Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018



	Year Ended December 31,
(in thousands)	2018		2017		2016
United States operations	$	106,222	$	135,177	$	128,072
Foreign and U.S. territory operations		26,391		18,798		21,043
Total	$	132,613	$	153,975	$	149,115

Provision for Income Taxes



	Year Ended December 31,
(in thousands)	2018		2017		2016
Current expense:
Federal	$	21,055	$	12,329	$	43,850
State		8,676		6,763		13,039
Foreign and U.S. territories		5,550		3,435		6,573
Total current expense		35,281		22,527		63,462

Deferred expense (benefit):
Federal		(1,773)		(30,021)		(3,054)
State		1,278		5,560		(5,302)
Foreign and U.S. territories		46		1,365		(1,813)
Total deferred expense (benefit)		(449)		(23,096)		(10,169)
Total expense (benefit)	$	34,832	$	(569)	$	53,293

Reconciliation of Provision for Income Taxes




	Year Ended December 31,
	2018				2017				2016
(dollars in thousands)	Amount		Rate		Amount		Rate		Amount		Rate
Federal income tax expense at statutory tax rate	$	27,849	21.0	%	$	53,892	35.0	%	$	52,190	35.0	%
State income taxes, net of federal tax benefit		9,011	6.8			7,753	5.0			4,614	3.1
Impact of federal tax law change		211	0.2			(53,348)	(34.6)			—	—
Officers' compensation		3,078	2.3			2,622	1.7			3,807	2.6
Domestic production activities deduction		—	—			(2,668)	(1.7)			(4,018)	(2.7)
Noncontrolling interest		(3,232)	(2.4)			(2,137)	(1.4)			—	—
Federal R&D credits		(2,658)	(2.0)			(470)	(0.4)			(669)	(0.5)
Reversal of reserve for uncertain tax positions and taxes payable due to statute expirations		(1,958)	(1.5)			(4,337)	(2.8)			—	—
Other		2,531	1.9			(1,876)	(1.2)			(2,631)	(1.8)
Income tax expense (benefit)	$	34,832	26.3	%	$	(569)	(0.4)	%	$	53,293	35.7	%

Significant Components of Deferred Tax Assets and Liabilities

The following is a summary of the significant components of the deferred tax assets and liabilities:



	As of December 31,
(in thousands)	2018		2017
Deferred tax assets:
Timing of expense recognition	$	20,832	$	22,730
Net operating losses		8,611		8,590
Other, net		18,828		15,618
Deferred tax assets		48,271		46,938
Valuation allowance		(1,150)		(381)
Net deferred tax assets		47,121		46,557
Deferred tax liabilities:
Intangible assets, due primarily to purchase accounting		(36,862)		(30,019)
Fixed assets, due primarily to purchase accounting		(75,998)		(73,833)
Construction contract accounting		(9,435)		(17,539)
Joint ventures		(9,853)		(11,343)
Other		(20,411)		(22,263)
Deferred tax liabilities		(152,559)		(154,997)

Net deferred tax liabilities	$	(105,438)	$	(108,440)

The Company had net operating loss carryforwards in various state tax jurisdictions totaling approximately $93.9 million as of December 31, 2018, with expiration dates ranging from 2020 to 2035.

The net deferred tax liabilities are presented in the Consolidated Balance Sheets as follows:



	As of December 31,
(in thousands)	2018		2017
Deferred tax assets	$	83	$	64
Deferred tax liabilities		(105,521)		(108,504)
Net deferred tax liabilities	$	(105,438)	$	(108,440)

Reconciliation of Gross Unrecognized Tax Benefit



	As of December 31,
(in thousands)	2018		2017		2016
Beginning balance	$	6,495	$	7,574	$	3,612
Change in tax positions of prior years		(302)		(1,207)		3,543
Change in tax positions of current year		763		128		419
Reduction in tax positions for statute expirations		(1,958)		—		—
Ending Balance	$	4,998	$	6,495	$	7,574