Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense are as follows (in thousands):

	Year Ended
	January 1,		January 2,			December 28,
	2022		2021			2019
Current:
Federal	$	790	$	9,906		$	5,747
State		1,337		2,571			2,282
		2,127		12,477			8,029
Deferred:
Federal		7,142		528			3,179
State		490		(1,121	)		1,231
		7,632		(593	)		4,410
Income tax expense	$	9,759	$	11,884		$	12,439

Summary of Income Taxes Included in Consolidated Statement of Operations and Consolidated Statement of Equity

The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands):

	Year Ended
	January 1,			January 2,			December 28,
	2022			2021			2019
Consolidated statements of operations:
Income tax expense relating to continuing operations	$	9,759		$	11,884		$	12,439
Consolidated statements of shareholders' equity:
Income tax expense relating to derivative financial instruments	$	(1,531	)	$	(970	)	$	(974	)

Reconciliation of Statutory Federal Income Tax Rate

A reconciliation of the statutory federal income tax rate to our effective rate is provided below:

	Year Ended
	January 1,			January 2,			December 28,
	2022			2021			2019
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal income tax benefit		3.2	%		3.7	%		4.0	%
Non-deductible expenses		1.3	%		1.0	%		1.6	%
Eco partnership income attributable to non-controlling interest		(1.2	)%		—			—
Florida excess tax refund relating to the Tax Cuts and Jobs Act		—			(1.0	)%		—
Excess stock-based compensation tax benefits		(2.0	)%		(1.4	)%		(3.7	)%
Research activities credits		(0.8	)%		(2.3	)%		(1.2	)%
Changes related to state rate changes and U.S. tax reform		—			—			0.7	%
Other		0.2	%		(0.1	)%		(0.2	)%
Consolidated effective tax rate		21.7	%		20.9	%		22.2	%

Components of Net Deferred Tax Asset and Liability

Significant components of our net deferred tax liability are as follows:

	January 1,			January 2,
	2022			2021
	(in thousands)
Deferred tax assets:
Operating lease liability	$	16,949		$	10,609
Deferrals and accruals relating to ASC 606, net		6,580			3,537
State bonus depreciation and net operating loss carryforwards		3,748			2,606
Stock-based compensation expense		2,527			1,772
Accrued warranty		2,380			1,550
Acquisition costs		2,158			1,664
Advance supplier consideration		2,109			2,776
Other deferrals and accruals, net		1,848			2,206
Obsolete inventory and UNICAP adjustment		1,666			788
Allowance for credit losses		1,048			1,017
Total deferred tax assets		41,013			28,525
Deferred tax liabilities:
Property, plant and equipment		(20,958	)		(14,966	)
Trade names and other intangible assets, net		(18,162	)		(17,978	)
Goodwill		(17,102	)		(12,596	)
Operating lease right-of-use asset		(15,371	)		(9,742	)
Eco partnership basis difference		(3,110	)		—
Derivative financial instruments		(2,421	)		(892	)
Prepaid expenses		(1,378	)		(680	)
Total deferred tax liabilities		(78,502	)		(56,854	)
Total deferred tax liabilities, net	$	(37,489	)	$	(28,329	)