Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

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

(in thousands)	2019			2018			2017
Current:
Federal	$	19,090		$	33,362		$	56,641
State		2,091			2,618			8,293
Foreign		(194	)		1,611			379
		20,987			37,591			65,313
Deferred:
Federal		2,084			1,398			4,582
State		(280	)		186			343
Foreign		(746	)		(1,642	)		(249	)
		1,058			(58	)		4,676
Total	$	22,045		$	37,533		$	69,989

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:

	2019			2018			2017
Federal taxes at statutory rate		21.0	%		21.0	%		35.0	%
State taxes, net of federal tax benefit		1.3			1.3			3.4
Research and development tax credit		(0.5	)		(0.4	)		(0.3	)
Federal permanent items		(0.3	)		(0.1	)		(0.4	)
Tax reform		—			—			2.5
Effect of foreign operations		(1.1	)		(0.2	)		(0.1	)
Other		0.4			0.3			(0.5	)
Effective tax rate		20.8	%		21.9	%		39.6	%

Change in Unrecognized Tax Benefits

The following table summarizes the change in unrecognized tax benefits for the three years ended December 28, 2019:

(in thousands)	2019			2018			2017
Balance at beginning of year	$	2,390		$	2,301		$	3,567
Reductions due to lapses in statutes of limitations		(200	)		(95	)		(181	)
Reductions due to tax positions settled		—			(368	)		(4,543	)
Reductions due to reversals of prior year positions		(28	)		(4	)		—
Additions based on tax positions taken during the prior period		—			—			3,005
Additions based on tax positions taken during the current period		139			556			453
Balance at end of year	$	2,301		$	2,390		$	2,301

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 28, 2019			December 29, 2018
Assets:
Inventories	$	9,545		$	9,006
Accounts receivable		10,695			11,052
Operating lease liability		7,273			-
Accrued expenses		1,974			1,792
Foreign tax credits		844			1,050
Total deferred tax assets		30,331			22,900
Valuation allowance		(844	)		(1,050	)
Net deferred tax assets		29,487			21,850
Liabilities:
Depreciation		10,296			9,094
Goodwill and intangible assets		11,742			11,310
Operating lease right of use asset		6,656			-
Other		416			12
Gross deferred tax liabilities		29,110			20,416
Net deferred tax assets	$	377		$	1,434