Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense (Benefit)

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

	2023		2022		2021
Current:
Federal	$	5,474	$	15,518	$	17,019
State	3,106		5,174		4,568
	8,580		20,692		21,587
Deferred:
Federal	(10,151)		(7,264)		10,954
State	(2,895)		(1,143)		1,004
	(13,046)		(8,407)		11,958
Income tax (benefit) expense	$	(4,466)	$	12,285	$	33,545

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:

	2023		2022		2021
Statutory federal income tax	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	(3.5)		6.4		3.0
R&D tax credits	14.1		(5.5)		(1.4)
Return to provision	6.1		0.8		0.1
Investment tax credit	1.1		—		—
Stock-based compensation	(6.2)		(1.2)		(6.3)
Non-deductible compensation	(5.7)		1.7		1.5
Non-deductible expenses	(2.8)		1.3		0.3
Changes in unrecognized tax benefits	(0.5)		(0.4)		(0.1)
Other	(1.0)		1.0		(0.2)
Effective income tax rate	22.6	%	25.1	%	17.9	%

Summary of Deferred Income Taxes

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

	2023		2022
Deferred tax assets:
Stock-based compensation	$	7,006	$	6,896
Operating lease liabilities	108,952		109,144
Warranty and returns liabilities	6,894		7,881
Net operating loss carryforwards and credits	1,738		2,051
Compensation and benefits	7,484		7,678
Research and development	18,079		13,860
Other	8,931		6,110
Total gross deferred tax assets	159,084		153,620
Valuation allowance	(48)		(615)
Total gross deferred tax assets after valuation allowance	159,036		153,005
Deferred tax liabilities:
Property and equipment	33,772		38,442
Operating lease right-of-use assets	99,351		99,311
Deferred revenue	3,065		4,394
Other	2,595		2,900
Total gross deferred tax liabilities	138,783		145,047
Net deferred tax assets	$	20,253	$	7,958

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
	2023		2022		2021
Beginning balance	$	3,645	$	3,869	$	3,912
Increases related to current-year tax positions	753		910		831
Increases related to prior-year tax positions	40		252		4
Decreases related to prior-year tax positions	—		(328)		(33)
Lapse of statute of limitations	(601)		(1,058)		(845)
Settlements with taxing authorities	(166)		—		—
Ending balance	$	3,671	$	3,645	$	3,869