Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Schedule of Components of Income Tax Expense (Benefit)

Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows (in thousands):



	2018			2017			2016
Current:
Federal	$	15,663		$	9,501		$	18,963
State	4,877			3,408			3,740
Foreign	936			789			1,450
Current provision	21,476			13,698			24,153
Deferred:
Federal	4,002			(35,914		)	18,167
State	1,320			2,552			2,533
Foreign	(1,399		)	378			(1,580		)
Deferred provision	3,923			(32,984		)	19,120
Total income tax expense	$	25,399		$	(19,286	)	$	43,273

Schedule of Effective Income Tax Rate Reconciliation

The differences between the actual tax expense and tax expense computed at the statutory U.S. federal tax rate are explained as follows (in thousands):



	2018			2017			2016
Federal statutory tax expense	$	24,943		$	24,678		$	45,098
State taxes, net of federal tax effect	3,997			2,197			3,874
Credit for increasing research activities	(3,950		)	(3,407		)	(3,808		)
Deduction related to domestic production activities	—			(1,537		)	(2,243		)
Valuation allowance	(1,141		)	4,232			231
Federal rate adjustment to deferred taxes	—			(45,386		)	—
Equity based compensation	(666		)	(1,544		)	—
Change in uncertain tax positions	766			(163		)	117
Foreign income tax rate differential	124			2,094			845
Other – net	1,326			(450		)	(841		)
Total income tax expense	$	25,399		$	(19,286	)	$	43,273

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Corporation’s deferred tax liabilities and assets are as follows (in thousands):



	2018			2017
Deferred Taxes
Allowance for doubtful accounts	$	897		$	2,679
Compensation	6,419			5,618
Inventory differences	2,498			2,541
Marketing accrual	1,260			1,653
Stock-based compensation	8,456			8,224
Accrued post-retirement benefit obligations	5,500			6,896
Vacation accrual	2,783			2,577
Warranty accrual	3,761			3,737
Net operating loss carryforward	4,790			6,534
Charitable contributions carryforward	712			2,839
Other – net	12,702			6,372
Total deferred tax assets	$	49,778		$	49,670
Deferred income	(4,707		)	(4,330		)
Goodwill and other intangible assets	(52,468		)	(53,255		)
Prepaids	(6,536		)	(5,862		)
Tax over book depreciation	(59,500		)	(54,227		)
Total deferred tax liabilities	$	(123,211	)	$	(117,674	)
Valuation allowance	(7,153		)	(8,664		)
Total net deferred tax liabilities	$	(80,586	)	$	(76,668	)

Long-term net deferred tax assets	1,569			193
Long-term net deferred tax liabilities	(82,155		)	(76,861		)
Total net deferred tax liabilities	$	(80,586	)	$	(76,668	)

Summary of Valuation Allowance

The valuation allowance for deferred tax assets is as follows (in thousands):



	Balance at beginning of period		Charged to expenses			Adjustments to balance sheet			Balance at end of period
Year ended December 29, 2018	$	8,664	(839		)	(672		)	$	7,153
Year ended December 30, 2017	$	4,159	4,505			—			$	8,664
Year ended December 31, 2016	$	3,978	$	231		$	(50	)	$	4,159

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	2018			2017
Balance at beginning of period	$	2,524		$	3,043
Increases in positions taken in a prior period	262			—
Decreases in positions taken in a prior period	—			(45		)
New positions taken in a current period	529			569
Decrease due to settlements	(9		)	(363		)
Decrease due to lapse of statute of limitations	(369		)	(680		)
Balance at end of period	$	2,937		$	2,524

Schedule Of Interest And Penalties On Income Taxes

Interest, penalties, and benefits recognized in the Consolidated Statements of Comprehensive Income were as follows (in thousands):



	December 29, 2018		December 30, 2017			December 31, 2016
Interest, penalties, and (benefits)	$	92	$	(25	)	$	70

The Corporation recorded a liability for interest and penalties related to unrecognized tax benefits in the Consolidated Statements of Comprehensive Income as follows (in thousands):



	December 29, 2018		December 30, 2017
Liability related to unrecognized tax benefits	$	275	$	183