Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income tax provision (benefit) consists of the following (in thousands):


	Year Ended December 31,
	2018		2017			2016
Current income tax provision:
Federal	$	33,578	$	41,177		$	26,752
State		7,674		5,420			2,798

		41,252		46,597			29,550

Deferred income tax provision:
Federal		988		1,177			5,217
State		49		(983	)		216

		1,037		194			5,433

Total income tax provision	$	42,289	$	46,791		$	34,983

Reconciliation of Differences between Income Tax Provision and Income Tax Determined by Applying US Federal Statutory Rate

The income tax provision differs from the amount of income tax determined by applying the U.S. Federal statutory rate to income before taxes as a result of the following (in thousands):


	Year Ended December 31,
	2018			2017			2016
U.S. Federal statutory taxes	$	37,141		$	49,671		$	35,990
State and local taxes, net of U.S. Federal benefit		7,716			5,110			3,747
Permanent items		470			576			396
Excess tax benefits from vesting or settlement of stock compensation awards		(2,368	)		(1,454	)		(1,749	)
Domestic production activities deduction		—			(4,376	)		(2,740	)
Federal credits		(662	)		(534	)		(488	)
Other		(8	)		(2,202	)		(173	)

Total income tax provision	$	42,289		$	46,791		$	34,983

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following (in thousands):


	As of December 31,
	2018			2017
Deferred tax assets:
Net operating losses	$	79		$	123
Residential product warranty reserve		7,804			8,876
Stock-based compensation		1,725			1,823
Accruals not currently deductible and other		3,928			1,838
Inventories		4,682			3,783
State tax credit carryforwards		3,400			3,619

Gross deferred tax assets, before valuation allowance		21,618			20,062
Valuation allowance		(3,015	)		(3,096	)

Gross deferred tax assets, after valuation allowance		18,603			16,966

Deferred tax liabilities:
Depreciation		(13,893	)		(12,046	)
Goodwill amortization		(3,774	)		(2,781	)
Inventories and other		(3,061	)		(3,228	)

Gross deferred tax liabilities		(20,728	)		(18,055	)

Net deferred tax liability	$	(2,125	)	$	(1,089	)