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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The benefit (provision) for income taxes is comprised of the following.
| For the Years Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Federal: |  |  |  |  |
Current | $ | 161 |  |  | $ | 55 |  |  | $ | 64 |
Deferred | 9,837 |  |  | 5,840 |  |  | 2,654 |
Total federal | 9,998 |  |  | 5,895 |  |  | 2,718 |
State: |  |  |  |  |
Current | (1,835) |  |  | (11,247) |  |  | (449) |
Deferred (included in federal above) | — |  |  | — |  |  | — |
Total state | (1,835) |  |  | (11,247) |  |  | (449) |
Total | $ | 8,163 |  |  | $ | (5,352) |  |  | $ | 2,269 |
A reconciliation of the benefit (provision) for income taxes to the amount computed at the U.S. Federal statutory rate of 21% is as follows.
| For the Years Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Tax benefit (provision) at U.S. statutory rate | $ | 22,565 |  |  | $ | (18,348) |  |  | $ | 56,742 |
State taxes, net of federal income tax | 7,673 |  |  | (11,909) |  |  | 10,423 |
Valuation allowance | 13,027 |  |  | 27,913 |  |  | (60,376) |
Goodwill derecognition | (31,829) |  |  | — |  |  | — |
Stock compensation | (1,856) |  |  | (2,118) |  |  | (2,639) |
Officer compensation | (1,107) |  |  | (280) |  |  | (204) |
Meals and entertainment | (146) |  |  | (169) |  |  | (416) |
Other | (164) |  |  | (441) |  |  | (1,261) |
Total | $ | 8,163 |  |  | $ | (5,352) |  |  | $ | 2,269 |
Significant components of the Company's deferred tax assets and liabilities are as follows.
| As of December 31,
(in thousands) | 2021 |  | 2020
Deferred income tax assets: |  |  |
Operating loss carryforwards | $ | 281,384 |  |  | $ | 237,728 |
Operating lease obligations | 208,460 |  |  | 322,122 |
Financing lease obligations | 87,992 |  |  | 90,011 |
Accrued expenses | 56,151 |  |  | 96,410 |
Intangible assets | 50,576 |  |  | 60,069 |
Tax credits | 50,415 |  |  | 50,356 |
Investment in unconsolidated ventures | — |  |  | 5,105 |
Capital loss carryforward | 2,205 |  |  | 2,263 |
Other | 6,450 |  |  | 8,561 |
Total gross deferred income tax asset | 743,633 |  |  | 872,625 |
Valuation allowance | (367,963) |  |  | (380,990) |
Net deferred income tax assets | 375,670 |  |  | 491,635 |
Deferred income tax liabilities: |  |  |
Property, plant and equipment | (202,103) |  |  | (223,703) |
Operating lease right-of-use assets | (158,237) |  |  | (277,489) |
Investment in unconsolidated ventures | (15,051) |  |  | — |
Total gross deferred income tax liability | (375,391) |  |  | (501,192) |
Net deferred tax asset (liability) | $ | 279 |  |  | $ | (9,557) |
As of December 31, 2021 and 2020, the Company had federal net operating loss carryforwards generated in 2017 and prior of approximately $808.7 million and $812.0 million, respectively, which are available to offset future taxable income from 2022 through 2037. Additionally, as of December 31, 2021 and 2020, the Company had federal net operating loss carryforwards generated after 2017 of $335.8 million and $181.1 million, respectively, which have an indefinite life, but with usage limited to 80% of taxable income in any given year. The Company had state capital loss carryforwards of $2.2 million and $2.3 million as of December 31, 2021 and 2020, respectively, which are available to offset future capital gains through 2023. The Company determined that a valuation allowance was required after consideration of the Company's estimated future reversal of existing timing differences as of December 31, 2021 and 2020. The Company does not consider estimates of future taxable income in its determination due to the existence of cumulative historical operating losses. For the years ended December 31, 2021 and 2020, the Company recorded a reduction to the valuation allowance of approximately $13.0 million and $27.9 million, respectively, to reflect the required valuation allowance of $368.0 million and $381.0 million as of December 31, 2021 and 2020, respectively. The Company has recorded valuation allowances of $315.3 million and $328.4 million against its federal and state net operating losses as of December 31, 2021 and 2020, respectively. The Company has recorded a valuation allowance against its state capital loss carryforward of $2.2 million as of December 31, 2021. The Company's sale of its ownership interest in the CCRC Venture in 2020 utilized all of the capital loss carryforward for federal tax purposes and a portion of its net operating losses. The Company recorded a decrease in the valuation allowance of $95.2 million for the year ended December 31, 2021 as a result of the HCS Sale that occurred on July 1, 2021, offset by an increase in the valuation allowance of $82.2 million established against current operating losses during the year ended December 31, 2021. The Company also recorded a valuation allowance against federal and state credits of $50.4 million and $50.3 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the Company had gross tax affected unrecognized tax benefits of $18.1 million and $18.4 million, respectively, of which, if recognized, would result in an income tax benefit recorded in the consolidated statement of operations. Interest and penalties related to these tax positions are classified as tax expense in the Company's consolidated financial statements. Total interest and penalties reserved is $0.1 million as of both December 31, 2021 and 2020. As of December 31, 2021, the Company's tax returns for years 2017 through 2020 are subject to future examination by tax authorities. In addition, the net operating losses from prior years are subject to adjustment under examination. The Company does not expect that unrecognized tax benefits for tax positions taken with respect to 2021 and prior years will significantly change in 2022. A reconciliation of the unrecognized tax benefits is as follows.
| For the Years Ended December 31,
(in thousands) | 2021 |  | 2020
Balance at beginning of period | $ | 18,385 |  |  | $ | 18,326 |
Additions for tax positions related to the current year | — |  |  | — |
Additions (reductions) for tax positions related to prior years | (296) |  |  | 59 |
Balance at end of period | $ | 18,089 |  |  | $ | 18,385 |

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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=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 http://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 http://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 http://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 http://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 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 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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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