Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Components of Income Tax Expense (Benefit)

Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows (in thousands):



	2019		2018			2017
Current:
Federal	$	20,122	$	15,663		$	9,501
State	5,418		4,877			3,408
Foreign	662		936			789
Current provision	26,202		21,476			13,698
Deferred:
Federal	4,140		4,002			(35,914		)
State	1,634		1,320			2,552
Foreign	235		(1,399		)	378
Deferred provision	6,009		3,923			(32,984		)
Total income tax expense	$	32,211	$	25,399		$	(19,286	)

Schedule of Effective Income Tax Rate Reconciliation

The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate are explained as follows (in thousands):



	2019			2018			2017
Federal statutory tax expense	$	29,970		$	24,943		$	24,678
State taxes, net of federal tax effect	5,159			3,997			2,197
Credit for increasing research activities	(4,050		)	(3,950		)	(3,407		)
Deduction related to domestic production activities	—			—			(1,537		)
Valuation allowance	98			(1,141		)	4,232
Federal rate adjustment to deferred taxes	—			—			(45,386		)
Equity based compensation	639			(666		)	(1,544		)
Change in uncertain tax positions	(357		)	766			(163		)
Foreign income tax rate differential	596			124			2,094
Other – net	156			1,326			(450		)
Total income tax expense	$	32,211		$	25,399		$	(19,286	)

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Corporation’s deferred tax liabilities and assets are as follows (in thousands):



	December 28, 2019			December 29, 2018
Deferred Taxes
Allowance for doubtful accounts	$	746		$	897
Compensation	7,243			6,419
Inventory differences	1,445			2,498
Marketing accrual	1,238			1,260
Stock-based compensation	7,680			8,456
Accrued post-retirement benefit obligations	6,287			5,500
Vacation accrual	2,687			2,783
Warranty accrual	3,842			3,761
Net operating loss carryforward	4,522			4,790
Capital loss carryforward	2,011			2,001
Lease liability	17,212			—
Other – net	8,916			11,413
Total deferred tax assets	$	63,829		$	49,778
Deferred income	(4,838		)	(4,707		)
Goodwill and other intangible assets	(54,951		)	(52,468		)
Prepaids	(6,867		)	(6,536		)
Right of use asset	(16,251		)	—
Tax over book depreciation	(57,682		)	(59,500		)
Total deferred tax liabilities	$	(140,589	)	$	(123,211	)
Valuation allowance	(10,260		)	(7,153		)
Total net deferred tax liabilities	$	(87,020	)	$	(80,586	)

Long-term net deferred tax assets	176			1,569
Long-term net deferred tax liabilities	(87,196		)	(82,155		)
Total net deferred tax liabilities	$	(87,020	)	$	(80,586	)

Summary of Valuation Allowance

The valuation allowance for deferred tax assets is as follows (in thousands):



	Balance at beginning of period		Charged to expenses			Adjustments to balance sheet			Balance at end of period
Year ended December 28, 2019	$	7,153	$	98		$	3,009		$	10,260
Year ended December 29, 2018	$	8,664	$	(839	)	$	(672	)	$	7,153
Year ended December 30, 2017	$	4,159	$	4,505		$	—		$	8,664

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	2019			2018
Balance at beginning of period	$	2,937		$	2,524
Increases in positions taken in a prior period	14			262
Decreases in positions taken in a prior period	(127		)	—
New positions taken in a current period	562			529
Decrease due to settlements	—			(9		)
Decrease due to lapse of statute of limitations	(808		)	(369		)
Balance at end of period	$	2,578		$	2,937

Schedule Of Interest And Penalties On Income Taxes

The Corporation recorded a liability for interest and penalties related to unrecognized tax benefits in the Consolidated Balance Sheets as follows (in thousands):



	December 28, 2019		December 29, 2018
Liability related to unrecognized tax benefits	$	279	$	275

Interest, penalties, and benefits recognized in the Consolidated Statements of Comprehensive Income were as follows (in thousands):



	2019		2018		2017
Interest, penalties, and (benefits)	$	4	$	92	$	(25	)