Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
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Summary of Income Before Taxes |
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 | |
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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 | |
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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 | % |
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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) | |
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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 | |
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