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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before income taxes is summarized as follows:
Year Ended December 31,
(in thousands)202420232022
United States operations$(261,147)$(232,512)$(288,954)
Foreign and U.S. territory operations88,139 49,958 21,284 
Total$(173,008)$(182,554)$(267,670)
The income tax expense (benefit) is as follows:
Year Ended December 31,
(in thousands)202420232022
Current expense (benefit):
Federal$8,832 $(178)$(1,653)
State3,997 1,888 930 
Foreign and U.S. territories14,510 8,153 5,074 
Total current expense:27,339 9,863 4,351 
Deferred expense (benefit):
Federal(51,758)(48,634)(54,526)
State(24,862)(17,612)(25,395)
Foreign and U.S. territories(1,388)1,426 472 
Total deferred benefit:(78,008)(64,820)(79,449)
Total benefit:
$(50,669)$(54,957)$(75,098)
The following table is a reconciliation of the Company’s income tax expense (benefit) at the statutory federal tax rate to the Company’s effective tax rate:
Year Ended December 31,
202420232022
(dollars in thousands)AmountRateAmountRateAmountRate
Federal income tax benefit at statutory tax rate$(36,332)21.0 %$(38,336)21.0 %$(56,211)21.0 %
State income taxes, net of federal tax benefit(16,591)9.6 (10,556)5.8 (21,784)8.1 
Share-based compensation
1,122 (0.6)446 (0.2)1,227 (0.5)
Officers' compensation9,825 (5.7)5,129 (2.8)2,840 (1.1)
Noncontrolling interests(9,892)5.7 (9,795)5.4 (3,861)1.4 
Federal R&D credits(750)0.4 (493)0.3 128 — 
Foreign tax rate differences(422)0.2 (297)0.2 (1,438)0.5 
Valuation allowance3,968 (2.3)347 (0.2)7,991 (3.0)
Other(1,597)1.0 (1,402)0.6 (3,990)1.7 
Income tax benefit$(50,669)29.3 %$(54,957)30.1 %$(75,098)28.1 %
The following is a summary of the significant components of the deferred tax assets and liabilities:
As of December 31,
(in thousands)20242023
Deferred tax assets:
Timing of expense recognition$90,959 $72,828 
Net operating losses144,148 113,623 
Goodwill— 80 
Joint ventures
12,571 — 
Other, net29,001 16,113 
Deferred tax assets276,679 202,644 
Valuation allowance(14,014)(9,193)
Net deferred tax assets262,665 193,451 
Deferred tax liabilities:
Goodwill(3,969)— 
Intangible assets, due primarily to purchase accounting(16,786)(17,451)
Fixed assets(53,382)(54,953)
Construction contract accounting(7,212)(7,711)
Joint ventures(23,079)(16,132)
Other(14,948)(24,077)
Deferred tax liabilities(119,376)(120,324)
Net deferred tax assets
$143,289 $73,127 
As of December 31, 2024, the Company had federal and various state net operating loss carryforwards of $427.9 million and $793.6 million, respectively. Federal net operating loss carryforwards do not have expiration dates, whereas the state net operating loss carryforwards have expiration dates ranging from 2025 to indefinite periods. As of December 31, 2023, the Company had federal and various state net operating loss carryforwards of $299.2 million and $554.7 million, respectively. As of December 31, 2024, the Company had federal and state tax credit carryforwards of approximately $3.1 million and $4.8 million, respectively. As of December 31, 2023, the Company had federal and state tax credit carryforwards of approximately $5.9 million and $4.6 million, respectively. The Company established a valuation allowance in 2024, 2023 and 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 are presented in the Consolidated Balance Sheets as follows:
As of December 31,
(in thousands)20242023
Deferred tax assets$143,289 $74,083 
Deferred tax liabilities— (956)
Net deferred tax assets
$143,289 $73,127 
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, 2024 that, if recognized, would impact the effective tax rate is $4.2 million. In the next twelve months, it is reasonably possible that the Company’s unrecognized tax benefits could change due to the resolution of open tax matters, which would reduce our unrecognized tax benefits by $12.6 million. These changes are not expected to have a material impact to the effective tax rate.
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:
As of December 31,
(in thousands)202420232022
Beginning balance$4,773 $7,525 $7,539 
Change in tax positions of prior years6,756 438 (416)
Change in tax positions of current year6,385 (189)625 
Reduction in tax positions for statute expirations(1,046)(3,001)(223)
Ending balance$16,868 $4,773 $7,525 
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.