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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) before income taxes is summarized as follows:
Year Ended December 31,
(in thousands)202320222021
United States operations$(232,512)$(288,954)$118,749 
Foreign and U.S. territory operations49,958 21,284 41,033 
Total$(182,554)$(267,670)$159,782 
The income tax expense (benefit) is as follows:
Year Ended December 31,
(in thousands)202320222021
Current expense (benefit):
Federal$(178)$(1,653)$20,052 
State1,888 930 7,899 
Foreign and U.S. territories8,153 5,074 11,568 
Total current expense:9,863 4,351 39,519 
Deferred expense (benefit):
Federal(48,634)(54,526)(13,667)
State(17,612)(25,395)36 
Foreign and U.S. territories1,426 472 (256)
Total deferred benefit:(64,820)(79,449)(13,887)
Total expense (benefit):
$(54,957)$(75,098)$25,632 
The following table is a reconciliation of the Company’s income tax provision at the statutory federal tax rate to the Company’s effective tax rate:
Year Ended December 31,
202320222021
(dollars in thousands)AmountRateAmountRateAmountRate
Federal income tax expense (benefit) at statutory tax rate$(38,336)21.0 %$(56,211)21.0 %$33,554 21.0 %
State income taxes, net of federal tax benefit(10,556)5.8 (21,784)8.1 8,301 5.2 
Share-based compensation
446 (0.2)1,227 (0.5)87 0.1 
Officers' compensation5,129 (2.8)2,840 (1.1)3,664 2.3 
Noncontrolling interests(9,795)5.4 (3,861)1.4 (8,872)(5.6)
Federal R&D credits(493)0.3 128 — (1,105)(0.7)
Foreign tax rate differences(297)0.2 (1,438)0.5 (625)(0.4)
Federal claim of right credit— — — — (8,191)(5.1)
Valuation allowance347 (0.2)7,991 (3.0)— — 
Other(1,402)0.6 (3,990)1.7 (1,181)(0.8)
Income tax expense (benefit)$(54,957)30.1 %$(75,098)28.1 %$25,632 16.0 %
The Company’s provision for income taxes and effective tax rate for the year ended December 31, 2021 was favorably impacted by a federal claim of right tax credit resulting in a tax rate adjustment associated with an adverse 2019 jury verdict that rendered certain income recognized in 2016 at a 35% federal statutory income tax rate to be reversed in 2019 at a 21% federal statutory income tax rate.
The following is a summary of the significant components of the deferred tax assets and liabilities:
As of December 31,
(in thousands)20232022
Deferred tax assets:
Timing of expense recognition$72,828 $49,939 
Net operating losses113,623 82,210 
Goodwill80 6,022 
Other, net16,113 24,105 
Deferred tax assets202,644 162,276 
Valuation allowance(9,193)(8,846)
Net deferred tax assets193,451 153,430 
Deferred tax liabilities:
Intangible assets, due primarily to purchase accounting(17,451)(16,850)
Fixed assets(54,953)(66,130)
Construction contract accounting(7,711)(7,940)
Joint ventures(16,132)(32,983)
Other(24,077)(18,266)
Deferred tax liabilities(120,324)(142,169)
Net deferred tax assets
$73,127 $11,261 
As of December 31, 2023, the Company had federal and various state net operating loss carryforwards of $299.2 million and $554.7 million, respectively. Federal net operating loss carryforwards do not have expiration dates, whereas the state net operating loss carryforwards have expiration dates ranging from 2024 to indefinite periods. As of December 31, 2022, the Company had federal and various state net operating loss carryforwards of $206.9 million and $431.0 million, respectively. As
of December 31, 2023, the Company had federal and state tax credit carryforwards of approximately $5.9 million and $4.6 million, respectively. As of December 31, 2022, the Company had federal and state tax credit carryforwards of approximately $3.9 million and $3.6 million, respectively. The Company established a valuation allowance in 2023 and 2022 as a result of the uncertainty with the future realization of certain carryforwards for capital losses, foreign tax credits and state net operating losses.
The net deferred tax assets are presented in the Consolidated Balance Sheets as follows:
As of December 31,
(in thousands)20232022
Deferred tax assets$74,083 $15,910 
Deferred tax liabilities(956)(4,649)
Net deferred tax assets
$73,127 $11,261 
The Company’s policy is to record interest and penalties on unrecognized tax benefits as an element of income tax expense. The cumulative amounts related to interest and penalties are added to the total unrecognized tax liabilities on the balance sheet. The total amount of gross unrecognized tax benefits as of December 31, 2023 that, if recognized, would impact the effective tax rate is $4.8 million. The Company does not expect any significant release of unrecognized tax benefits within the next twelve months.
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, 2023:
As of December 31,
(in thousands)202320222021
Beginning balance$7,525 $7,539 $8,681 
Change in tax positions of prior years438 (416)(1,319)
Change in tax positions of current year(189)625 1,000 
Reduction in tax positions for statute expirations(3,001)(223)(823)
Ending balance$4,773 $7,525 $7,539 
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.