30, 2023, respectively, a reconciliation of the U.S. federal statutory income tax rate to the effective tax was as follows:


	Year Ended
(dollar amounts in millions)		December 28, 2024		December 30, 2023
Income before taxes		$	100.3	$	182.8
Computed “expected” tax expense		21.1		38.4
Increase (reduction) in income taxes resulting from:
Statutory rate differential		(0.2)		0.2
Permanent difference		0.8		0.4
State income taxes, net of federal benefit		5.5		7.8
Change in tax rates		0.4		(1.2)
Out of period adjustments		3.4		—
Change in estimate		(1.3)		(0.2)
Change in valuation allowance		—		—
Tax Credits		(1.0)		(0.6)
U.S. tax on foreign operations		0.9		0.9
Other, net		0.3		1.4
Total		$	29.9	$	47.1

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 3, 2026 and December 28, 2024 are presented below:


(dollar amounts in millions)	January 3, 2026		December 28, 2024
Deferred tax assets
Allowance for credit losses	$	2.8	$	4.4
Intangibles	13.4		25.6
Lease obligations	18.4		14.8
Research and development	—		3.9
Accrued expenses	1.4		1.7
Inventories	0.7		1.0
Stock compensation	1.3		1.6
Interest expense carryforward	—		0.9
Income tax credits	0.3		—
Net operating losses (1)	2.1		—
Other	1.1		1.1
Total deferred tax assets	$	41.5	$	55.0

Deferred tax liabilities
Prepaid expenses	$	(0.9)	$	—
Property, plant and equipment	(8.4)		(5.4)
Right-of-use assets	(17.0)		(13.6)
Capitalized loan costs	(1.4)		—
Intangibles	(3.7)		—
Other	(0.3)		(0.8)
Total deferred tax liabilities	$	(31.7)	$	(19.8)
Net deferred tax asset	$	9.8	$	35.2

(1) We have approximately $5.0 of net operating losses at the U.S. federal income tax level. The net operating losses do not expire. We also have approximately $8.6 million of net operating losses in the states in which we operate. The net operating losses will begin to expire if unutilized in approximately 16 years. Lastly, we have approximately $4.3 million of net operating losses in our foreign jurisdictions, primarily in the United Kingdom, which do not expire.

Schedule of Cash Flow, Supplemental Disclosures

In accordance with the update requirements of ASU 2023-09 for the year ended 2025, cash paid for income taxes, net of refunds was as follows:


(dollar amounts in millions)	Year Ended
		January 3, 2026
U.S. Federal		$	3.5
U.S. state and local
California		0.4
Florida		0.4
Texas		0.7
Other		1.8
Foreign
Australia		0.5

Total cash paid for income taxes (net of refunds)		$	7.3