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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) before taxes is summarized as follows:
| Year Ended December 31,
(in thousands) | 2020 |  | 2019 |  | 2018
United States operations | $ | 138,426 |  |  | $ | (456,403) |  |  | $ | 106,222 |
Foreign and U.S. territory operations | 35,853 |  |  | 30,569 |  |  | 26,391 |
Total | $ | 174,279 |  |  | $ | (425,834) |  |  | $ | 132,613 |
The income tax expense (benefit) is as follows:
| Year Ended December 31,
(in thousands) | 2020 |  | 2019 |  | 2018
Current (benefit) expense: |  |  |  |  |
Federal | $ | (36,159) |  |  | $ | (2,884) |  |  | $ | 21,055 |
State | (1,282) |  |  | 3,585 |  |  | 8,676 |
Foreign and U.S. territories | 11,130 |  |  | 5,299 |  |  | 5,550 |
Total current (benefit) expense: | (26,311) |  |  | 6,000 |  |  | 35,281 |
Deferred expense (benefit): |  |  |  |  |
Federal | 38,667 |  |  | (43,579) |  |  | (1,773) |
State | 10,608 |  |  | (27,566) |  |  | 1,278 |
Foreign and U.S. territories | (1,022) |  |  | (464) |  |  | 46 |
Total deferred expense (benefit): | 48,253 |  |  | (71,609) |  |  | (449) |
Total expense (benefit): | $ | 21,942 |  |  | $ | (65,609) |  |  | $ | 34,832 |
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,
| 2020 |  | 2019 |  | 2018
(dollars in thousands) | Amount |  | Rate |  | Amount |  | Rate |  | Amount |  | Rate
Federal income tax expense (benefit) at statutory tax rate | $ | 36,599 |  |  | 21.0 | % |  | $ | (89,425) |  |  | 21.0 | % |  | $ | 27,849 |  |  | 21.0 | %
State income taxes, net of federal tax benefit | 8,518 |  |  | 4.9 |  |  | (18,442) |  |  | 4.3 |  |  | 9,011 |  |  | 6.8 |
Stock based compensation | 3,185 |  |  | 1.8 |  |  | 1,706 |  |  | (0.4) |  |  | — |  |  | — |
Impact of federal tax law changes | (14,476) |  |  | (8.3) |  |  | — |  |  | — |  |  | 211 |  |  | 0.2 |
Officers' compensation | 2,486 |  |  | 1.4 |  |  | 2,938 |  |  | (0.7) |  |  | 3,078 |  |  | 2.3 |
Goodwill impairment | — |  |  | — |  |  | 43,990 |  |  | (10.3) |  |  | — |  |  | — |
Noncontrolling interests | (9,799) |  |  | (5.6) |  |  | (6,064) |  |  | 1.4 |  |  | (3,232) |  |  | (2.4) |
Federal R&D credits | (3,007) |  |  | (1.7) |  |  | (3,998) |  |  | 0.9 |  |  | (2,658) |  |  | (2.0) |
Reversal of reserve for uncertain tax positions due to statute expirations | (489) |  |  | (0.3) |  |  | (773) |  |  | 0.2 |  |  | (1,958) |  |  | (1.5) |
Foreign tax rate differences | 1,491 |  |  | 0.9 |  |  | 4,940 |  |  | (1.2) |  |  | (19) |  |  | — |
Other | (2,566) |  |  | (1.5) |  |  | (481) |  |  | 0.2 |  |  | 2,550 |  |  | 1.9 |
Income tax expense (benefit) | $ | 21,942 |  |  | 12.6 | % |  | $ | (65,609) |  |  | 15.4 | % |  | $ | 34,832 |  |  | 26.3 | %
The Company's provision for income taxes and effective tax rate for the year ended December 31, 2020 was significantly impacted by a change in tax law. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. A major provision of the CARES Act allows net operating losses from the 2018, 2019 and 2020 tax years to be carried back up to five years. As a result, for the year ended December 31, 2020, the Company was able to recognize tax benefits substantially in excess of the current federal statutory rate of 21% due to the effects of carrying back its net operating loss arising in 2019 to tax years in which the federal statutory rate was 35%. The Company’s provision for income taxes and effective tax rate for the year ended December 31, 2019 was significantly impacted by the goodwill impairment charge discussed in Note 6. Of the total goodwill impairment charge of $379.9 million, approximately $209.5 million pertained to goodwill that was not tax deductible and yielded permanent differences between book income and taxable income. For the year ended December 31, 2019, the Company recognized U.S. federal and state tax benefits totaling $49.4 million as a result of the impairment charge. The following is a summary of the significant components of the deferred tax assets and liabilities:
| As of December 31,
(in thousands) | 2020 |  | 2019
Deferred tax assets: |  |  |
Timing of expense recognition | $ | 24,470 |  |  | $ | 44,761 |
Net operating losses | 19,968 |  |  | 23,711 |
Goodwill | 19,315 |  |  | 26,658 |
Other, net | 10,155 |  |  | 17,098 |
Deferred tax assets | 73,908 |  |  | 112,228 |
Valuation allowance | — |  |  | (2,212) |
Net deferred tax assets | 73,908 |  |  | 110,016 |
Deferred tax liabilities: |  |  |
Intangible assets, due primarily to purchase accounting | (15,212) |  |  | (15,309) |
Fixed assets | (76,567) |  |  | (75,461) |
Construction contract accounting | (9,769) |  |  | (13,464) |
Joint ventures | (41,669) |  |  | (24,331) |
Other | (11,962) |  |  | (16,567) |
Deferred tax liabilities | (155,179) |  |  | (145,132) |
Net deferred tax liabilities | $ | (81,271) |  |  | $ | (35,116) |
As of December 31, 2020, the Company had net operating loss carryforwards for income tax purposes in various states totaling $196.5 million with expiration dates ranging from 2022 to 2039, and no net operating loss carryforwards for federal income tax purposes. As of December 31, 2019, the Company had federal and various state net operating loss carryforwards for income tax purposes of $29.3 million and $184.8 million, respectively. As of December 31, 2020, the Company had federal and state credit carryforwards of approximately $1.4 million and $2.0 million, respectively. As of December 31, 2019, the Company had federal and state credit carryforwards of approximately $6.0 million and $1.2 million, respectively. The net deferred tax liabilities are presented in the Consolidated Balance Sheets as follows:
| As of December 31,
(in thousands) | 2020 |  | 2019
Deferred tax assets | $ | 1,695 |  |  | $ | 570 |
Deferred tax liabilities | (82,966) |  |  | (35,686) |
Net deferred tax liabilities | $ | (81,271) |  |  | $ | (35,116) |
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, 2020 that, if recognized, would affect the effective tax rate is $8.7 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, 2020:
| As of December 31,
(in thousands) | 2020 |  | 2019 |  | 2018
Beginning balance | $ | 5,682 |  |  | $ | 4,998 |  |  | $ | 6,495 |
Change in tax positions of prior years | 2,286 |  |  | 351 |  |  | (302) |
Change in tax positions of current year | 1,202 |  |  | 1,106 |  |  | 763 |
Reduction in tax positions for statute expirations | (489) |  |  | (773) |  |  | (1,958) |
Ending Balance | $ | 8,681 |  |  | $ | 5,682 |  |  | $ | 4,998 |
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 for fiscal years 2017 and later, although there is currently no audit being conducted 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 certain state taxing authorities.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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