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Income Taxes (Notes) | 12 Months Ended
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Jan. 03, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense consisted of the following (in thousands):
Current: |  | 2014 |  | 2013 |  | 2012
Federal |  | $ | 29,484 |  |  | $ | 25,091 |  |  | $ | 34,993 |
State |  | 4,161 |  |  | 3,802 |  |  | 3,419 |
|  | 33,645 |  |  | 28,893 |  |  | 38,412 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | 747 |  |  | 1,953 |  |  | 2,176 |
State |  | (258 | ) |  | 84 |  |  | 1,323 |
|  | 489 |  |  | 2,037 |  |  | 3,499 |
Income tax expense |  | $ | 34,134 |  |  | $ | 30,930 |  |  | $ | 41,911 |
The following table provides a reconciliation between the statutory federal income tax rate and our effective income tax rate:
|  | 2014 |  | 2013 |  | 2012
Statutory federal income tax |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit |  | 2.5 |  |  | 3.0 |  |  | 2.9 |
Manufacturing deduction |  | (3.3 | ) |  | (3.2 | ) |  | (3.1 | )
Changes in unrecognized tax benefits |  | 0.3 |  |  | 0.3 |  |  | (0.2 | )
Other |  | (1.1 | ) |  | (1.1 | ) |  | 0.3 |
Effective income tax rate |  | 33.4 | % |  | 34.0 | % |  | 34.9 | %
We file income tax returns with the U.S. federal government and various state jurisdictions. In the normal course of business, we are subject to examination by federal and state taxing authorities. We are no longer subject to federal income tax examinations for years prior to 2011 or state income tax examinations prior to 2010. Deferred Income Taxes The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):
Deferred tax assets: |  | 2014 |  | 2013
Current: |  |  |  |
Warranty and returns liabilities |  | $ | 5,753 |  |  | $ | 4,376 |
Compensation and benefits |  | 1,545 |  |  | 1,379 |
Deferred rent and lease incentives |  | 991 |  |  | 857 |
Other |  | 709 |  |  | 539 |
Long-term: |  |  |  |  |
Stock-based compensation |  | 6,843 |  |  | 5,944 |
Deferred rent and lease incentives |  | 5,527 |  |  | 4,524 |
Warranty liabilities |  | 1,051 |  |  | 605 |
Net operating loss and capital loss carryforwards |  | 649 |  |  | 827 |
Other |  | — |  |  | 1,111 |
Total gross deferred tax assets |  | 23,068 |  |  | 20,162 |
Valuation allowance |  | (552 | ) |  | (587 | )
Total deferred tax assets after valuation allowance |  | 22,516 |  |  | 19,575 |
Deferred tax liabilities: |  |  |  |
Long-term: |  |  |  |
Property and equipment |  | 9,873 |  |  | 7,696 |
Other |  | 424 |  |  | — |
Total gross deferred tax liabilities |  | 10,297 |  |  | 7,696 |
Net deferred tax assets |  | $ | 12,219 |  |  | $ | 11,879 |
At January 3, 2015, we had net operating loss carryforwards for state income tax purposes of $2.3 million, which will expire between 2023 and 2034. We evaluate our deferred income taxes quarterly to determine if valuation allowances are required. As part of this evaluation, we assess whether valuation allowances should be established for any deferred tax assets that are not considered more likely than not to be realized, using all available evidence, both positive and negative. This assessment considers, among other matters, the nature, frequency, and severity of historical losses, forecasts of future profitability, taxable income in available carryback periods and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. Unrecognized Tax Benefits - there were no significant unrecognized tax benefits, penalties or interest related to current-year or prior-year tax positions.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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