Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

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

	Year Ended
	January 2,			December 28,		December 29,
	2021			2019		2018
Current:
Federal	$	9,906		$	5,747	$	11,818
State		2,571			2,282		4,416
		12,477			8,029		16,234
Deferred:
Federal		528			3,179		(3,407	)
State		(1,121	)		1,231		(1,555	)
		(593	)		4,410		(4,962	)
Income tax expense	$	11,884		$	12,439	$	11,272

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 2,			December 28,			December 29,
	2021			2019			2018
Consolidated statements of operations:
Income tax expense relating to continuing operations	$	11,884		$	12,439		$	11,272
Consolidated statements of shareholders' equity:
Income tax (expense) benefit relating to derivative financial instruments	$	(970	)	$	(974	)	$	1,053

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 2,			December 28,			December 29,
	2021			2019			2018
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal income tax benefit		3.7	%		4.0	%		4.5	%
Non-deductible expenses		1.0	%		1.6	%		0.9	%
Florida excess tax refund relating to the Tax Cuts and Jobs Act		(1.0	)%		—			—
Excess stock-based compensation tax benefits		(1.4	)%		(3.7	)%		(8.0	)%
Research activities credits		(2.3	)%		(1.2	)%		(0.7	)%
Disaster tax credit for Hurricane Irma		—			—			(0.7	)%
Changes related to state rate changes and U.S. tax reform		—			0.7	%		0.4	%
Other		(0.1	)%		(0.2	)%		(0.1	)%
		20.9	%		22.2	%		17.3	%

Components of Net Deferred Tax Asset and Liability

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

	January 2,			December 28,
	2021			2019
	(in thousands)
Deferred tax assets:
Operating lease liability	$	10,609		$	7,328
Advance supplier consideration		2,776			3,527
Other deferrals and accruals, net		5,743			2,533
Stock-based compensation expense		1,772			1,640
Accrued warranty		1,550			1,485
State bonus depreciation and net operating loss carryforwards		2,606			1,705
Derivative financial instruments		—			79
Acquisition costs		1,664			1,305
Allowance for doubtful accounts		1,017			915
Obsolete inventory and UNICAP adjustment		788			606
Total deferred tax assets		28,525			21,123
Deferred tax liabilities:
Trade names and other intangible assets, net		(17,978	)		(20,801	)
Property, plant and equipment		(14,966	)		(12,923	)
Goodwill		(12,596	)		(8,525	)
Operating lease right-of-use asset		(9,742	)		(6,521	)
Derivative financial instruments		(892	)		—
Prepaid expenses		(680	)		(298	)
Total deferred tax liabilities		(56,854	)		(49,068	)
Total deferred tax liabilities, net	$	(28,329	)	$	(27,945	)