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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) before income taxes is summarized as follows:
| Year Ended December 31,
(in thousands) | 2022 |  | 2021 |  | 2020
United States operations | $ | (288,954) |  |  | $ | 118,749 |  |  | $ | 138,426 |
Foreign and U.S. territory operations | 21,284 |  |  | 41,033 |  |  | 35,853 |
Total | $ | (267,670) |  |  | $ | 159,782 |  |  | $ | 174,279 |
The income tax expense (benefit) is as follows:
| Year Ended December 31,
(in thousands) | 2022 |  | 2021 |  | 2020
Current expense (benefit): |  |  |  |  |
Federal | $ | (1,653) |  |  | $ | 20,052 |  |  | $ | (36,159) |
State | 930 |  |  | 7,899 |  |  | (1,282) |
Foreign and U.S. territories | 5,074 |  |  | 11,568 |  |  | 11,130 |
Total current expense (benefit): | 4,351 |  |  | 39,519 |  |  | (26,311) |
Deferred expense (benefit): |  |  |  |  |
Federal | (54,526) |  |  | (13,667) |  |  | 38,667 |
State | (25,395) |  |  | 36 |  |  | 10,608 |
Foreign and U.S. territories | 472 |  |  | (256) |  |  | (1,022) |
Total deferred expense (benefit): | (79,449) |  |  | (13,887) |  |  | 48,253 |
Total expense (benefit): | $ | (75,098) |  |  | $ | 25,632 |  |  | $ | 21,942 |
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,
| 2022 |  | 2021 |  | 2020
(dollars in thousands) | Amount |  | Rate |  | Amount |  | Rate |  | Amount |  | Rate
Federal income tax expense (benefit) at statutory tax rate | $ | (56,211) |  |  | 21.0 | % |  | $ | 33,554 |  |  | 21.0 | % |  | $ | 36,599 |  |  | 21.0 | %
State income taxes, net of federal tax benefit | (21,784) |  |  | 8.1 |  |  | 8,301 |  |  | 5.2 |  |  | 8,518 |  |  | 4.9 |
Stock based compensation | 1,227 |  |  | (0.5) |  |  | 87 |  |  | 0.1 |  |  | 3,185 |  |  | 1.8 |
Impact of federal tax law changes | — |  |  | — |  |  | — |  |  | — |  |  | (14,476) |  |  | (8.3) |
Officers' compensation | 2,840 |  |  | (1.1) |  |  | 3,664 |  |  | 2.3 |  |  | 2,486 |  |  | 1.4 |
Noncontrolling interests | (3,861) |  |  | 1.4 |  |  | (8,872) |  |  | (5.6) |  |  | (9,799) |  |  | (5.6) |
Federal R&D credits | 128 |  |  | — |  |  | (1,105) |  |  | (0.7) |  |  | (3,007) |  |  | (1.7) |
Foreign tax rate differences | (1,438) |  |  | 0.5 |  |  | (625) |  |  | (0.4) |  |  | 1,491 |  |  | 0.9 |
Federal claim of right credit | — |  |  | — |  |  | (8,191) |  |  | (5.1) |  |  | — |  |  | — |
Valuation allowance | 7,991 |  |  | (3.0) |  |  | — |  |  | — |  |  | — |  |  | — |
Other | (3,990) |  |  | 1.7 |  |  | (1,181) |  |  | (0.8) |  |  | (3,055) |  |  | (1.8) |
Income tax expense (benefit) | $ | (75,098) |  |  | 28.1 | % |  | $ | 25,632 |  |  | 16.0 | % |  | $ | 21,942 |  |  | 12.6 | %
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 Company's provision for income taxes and effective tax rate for the year ended December 31, 2020 was significantly impacted by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) that was signed into law on March 27, 2020. A provision in the CARES Act allowed 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 recognized tax benefits from carrying back its net operating tax loss generated in 2019 at a 21% federal statutory income tax rate to prior tax years when the federal statutory income tax rate was 35%. The following is a summary of the significant components of the deferred tax assets and liabilities:
| As of December 31,
(in thousands) | 2022 |  | 2021
Deferred tax assets: |  |  |
Timing of expense recognition | $ | 49,939 |  |  | $ | 28,710 |
Net operating losses | 82,210 |  |  | 15,824 |
Goodwill | 6,022 |  |  | 11,698 |
Other, net | 24,105 |  |  | 13,125 |
Deferred tax assets | 162,276 |  |  | 69,357 |
Valuation allowance | (8,846) |  |  | — |
Net deferred tax assets | 153,430 |  |  | 69,357 |
Deferred tax liabilities: |  |  |
Intangible assets, due primarily to purchase accounting | (16,850) |  |  | (16,453) |
Fixed assets | (66,130) |  |  | (70,128) |
Construction contract accounting | (7,940) |  |  | (9,196) |
Joint ventures | (32,983) |  |  | (26,764) |
Other | (18,266) |  |  | (15,672) |
Deferred tax liabilities | (142,169) |  |  | (138,213) |
Net deferred tax assets (liabilities) | $ | 11,261 |  |  | $ | (68,856) |
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. Federal net operating loss carryforwards do not have expiration dates, whereas the state net operating loss carryforwards have expiration dates ranging from 2023 to 2042. As of December 31, 2021, the Company had net operating loss carryforwards in various states totaling $166.0 million. As of December 31, 2022, the Company had federal and state tax credit carryforwards of approximate ly $3.9 million and $3.6 million, respectively. As of December 31, 2021, the Company had federal and state tax credit carryforwards of approximately $0.1 million and $2.6 million, respectively. The Company established a valuation allowance in 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 (liabilities) are presented in the Consolidated Balance Sheets as follows:
| As of December 31,
(in thousands) | 2022 |  | 2021
Deferred tax assets | $ | 15,910 |  |  | $ | 2,133 |
Deferred tax liabilities | (4,649) |  |  | (70,989) |
Net deferred tax assets (liabilities) | $ | 11,261 |  |  | $ | (68,856) |
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, 2022 that, if recognized, would impact the effective tax rate is $7.5 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, 2022:
| As of December 31,
(in thousands) | 2022 |  | 2021 |  | 2020
Beginning balance | $ | 7,539 |  |  | $ | 8,681 |  |  | $ | 5,682 |
Change in tax positions of prior years | (416) |  |  | (1,319) |  |  | 2,286 |
Change in tax positions of current year | 625 |  |  | 1,000 |  |  | 1,202 |
Reduction in tax positions for statute expirations | (223) |  |  | (823) |  |  | (489) |
Ending balance | $ | 7,525 |  |  | $ | 7,539 |  |  | $ | 8,681 |
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.

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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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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