Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2019		2018		2017
Current income tax provision:
Federal	$	30,306	$	33,578	$	41,177
State		6,952		7,674		5,420
	37,258		41,252		46,597
Deferred income tax provision:
Federal		6,928		988		1,177
State		778		49		(983	)
	7,706		1,037		194
Total income tax provision	$	44,964	$	42,289	$	46,791

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,
	2019			2018			2017
U.S. Federal statutory taxes	$	39,838		$	37,141		$	49,671
State and local taxes, net of U.S. Federal benefit		8,412			7,716			5,110
Permanent items		1,266			470			576
Excess tax benefits from vesting or settlement of stock compensation awards		(3,540	)		(2,368	)		(1,454	)
Domestic production activities deduction		—			—			(4,376	)
Federal credits		(654	)		(662	)		(534	)
Other		(358	)		(8	)		(2,202	)
Total income tax provision	$	44,964		$	42,289		$	46,791

Schedule of Deferred Tax Assets and Liabilities

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

	As of December 31,
	2019			2018
Deferred tax assets:
Net operating losses	$	88		$	79
Residential product warranty reserve		6,486			7,804
Stock-based compensation		1,055			1,725
Accruals not currently deductible and other		2,245			3,928
Inventories		5,780			4,682
Operating lease liability		10,618			—
State tax credit carryforwards		3,461			3,400
Gross deferred tax assets, before valuation allowance		29,733			21,618
Valuation allowance		(2,988	)		(3,015	)
Gross deferred tax assets, after valuation allowance		26,745			18,603
Deferred tax liabilities:
Depreciation		(17,267	)		(13,893	)
Operating lease right-of-use asset		(10,162	)		—
Goodwill amortization		(4,782	)		(3,774	)
Inventories and other		(4,365	)		(3,061	)
Gross deferred tax liabilities		(36,576	)		(20,728	)
Net deferred tax liability	$	(9,831	)	$	(2,125	)