Income Taxes

12 Months Ended

Dec. 31, 2021

13. Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2017.

The federal and state income tax provision consisted of the following:

Year ended December 31,		2021				2020				2019
		Current		Deferred		Current		Deferred		Current		Deferred
Federal	$	42,422	$	863	$	20,201	$	3,696	$	10,705	$	(1,911	)
State		7,279		131		6,519		167		2,455		(513	)
	$	49,701	$	994	$	26,720	$	3,863	$	13,160	$	(2,424	)

Table of Contents

The effective income tax rate varied from the statutory federal income tax rate as follows:

Year ended December 31,	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	3.4		4.4		3.6
Other items	0.1		(0.1	)	0.4
Effective income tax rate	24.5	%	25.3	%	25.0	%

The Company estimates that its effective tax rate in 2022 will approximate 25%.

Significant components of the Company’s deferred tax assets and liabilities are as follows:

December 31,	2021		2020
Deferred tax assets
Product Liability	$	224	$	285
Employee compensation and benefits		2,643		2,548
Allowances for doubtful accounts and discounts		418		445
Inventories		1,224		954
Stock-based compensation		1,538		3,353
Other		1,538		1,443
Total deferred tax assets		7,585		9,028
Deferred tax liabilities:
Depreciation		6,235		6,638
Other		814		860
Total deferred tax liabilities		7,049		7,498
Net deferred tax assets	$	536	$	1,530

The Company made income tax payments of approximately $49.5 million, $30.6 million, and $16.0 million, during 2021, 2020, and 2019, respectively. The Company expects to realize its deferred tax assets through tax deductions against future taxable income.

The Company does not believe it has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material change to its financial position.

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details