Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The following summarizes income tax expense (benefit) for the years ended December 31:


thousands	2023		2022		2021
Current	$	108	$	18,478	$	4,797
Deferred	(163,613)		42,022		10,356
Total	$	(163,505)	$	60,500	$	15,153

Schedule of reconciliation of income tax expense (benefit) computed by applying the Federal corporate tax rate to the provision (benefit) for income taxes

Reconciliation of the Income tax expense (benefit) if computed at the U.S. federal statutory income tax rate to the Company’s reported Income tax expense (benefit) for the years ended December 31 is as follows:


thousands except percentages	2023			2022			2021
Income (loss) before income taxes	$	(714,213)		$	245,136		$	64,077
U.S. federal statutory tax rate	21.0		%	21.0		%	21.0		%
Tax computed at the U.S. federal statutory rate	$	(149,985)		$	51,479		$	13,456
Increase (decrease) in valuation allowance, net	25,392			1,065			2,378
State income tax expense (benefit), net of federal income tax	(32,023)			5,483			(3,182)

Tax expense (benefit) from other change in rates, prior period adjustments, and other permanent differences	2,014			315			(181)

Tax expense on compensation disallowance	2,604			2,180			1,570
Net (income) loss attributable to noncontrolling interests	(51)			(22)			1,507
Tax expense (benefit) on tax credits	(11,456)			—			(395)



Income tax expense (benefit)	$	(163,505)		$	60,500		$	15,153
Effective tax rate	22.9		%	24.7		%	23.6		%

Schedule of amounts and expiration dates of operating loss, charitable contribution and tax credit carryforwards

As of December 31, 2023, the amounts and expiration dates of operating loss carryforwards for tax purposes are as follows:


thousands	Amount

Net operating loss carryforwards - Federal (a)	$	51,731
Net operating loss carryforwards - State (b)	587,852

(a)Federal net operating loss carryforwards have an indefinite carryforward period.

(b)State net operating loss carryforwards of $272.1 million have an indefinite carryforward period. The remaining $315.8 million of carryforwards have varying carryforward periods through 2043. A valuation allowance has been recorded against the deferred tax benefit related to a majority of the state net operating loss carryforwards.

Summary of tax effects of temporary differences and carryforwards included in net deferred tax liabilities

The following summarizes tax effects of temporary differences and carryforwards included in the net deferred tax liabilities as of December 31:


thousands	2023		2022
Deferred tax assets:
Operating and Strategic Developments properties and fixed assets	$	204,228	$	22,447
Investments in unconsolidated ventures	11,577		6,698
Accrued expenses	6,924		6,282
Prepaid expenses	2,020		1,972
Other	1,723		—

Operating loss and tax carryforwards	52,317		65,829
Total deferred tax assets	278,789		103,228
Valuation allowance	(62,913)		(39,478)
Total net deferred tax assets	$	215,876	$	63,750
Deferred tax liabilities:
Master Planned Communities properties	$	(208,347)	$	(214,046)

Deferred income	(76,908)		(86,104)
Accounts receivable	(18,686)		(17,761)
Other	—		(175)
Total deferred tax liabilities	(303,941)		(318,086)
Total net deferred tax liabilities	$	(88,065)	$	(254,336)