Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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


	Year Ended December 31,
(in thousands)	2022		2021		2020
United States operations	$	(288,954)	$	118,749	$	138,426
Foreign and U.S. territory operations	21,284		41,033		35,853
Total	$	(267,670)	$	159,782	$	174,279

Provision for Income Taxes

The income tax expense (benefit) is as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Current expense (benefit):
Federal	$	(1,653)	$	20,052	$	(36,159)
State	930		7,899		(1,282)
Foreign and U.S. territories	5,074		11,568		11,130
Total current expense (benefit):	4,351		39,519		(26,311)

Deferred expense (benefit):
Federal	(54,526)		(13,667)		38,667
State	(25,395)		36		10,608
Foreign and U.S. territories	472		(256)		(1,022)
Total deferred expense (benefit):	(79,449)		(13,887)		48,253
Total expense (benefit):	$	(75,098)	$	25,632	$	21,942

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,
	2022				2021				2020
(dollars in thousands)	Amount		Rate		Amount		Rate		Amount		Rate
Federal income tax expense (benefit) at statutory tax rate	$	(56,211)	21.0	%	$	33,554	21.0	%	$	36,599	21.0	%
State income taxes, net of federal tax benefit	(21,784)		8.1		8,301		5.2		8,518		4.9
Stock based compensation	1,227		(0.5)		87		0.1		3,185		1.8
Impact of federal tax law changes	—		—		—		—		(14,476)		(8.3)
Officers' compensation	2,840		(1.1)		3,664		2.3		2,486		1.4

Noncontrolling interests	(3,861)		1.4		(8,872)		(5.6)		(9,799)		(5.6)
Federal R&D credits	128		—		(1,105)		(0.7)		(3,007)		(1.7)
Foreign tax rate differences	(1,438)		0.5		(625)		(0.4)		1,491		0.9

Federal claim of right credit	—		—		(8,191)		(5.1)		—		—
Valuation allowance	7,991		(3.0)		—		—		—		—
Other	(3,990)		1.7		(1,181)		(0.8)		(3,055)		(1.8)
Income tax expense (benefit)	$	(75,098)	28.1	%	$	25,632	16.0	%	$	21,942	12.6	%

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)	2022		2021
Deferred tax assets:
Timing of expense recognition	$	49,939	$	28,710
Net operating losses	82,210		15,824
Goodwill	6,022		11,698
Other, net	24,105		13,125
Deferred tax assets	162,276		69,357
Valuation allowance	(8,846)		—
Net deferred tax assets	153,430		69,357

Deferred tax liabilities:
Intangible assets, due primarily to purchase accounting	(16,850)		(16,453)
Fixed assets	(66,130)		(70,128)
Construction contract accounting	(7,940)		(9,196)
Joint ventures	(32,983)		(26,764)
Other	(18,266)		(15,672)
Deferred tax liabilities	(142,169)		(138,213)

Net deferred tax assets (liabilities)	$	11,261	$	(68,856)

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


	As of December 31,
(in thousands)	2022		2021
Deferred tax assets	$	15,910	$	2,133
Deferred tax liabilities	(4,649)		(70,989)
Net deferred tax assets (liabilities)	$	11,261	$	(68,856)

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, 2022:


	As of December 31,
(in thousands)	2022		2021		2020
Beginning balance	$	7,539	$	8,681	$	5,682
Change in tax positions of prior years	(416)		(1,319)		2,286
Change in tax positions of current year	625		1,000		1,202
Reduction in tax positions for statute expirations	(223)		(823)		(489)
Ending balance	$	7,525	$	7,539	$	8,681