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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Significant components of the provision for income tax benefit (expense) are as follows:
(In thousands)Year Ended December 31,
202320222021
Current – Federal
$(67,856)$(54,934)$(2,169)
Current – foreign
(3,001)(4,891)(2,177)
Current – state
(11,393)(19,312)(14,919)
Total current expense(82,250)(79,137)(19,265)
Deferred – Federal
91,658 65,553 932 
Deferred – foreign
1,714 1,659 976 
Deferred – state
51,216 7,206 8,966 
Total deferred benefit144,588 74,418 10,874 
Income tax benefit (expense)$62,338 $(4,719)$(8,391)

The current tax expenses recorded for the years ended December 31, 2023, 2022, and 2021 were primarily related to federal, state, and local tax expenses incurred due to taxable income in excess of available net operating losses during those years.
The deferred tax benefits of $144.6 million and $74.4 million recorded in the years ended December 31, 2023 and 2022, respectively, related primarily to the difference of book in excess of tax amortization expense during the years and the disallowance of interest expense deductions under Section 163(j) of the Internal Revenue Code. The 2023 book amortization expense included the FCC license non-cash impairment charge recorded during the second quarter of 2023 discussed in Note 4, Property, Plant and Equipment, Intangible Assets and Goodwill. These benefits were partially offset by the utilization of net operating loss carryforwards during the current period and the recording of valuation allowance adjustments against certain federal and state deferred tax assets for disallowed interest carryforwards due to the uncertainty of the ability to realize those assets in future years.
On August 16, 2022, the Inflation Reduction Act was signed into law. The tax provisions included within the Inflation Reduction Act did not materially impact the Company's financial statements in the current year.
Significant components of the Company's deferred tax liabilities and assets are as follows:
December 31,
(In thousands)20232022
Deferred tax liabilities:
Intangibles$548,872 $659,378 
Fixed Assets57,800 101,934 
Deferred Income22,163 44,261 
Operating lease right-of-use assets178,173 199,926 
Total deferred tax liabilities807,008 1,005,499 
Deferred tax assets:
Accrued expenses12,141 16,665 
Net operating loss carryforwards124,388 141,163 
Interest expense carryforwards389,236 346,354 
Operating lease liabilities211,412 233,003 
Capital loss carryforwards1,653,021 1,655,534 
Investments17,284 10,992 
Bad debt reserves12,452 10,172 
Other3,539 8,997 
Total gross deferred tax assets2,423,473 2,422,880 
Less: Valuation allowance1,956,233 1,901,191 
Total deferred tax assets467,240 521,689 
Net deferred tax liabilities$339,768 $483,810 

