Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income (Loss) Before Provision (Benefit) for Income Taxes

Income before provision for income taxes consists of the following:


	Years Ended December 31,
	2018		2017		2016
U.S.	$	491,506	$	301,962	$	243,955
Non – U.S.		215,634		206,548		117,410
Income before income taxes	$	707,140	$	508,510	$	361,365

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes for the years ended December 31, 2018, 2017 and 2016, consists of the following:


	Years Ended December 31,
	2018		2017		2016
Current:
U.S. Federal	$	37,419	$	45,089	$	46,735
State		27,057		19,848		14,692
Non – U.S.		17,651		18,537		10,307
		82,127		83,474		71,734
Deferred:
U.S. Federal		85,926		(203,131)		47,403
State		1,991		7,534		3,536
Non – U.S.		(10,058)		43,213		(8,629)
		77,859		(152,384)		42,310
Provision (benefit) for income taxes	$	159,986	$	(68,910)	$	114,044

Significant Components of Deferred Income Tax Assets and Liabilities

The significant components of deferred income tax assets and liabilities, reduced by valuation allowances as applicable, as of December 31, 2018 and 2017 are presented below.


	2018		2017
Deferred income tax assets:
Accrued expenses	$	26,128	$	17,108
Compensation		19,830		19,157
Contingent liabilities		14,043		11,826
Finance costs		2,329		5,132
Tax credits and loss carryforwards		20,438		23,374
Other		-		7,295
Gross deferred income tax assets		82,768		83,892
Less: Valuation allowance		-		-
Total deferred income tax assets		82,768		83,892

Deferred income tax liabilities:
Goodwill and other intangibles		(283,671)		(273,408)
Property and equipment		(461,071)		(414,904)
Landfill closure/post-closure		(8,892)		(7,758)
Prepaid expenses		(11,581)		(9,912)
Interest rate and fuel hedges		(3,206)		(6,001)
Investment in subsidiaries		(69,383)		(62,676)
Other		(4,997)		-
Total deferred income tax liabilities		(842,801)		(774,659)
Net deferred income tax liability	$	(760,033)	$	(690,767)

Differences between Income Tax Provision in Statements of Net Income and Income Tax Provision Computed at Federal Statutory Rate

The items shown in the following table are a percentage of pre-tax income:


	Years Ended December 31,
	2018		2017		2016
U.S. federal statutory rate		21.0%		35.0%		35.0%
State taxes, net of federal benefit		4.4		4.1		3.9
Deferred income tax liability adjustments		(0.2)		0.5		0.6
Effect of international operations		(3.9)		(14.6)		(10.9)
Progressive Waste acquisition		-		-		2.3
Enactment of the Tax Act		-		(53.1)		-
Deferred tax on undistributed earnings		0.9		12.3		-
Goodwill impairment		-		2.1		-
Other		0.4		0.1		0.7
		22.6%		(13.6%)		31.6%