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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components of Income (Loss) Before Income Taxes | The components of income before income taxes were as follows (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Income before income taxes: |  |  |  |  |
Domestic | $ | 632,791 |  |  | $ | 550,676 |  |  | $ | 318,635 |
Foreign | (61,445) |  |  | 21,611 |  |  | 139,031 |
Total | $ | 571,346 |  |  | $ | 572,287 |  |  | $ | 457,666 |
Provision for Income Taxes | The components of the provision for income taxes were as follows (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 134,538 |  |  | $ | 121,214 |  |  | $ | 50,306 |
State | 45,610 |  |  | 35,329 |  |  | 26,170 |
Foreign | (745) |  |  | 16,848 |  |  | 23,209 |
Total current tax provision | 179,403 |  |  | 173,391 |  |  | 99,685 |
Deferred: |  |  |  |  |
Federal | (46,251) |  |  | 7,379 |  |  | 62,482 |
State | (3,850) |  |  | (1,776) |  |  | (4,152) |
Foreign | (9,915) |  |  | (13,522) |  |  | 3,644 |
Total deferred tax provision (benefit) | (60,016) |  |  | (7,919) |  |  | 61,974 |
Total provision for income taxes | $ | 119,387 |  |  | $ | 165,472 |  |  | $ | 161,659 |
Effective Income Tax Rate Reconciliation | The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income before provision for income taxes as follows (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Provision at the statutory rate | $ | 119,983 |  |  | $ | 120,180 |  |  | $ | 96,110 |
Increases (decreases) resulting from — |  |  |  |  |
State taxes | 31,791 |  |  | 23,399 |  |  | 18,504 |
Employee per diems, meals and entertainment | 10,680 |  |  | 13,817 |  |  | 11,949 |
Valuation allowance on deferred tax assets | (31,138) |  |  | 35,761 |  |  | 48,862 |
Foreign taxes | (9,641) |  |  | (21,565) |  |  | (2,621) |
Stock-based compensation | (3,109) |  |  | (1,863) |  |  | (1,449) |
Contingency reserves, net | (2,125) |  |  | (3,173) |  |  | (2,619) |
Taxes on unincorporated joint ventures | (1,093) |  |  | (930) |  |  | (578) |
Tax Cuts and Jobs Act | — |  |  | — |  |  | (6,295) |
Entity restructuring and recapitalization efforts | — |  |  | — |  |  | (4,424) |
Other | 4,039 |  |  | (154) |  |  | 4,220 |
Total provision for income taxes | $ | 119,387 |  |  | $ | 165,472 |  |  | $ | 161,659 |
Deferred Tax Assets and Liabilities and Net Deferred Income Tax Assets and Liabilities | The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands):
| December 31,
| 2020 |  | 2019
Deferred income tax liabilities: |  |  |
Property and equipment | $ | (236,256) |  |  | $ | (208,751) |
Goodwill | (85,467) |  |  | (72,244) |
Leased assets | (77,344) |  |  | (73,861) |
Customer holdbacks | (30,457) |  |  | (11,882) |
Other intangibles | (4,438) |  |  | (11,384) |
Other book/tax accounting method differences | — |  |  | (1,801) |
Total deferred income tax liabilities | (433,962) |  |  | (379,923) |
Deferred income tax assets: |  |  |
Net operating loss carryforwards | 82,817 |  |  | 78,310 |
Lease liabilities | 76,826 |  |  | 74,044 |
Accruals and reserves | 70,335 |  |  | 36,372 |
Tax credits | 42,202 |  |  | 46,621 |
Stock and incentive compensation | 36,590 |  |  | 26,045 |
Deferred tax benefits on unrecognized tax positions | 10,108 |  |  | 16,542 |
Other | 9,617 |  |  | 3,933 |
Subtotal | 328,495 |  |  | 281,867 |
Valuation allowance | (43,255) |  |  | (104,178) |
Total deferred income tax assets | 285,240 |  |  | 177,689 |
Total net deferred income tax liabilities | $ | (148,722) |  |  | $ | (202,234) |
The net deferred income tax assets and liabilities were comprised of the following in the accompanying consolidated balance sheets (in thousands):
| December 31,
| 2020 |  | 2019
Deferred income taxes: |  |  |
Assets | $ | 17,685 |  |  | $ | 12,545 |
Liabilities | $ | (166,407) |  |  | (214,779) |
Total net deferred income tax liabilities | $ | (148,722) |  |  | $ | (202,234) |
Reconciliation of Unrecognized Tax Benefit | A reconciliation of unrecognized tax benefit balances is as follows (in thousands):
| December 31,
| 2020 |  | 2019 |  | 2018
Balance at beginning of year | $ | 40,878 |  |  | $ | 41,110 |  |  | $ | 36,229 |
Additions based on tax positions related to the current year | 4,398 |  |  | 7,708 |  |  | 6,231 |
Additions for tax positions of prior years | — |  |  | 1,200 |  |  | 9,377 |
Reductions for tax positions of prior years | (2,410) |  |  | — |  |  | (2,870) |
Reductions for audit settlements | (930) |  |  | (3,205) |  |  | — |
Reductions resulting from a lapse of the applicable statute of limitations periods | (8,717) |  |  | (5,935) |  |  | (7,857) |
Balance at end of year | $ | 33,219 |  |  | $ | 40,878 |  |  | $ | 41,110 |
Balances of Unrecognized Tax Benefits | The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands):
| December 31,
| 2020 |  | 2019 |  | 2018
Unrecognized tax benefits | $ | 33,219 |  |  | $ | 40,878 |  |  | $ | 41,110 |
Portion that, if recognized, would reduce tax expense and effective tax rate | 30,868 |  |  | 40,695 |  |  | 40,977 |
Accrued interest on unrecognized tax benefits | 5,204 |  |  | 6,240 |  |  | 5,459 |
Accrued penalties on unrecognized tax benefits | 14 |  |  | 14 |  |  | 631 |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $0 to $11,859 |  | $0 to $6,268 |  | $0 to $9,541
Portion that, if recognized, would reduce tax expense and effective tax rate | $0 to $10,217 |  | $0 to $5,693 |  | $0 to $8,224

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