Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income taxes:

Schedule of the components of income before income taxes

The components of income before income taxes consist of the following (in thousands):

	Years Ended December 31,
	2023		2022		2021
Domestic	$	1,217,084	$	34,784	$	73,753
Foreign		2,393		(8,408)		(2,333)
Total income before income taxes	$	1,219,477	$	26,376	$	71,420

Schedule of income tax expense

The income tax expense is comprised of the following (in thousands):

	Years Ended December 31,
	2023		2022		2021
Current:
Federal	$	(3,638)	$	—	$	—
State		(11,868)		(4,195)		(3,116)
Foreign		(203)		(496)		(1,833)
Deferred:
Federal		53,393		(16,299)		(17,959)
State		16,086		(143)		(2,348)
Foreign		194		(97)		2,021
Total income tax benefit (expense)	$	53,964	$	(21,230)	$	(23,235)

Schedule of net deferred tax assets

Our consolidated temporary differences comprising our net deferred tax assets are as follows (in thousands):

	December 31,
	2023		2022
Deferred Tax Assets:
Net operating loss carry-forwards	$	244,306	$	226,625
Interest expense limitation		34,828		12,331
Accrued liabilities and other		12,055		9,972
Operating leases		107,563		32,769
Total gross deferred tax assets		398,752		281,697
Valuation allowance		(136,533)		(140,895)
		262,219		140,802
Deferred Tax Liabilities:
Property & equipment		295,630		61,761
Intangibles		118,727		—
Deferred consideration – IP Transit Services Agreement		114,844		—
Investment in foreign subsidiaries		100,081		96,977
Right-of-use assets		104,435		29,710
Gross deferred tax liabilities		733,717		188,448
Net deferred tax liabilities	$	471,498	$	47,646

Schedule of reconciliation of the Federal statutory income taxes to the amounts reported in the financial statements

The following is a reconciliation of the Federal statutory income taxes to the amounts reported in the financial statements (in thousands).

	Years Ended December 31,
	2023		2022		2021
Federal income tax expense at statutory rates	$	(256,086)	$	(5,537)	$	(14,999)
Effect of:
State income taxes, net of federal benefit		3,722		(1,700)		(4,123)
Impact of foreign operations		868		(651)		715
Non-deductible expenses		(2,783)		(2,679)		(1,365)
Bargain purchase gain - Sprint Business acquisition		295,351		—		—
Tax effect of TCJA from foreign earnings		(490)		(360)		(389)
Changes in valuation allowance		13,382		(10,303)		(3,074)
Income tax benefit (expense)	$	53,964	$	(21,230)	$	(23,235)