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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2022
Income Tax Disclosure [Abstract] |
Summary of Income Tax Expense (Benefit) | Income tax expense consisted of the following (in thousands):
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 17,019 |  |  | $ | 29,762 |  |  | $ | 12,299 |
State | 4,568 |  |  | 6,528 |  |  | 3,293 |
| 21,587 |  |  | 36,290 |  |  | 15,592 |
Deferred: |  |  |  |  |
Federal | 10,954 |  |  | 584 |  |  | 2,591 |
State | 1,004 |  |  | (91) |  |  | 480 |
| 11,958 |  |  | 493 |  |  | 3,071 |
Income tax expense | $ | 33,545 |  |  | $ | 36,783 |  |  | $ | 18,663 |
Reconciliation of Income Tax Expense (Benefit) at the Statutory Federal Rate | The following table provides a reconciliation between the statutory federal income tax rate and our effective income tax rate:
| 2021 |  | 2020 |  | 2019
Statutory federal income tax | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 3.0 |  |  | 2.4 |  |  | 3.6 |
Stock-based compensation | (6.3) |  |  | (2.4) |  |  | (4.3) |
R&D tax credits | (1.4) |  |  | (1.4) |  |  | (2.2) |
Non-deductible compensation | 1.5 |  |  | 1.0 |  |  | — |
Changes in unrecognized tax benefits | (0.1) |  |  | 0.3 |  |  | (0.5) |
Other | 0.2 |  |  | — |  |  | 1.0 |
Effective income tax rate | 17.9 | % |  | 20.9 | % |  | 18.6 | %
Summary of Deferred Income Taxes | The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Stock-based compensation | $ | 8,037 |  |  | $ | 7,518 |
Operating lease liabilities | 102,292 |  |  | 86,692 |
Warranty and returns liabilities | 7,459 |  |  | 8,496 |
Net operating loss carryforwards and credits | 1,939 |  |  | 2,027 |
Compensation and benefits | 8,206 |  |  | 6,045 |
Other | 6,607 |  |  | 7,440 |
Total gross deferred tax assets | 134,540 |  |  | 118,218 |
Valuation allowance | (615) |  |  | (615) |
Total gross deferred tax assets after valuation allowance | 133,925 |  |  | 117,603 |
Deferred tax liabilities: |  |  |
Property and equipment | 34,655 |  |  | 31,881 |
Operating lease right-of-use assets | 92,778 |  |  | 78,824 |
Deferred revenue | 5,460 |  |  | 4,987 |
Other | 1,720 |  |  | 2,153 |
Total gross deferred tax liabilities | 134,613 |  |  | 117,845 |
Net deferred tax liabilities | $ | (688) |  |  | $ | (242) |
Summary of Reconciliations Unrecognized Tax Benefits | Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows (in thousands):
| Federal and State Tax
| 2021 |  | 2020 |  | 2019
Beginning balance | $ | 3,912 |  |  | $ | 3,337 |  |  | $ | 3,866 |
Increases related to current-year tax positions | 831 |  |  | 860 |  |  | 638 |
Increases related to prior-year tax positions | 4 |  |  | 27 |  |  | 134 |
Decreases related to prior-year tax positions | (33) |  |  | — |  |  | (363) |
Lapse of statute of limitations | (845) |  |  | (312) |  |  | (663) |
Settlements with taxing authorities | — |  |  | — |  |  | (275) |
Ending balance | $ | 3,869 |  |  | $ | 3,912 |  |  | $ | 3,337 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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