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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes were as follows for the periods indicated (in thousands):
| Fiscal Year Ended
| December 31, 2022 |  | January 1, 2022 |  | January 2, 2021
Domestic | $ | 107,578 |  |  | $ | 262,182 |  |  | $ | 201,919 |
Foreign | 8,599 |  |  | 6,228 |  |  | 3,282 |
Income before income taxes | $ | 116,177 |  |  | $ | 268,410 |  |  | $ | 205,201 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense were as follows for the periods indicated (in thousands):
| Fiscal Year Ended
| December 31, 2022 |  | January 1, 2022 |  | January 2, 2021
Current tax expense: |  |  |  |  |
U.S. federal | $ | 43,967 |  |  | $ | 37,963 |  |  | $ | 41,884 |
State | 11,761 |  |  | 11,018 |  |  | 10,619 |
Foreign | 3,372 |  |  | 1,726 |  |  | 829 |
Total current tax expense | 59,100 |  |  | 50,707 |  |  | 53,332 |
Deferred tax expense (benefit): |  |  |  |  |
U.S. federal | (26,783) |  |  | 4,770 |  |  | (3,332) |
State | (4,499) |  |  | 540 |  |  | (538) |
Foreign | (1,334) |  |  | (209) |  |  | (62) |
Total deferred tax expense (benefit) | (32,616) |  |  | 5,101 |  |  | (3,932) |
Total income tax expense | $ | 26,484 |  |  | $ | 55,808 |  |  | $ | 49,400 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the effective income tax rate is as follows for the periods indicated (in thousands):
| Fiscal Year Ended
| December 31, 2022 |  | January 1, 2022 |  | January 2, 2021
Income taxes at the statutory rate | $ | 24,397 |  |  | $ | 56,366 |  |  | $ | 43,092 |
Increase (decrease) resulting from: |  |  |  |  |
State income taxes, net of federal tax effect | 4,454 |  |  | 8,562 |  |  | 7,816 |
Foreign-derived intangible income | (2,878) |  |  | (3,056) |  |  | (1,046) |
Research and development tax credits | (742) |  |  | (630) |  |  | (580) |
Tax benefit related to stock-based compensation | (472) |  |  | (7,259) |  |  | (611) |
Other | 1,725 |  |  | 1,825 |  |  | 729 |
Income tax expense | $ | 26,484 |  |  | $ | 55,808 |  |  | $ | 49,400 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands):
| Fiscal Year Ended
| December 31, 2022 |  | January 1, 2022
Deferred tax assets: |  |  |
Accrued liabilities | $ | 24,339 |  |  | $ | 7,188 |
Allowances and other reserves | 3,510 |  |  | 3,350 |
Inventory | 13,022 |  |  | 4,990 |
Stock-based compensation | 5,410 |  |  | 4,298 |
Operating lease liabilities | 16,817 |  |  | 16,201 |
Capitalized research and development expenditures | 7,921 |  |  | — |
Other | 4,520 |  |  | 3,225 |
Total deferred tax assets | $ | 75,539 |  |  | $ | 39,252 |
Deferred tax liabilities: |  |  |
Operating lease assets | $ | (13,828) |  |  | $ | (13,516) |
Prepaid expenses | (1,286) |  |  | (1,602) |
Property and equipment | (15,734) |  |  | (15,180) |
Intangible assets | (21,346) |  |  | (18,180) |
Other | (112) |  |  | (92) |
Total deferred tax liabilities | (52,306) |  |  | (48,570) |
Net deferred tax liabilities | $ | 23,233 |  |  | $ | (9,318) |
Amounts included in the Consolidated Balance Sheets: |  |  |
Deferred income taxes | $ | 23,233 |  |  | $ | 1,602 |
Other liabilities | — |  |  | (10,920) |
Net deferred income tax liabilities | $ | 23,233 |  |  | $ | (9,318) |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands):
| Fiscal Year Ended
| December 31, 2022 |  | January 1, 2022
Balance, beginning of year | $ | 11,113 |  |  | $ | 7,250 |
Gross increases related to current year tax positions | 2,270 |  |  | 4,070 |
Gross increases related to prior year tax positions | 36 |  |  | — |
Gross decreases related to prior year tax positions | (68) |  |  | (100) |
Decreases as a result of settlements during the current period | (260) |  |  | — |
Lapse of statute of limitations | (500) |  |  | (107) |
Balance, end of year | $ | 12,591 |  |  | $ | 11,113 |

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