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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 19. Income Taxes The benefit (provision) for income taxes is comprised of the following.
| For the Years Ended December 31,
(in thousands) | 2022 |  | 2021 |  | 2020
Federal: |  |  |  |  |
Current | $ | (17) |  |  | $ | 161 |  |  | $ | 55 |
Deferred | 1,325 |  |  | 9,837 |  |  | 5,840 |
Total federal | 1,308 |  |  | 9,998 |  |  | 5,895 |
State: |  |  |  |  |
Current | 251 |  |  | (1,835) |  |  | (11,247) |
Deferred (included in federal above) | — |  |  | — |  |  | — |
Total state | 251 |  |  | (1,835) |  |  | (11,247) |
Total | $ | 1,559 |  |  | $ | 8,163 |  |  | $ | (5,352) |
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) | 2022 |  | 2021 |  | 2020
Tax benefit (provision) at U.S. statutory rate | $ | 50,397 |  |  | $ | 22,565 |  |  | $ | (18,348) |
State taxes, net of federal income tax | 10,811 |  |  | 7,673 |  |  | (11,909) |
Valuation allowance | (57,080) |  |  | 13,027 |  |  | 27,913 |
Goodwill derecognition | — |  |  | (31,829) |  |  | — |
Stock compensation | (181) |  |  | (1,856) |  |  | (2,118) |
Other | (2,388) |  |  | (1,417) |  |  | (890) |
Total | $ | 1,559 |  |  | $ | 8,163 |  |  | $ | (5,352) |
Significant components of the Company's deferred tax assets and liabilities are as follows.
| As of December 31,
(in thousands) | 2022 |  | 2021
Deferred income tax assets: |  |  |
Operating loss carryforwards | $ | 361,160 |  |  | $ | 281,384 |
Operating lease obligations | 199,226 |  |  | 208,460 |
Tax credits | 50,415 |  |  | 50,415 |
Accrued expenses | 42,828 |  |  | 56,151 |
Intangible assets | 39,360 |  |  | 50,576 |
Financing lease obligations | 12,749 |  |  | 87,992 |
Capital loss carryforward | 2,140 |  |  | 2,205 |
Other | 3,091 |  |  | 6,450 |
Total gross deferred income tax asset | 710,969 |  |  | 743,633 |
Valuation allowance | (425,043) |  |  | (367,963) |
Net deferred income tax assets | 285,926 |  |  | 375,670 |
Deferred income tax liabilities: |  |  |
Operating lease right-of-use assets | (149,881) |  |  | (158,237) |
Property, plant and equipment | (122,377) |  |  | (202,103) |
Investment in unconsolidated ventures | (12,064) |  |  | (15,051) |
Total gross deferred income tax liability | (284,322) |  |  | (375,391) |
Net deferred tax asset (liability) | $ | 1,604 |  |  | $ | 279 |
A reconciliation of the beginning and ending amounts of the deferred tax valuation allowance is as follows:
|  |  |  | Additions |  |  |  |
Year Ended |  | Balance at beginning of period |  | Charged to costs and expenses |  | Charged to other accounts |  | Deductions |  | Balance at end of period
December 31, 2020 |  | $ | 408,903 |  |  | $ | (27,913) |  | (1) | $ | — |  |  | $ | — |  |  | $ | 380,990 |
December 31, 2021 |  | $ | 380,990 |  |  | $ | (13,027) |  | (2) | $ | — |  |  | $ | — |  |  | $ | 367,963 |
December 31, 2022 |  | $ | 367,963 |  |  | $ | 57,080 |  | (3) | $ | — |  |  | $ | — |  |  | $ | 425,043 |
(1) Reduction of valuation allowance for federal and state net operating losses. (2) Reduction of valuation allowance for federal and state net operating losses and credits. (3) Increase to valuation allowance for federal and state net operating losses and credits. As of December 31, 2022 and 2021, the Company had federal net operating loss carryforwards generated in 2017 and prior of approximately $802.2 million and $808.7 million, respectively, which are available to offset future taxable income from 2023 through 2037. Additionally, as of December 31, 2022 and 2021, the Company had federal net operating loss carryforwards generated after 2017 of $659.7 million and $335.8 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 $2.1 million and $2.2 million as of December 31, 2022 and 2021, respectively, which are available to offset future capital gains through 2023, and are fully offset by a valuation allowance. 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, 2022 and 2021. The Company does not consider estimates of future taxable income in its determination due to the existence of cumulative historical operating losses. The required valuation allowance as of December 31, 2022 and 2021 was $425.0 million and $368.0 million, respectively. The Company has recorded valuation allowances of $372.5 million and $315.3 million against its federal and state net operating losses as of December 31, 2022 and 2021, respectively. The Company has recorded a valuation allowance against its state capital loss carryforward of $2.1 million and $2.2 million as of December 31, 2022 and 2021, respectively. 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, partially 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 as of both December 31, 2022 and 2021. As of both December 31, 2022 and 2021, the Company had gross tax affected unrecognized tax benefits of $18.1 million, 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, 2022 and 2021. As of December 31, 2022, the Company's tax returns for years 2018 through 2021 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 2022 and prior years will significantly change in 2023. A reconciliation of the unrecognized tax benefits is as follows.
| For the Years Ended December 31,
(in thousands) | 2022 |  | 2021
Balance at beginning of period | $ | 18,089 |  |  | $ | 18,385 |
Additions for tax positions related to the current year | — |  |  | — |
Reductions for tax positions related to prior years | (1) |  |  | (296) |
Balance at end of period | $ | 18,088 |  |  | $ | 18,089 |

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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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