Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense

The components of income tax expense are as follows (in thousands):

 

     Year Ended  
     December 31,      January 2,      January 3,  
     2016      2016      2015  

Current:

         

Federal

    $ 4,602      $ 8,861      $ 6,346  

State

      921        443        —    
  

 

 

     

 

 

     

 

 

  
     5,523        9,304        6,346  
  

 

 

     

 

 

     

 

 

  

Deferred:

         

Federal

      5,371        4,893        2,379  

State

      906        1,100        950  
  

 

 

     

 

 

     

 

 

  
     6,277        5,993        3,329  
  

 

 

     

 

 

     

 

 

  

Income tax expense

    $ 11,800      $ 15,297      $ 9,675  
  

 

 

     

 

 

     

 

 

  
Summary of Income Taxes Included in Consolidated Statements of Income and Consolidated Statements of Equity

The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands):

 

     Year Ended  
     December 31,      January 2,      January 3,  
     2016      2016      2015  

Consolidated statements of income:

         

Income tax expense relating to continuing operations

    $ 11,800      $ 15,297      $ 9,675  

Consolidated statements of shareholders’ equity:

         

Reversal of intraperiod tax allocation

    $ —        $ (1,595 )     $ —    

Income tax expense relating to derivative financial instruments

    $ —        $ 50      $ 431  

Income tax benefit relating to share-based compensation

    $ (1,872 )     $ (3,840 )     $ (6,064 ) 
Reconciliation of Statutory Federal Income Tax Rate

A reconciliation of the statutory federal income tax rate to our effective rate is provided below:

 

     Year Ended  
     December 31,     January 2,     January 3,  
     2016     2016     2015  

Statutory federal income tax rate

      35.0 %      35.0 %      35.0 % 

State income taxes, net of federal income tax benefit

      3.8 %      3.8 %      3.8 % 

Reversal of intraperiod tax allocation

      —         4.1 %      —    

Research activities credits

      (2.8 )%      —         —    

Domestic manufacturing deduction

      (1.8 )%      (2.2 )%      (2.1 )% 

Florida jobs creation incentive credits

      (0.6 )%      (2.0 )%      —    

Non-deductible acquisition costs

      —         —         0.6 % 

Change in valuation allowance on deferred tax assets

      (0.2 )%      0.3 %      —    

Non-deductible expenses

      0.2 %      0.2 %      —    

Other

      (0.4 )%      0.2 %      (0.2 )% 
  

 

 

    

 

 

    

 

 

  
     33.2 %      39.4 %      37.1 % 
  

 

 

    

 

 

    

 

 

  
Components of Net Deferred Tax Asset and Liability

Significant components of our net deferred tax liability are as follows:

 

     December 31,      January 2,  
     2016      2016  
     (in thousands)  

Deferred tax assets:

      

State and federal net operating loss carryforwards

    $ 2,000      $ 4,735  

Stock-based compensation expense

      2,646        2,735  

Accrued warranty

      2,149        1,643  

Obsolete inventory and UNICAP adjustment

      503        607  

Other deferrals and accruals, net

      899        682  

Allowance for doubtful accounts

      195        152  

Acquisition costs

      537        261  
  

 

 

     

 

 

  

Total deferred tax assets

      8,929        10,815  
  

 

 

     

 

 

  

Deferred tax liabilities:

      

Trade names and other intangible assets, net

      (26,007 )       (26,631 ) 

Property, plant and equipment

      (10,492 )       (9,202 ) 

Goodwill

      (3,193 )       (619 ) 

Deferred financing costs

      (1,241 )       (131 ) 

Prepaid expenses

      (167 )       (126 ) 
  

 

 

     

 

 

  

Total deferred tax liabilities

      (41,100 )       (36,709 ) 
  

 

 

     

 

 

  

Total deferred tax liabilities, net

    $ (32,171 )     $ (25,894 )