Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Income from Operations Before Income Taxes |
The following table presents the components of our income from operations before income taxes (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
United States earnings |
|
$ |
256,210 |
|
|
$ |
179,522 |
|
|
$ |
77,110 |
|
Foreign earnings |
|
|
111,441 |
|
|
|
84,531 |
|
|
|
89,112 |
|
|
|
$ |
367,651 |
|
|
$ |
264,053 |
|
|
$ |
166,222 |
|
|
| Schedule of Income Tax Expense (Benefit) Attributable to Income from Continuing Operations |
The income tax expense (benefit) attributable to income from operations for the years ended December 31, 2024, December 31, 2023, and December 31, 2022 consists of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Current |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
37,713 |
|
|
$ |
37,699 |
|
|
$ |
21,323 |
|
State |
|
|
13,441 |
|
|
|
13,340 |
|
|
|
9,946 |
|
Foreign |
|
|
19,731 |
|
|
|
14,013 |
|
|
|
9,232 |
|
Total current income tax expense |
|
|
70,885 |
|
|
|
65,052 |
|
|
|
40,501 |
|
Deferred |
|
|
|
|
|
|
|
|
|
Federal |
|
|
1,397 |
|
|
|
(5,974 |
) |
|
|
(2,902 |
) |
State |
|
|
3,941 |
|
|
|
(590 |
) |
|
|
(623 |
) |
Foreign |
|
|
763 |
|
|
|
(2,350 |
) |
|
|
2,681 |
|
Total deferred tax benefit |
|
|
6,101 |
|
|
|
(8,914 |
) |
|
|
(844 |
) |
Total income tax expense |
|
$ |
76,986 |
|
|
$ |
56,138 |
|
|
$ |
39,657 |
|
|
| Computation of Income Tax Expense (Benefit) |
Income tax expense (benefit) was different from the amount computed by applying the United States federal statutory rate to pre-tax income from continuing operations as a result of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Income before income tax expense |
|
$ |
367,651 |
|
|
|
|
|
$ |
264,053 |
|
|
|
|
|
$ |
166,222 |
|
|
|
|
Tax at federal statutory tax rate |
|
|
77,207 |
|
|
|
21.0 |
% |
|
|
55,451 |
|
|
|
21.0 |
% |
|
|
34,907 |
|
|
|
21.0 |
% |
State taxes, net of federal tax benefit |
|
|
11,852 |
|
|
|
3.2 |
% |
|
|
9,807 |
|
|
|
3.7 |
% |
|
|
7,530 |
|
|
|
4.5 |
% |
Change in valuation allowance |
|
|
11,111 |
|
|
|
3.0 |
% |
|
|
5,773 |
|
|
|
2.2 |
% |
|
|
1,363 |
|
|
|
0.8 |
% |
Change in uncertain tax positions |
|
|
3,584 |
|
|
|
1.0 |
% |
|
|
3,530 |
|
|
|
1.3 |
% |
|
|
1,688 |
|
|
|
1.0 |
% |
Foreign tax rate differential |
|
|
(6,078 |
) |
|
|
-1.7 |
% |
|
|
(6,258 |
) |
|
|
-2.4 |
% |
|
|
(1,787 |
) |
|
|
-1.1 |
% |
Tax cost of foreign operations, net of credits |
|
|
1,842 |
|
|
|
0.5 |
% |
|
|
3,085 |
|
|
|
1.2 |
% |
|
|
777 |
|
|
|
0.5 |
% |
Foreign-derived intangible income deduction |
|
|
(14,794 |
) |
|
|
-4.0 |
% |
|
|
(4,736 |
) |
|
|
-1.8 |
% |
|
|
(76 |
) |
|
|
0.0 |
% |
Noncontrolling interests |
|
|
(11,679 |
) |
|
|
-3.2 |
