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Income Taxes | 12 Months Ended
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Dec. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense (benefit) consisted of the following (in thousands):
| 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 5,474 |  |  | $ | 15,518 |  |  | $ | 17,019 |
State | 3,106 |  |  | 5,174 |  |  | 4,568 |
| 8,580 |  |  | 20,692 |  |  | 21,587 |
Deferred: |  |  |  |  |
Federal | (10,151) |  |  | (7,264) |  |  | 10,954 |
State | (2,895) |  |  | (1,143) |  |  | 1,004 |
| (13,046) |  |  | (8,407) |  |  | 11,958 |
Income tax (benefit) expense | $ | (4,466) |  |  | $ | 12,285 |  |  | $ | 33,545 |
The following table provides a reconciliation between the statutory federal income tax rate and the Company’s effective income tax rate:
| 2023 |  | 2022 |  | 2021
Statutory federal income tax | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | (3.5) |  |  | 6.4 |  |  | 3.0 |
R&D tax credits | 14.1 |  |  | (5.5) |  |  | (1.4) |
Return to provision | 6.1 |  |  | 0.8 |  |  | 0.1 |
Investment tax credit | 1.1 |  |  | — |  |  | — |
Stock-based compensation | (6.2) |  |  | (1.2) |  |  | (6.3) |
Non-deductible compensation | (5.7) |  |  | 1.7 |  |  | 1.5 |
Non-deductible expenses | (2.8) |  |  | 1.3 |  |  | 0.3 |
Changes in unrecognized tax benefits | (0.5) |  |  | (0.4) |  |  | (0.1) |
Other | (1.0) |  |  | 1.0 |  |  | (0.2) |
Effective income tax rate | 22.6 | % |  | 25.1 | % |  | 17.9 | %
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 2020 or state income tax examinations prior to 2019. Deferred Income Taxes The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):
| 2023 |  | 2022
Deferred tax assets: |  |  |
Stock-based compensation | $ | 7,006 |  |  | $ | 6,896 |
Operating lease liabilities | 108,952 |  |  | 109,144 |
Warranty and returns liabilities | 6,894 |  |  | 7,881 |
Net operating loss carryforwards and credits | 1,738 |  |  | 2,051 |
Compensation and benefits | 7,484 |  |  | 7,678 |
Research and development | 18,079 |  |  | 13,860 |
Other | 8,931 |  |  | 6,110 |
Total gross deferred tax assets | 159,084 |  |  | 153,620 |
Valuation allowance | (48) |  |  | (615) |
Total gross deferred tax assets after valuation allowance | 159,036 |  |  | 153,005 |
Deferred tax liabilities: |  |  |
Property and equipment | 33,772 |  |  | 38,442 |
Operating lease right-of-use assets | 99,351 |  |  | 99,311 |
Deferred revenue | 3,065 |  |  | 4,394 |
Other | 2,595 |  |  | 2,900 |
Total gross deferred tax liabilities | 138,783 |  |  | 145,047 |
Net deferred tax assets | $ | 20,253 |  |  | $ | 7,958 |
At December 30, 2023, the Company had net operating loss carryforwards for federal purposes of $0.4 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 $48 thousand valuation allowance resulting primarily from its inability to utilize certain 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
| 2023 |  | 2022 |  | 2021
Beginning balance | $ | 3,645 |  |  | $ | 3,869 |  |  | $ | 3,912 |
Increases related to current-year tax positions | 753 |  |  | 910 |  |  | 831 |
Increases related to prior-year tax positions | 40 |  |  | 252 |  |  | 4 |
Decreases related to prior-year tax positions | — |  |  | (328) |  |  | (33) |
Lapse of statute of limitations | (601) |  |  | (1,058) |  |  | (845) |
Settlements with taxing authorities | (166) |  |  | — |  |  | — |
Ending balance | $ | 3,671 |  |  | $ | 3,645 |  |  | $ | 3,869 |
At December 30, 2023 and December 31, 2022, the Company had $3.4 million and $3.2 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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