Income Taxes

12 Months Ended

Dec. 31, 2024

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)	2024		2023		2022
Federal:
Current	$	122	$	(183)	$	(17)
Deferred	(3,617)		(7,590)		1,325
Total federal	(3,495)		(7,773)		1,308
State:
Current	(1,151)		(1,011)		251
Deferred (included in federal above)	—		—		—
Total state	(1,151)		(1,011)		251
Total	$	(4,646)	$	(8,784)	$	1,559

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)	2024		2023		2022
Tax benefit (provision) at U.S. statutory rate	$	41,431	$	37,848	$	50,397
State taxes, net of federal income tax	5,125		5,766		10,811
Valuation allowance	(47,345)		(49,109)		(57,080)
Convertible debt repurchase premium	(2,745)		—		—
Stock compensation	(83)		(1,312)		(181)
Other	(1,029)		(1,977)		(2,388)
Total	$	(4,646)	$	(8,784)	$	1,559

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

	As of December 31,
(in thousands)	2024		2023
Deferred income tax assets:
Operating loss carryforwards	$	426,454	$	392,577
Operating lease obligations	322,612		220,003
Tax credits	50,367		50,415
Accrued expenses	47,467		46,814
Financing lease obligations	29,524		—
Intangible Assets	17,103		26,816
Investment in unconsolidated ventures	3,322		3,268
Capital loss carryforward	—		2,102
Other	97		—
Total gross deferred income tax asset	896,946		741,995
Valuation allowance	(521,497)		(474,152)
Net deferred income tax assets	375,449		267,843
Deferred income tax liabilities:
Operating lease right-of-use assets	(284,594)		(168,398)
Property, plant and equipment	(100,459)		(92,580)
Financing lease obligations	—		(10,273)
Other	—		(2,579)
Total gross deferred income tax liability	(385,053)		(273,830)
Net deferred tax asset (liability)	$	(9,604)	$	(5,987)

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, 2022	$	367,963	$	57,080	(1)	$	425,043
December 31, 2023	$	425,043	$	49,109	(1)	$	474,152
December 31, 2024	$	474,152	$	47,345	(1)	$	521,497

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

As of both December 31, 2024 and 2023, the Company had federal net operating loss carryforwards generated in 2017 and prior of approximately $790.8 million, which are available to offset future taxable income from 2025 through 2037. Additionally, as of December 31, 2024 and 2023, the Company had federal net operating loss carryforwards generated after 2017 of $934.1 million and $799.3 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 December 31, 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, 2024 and 2023. 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, 2024 and 2023 was $521.5 million and $474.2 million, respectively.

The Company has recorded valuation allowances of $471.1 million and $421.6 million against its federal and state net operating losses as of December 31, 2024 and 2023, respectively. The Company has recorded a valuation allowance against its state capital loss carryforward of $2.1 million as of December 31, 2023. The Company also recorded a valuation allowance against federal and state credits of $50.4 million as of both December 31, 2024 and 2023.

As of December 31, 2024 and 2023, the Company had gross tax affected unrecognized tax benefits of $18.1 million and $18.2 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 as of both December 31, 2024 and 2023. As of December 31, 2024, the Company's tax returns for years 2020 through 2023 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 2024 and prior years will significantly change in 2025.

A reconciliation of the unrecognized tax benefits is as follows.

	For the Years Ended December 31,
(in thousands)	2024		2023
Balance at beginning of period	$	18,205	$	18,088
Additions for tax positions related to prior years	—		173
Reductions for tax positions related to prior years	(104)		(56)
Balance at end of period	$	18,101	$	18,205