Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Income Before Taxes

Income (loss) before income taxes is summarized as follows:

	Year Ended December 31,
(in thousands)	2021		2020		2019
United States operations	$	118,749	$	138,426	$	(456,403)
Foreign and U.S. territory operations	41,033		35,853		30,569
Total	$	159,782	$	174,279	$	(425,834)

Provision for Income Taxes

The income tax expense (benefit) is as follows:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Current expense (benefit):
Federal	$	20,052	$	(36,159)	$	(2,884)
State	7,899		(1,282)		3,585
Foreign and U.S. territories	11,568		11,130		5,299
Total current expense (benefit):	39,519		(26,311)		6,000
Deferred expense (benefit):
Federal	(13,667)		38,667		(43,579)
State	36		10,608		(27,566)
Foreign and U.S. territories	(256)		(1,022)		(464)
Total deferred expense (benefit):	(13,887)		48,253		(71,609)
Total expense (benefit):	$	25,632	$	21,942	$	(65,609)

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,
	2021				2020				2019
(dollars in thousands)	Amount		Rate		Amount		Rate		Amount		Rate
Federal income tax expense (benefit) at statutory tax rate	$	33,554	21.0	%	$	36,599	21.0	%	$	(89,425)	21.0	%
State income taxes, net of federal tax benefit	8,301		5.2		8,518		4.9		(18,442)		4.3
Stock based compensation	87		0.1		3,185		1.8		1,706		(0.4)
Impact of federal tax law changes	—		—		(14,476)		(8.3)		—		—
Officers' compensation	3,664		2.3		2,486		1.4		2,938		(0.7)
Goodwill impairment	—		—		—		—		43,990		(10.3)
Noncontrolling interests	(8,872)		(5.6)		(9,799)		(5.6)		(6,064)		1.4
Federal R&D credits	(1,105)		(0.7)		(3,007)		(1.7)		(3,998)		0.9
Foreign tax rate differences	(625)		(0.4)		1,491		0.9		4,940		(1.2)
Federal claim of right credit	(8,191)		(5.1)		—		—		—		—
Other	(1,181)		(0.8)		(3,055)		(1.8)		(1,254)		0.4
Income tax expense (benefit)	$	25,632	16.0	%	$	21,942	12.6	%	$	(65,609)	15.4	%

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)	2021		2020
Deferred tax assets:
Timing of expense recognition	$	28,710	$	24,470
Net operating losses	15,824		19,968
Goodwill	11,698		19,315
Other, net	13,125		10,155
Deferred tax assets	69,357		73,908
Deferred tax liabilities:
Intangible assets, due primarily to purchase accounting	(16,453)		(15,212)
Fixed assets	(70,128)		(76,567)
Construction contract accounting	(9,196)		(9,769)
Joint ventures	(26,764)		(41,669)
Other	(15,672)		(11,962)
Deferred tax liabilities	(138,213)		(155,179)
Net deferred tax liabilities	$	(68,856)	$	(81,271)

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

	As of December 31,
(in thousands)	2021		2020
Deferred tax assets	$	2,133	$	1,695
Deferred tax liabilities	(70,989)		(82,966)
Net deferred tax liabilities	$	(68,856)	$	(81,271)

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, 2021:

	As of December 31,
(in thousands)	2021		2020		2019
Beginning balance	$	8,681	$	5,682	$	4,998
Change in tax positions of prior years	(1,319)		2,286		351
Change in tax positions of current year	1,000		1,202		1,106
Reduction in tax positions for statute expirations	(823)		(489)		(773)
Ending balance	$	7,539	$	8,681	$	5,682

The Company conducts business internationally and, as a result, one or more of its subsidiaries files income tax returns in U.S. federal, U.S. state and certain foreign jurisdictions. Accordingly, in the normal course of business, the Company is subject to examination by taxing authorities principally throughout the United States, Guam and Canada. The Company's open tax years for a U.S. federal income tax audit are 2018 and later. The 2018 federal income tax return is currently under audit by the Internal Revenue Service. The Company has various years open to audit in a number of state and local jurisdictions and is currently under audit by various state and local taxing authorities.