Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following (in thousands):

	2022		2021		2020
Current:
Federal	$	15,518	$	17,019	$	29,762
State	5,174		4,568		6,528
	20,692		21,587		36,290
Deferred:
Federal	(7,264)		10,954		584
State	(1,143)		1,004		(91)
	(8,407)		11,958		493
Income tax expense	$	12,285	$	33,545	$	36,783

Reconciliation of Income Tax Expense (Benefit) at the Statutory Federal Rate

The following table provides a reconciliation between the statutory federal income tax rate and the Company’s effective income tax rate:

	2022		2021		2020
Statutory federal income tax	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	6.4		3.0		2.4
R&D tax credits	(5.5)		(1.4)		(1.4)
Non-deductible compensation	1.7		1.5		1.0
Stock-based compensation	(1.2)		(6.3)		(2.4)
Changes in unrecognized tax benefits	(0.4)		(0.1)		0.3
Other	3.1		0.2		—
Effective income tax rate	25.1	%	17.9	%	20.9	%

Summary of Deferred Income Taxes

The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):

	2022		2021
Deferred tax assets:
Stock-based compensation	$	6,896	$	8,037
Operating lease liabilities	109,144		102,292
Warranty and returns liabilities	7,881		7,459
Net operating loss carryforwards and credits	2,051		1,939
Compensation and benefits	7,678		8,206
Research and development	13,860		—
Other	6,110		6,607
Total gross deferred tax assets	153,620		134,540
Valuation allowance	(615)		(615)
Total gross deferred tax assets after valuation allowance	153,005		133,925
Deferred tax liabilities:
Property and equipment	38,442		34,655
Operating lease right-of-use assets	99,311		92,778
Deferred revenue	4,394		5,460
Other	2,900		1,720
Total gross deferred tax liabilities	145,047		134,613
Net deferred tax assets (liabilities)	$	7,958	$	(688)

Summary of Reconciliations Unrecognized Tax Benefits

Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows (in thousands):

	Federal and State Tax
	2022		2021		2020
Beginning balance	$	3,869	$	3,912	$	3,337
Increases related to current-year tax positions	910		831		860
Increases related to prior-year tax positions	252		4		27
Decreases related to prior-year tax positions	(328)		(33)		—
Lapse of statute of limitations	(1,058)		(845)		(312)
Ending balance	$	3,645	$	3,869	$	3,912