Income Taxes (Tables)

12 Months Ended

Dec. 25, 2021

Components of Income Tax Provision (Benefit)

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

	For the Year Ended
(in thousands)	December 25, 2021			December 26, 2020			December 28, 2019
Current:
Federal	$	43,374		$	33,698		$	19,090
State		5,755			4,276			2,091
Foreign		1,075			491			(194	)
		50,204			38,465			20,987
Deferred:
Federal		(9,609	)		(8,475	)		2,084
State		(1,368	)		(893	)		(280	)
Foreign		(993	)		(231	)		(746	)
		(11,970	)		(9,599	)		1,058
Total	$	38,234		$	28,866		$	22,045

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:

	For the Year Ended
	December 25, 2021			December 26, 2020			December 28, 2019
Federal taxes at statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal tax benefit		2.1			2.0			1.3
Research and development tax credit		(0.4	)		(0.6	)		(0.5	)
Federal permanent items		—			(0.2	)		(0.3	)
Effect of foreign operations		(0.2	)		0.1			(1.1	)
Other		—			(1.0	)		0.4
Effective tax rate		22.5	%		21.3	%		20.8	%

Change in Unrecognized Tax Benefits

The following table summarizes the change in unrecognized tax benefits for the three years ended December 25, 2021:

	For the Year Ended
(in thousands)	December 25, 2021			December 26, 2020			December 28, 2019
Balance at beginning of year	$	1,060		$	2,301		$	2,390
Reductions due to lapses in statutes of limitations		—			—			(200	)
Reductions due to tax positions settled		—			(1,308	)		—
Reductions due to reversals of prior year positions		(30	)		(202	)		(28	)
Additions based on tax positions taken during the current period		174			269			139
Balance at end of year	$	1,204		$	1,060		$	2,301

Reconciliation of Deferred Tax Assets and Liabilities

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

(in thousands)	December 25, 2021			December 26, 2020
Assets:
Inventories	$	13,689		$	11,346
Accounts receivable		18,589			16,452
Operating lease liability		14,526			9,352
Accrued expenses		7,515			3,671
Net operating losses		1,892			304
Foreign tax credits		469			631
State tax credits		819			625
Capital loss carryforward		467			—
Total deferred tax assets		57,966			42,381
Valuation allowance		(1,837	)		(1,256	)
Net deferred tax assets		56,129			41,125
Liabilities:
Depreciation		14,541			10,586
Goodwill and intangible assets		45,522			12,419
Operating lease right of use asset		13,733			8,560
Other		309			929
Gross deferred tax liabilities		74,105			32,494
Net deferred tax (liabilities) assets	$	(17,976	)	$	8,631