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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes 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 |
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 | %
At December 31, 2023, we had $4.5 million of unrecognized tax benefits, all of which would affect our effective tax rate if recognized. 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 |
We recognize interest and penalties related to unrecognized tax benefits in income tax expense. As of December 31, 2023, accrued interest and penalties related to unrecognized tax benefits were immaterial. The Company does not anticipate material changes in the amount of unrecognized income tax benefits over the next year. 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) |
A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all positive and negative evidence. This evidence includes, but is not limited to, prior earnings history, expected future earnings, carryback and carryforward periods and the feasibility of ongoing tax strategies that could potentially enhance the likelihood of the realization of the deferred tax asset. Management has determined it was necessary to establish a valuation allowance against the foreign tax credits, various state tax credits and a capital loss carryforward. Based on our history of taxable income and our projection of future earnings, we believe that it is more likely than not that sufficient taxable income will be generated in the foreseeable future to realize the remaining net deferred tax assets. During 2023, we reduced the valuation allowance against the deferred tax assets noted above by an immaterial amount. As of December 31, 2023, the Company has tax-effected net operating loss carryforwards of $0.2 million and $0.1 million for U.S. federal and state jurisdictions, respectively. Tax-effected federal net operating losses of $0.1 million begin to expire in 2036. The remaining federal net operating losses do not expire. The state net operating loss carryforwards expire in various years starting in 2037. We file income tax returns in the United States, Canada, China, India, and Mexico. The statute of limitations for tax years before 2020 is closed for U.S. federal income tax purposes. The statute of limitations for tax years before 2017 is closed for the states in which we file. The statute of limitations for tax years before 2020 is closed for income tax purposes in Canada, China, and India. The statute of limitations for tax years before 2018 is closed for income tax purposes in Mexico.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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