Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

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

	Year Ended
	December 30,		December 31,			January 1,
	2023		2022			2022
Current:
Federal	$	24,402	$	34,411		$	790
State		6,856		9,595			1,337
Total current tax expense		31,258		44,006			2,127
Deferred:
Federal		5,506		(8,661	)		7,142
State		1,246		(2,679	)		490
Total deferred tax expense (benefit)		6,752		(11,340	)		7,632
Income tax expense	$	38,010	$	32,666		$	9,759

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
	December 30,		December 31,		January 1,
	2023		2022		2022
Consolidated statements of operations:
Income tax expense relating to continuing operations	$	38,010	$	32,666	$	9,759
Consolidated statements of shareholders' equity:
Income tax benefit (expense) relating to derivatives	$	11	$	2,345	$	(1,531	)

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
	December 30,			December 31,			January 1,
	2023			2022			2022
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal income tax benefit		4.6	%		4.7	%		3.2	%
Non-deductible expenses		3.0	%		1.3	%		1.3	%
Research activities credits		(0.9	)%		(1.2	)%		(0.8	)%
Florida excess tax refund relating to the Tax Cuts and Jobs Act		—			(0.4	)%		—
Eco partnership income attributable to non-controlling interest		(0.2	)%		(0.3	)%		(1.2	)%
Excess stock-based compensation tax benefits		(1.4	)%		(0.1	)%		(2.0	)%
Other		(0.4	)%		(0.1	)%		0.2	%
Consolidated effective tax rate		25.7	%		24.9	%		21.7	%

Components of Net Deferred Tax Asset and Liability

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

	December 30,			December 31,
	2023			2022
	(in thousands)
Deferred tax assets:
Operating lease liability	$	34,517		$	21,496
Deferrals and accruals relating to ASC 606, net		5,530			5,707
State bonus depreciation and tax credits		3,897			3,926
Stock-based compensation expense		2,113			2,926
Accrued warranty		3,900			3,564
Acquisition costs		3,354			2,236
Advance supplier consideration		664			1,388
Other deferrals and accruals, net		9,247			10,039
Obsolete inventory, UNICAP and other related items		—			4,054
Allowance for credit losses		4,216			3,885
Total deferred tax assets		67,438			59,221
Deferred tax liabilities:
Property, plant and equipment		(21,453	)		(21,257	)
Trade names and other intangible assets, net		(38,221	)		(39,193	)
Goodwill		(23,823	)		(21,303	)
Operating lease right-of-use asset		(31,741	)		(19,655	)
Obsolete inventory, UNICAP and other related items		(2,612	)		—
Eco partnership basis difference		—			(2,921	)
Derivative financial instruments		(66	)		(77	)
Prepaid expenses		(2,207	)		(2,222	)
Total deferred tax liabilities		(120,123	)		(106,628	)
Total deferred tax liabilities, net	$	(52,685	)	$	(47,407	)