Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

The components of income before income taxes were as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Income before income taxes:
Domestic	$	550,676	$	318,635	$	291,031
Foreign	21,611		139,031		62,726
Total	$	572,287	$	457,666	$	353,757

Provision for Income Taxes

The components of the provision for income taxes were as follows (in thousands):

	Year Ended December 31,
	2019			2018			2017
Current:
Federal	$	121,214		$	50,306		$	44,695
State	35,329			26,170			301
Foreign	16,848			23,209			22,666
Total current tax provision	173,391			99,685			67,662
Deferred:
Federal	7,379			62,482			(36,915		)
State	(1,776		)	(4,152		)	14,951
Foreign	(13,522		)	3,644			(10,166		)
Total deferred tax provision (benefit)	(7,919		)	61,974			(32,130		)
Total provision for income taxes	$	165,472		$	161,659		$	35,532

Effective Income Tax Rate Reconciliation

The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income before provision for income taxes as follows (in thousands):

	Year Ended December 31,
	2019			2018			2017
Provision at the statutory rate	$	120,180		$	96,110		$	123,815
Increases (decreases) resulting from —
Valuation allowance on deferred tax assets	35,761			48,862			1,455
State taxes	23,399			18,504			17,920
Employee per diems, meals and entertainment	13,817			11,949			13,605
Foreign taxes	(21,565		)	(2,621		)	(18,413		)
Contingency reserves, net	(3,173		)	(2,619		)	3,651
Stock-based compensation	(1,863		)	(1,449		)	(5,095		)
Taxes on unincorporated joint ventures	(930		)	(578		)	(1,354		)
Tax Cuts and Jobs Act	—			(6,295		)	(70,129		)
Entity restructuring and recapitalization efforts	—			(4,424		)	(26,668		)
Production activity deduction	—			—			(1,504		)
Other	(154		)	4,220			(1,751		)
Total provision for income taxes	$	165,472		$	161,659		$	35,532

Deferred Tax Assets and Liabilities and Net Deferred Income Tax Assets and Liabilities

The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands):

	December 31,
	2019			2018
Deferred income tax liabilities:
Property and equipment	$	(208,751	)	$	(178,090	)
Leased assets	(73,861		)	—
Goodwill	(72,244		)	(60,305		)
Customer holdbacks	(11,882		)	(44,173		)
Other intangibles	(11,384		)	(21,034		)
Other book/tax accounting method differences	(1,801		)	(7,247		)
Total deferred income tax liabilities	(379,923		)	(310,849		)
Deferred income tax assets:
Net operating loss carryforwards	78,310			52,406
Lease liabilities	74,044			—
Tax credits	46,621			43,572
Accruals and reserves	36,372			28,594
Stock and incentive compensation	26,045			20,627
Deferred profit on investment in unconsolidated affiliates	—			16,021
Deferred tax benefits on unrecognized tax positions	16,542			13,278
Other	3,933			1,776
Subtotal	281,867			176,274
Valuation allowance	(104,178		)	(67,601		)
Total deferred income tax assets	177,689			108,673
Total net deferred income tax liabilities	$	(202,234	)	$	(202,176	)

The net deferred income tax assets and liabilities were comprised of the following in the accompanying consolidated balance sheets (in thousands):

	December 31,
	2019			2018
Deferred income taxes:
Assets	$	12,545		$	16,939
Liabilities	(214,779		)	(219,115		)
Total net deferred income tax liabilities	$	(202,234	)	$	(202,176	)

Reconciliation of Unrecognized Tax Benefit

A reconciliation of unrecognized tax benefit balances is as follows (in thousands):

	December 31,
	2019			2018			2017
Balance at beginning of year	$	41,110		$	36,229		$	35,240
Additions based on tax positions related to the current year	7,708			6,231			7,040
Additions for tax positions of prior years	1,200			9,377			3,372
Reductions for tax positions of prior years	—			(2,870		)	(1,171		)
Reductions for audit settlements	(3,205		)	—			—
Reductions resulting from a lapse of the applicable statute of limitations periods	(5,935		)	(7,857		)	(8,252		)
Balance at end of year	$	40,878		$	41,110		$	36,229

Balances of Unrecognized Tax Benefits

The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands):

	December 31,
	2019		2018		2017
Unrecognized tax benefits	$	40,878	$	41,110	$	36,229
Portion that, if recognized, would reduce tax expense and effective tax rate	40,695		40,977		35,561
Accrued interest on unrecognized tax benefits	6,240		5,459		5,368
Accrued penalties on unrecognized tax benefits	14		631		631
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months	$0 to $6,268		$0 to $9,541		$0 to $13,655
Portion that, if recognized, would reduce tax expense and effective tax rate	$0 to $5,693		$0 to $8,224		$0 to $12,483