Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income (loss) before taxes is summarized as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
United States operations	$	138,426	$	(456,403)	$	106,222
Foreign and U.S. territory operations	35,853		30,569		26,391
Total	$	174,279	$	(425,834)	$	132,613

Provision for Income Taxes

The income tax expense (benefit) is as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Current (benefit) expense:
Federal	$	(36,159)	$	(2,884)	$	21,055
State	(1,282)		3,585		8,676
Foreign and U.S. territories	11,130		5,299		5,550
Total current (benefit) expense:	(26,311)		6,000		35,281

Deferred expense (benefit):
Federal	38,667		(43,579)		(1,773)
State	10,608		(27,566)		1,278
Foreign and U.S. territories	(1,022)		(464)		46
Total deferred expense (benefit):	48,253		(71,609)		(449)
Total expense (benefit):	$	21,942	$	(65,609)	$	34,832

Reconciliation of Provision for Income Taxes

The following table is a reconciliation of the Company’s income tax provision at the statutory federal tax rate to the Company’s effective tax rate:


	Year Ended December 31,
	2020				2019				2018
(dollars in thousands)	Amount		Rate		Amount		Rate		Amount		Rate
Federal income tax expense (benefit) at statutory tax rate	$	36,599	21.0	%	$	(89,425)	21.0	%	$	27,849	21.0	%
State income taxes, net of federal tax benefit	8,518		4.9		(18,442)		4.3		9,011		6.8
Stock based compensation	3,185		1.8		1,706		(0.4)		—		—
Impact of federal tax law changes	(14,476)		(8.3)		—		—		211		0.2
Officers' compensation	2,486		1.4		2,938		(0.7)		3,078		2.3
Goodwill impairment	—		—		43,990		(10.3)		—		—
Noncontrolling interests	(9,799)		(5.6)		(6,064)		1.4		(3,232)		(2.4)
Federal R&D credits	(3,007)		(1.7)		(3,998)		0.9		(2,658)		(2.0)
Reversal of reserve for uncertain tax positions due to statute expirations	(489)		(0.3)		(773)		0.2		(1,958)		(1.5)
Foreign tax rate differences	1,491		0.9		4,940		(1.2)		(19)		—
Other	(2,566)		(1.5)		(481)		0.2		2,550		1.9
Income tax expense (benefit)	$	21,942	12.6	%	$	(65,609)	15.4	%	$	34,832	26.3	%

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)	2020		2019
Deferred tax assets:
Timing of expense recognition	$	24,470	$	44,761
Net operating losses	19,968		23,711
Goodwill	19,315		26,658
Other, net	10,155		17,098
Deferred tax assets	73,908		112,228
Valuation allowance	—		(2,212)
Net deferred tax assets	73,908		110,016

Deferred tax liabilities:
Intangible assets, due primarily to purchase accounting	(15,212)		(15,309)
Fixed assets	(76,567)		(75,461)
Construction contract accounting	(9,769)		(13,464)
Joint ventures	(41,669)		(24,331)
Other	(11,962)		(16,567)
Deferred tax liabilities	(155,179)		(145,132)

Net deferred tax liabilities	$	(81,271)	$	(35,116)

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


	As of December 31,
(in thousands)	2020		2019
Deferred tax assets	$	1,695	$	570
Deferred tax liabilities	(82,966)		(35,686)
Net deferred tax liabilities	$	(81,271)	$	(35,116)

Reconciliation of Gross Unrecognized Tax Benefit

The Company accounts for its uncertain tax positions in accordance with GAAP. The following is a reconciliation of the beginning and ending amounts of these unrecognized tax benefits for the three years ended December 31, 2020:


	As of December 31,
(in thousands)	2020		2019		2018
Beginning balance	$	5,682	$	4,998	$	6,495
Change in tax positions of prior years	2,286		351		(302)
Change in tax positions of current year	1,202		1,106		763
Reduction in tax positions for statute expirations	(489)		(773)		(1,958)
Ending Balance	$	8,681	$	5,682	$	4,998