Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

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):


	2021		2020		2019
Current:
Federal	$	14,115	$	18,365	$	20,122
State	3,957		6,030		5,418
Foreign	766		146		662
Current provision	18,838		24,541		26,202
Deferred:
Federal	(699)		(9,100)		4,140
State	437		(2,395)		1,634
Foreign	(120)		(580)		235
Deferred provision	(382)		(12,075)		6,009
Total income tax expense	$	18,456	$	12,466	$	32,211

Schedule of Effective Income Tax Rate Reconciliation

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


	2021		2020		2019
Federal statutory tax expense	$	16,436	$	11,420	$	29,970
State taxes, net of federal tax effect	3,687		2,387		5,159
Credit for research activities	(3,965)		(3,891)		(4,050)

Valuation allowance	(221)		1,264		98

Goodwill impairment	137		1,453		—



Executive compensation limitation	1,179		529		139
Other – net	1,203		(696)		895
Total income tax expense	$	18,456	$	12,466	$	32,211

Schedule of Deferred Tax Assets and Liabilities

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


	January 1, 2022		January 2, 2021
Deferred Taxes
Allowance for doubtful accounts	$	505	$	1,228
Compensation	7,306		7,187
Inventory differences	3,138		2,725

Stock-based compensation	7,890		8,494
Accrued post-retirement benefit obligations	5,713		6,676
Vacation accrual	3,201		2,896
Warranty accrual	4,401		4,185

Tax loss and tax credit carryforwards	10,197		9,338
Capital loss carryforward	2,104		2,012
Lease liability	23,429		16,392
Payroll deferral	2,056		4,114
Other – net	8,000		7,491
Total deferred tax assets	$	77,940	$	72,738
Deferred income	(5,049)		(4,743)
Goodwill and other intangible assets	(49,744)		(48,934)
Prepaid expenses	(6,481)		(6,454)
Right of use asset	(23,109)		(16,626)
Tax over book depreciation	(56,582)		(58,556)
Total deferred tax liabilities	$	(140,965)	$	(135,313)
Valuation allowance	(11,303)		(11,524)
Total net deferred tax liabilities	$	(74,328)	$	(74,099)

Long-term net deferred tax assets	680		607
Long-term net deferred tax liabilities	(75,008)		(74,706)
Total net deferred tax liabilities	$	(74,328)	$	(74,099)

Summary of Valuation Allowance

The valuation allowance, which primarily relates to foreign 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 January 1, 2022	$	11,524	$	(221)	$	—	$	11,303
Year ended January 2, 2021	$	10,260	$	1,264	$	—	$	11,524
Year ended December 28, 2019	$	7,153	$	98	$	3,009	$	10,260

Summary of Income Tax Contingencies

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


	2021		2020
Balance at beginning of period	$	2,227	$	2,578
Increases in positions taken in a prior period	81		53

New positions taken in a current period	568		364

Decrease due to lapse of statute of limitations	(681)		(768)
Balance at end of period	$	2,195	$	2,227