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Income Taxes
 12 Months Ended
Jan. 02, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows (in thousands):
202020192018
Current:   
Federal$18,365 $20,122 $15,663 
State6,030 5,418 4,877 
Foreign146 662 936 
Current provision24,541 26,202 21,476 
Deferred:   
Federal(9,100)4,140 4,002 
State(2,395)1,634 1,320 
Foreign(580)235 (1,399)
Deferred provision(12,075)6,009 3,923 
Total income tax expense$12,466 $32,211 $25,399 

The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate are explained as follows (in thousands):
 202020192018
Federal statutory tax expense$11,420 $29,970 $24,943 
State taxes, net of federal tax effect2,387 5,159 3,997 
Credit for increasing research activities(3,891)(4,050)(3,950)
Valuation allowance1,264 98 (1,141)
Goodwill impairment1,453 — — 
Equity based compensation106 639 (666)
Change in uncertain tax positions(335)(357)766 
Foreign income tax rate differential(44)596 124 
Other – net106 156 1,326 
Total income tax expense$12,466 $32,211 $25,399 

During the third quarter of 2020, the 2019 federal income tax return was completed resulting in a $0.4 million benefit related to a change in estimate of research and development credits and propane fuel credits, partially offset by changes in executive compensation deductions and other items.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Corporation’s deferred tax liabilities and assets are as follows (in thousands):
January 2,
2021		December 28,
2019
Deferred Taxes  
Allowance for doubtful accounts$1,228 $746 
Compensation7,187 7,243 
Inventory differences2,725 1,445 
Marketing accrual885 1,238 
Stock-based compensation8,494 7,680 
Accrued post-retirement benefit obligations6,676 6,287 
Vacation accrual2,896 2,687 
Warranty accrual4,185 3,842 
Net operating loss carryforward6,654 4,522 
Capital loss carryforward2,012 2,011 
Lease liability16,392 17,212 
Payroll deferral4,114 — 
Other – net9,290 8,916 
Total deferred tax assets$72,738 $63,829 
Deferred income(4,743)(4,838)
Goodwill and other intangible assets(48,934)(54,951)
Prepaid expenses(6,454)(6,867)
Right of use asset(16,626)(16,251)
Tax over book depreciation(58,556)(57,682)
Total deferred tax liabilities$(135,313)$(140,589)
Valuation allowance(11,524)(10,260)
Total net deferred tax liabilities$(74,099)$(87,020)
  
Long-term net deferred tax assets607 176 
Long-term net deferred tax liabilities(74,706)(87,196)
Total net deferred tax liabilities$(74,099)$(87,020)

The valuation allowance for deferred tax assets is as follows (in thousands):
Balance at beginning of periodCharged to expensesAdjustments to balance sheetBalance at end of period
Year ended January 2, 2021$10,260 $1,264 $— $11,524 
Year ended December 28, 2019$7,153 $98 $3,009 $10,260 
Year ended December 29, 2018$8,664 $(839)$(672)$7,153 

The current year increase in the valuation allowance of $1.3 million primarily relates to an increase of other foreign tax net operating losses, partially offset by a partial release of a valuation allowance related to anticipated foreign net operating loss utilization.

As of January 2, 2021, the Corporation had approximately $0.3 million of United States state tax net operating losses and $1.1 million of United States state tax credits, which expire over the next twenty years.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
20202019
Balance at beginning of period$2,578 $2,937 
Increases in positions taken in a prior period53 14 
Decreases in positions taken in a prior period— (127)
New positions taken in a current period364 562 
Decrease due to lapse of statute of limitations(768)(808)
Balance at end of period$2,227 $2,578 

The amount of unrecognized tax benefits, which would impact the Corporation's effective tax rate, if recognized, was $2.2 million as of January 2, 2021 and $2.6 million as of December 28, 2019.
 
As of January 2, 2021, it is reasonably possible the amount of unrecognized tax benefits may increase or decrease within the twelve months following the reporting date.  These increases or decreases in the unrecognized tax benefits would be due to new positions that may be taken on income tax returns, settlement of tax positions, and the closing of statutes of limitation.  It is not expected any of the changes will be material individually, or in total, to the results or financial position of the Corporation.

The Corporation recognizes interest related to unrecognized tax benefits in interest expense, and penalties in operating expenses, consistent with the recognition of these items in prior reporting periods.  The expenses and liabilities recorded for interest and penalties as of and for the years ended January 2, 2021 and December 28, 2019 are immaterial.

Tax years 2017 through 2019 remain open for examination by the Internal Revenue Service ("IRS"). Tax years 2015 through 2019, and 2014 through 2019 remain open for examination in various state and foreign jurisdictions, respectively.  The Corporation is not currently under examination.