The deferred tax liability related to intangibles primarily relates to the difference in book and tax basis of FCC licenses and other intangible assets that were adjusted for book purposes to estimated fair values as part of the application of fresh start accounting, and were further adjusted in the first quarter of 2020, the third quarter of 2022 and the second quarter of 2023 upon recognition of impairments as discussed in Note 4, Property, Plant and Equipment, Intangible Assets and Goodwill. In accordance with ASC 350-10, the Company does not amortize FCC licenses for financial reporting purposes. As a result, this deferred tax liability will not reverse over time unless the Company recognizes future impairment charges or sells its FCC licenses. As the Company continues to amortize its tax basis in its FCC licenses, the deferred tax liability will increase over time. The Company’s net foreign deferred tax liabilities for the years ended December 31, 2023 and 2022 were $10.3 million and $11.5 million, respectively.
At December 31, 2023, the Company had recorded net operating loss and tax credit carryforwards (tax effected) for federal and state income tax purposes of approximately $124.4 million, expiring in various amounts through 2043 or in some cases with no expiration date. Internal Revenue Code Section 163(j), as amended, generally limits the deduction for business interest expense to thirty percent of adjusted taxable income (notwithstanding the temporary provisions described above from the enactment of the CARES Act), and provides that any disallowed interest expense may be carried forward indefinitely. The Company recorded deferred tax assets for federal and state interest limitation carryforwards of $389.2 million as of December 31, 2023. Included in this balance is $89.7 million of deferred tax assets that offsets uncertain tax position liabilities recorded in the Company's other long term liability account. In connection with the taxable separation of the Outdoor division as part of the bankruptcy restructuring, the Company realized a $7.2 billion capital loss (gross after attribute reduction calculations). For federal tax purposes the capital loss can be carried forward 5 years and only be used to offset capital gains. For state tax purposes, the capital loss has various carryforward periods. As of December 31, 2023 the tax effected balance of the capital loss carryforwards were $1.7 billion. The Company has recorded a full valuation allowance against the deferred tax asset associated with the federal and state capital loss carryforward as it is not expected to be realized. The Company expects to realize the benefits of a portion of its remaining deferred tax assets based upon expected future taxable income from deferred tax liabilities that reverse in the relevant federal and state jurisdictions and carryforward periods. As of December 31, 2023, the Company had
recorded a valuation allowance of $2.0 billion against a portion of these U.S. federal and state deferred tax assets which it does not expect to realize, relating primarily to capital loss carryforwards, disallowed interest carryforwards, and certain state net operating loss carryforwards. The Company's U.S. federal and state deferred tax valuation allowance increased by $55.0 million during the year ended December 31, 2023 primarily due to an increase in valuation allowances against interest limitation carryforwards. Any deferred tax liabilities associated with acquired FCC licenses and tax-deductible goodwill intangible assets are relied upon as sources of future taxable income for purposes of realizing deferred tax assets attributed to carryforwards that have an indefinite life such as the Section 163(j) interest carryforward.
At December 31, 2023, net deferred tax liabilities include a deferred tax asset of $7.0 million relating to stock-based compensation expense under ASC 718-10, Compensation—Stock Compensation. Full realization of this deferred tax asset requires stock options to be exercised at a price equal to or exceeding the sum of the grant price plus the fair value of the option at the grant date and restricted stock to vest at a price equaling or exceeding the fair market value at the grant date.  Accordingly, there can be no assurance that the stock price of the Company’s common stock will rise to levels sufficient to realize the entire deferred tax benefit currently reflected in its balance sheet.
The reconciliations of income tax on income (loss) computed at the U.S. federal statutory tax rates to the recorded income tax benefit (expense) for the Company are:
Year Ended December 31,
(In thousands)202320222021
AmountPercentAmountPercentAmountPercent
Income tax benefit at statutory rates$244,162 21.0 %$54,170 21.0 %$31,500 21.0 %
State income taxes, net of federal tax effect16,349 1.4 %(3,548)(1.4)%3,325 2.2 %
Foreign income taxes(583)(0.1)%(1,615)(0.6)%(978)(0.7)%
Nondeductible items(10,425)(0.9)%(7,497)(2.9)%(10,264)(6.8)%
Changes in valuation allowance and other estimates(69,722)(6.0)%(52,293)(20.3)%(35,093)(23.4)%
Impairment charges(125,047)(10.7)%— — %— — %
Tax credits4,592 0.4 %3,848 1.5 %4,831 3.2 %
Other, net3,012 0.3 %2,216 0.9 %(1,712)(1.1)%
Income tax benefit (expense)$62,338 5.4 %$(4,719)(1.8)%$(8,391)(5.6)%

The Company’s effective tax rates for the years ended December 31, 2023 and 2022 were 5.4% and (1.8)%, respectively. The effective tax rates for both years were primarily impacted the valuation allowance adjustments recorded during the years against certain federal and state deferred tax assets for disallowed interest carryforwards due to the uncertainty of the ability to realize those assets in future periods. In addition, in 2023 the Company recorded a GAAP impairment charge to our non-deductible goodwill as discussed in Note 4, Property, Plant and Equipment, Intangible Assets and Goodwill.
The Company’s effective tax rate for the year ended December 31, 2021 was (5.6)%. The effective rate for the year was primarily impacted by the valuation allowance adjustments recorded during the year against certain federal and state deferred tax assets for disallowed interest carryforwards due to the uncertainty of the ability to realize those assets in future years.
The Company continues to record interest and penalties related to unrecognized tax benefits in current income tax expense. The total amount of interest accrued at December 31, 2023 and 2022 was $9.3 million and $4.9 million, respectively. The total amount of unrecognized tax benefits including accrued interest and penalties at December 31, 2023 and 2022 was $133.1 million and $28.7 million, respectively, of which $132.6 million and $27.2 million is included in “Other long-term liabilities”. In addition, $0.5 million and $1.5 million of unrecognized tax benefits are recorded net with the Company’s deferred tax assets for its net operating losses as opposed to being recorded in “Other long-term liabilities” at December 31, 2023 and 2022, respectively. The total amount of unrecognized tax benefits at December 31, 2023 and 2022 that, if recognized, would impact the effective income tax rate is $32.6 million and $22.9 million, respectively.
(In thousands)Year Ended December 31,
Unrecognized Tax Benefits20232022
Balance at beginning of period$23,823 $18,045 
Increases for tax position taken in the current year52,856 5,584 
Increases for tax positions taken in previous years48,194 1,593 
Decreases for tax position taken in previous years— — 
Decreases due to lapse of statute of limitations(1,051)(1,399)
Balance at end of period$123,822 $23,823 

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. All federal income tax matters through 2019 are closed. The majority of all material state, local, and foreign income tax matters have been concluded for years through 2019 with the exception of a current examination in Texas that covers the 2007-2016 tax years. During 2023, the Company recorded unrecognized tax benefit reserves for federal and state purposes related to the filing of 2020 amended tax returns reflecting additional deductible interest expense in those years that resulted in additional net operating losses being carried forward and utilized in later years. The amount of unrecognized tax benefit reserves recorded during 2023 related to the amended returns was $97.1 million, inclusive of interest.