Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

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

(in thousands)	2018			2017			2016
Current:
Federal	$	33,362		$	56,641		$	61,251
State		2,618			8,293			5,948
Foreign		1,611			379			-
		37,591			65,313			67,199
Deferred:
Federal		1,398			4,582			(4,563	)
State		186			343			(325	)
Foreign		(1,642	)		(249	)		-
		(58	)		4,676			(4,888	)
Total	$	37,533		$	69,989		$	62,311

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:

	2018			2017			2016
Federal taxes at statutory rate		21.0	%		35.0	%		35.0	%
State taxes, net of federal tax benefit		1.3			3.4			2.2
Research and development tax credit		(0.4	)		(0.3	)		(0.2	)
Federal permanent items		(0.1	)		(0.4	)		—
Tax reform		—			2.5			—
Other		0.1			(0.6	)		—
Effective tax rate		21.9	%		39.6	%		37.0	%

Change in Uncertain Tax Benefits

The following table summarizes the change in uncertain tax benefits for the three years ended December 29, 2018:

(in thousands)	2018			2017			2016
Balance at beginning of year	$	2,301		$	3,567		$	1,855
Reductions due to lapses in statutes of limitations		(95	)		(181	)		—
Reductions due to tax positions settled		(368	)		(4,543	)		(109	)
Reductions due to reversals of prior year positions		(4	)		—			(212	)
Additions based on tax positions taken during the prior period		—			3,005			—
Additions based on tax positions taken during the current period		556			453			2,033
Balance at end of year	$	2,390		$	2,301		$	3,567

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 29, 2018			December 30, 2017
Assets:
Inventories	$	9,006		$	7,335
Accounts receivable		11,052			11,732
Accrued expenses		1,792			1,664
Foreign tax credits		1,050			—
Other		—			261
Total deferred tax assets		22,900			20,992
Valuation allowance		(1,050	)		—
Net deferred tax assets		21,850			20,992
Liabilities:
Depreciation		9,094			7,936
Goodwill and intangible assets		11,310			11,776
Other		12			—
Gross deferred tax liabilities		20,416			19,712
Net deferred tax assets	$	1,434		$	1,280