Income Taxes (Tables)

12 Months Ended

Dec. 28, 2024

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense (Benefit)

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

	2024	2023	2022
Current:
Federal	$6,904	$5,474	$15,518
State	1,256	3,106	5,174
	8,160	8,580	20,692
Deferred:
Federal	(12,568)	(10,151)	(7,264)
State	(754)	(2,895)	(1,143)
	(13,322)	(13,046)	(8,407)
Income tax (benefit) expense	$(5,162)	$(4,466)	$12,285

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:

	2024	2023	2022
Statutory federal income tax	21.0%	21.0%	21.0%
State income taxes, net of federal benefit	0.8	(3.5)	6.4
R&D tax credits	9.0	14.1	(5.5)
Return to provision	6.2	6.1	0.8
Investment tax credit	—	1.1	—
Stock-based compensation	(9.5)	(6.2)	(1.2)
Non-deductible compensation	(2.6)	(5.7)	1.7
Non-deductible expenses	(2.1)	(2.8)	1.3
Changes in unrecognized tax benefits	(0.5)	(0.5)	(0.4)
Valuation allowance	(3.0)	—	—
Other	0.9	(1.0)	1.0
Effective income tax rate	20.2%	22.6%	25.1%

Summary of Deferred Income Taxes

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

	2024	2023
Deferred tax assets:
Stock-based compensation	$7,090	$7,006
Operating lease liabilities	97,604	108,952
Warranty and returns liabilities	5,880	6,894
Net operating loss carryforwards and credits	2,327	1,738
Compensation and benefits	7,220	7,484
Research and development	19,017	18,079
Interest	9,503	3,747
Other	4,163	5,184
Total gross deferred tax assets	152,804	159,084
Valuation allowance	(806)	(48)
Total gross deferred tax assets after valuation allowance	151,998	159,036
Deferred tax liabilities:
Property and equipment	23,240	33,772
Operating lease right-of-use assets	89,276	99,351
Deferred revenue	2,516	3,065
Other	3,391	2,595
Total gross deferred tax liabilities	118,423	138,783
Net deferred tax assets	$33,575	$20,253

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
	2024	2023	2022
Beginning balance	$3,671	$3,645	$3,869
Increases related to current-year tax positions	639	753	910
Increases related to prior-year tax positions	51	40	252
Decreases related to prior-year tax positions	(15)	—	(328)
Lapse of statute of limitations	(688)	(601)	(1,058)
Settlements with taxing authorities	—	(166)	—
Ending balance	$3,658	$3,671	$3,645