Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:


	For the Year Ended
(in thousands)	December 31, 2023		December 31, 2022		December 25, 2021
Current:
Federal	$	34,600	$	31,683	$	43,374
State	5,602		7,141		5,755
Foreign	2,002		1,708		1,075
	42,204		40,532		50,204
Deferred:
Federal	(1,936)		(4,003)		(9,609)
State	(338)		(1,022)		(1,368)
Foreign	(686)		(855)		(993)
	(2,960)		(5,880)		(11,970)
Total	$	39,244	$	34,652	$	38,234

Reconciliation of Income Taxes at Statutory Tax Rate to Company's Effective Tax Rate

The following is a reconciliation of income taxes at the statutory tax rate to the Company's effective tax rate:


	For the Year Ended
	December 31, 2023		December 31, 2022		December 25, 2021
Federal taxes at statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal tax benefit	2.6		2.7		2.1
Research and development tax credit	(0.7)		(0.7)		(0.4)
Federal permanent items	0.3		(0.2)		—
Effect of foreign operations	0.3		—		(0.2)
Other	(0.2)		(0.6)		—
Effective tax rate	23.3	%	22.2	%	22.5	%

Change in Unrecognized Tax Benefits

The following table summarizes the change in unrecognized tax benefits for the three years ended December 31, 2023:


	For the Year Ended
(in thousands)	December 31, 2023		December 31, 2022		December 25, 2021
Balance at beginning of year	$	3,856	$	1,204	$	1,060
Reductions due to lapses in statutes of limitations	(716)		(139)		—
Reductions due to tax positions settled	—		—		—
Additions related to positions taken during a prior period	—		2,136		—
Reductions due to reversals of prior year positions	—		—		(30)
Additions based on tax positions taken during the current period	1,399		655		174
Balance at end of year	4,539		3,856		1,204

Reconciliation of Deferred Tax Assets and Liabilities

Deferred income taxes result from timing differences in the recognition of revenue and expense between tax and financial statement purposes. The sources of temporary differences are as follows:


(in thousands)	December 31, 2023		December 31, 2022
Assets:
Inventories	$	17,829	$	13,662
Accounts receivable	20,472		20,446
Operating lease liability	26,261		24,904
Accrued expenses	19,265		12,526
Net operating losses	289		1,285
Foreign tax credits	469		469
State tax credits	379		403
Capital loss carryforward	478		481
Total deferred tax assets	85,442		74,176
Valuation allowance	(1,354)		(1,377)
Net deferred tax assets	84,088		72,799
Liabilities:
Depreciation	16,481		18,132
Goodwill and intangible assets	49,798		41,693
Operating lease right of use asset	25,142		23,924
Other	1,592		876
Gross deferred tax liabilities	93,013		84,625
Net deferred tax (liabilities) assets	$	(8,925)	$	(11,826)