% |
|
|
(9,821 |
) |
|
|
-3.7 |
% |
|
|
(6,279 |
) |
|
|
-3.8 |
% |
Federal business credits |
|
|
(2,932 |
) |
|
|
-0.8 |
% |
|
|
(2,731 |
) |
|
|
-1.0 |
% |
|
|
(1,926 |
) |
|
|
-1.2 |
% |
Executive compensation |
|
|
7,351 |
|
|
|
2.0 |
% |
|
|
1,636 |
|
|
|
0.6 |
% |
|
|
1,921 |
|
|
|
1.2 |
% |
Equity compensation |
|
|
(7,170 |
) |
|
|
-2.0 |
% |
|
|
(158 |
) |
|
|
-0.1 |
% |
|
|
10 |
|
|
|
0.0 |
% |
Other, net |
|
|
6,692 |
|
|
|
1.8 |
% |
|
|
560 |
|
|
|
0.2 |
% |
|
|
1,529 |
|
|
|
0.9 |
% |
Total income tax expense |
|
$ |
76,986 |
|
|
|
20.9 |
% |
|
$ |
56,138 |
|
|
|
21.3 |
% |
|
$ |
39,657 |
|
|
|
23.9 |
% |
|
| Components of Deferred Tax Assets and Liabilities |
The components of deferred tax assets and liabilities consist of the following at December 31, 2024 and December 31, 2023 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Deferred tax assets |
|
|
|
|
|
|
Project and non-project reserves |
|
$ |
23,184 |
|
|
$ |
23,555 |
|
Employee compensation and benefits |
|
|
76,944 |
|
|
|
69,726 |
|
Revenue and cost recognition |
|
|
46,250 |
|
|
|
37,616 |
|
Insurance accruals |
|
|
12,424 |
|
|
|
14,081 |
|
Net operating losses |
|
|
17,640 |
|
|
|
8,663 |
|
Lease liabilities |
|
|
42,572 |
|
|
|
44,626 |
|
Tax credit carryforwards |
|
|
35,845 |
|
|
|
31,727 |
|
Other |
|
|
17,432 |
|
|
|
3,285 |
|
Total deferred tax assets |
|
|
272,291 |
|
|
|
233,279 |
|
Valuation allowance |
|
|
(45,318 |
) |
|
|
(34,779 |
) |
Total deferred tax assets |
|
|
226,973 |
|
|
|
198,500 |
|
Deferred tax liabilities |
|
|
|
|
|
|
Intangible assets |
|
|
(57,361 |
) |
|
|
(18,783 |
) |
Right-of-use assets |
|
|
(38,605 |
) |
|
|
(40,131 |
) |
Profit remittance tax |
|
|
(6,842 |
) |
|
|
(5,822 |
) |
Other |
|
|
(1,758 |
) |
|
|
(3,378 |
) |
Total deferred tax liabilities |
|
|
(104,566 |
) |
|
|
(68,114 |
) |
Net deferred tax asset |
|
$ |
122,407 |
|
|
$ |
130,386 |
|
The Company is not asserting that any of the earnings of the foreign subsidiaries will be permanently reinvested. Therefore, the Company has recorded a deferred tax liability for the undistributed earnings net of applicable foreign tax credits.
|
| Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Beginning of year |
|
$ |
25,497 |
|
|
$ |
22,798 |
|
|
$ |
21,181 |
|
Increases—current year tax positions |
|
|
1,058 |
|
|
|
3,220 |
|
|
|
4,666 |
|
Increases—prior year tax positions |
|
|
7,488 |
|
|
|
2,458 |
|
|
|
2,254 |
|
Decreases—prior year tax positions |
|
|
(1,826 |
) |
|
|
(1,589 |
) |
|
|
(3,537 |
) |
Settlements |
|
|
(1,334 |
) |
|
|
(1,026 |
) |
|
|
(1,447 |
) |
Lapse of statute of limitations |
|
|
(1,345 |
) |
|
|
(364 |
) |
|
|
(319 |
) |
End of year |
|
$ |
29,538 |
|
|
$ |
25,497 |
|
|
$ |
22,798 |
|
|