Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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) | 2023 | | 2022 | | 2021 | United States operations | $ | (232,512) | | | $ | (288,954) | | | $ | 118,749 | | Foreign and U.S. territory operations | 49,958 | | | 21,284 | | | 41,033 | | Total | $ | (182,554) | | | $ | (267,670) | | | $ | 159,782 | |
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Provision for Income Taxes |
The income tax expense (benefit) is as follows: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2023 | | 2022 | | 2021 | Current expense (benefit): | | | | | | Federal | $ | (178) | | | $ | (1,653) | | | $ | 20,052 | | State | 1,888 | | | 930 | | | 7,899 | | Foreign and U.S. territories | 8,153 | | | 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. territories | 1,426 | | | 472 | | | (256) | | Total deferred benefit: | (64,820) | | | (79,449) | | | (13,887) | | Total expense (benefit): | $ | (54,957) | | | $ | (75,098) | | | $ | 25,632 | |
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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, | | 2023 | | 2022 | | 2021 | (dollars in thousands) | Amount | | Rate | | Amount | | Rate | | Amount | | Rate | 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' compensation | 5,129 | | | (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 allowance | 347 | | | (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 | % |
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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) | 2023 | | 2022 | Deferred tax assets: | | | | Timing of expense recognition | $ | 72,828 | | | $ | 49,939 | | Net operating losses | 113,623 | | | 82,210 | | Goodwill | 80 | | | 6,022 | | Other, net | 16,113 | | | 24,105 | | Deferred tax assets | 202,644 | | | 162,276 | | Valuation allowance | (9,193) | | | (8,846) | | Net deferred tax assets | 193,451 | | | 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 | |
The net deferred tax assets are presented in the Consolidated Balance Sheets as follows: | | | | | | | | | | | | | As of December 31, | (in thousands) | 2023 | | 2022 | Deferred tax assets | $ | 74,083 | | | $ | 15,910 | | Deferred tax liabilities | (956) | | | (4,649) | | Net deferred tax assets | $ | 73,127 | | | $ | 11,261 | |
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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, 2023: | | | | | | | | | | | | | | | | | | | As of December 31, | (in thousands) | 2023 | | 2022 | | 2021 | Beginning balance | $ | 7,525 | | | $ | 7,539 | | | $ | 8,681 | | Change in tax positions of prior years | 438 | | | (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 | |
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