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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Taxes [Abstract] |
Income Taxes | 14. 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, |  | 2022 |  |  | 2021 |  |  | 2020 |
|  | Current |  |  | Deferred |  |  | Current |  |  | Deferred |  |  | Current |  |  | Deferred |
Federal |  | $ | 21,741 |  |  | $ | (4,694 | ) |  | $ | 42,422 |  |  | $ | 863 |  |  | $ | 20,201 |  |  | $ | 3,696 |
State |  |  | 3,779 |  |  |  | (879 | ) |  |  | 7,279 |  |  |  | 131 |  |  |  | 6,519 |  |  |  | 167 |
|  | $ | 25,520 |  |  | $ | (5,573 | ) |  | $ | 49,701 |  |  | $ | 994 |  |  | $ | 26,720 |  |  | $ | 3,863 |
The effective income tax rate varied from the statutory federal income tax rate as follows:
Year ended December 31, |  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory federal income tax rate |  |  | 21.0% |  |  |  | 21.0% |  |  |  | 21.0% |
State income taxes, net of federal tax benefit |  |  | 2.7 |  |  |  | 3.4 |  |  |  | 4.4 |
Research and development tax credits |  |  | (4.2 | ) |  |  | (0.4 | ) |  |  | — |
Other |  |  | (1.1 | ) |  |  | 0.5 |  |  |  | (0.1 | )
Effective income tax rate |  |  | 18.4% |  |  |  | 24.5% |  |  |  | 25.3% |
The Company estimates that its effective tax rate in 2023 will approximate 22.4%. Significant components of the Company’s deferred tax assets and liabilities are as follows:
December 31, |  | 2022 |  |  | 2021 |
Deferred tax assets |  |  |  |  |  |  |  |
Product Liability |  | $ | 69 |  |  | $ | 224 |
Capitalized research and development costs |  |  | 4,838 |  |  |  | — |
Employee compensation and benefits |  |  | 2,316 |  |  |  | 2,643 |
Allowances for doubtful accounts and discounts |  |  | 637 |  |  |  | 418 |
Inventories |  |  | 1,196 |  |  |  | 1,224 |
Stock-based compensation |  |  | 1,661 |  |  |  | 1,538 |
Other |  |  | 1,636 |  |  |  | 1,538 |
Total deferred tax assets |  |  | 12,353 |  |  |  | 7,585 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | 5,070 |  |  |  | 6,235 |
Other |  |  | 1,174 |  |  |  | 814 |
Total deferred tax liabilities |  |  | 6,244 |  |  |  | 7,049 |
Net deferred tax assets |  | $ | 6,109 |  |  | $ | 536 |
Prior to 2022, the Company expensed research and development costs in the period in which they were incurred for both financial accounting and income tax purposes. In 2022 the Company adopted the provisions of the Tax Cuts and Jobs Act of 2017 that relate to IRS Code Section 174. Under these provisions, research and development costs must be capitalized and amortized over five years for income tax purposes. The Company continues to expense these costs in the period incurred for financial accounting purposes. The Company made income tax payments of approximately $28.7 million, $49.5 million, and $30.6 million, during 2022, 2021, and 2020, 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.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://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 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://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 https://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 -Paragraph 2 -Subparagraph (a) -URI https://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 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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