Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:

(in thousands)	2017			2016			2015
Current:
Federal	$	56,641		$	61,251		$	55,140
State		8,293			5,948			3,578
Foreign		379			-			-
		65,313			67,199			58,718
Deferred:
Federal		4,582			(4,563	)		(4,874	)
State		343			(325	)		(232	)
Foreign		(249	)		-			-
		4,676			(4,888	)		(5,106	)
Total	$	69,989		$	62,311		$	53,612

Reconciliation of Income Taxes at Statutory Tax Rate to Company's Effective Tax Rate

The following is a reconciliation of income taxes at the statutory tax rate to the Company's effective tax rate:

	2017			2016			2015
Federal taxes at statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal tax benefit		3.4			2.2			1.8
Research and development tax credit		(0.3	)		(0.2	)		(0.2	)
Tax reform		2.5			-			-
Other		(1.0	)		—			0.1
Effective tax rate		39.6	%		37.0	%		36.7	%

Change in Uncertain Tax Benefits

The following table summarizes the change in uncertain tax benefits for the three years ended December 30, 2017:

(in thousands)	2017			2016			2015
Balance at beginning of year	$	3,567		$	1,855		$	1,163
Reductions due to lapses in statutes of limitations		(181	)		—			—
Reductions due to tax positions settled		(4,543	)		(109	)		(177	)
Reductions due to reversals of prior year positions		—			(212	)		(20	)
Additions based on tax positions taken during the prior period		3,005			—			—
Additions based on tax positions taken during the current period		453			2,033			889
Balance at end of year	$	2,301		$	3,567		$	1,855

Reconciliation of Deferred Tax Assets and Liabilities

Deferred income taxes result from timing differences in the recognition of revenue and expense for tax and financial statement purposes. The sources of temporary differences are as follows:

(in thousands)	December 30, 2017		December 31, 2016
Assets:
Inventories	$	7,335	$	10,337
Accounts receivable		11,732		20,216
Accrued expenses		1,664		2,935
Other		261		786
Gross deferred tax assets		20,992		34,274
Liabilities:
Depreciation		7,936		11,988
Goodwill and intangible assets		11,776		9,857
Gross deferred tax liabilities		19,712		21,845
Net deferred tax assets	$	1,280	$	12,429