Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

17. Income Taxes

The benefit (provision) for income taxes is comprised of the following.

	For the Years Ended December 31,
(in thousands)	2023		2022		2021
Federal:
Current	$	(183)	$	(17)	$	161
Deferred	(7,590)		1,325		9,837
Total federal	(7,773)		1,308		9,998
State:
Current	(1,011)		251		(1,835)
Deferred (included in federal above)	—		—		—
Total state	(1,011)		251		(1,835)
Total	$	(8,784)	$	1,559	$	8,163

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)	2023		2022		2021
Tax benefit (provision) at U.S. statutory rate	$	37,848	$	50,397	$	22,565
State taxes, net of federal income tax	5,766		10,811		7,673
Valuation allowance	(49,109)		(57,080)		13,027
Goodwill derecognition	—		—		(31,829)
Stock compensation	(1,312)		(181)		(1,856)
Other	(1,977)		(2,388)		(1,417)
Total	$	(8,784)	$	1,559	$	8,163

Significant components of the Company's deferred tax assets and liabilities are as follows.

	As of December 31,
(in thousands)	2023		2022
Deferred income tax assets:
Operating loss carryforwards	$	392,577	$	361,160
Operating lease obligations	220,003		199,226
Tax credits	50,415		50,415
Accrued expenses	46,814		42,828
Intangible assets	26,816		39,360
Financing lease obligations	—		12,749
Capital loss carryforward	2,102		2,140
Other	3,268		3,091
Total gross deferred income tax asset	741,995		710,969
Valuation allowance	(474,152)		(425,043)
Net deferred income tax assets	267,843		285,926
Deferred income tax liabilities:
Operating lease right-of-use assets	(168,398)		(149,881)
Property, plant and equipment	(92,580)		(122,377)
Investment in unconsolidated ventures	—		(12,064)
Financing lease obligations	(10,273)		—
Other	(2,579)		—
Total gross deferred income tax liability	(273,830)		(284,322)
Net deferred tax asset (liability)	$	(5,987)	$	1,604

A reconciliation of the beginning and ending amounts of the deferred tax valuation allowance is as follows:

Year Ended	Balance at beginning of period		Charged to deferred income tax (benefit) provision			Balance at end of period
December 31, 2021	$	380,990	$	(13,027)	(1)	$	367,963
December 31, 2022	$	367,963	$	57,080	(2)	$	425,043
December 31, 2023	$	425,043	$	49,109	(2)	$	474,152

(1) Reduction of valuation allowance for federal and state net operating losses and credits.

(2) Increase to valuation allowance for federal and state net operating losses and credits.

As of December 31, 2023 and 2022, the Company had federal net operating loss carryforwards generated in 2017 and prior of approximately $790.8 million and $802.2 million, respectively, which are available to offset future taxable income from 2024 through 2034. Additionally, as of December 31, 2023 and 2022, the Company had federal net operating loss carryforwards generated after 2017 of $799.3 million and $659.7 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 as of both December 31, 2023 and 2022, which are available to offset future capital gains through 2024, 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, 2023 and 2022. The Company does not consider estimates of future taxable income in its determination due to the existence of cumulative historical operating losses. The Company's valuation allowance as of December 31, 2023 and 2022 was $474.2 million and $425.0 million, respectively.

The Company has recorded valuation allowances of $421.6 million and $372.5 million against its federal and state net operating losses as of December 31, 2023 and 2022, respectively. The Company has recorded a valuation allowance against its state capital loss carryforward of $2.1 million as of both December 31, 2023 and 2022. The Company also recorded a valuation allowance against federal and state credits of $50.4 million as of both December 31, 2023 and 2022.

As of December 31, 2023 and 2022, the Company had gross tax affected unrecognized tax benefits of $18.2 million and $18.1 million, respectively, 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 $0.2 million and $0.1 million as of December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company's tax returns for years 2019 through 2022 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 2023 and prior years will significantly change in 2024.

A reconciliation of the unrecognized tax benefits is as follows.

	For the Years Ended December 31,
(in thousands)	2023		2022
Balance at beginning of period	$	18,088	$	18,089
Additions for tax positions related to prior years	173		—
Reductions for tax positions related to prior years	(56)		(1)
Balance at end of period	$	18,205	$	18,088