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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Taxes [Abstract] |
Income Taxes | 6. Income Taxes Income before taxes is summarized as follows:
|  | Year Ended December 31,
(in thousands) |  | 2015 |  | 2014 |  | 2013
United States Operations |  | $ | 69,822 |  | $ | 170,517 |  | $ | 127,682
Foreign Operations |  | $ | 4,017 |  | $ | 16,921 |  | $ | 11,933
Total |  | $ | 73,839 |  | $ | 187,438 |  | $ | 139,615
The provision for income taxes is as follows:
|  | Year Ended December 31,
(in thousands) |  | 2015 |  | 2014 |  | 2013
Current expense: |  |  |  |  |  |  |  |  |
Federal |  | $ | 5,465 |  | $ | 45,074 |  | $ | 29,034
State |  |  | (362) |  |  | 11,174 |  |  | 9,018
Foreign |  |  | 1,126 |  |  | 3,203 |  |  | 4,256
Total current |  |  | 6,229 |  |  | 59,451 |  |  | 42,308
Deferred (benefit) expense: |  |  |  |  |  |  |  |  |
Federal |  |  | 19,583 |  |  | 9,992 |  |  | 9,547
State |  |  | 2,735 |  |  | 10,059 |  |  | 577
Foreign |  |  | — |  |  | — |  |  | (113)
Total deferred |  |  | 22,318 |  |  | 20,051 |  |  | 10,011
Total provision |  | $ | 28,547 |  | $ | 79,502 |  | $ | 52,319
The following table is a reconciliation of the Company’s provision for income taxes at the statutory rates to the provision for income taxes at the Company’s effective rate.
|  | 2015 |  | 2014 |  | 2013
(dollars in thousands) |  | Amount |  | Rate |  | Amount |  | Rate |  | Amount |  | Rate
Federal income expense at statutory tax rate |  | $ | 25,844 |  | 35.0 | % |  | $ | 65,603 |  | 35.0 | % |  | $ | 48,865 |  | 35.0 | %
State income taxes, net of federal tax benefit |  |  | 1,250 |  | 1.7 |  |  |  | 10,367 |  | 5.5 |  |  |  | 6,236 |  | 4.5 |
Officers' compensation |  |  | 2,900 |  | 3.9 |  |  |  | 3,657 |  | 2.0 |  |  |  | 1,732 |  | 1.2 |
Domestic Production Activities Deduction |  |  | (1,499) |  | (2.0) |  |  |  | (5,170) |  | (2.8) |  |  |  | (3,641) |  | (2.6) |
Impact of state tax rate changes on deferreds |  |  | 2,435 |  | 3.3 |  |  |  | 3,245 |  | 1.7 |  |  |  | — |  | — |
Other |  |  | (2,383) |  | (3.2) |  |  |  | 1,800 |  | 1.0 |  |  |  | (873) |  | (0.6) |
Provision for income taxes |  | $ | 28,547 |  | 38.7 | % |  | $ | 79,502 |  | 42.4 | % |  | $ | 52,319 |  | 37.5 | %
The Company’s provision for income taxes and effective tax rate for the year ended December 31, 2015 were significantly impacted by a favorable discrete item related to the reversal of FIN 48 reserves due to the resolution of certain state tax matters. The Company’s provision for income taxes and effective tax rate for the year ended December 31, 2014 were significantly impacted by a shift in revenue to projects in higher state tax jurisdictions, causing an increase in the state tax rate. The increase in state tax rate was applied to deferred tax balances, which further increased the effective rate. Higher non‑deductible compensation expense also contributed to this increase. The following is a summary of the significant components of the deferred tax assets and liabilities:
|  | December 31,
(in thousands) |  | 2015 |  | 2014
Deferred Tax Assets |  |  |  |  |  |
Timing of expense recognition |  | $ | 58,048 |  | $ | 47,017
Net operating losses |  |  | 3,564 |  |  | 2,188
Other, net |  |  | 114,225 |  |  | 6,980
Deferred tax assets |  |  | 175,837 |  |  | 56,185
Valuation allowance |  |  | (460) |  |  | (1,369)
Net deferred tax assets |  |  | 175,377 |  |  | 54,816
Deferred Tax Liabilities |  |  |  |  |  |
Intangible assets, due primarily to purchase accounting |  |  | (99,549) |  |  | (26,094)
Fixed assets, due primarily to purchase accounting |  |  | (101,022) |  |  | (90,886)
Construction contract accounting |  |  | (7,530) |  |  | (6,854)
Joint ventures - construction |  |  | (27,604) |  |  | (30,654)
Other |  |  | (62,494) |  |  | (10,012)
Deferred tax liabilities |  |  | (298,199) |  |  | (164,500)
Net deferred tax liability |  | $ | (122,822) |  | $ | (109,684)
T h e n et d e f e rr ed tax lia b ili t y i s cla ss i f ied i n t h e C o ns o li d at e d B ala n ce S h eets b a s ed o n w h en t h e f u t u r e tax b e n e f it or e x p e ns e is e x p ected to b e r e alized as f o ll o w s:
|  | December 31,
(in thousands) |  | 2015 |  | 2014
Current deferred tax asset |  | $ | 26,306 |  | $ | 17,962
Long-term deferred tax asset |  |  | 149,071 |  |  | 36,854
Current deferred tax liability |  |  | (24,889) |  |  | (14,129)
Long-term deferred tax liability |  |  | (273,310) |  |  | (150,371)
Net deferred tax liability |  | $ | (122,822) |  | $ | (109,684)
T he Company had a valuation allowance of $0.5 million and $1.4 million as of December 31, 2015 and 2014, respectively, for federal and state capital loss carryforwards as the ultimate utilization of this item was not likely. The Company has not provided for deferred income taxes or foreign withholding tax on basis differences in its non-U.S. subsidiaries that result from undistributed earnings aggregating $12.1 million which the Company has the intent and the ability to reinvest in its foreign operations. Generally, the U.S. income taxes imposed upon repatriation of undistributed earnings would be reduced by foreign tax credits from foreign income taxes paid on the earnings. Determination of the deferred income tax liability on these basis differences is not reasonably estimable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. 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, 2015 that, if recognized, would affect the effective tax rate is $3.6 million. During 2014, the Company recognized a net increase of $2.2 million in liabilities. The amount of gross unrecognized tax benefits as of December 31, 2014 was $7.6 million. During 2013, the Company recognized a net increase of $1.4 million in liabilities. The amount of gross unrecognized tax benefits as of December 31, 2013 was $5.5 million in liabilities. 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. A reconciliation of the beginning and ending amounts of these tax benefits for the two years ended December 31, 2015 is as follows:
|  | As of December 31,
(in thousands) |  | 2015 |  | 2014 |  | 2013
Beginning balance |  | $ | 7,636 |  | $ | 5,459 |  | $ | 4,023
Change in tax positions of prior years |  |  | (3,073) |  |  | 426 |  |  | 182
Change in tax positions of current year |  |  | 169 |  |  | 2,929 |  |  | 1,254
Reduction in tax positions for statute expirations |  |  | (1,120) |  |  | (1,178) |  |  | —
Ending Balance |  | $ | 3,612 |  | $ | 7,636 |  | $ | 5,459
We conduct business internationally and, as a result, one or more of our subsidiaries files income tax returns in U.S. federal, U.S. state and certain foreign jurisdictions. Accordingly, in the normal course of business, we are subject to examination by taxing authorities principally throughout the United States, Guam and Canada. We are no longer under examination by the taxing authority regarding any U.S. federal income tax returns for years before 2011 while the years open for examination under various state and local jurisdictions vary.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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