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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense (benefit) consisted of the following (in thousands):
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 15,518 |  |  | $ | 17,019 |  |  | $ | 29,762 |
State | 5,174 |  |  | 4,568 |  |  | 6,528 |
| 20,692 |  |  | 21,587 |  |  | 36,290 |
Deferred: |  |  |  |  |
Federal | (7,264) |  |  | 10,954 |  |  | 584 |
State | (1,143) |  |  | 1,004 |  |  | (91) |
| (8,407) |  |  | 11,958 |  |  | 493 |
Income tax expense | $ | 12,285 |  |  | $ | 33,545 |  |  | $ | 36,783 |
The following table provides a reconciliation between the statutory federal income tax rate and the Company’s effective income tax rate:
| 2022 |  | 2021 |  | 2020
Statutory federal income tax | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 6.4 |  |  | 3.0 |  |  | 2.4 |
R&D tax credits | (5.5) |  |  | (1.4) |  |  | (1.4) |
Non-deductible compensation | 1.7 |  |  | 1.5 |  |  | 1.0 |
Stock-based compensation | (1.2) |  |  | (6.3) |  |  | (2.4) |
Changes in unrecognized tax benefits | (0.4) |  |  | (0.1) |  |  | 0.3 |
Other | 3.1 |  |  | 0.2 |  |  | — |
Effective income tax rate | 25.1 | % |  | 17.9 | % |  | 20.9 | %
The Company files income tax returns with the U.S. federal government and various state jurisdictions. In the normal course of business, the Company is subject to examination by federal and state taxing authorities. The Company is no longer subject to federal income tax examinations for years prior to 2019 or state income tax examinations prior to 2018. Deferred Income Taxes The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):
| 2022 |  | 2021
Deferred tax assets: |  |  |
Stock-based compensation | $ | 6,896 |  |  | $ | 8,037 |
Operating lease liabilities | 109,144 |  |  | 102,292 |
Warranty and returns liabilities | 7,881 |  |  | 7,459 |
Net operating loss carryforwards and credits | 2,051 |  |  | 1,939 |
Compensation and benefits | 7,678 |  |  | 8,206 |
Research and development | 13,860 |  |  | — |
Other | 6,110 |  |  | 6,607 |
Total gross deferred tax assets | 153,620 |  |  | 134,540 |
Valuation allowance | (615) |  |  | (615) |
Total gross deferred tax assets after valuation allowance | 153,005 |  |  | 133,925 |
Deferred tax liabilities: |  |  |
Property and equipment | 38,442 |  |  | 34,655 |
Operating lease right-of-use assets | 99,311 |  |  | 92,778 |
Deferred revenue | 4,394 |  |  | 5,460 |
Other | 2,900 |  |  | 1,720 |
Total gross deferred tax liabilities | 145,047 |  |  | 134,613 |
Net deferred tax assets (liabilities) | $ | 7,958 |  |  | $ | (688) |
At December 31, 2022, the Company had net operating loss carryforwards for federal purposes of $0.5 million, which will expire between 2025 and 2027. The Company evaluates its deferred income taxes quarterly to determine if valuation allowances are required. As part of this evaluation, the Company 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. The Company has provided a $0.6 million valuation allowance resulting primarily from its inability to utilize certain foreign net operating losses. Unrecognized Tax Benefits Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows (in thousands):
| Federal and State Tax
| 2022 |  | 2021 |  | 2020
Beginning balance | $ | 3,869 |  |  | $ | 3,912 |  |  | $ | 3,337 |
Increases related to current-year tax positions | 910 |  |  | 831 |  |  | 860 |
Increases related to prior-year tax positions | 252 |  |  | 4 |  |  | 27 |
Decreases related to prior-year tax positions | (328) |  |  | (33) |  |  | — |
Lapse of statute of limitations | (1,058) |  |  | (845) |  |  | (312) |
Ending balance | $ | 3,645 |  |  | $ | 3,869 |  |  | $ | 3,912 |
At December 31, 2022 and January 1, 2022, the Company had $3.2 million and $3.7 million, respectively, of unrecognized tax benefits, which if recognized, would affect its effective tax rate. The amount of unrecognized tax benefits is not expected to change materially within the next 12 months.

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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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