INCOME TAXES

The domestic and foreign components of income before provision for income taxes were as follows (in thousands):



	For the Year Ended December 31,
	2014			2013		2012
Domestic	$	44,737		$	85,775	$	90,240
Foreign	(6,215		)	58,110		37,490
Total	$	38,522		$	143,885	$	127,730

The provision (benefit) for income taxes consisted of the following (in thousands):



	For the Year Ended December 31,
	2014			2013		2012
Current:
Federal (i)	$	17,184		$	5,264	$	(29,401	)
State	6,918			5,006		(10,736		)
Foreign	10,428			6,930		4,030
	34,530			17,200		(36,107		)
Deferred
Federal	33,858			20,574		23,521
State	1,840			2,074		2,865
Foreign	(3,378		)	8,471		7,777
	32,320			31,119		34,163
Net provision (benefit) for income taxes	$	66,850		$	48,319	$	(1,944	)

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(i)	The 2012 benefit includes a decrease in unrecognized tax benefits of $52.4 million (net of interest and penalties of $29.3 million) resulting from expiring statute of limitation periods related to a historical Canadian debt restructuring transaction.

The Company's effective tax rate for fiscal years 2014, 2013 and 2012 was 173.5 percent, 33.6 percent and (1.5) percent, respectively. The effective income tax rate varied from the amount computed using the statutory federal income tax rate as follows (in thousands):



	For the Year Ended December 31,
	2014			2013			2012
Tax expense at US statutory rate	$	13,483		$	50,360		$	44,705
State income taxes, net of federal benefit	7,429			4,052			3,526
Foreign rate differential	(2,916		)	(10,478		)	(8,607		)
Non-deductible transaction costs	—			657			2,229
Uncertain tax position releases	—			(4,010		)	(52,424		)
Uncertain tax position interest and penalties	2,217			457			1,658
Goodwill impairment	44,273			—			—
Other	2,364			7,281			6,969
Net provision (benefit) for income taxes	$	66,850		$	48,319		$	(1,944	)

(11) INCOME TAXES (Continued)

The components of the total net deferred tax assets and liabilities at December 31, 2014 and 2013 were as follows (in thousands):



	2014			2013
Deferred tax assets:
Workers compensation and other claims related accruals	$	15,904		$	11,825
Provision for doubtful accounts	8,921			7,370
Closure, post-closure and remedial liabilities	43,640			53,302
Accrued expenses	13,451			19,671
Accrued compensation	12,094			5,681
Net operating loss carryforwards(1)	46,740			77,700
Tax credit carryforwards(2)	29,347			29,985
Uncertain tax positions accrued interest and federal benefit	1,953			1,949
Stock-based compensation	489			1,159
Other	3,622			2,170
Total deferred tax assets	176,161			210,812
Deferred tax liabilities:
Property, plant and equipment	(232,106		)	(225,271		)
Permits and other intangible assets	(155,326		)	(159,223		)
Total deferred tax liabilities	(387,432		)	(384,494		)
Total net deferred tax liability before valuation allowance	(211,271		)	(173,682		)
Less valuation allowance	(29,061		)	(29,726		)
Net deferred tax liabilities	$	(240,332	)	$	(203,408	)

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(1)	As of December 31, 2014, the net operating loss carryforwards included (i) state net operating loss carryovers of $134.1 million which will begin to expire in 2015, (ii) federal net operating loss carryforwards of $84.7 million which will begin to expire in 2025, and (iii) foreign net operating loss carryforwards of $52.1 million which will begin to expire in 2015.


(2)	As of December 31, 2014, the foreign tax credit carryforwards of $29.3 million will expire between 2016 and 2024.

The Company does not accrue U.S. tax for foreign earnings that it considers to be permanently reinvested outside the United States. Consequently, the Company has not provided any U.S. tax on the unremitted earnings of its foreign subsidiaries. As of December 31, 2014, the amount of earnings for which no repatriation tax has been provided was $222.6 million. It is not practicable to estimate the amount of additional tax that might be payable on those earnings if repatriated.

A valuation allowance is required to be established when, based on an evaluation of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accordingly, as of December 31, 2014, 2013 and 2012, the Company had a valuation allowance of $29.1 million, $29.7 million and $26.3 million, respectively. The total allowance as of December 31, 2014 consisted of $16.5 million of foreign tax credits, $3.9 million of state net operating loss carryforwards, $6.7 million of foreign net operating loss carryforwards and $2.0 million for the deferred tax assets of a Canadian subsidiary. The allowance as of December 31, 2013 consisted of $13.4 million of foreign tax credits, $7.0 million of state net operating loss carryforwards and $7.5 million of foreign net operating loss carryforwards and $1.8 million for the deferred tax assets of a Canadian subsidiary. The allowance as of December 31, 2012 consisted of $17.6 million of foreign tax credits, $1.4 million of state net operating loss carryforwards and $7.3 million of foreign net operating loss carryforwards.

(11) INCOME TAXES (Continued)

The Company's policy is to recognize interest and penalties related to income tax matters as a component of income tax expense. The liability for unrecognized tax benefits at December 31, 2014 included accrued interest of $0.4 million. Interest expense that is recorded as a tax expense against the liability for unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 included interest and penalties of $0.3 million, $0.3 million and $2.8 million, respectively.

The changes to unrecognized tax benefits (excluding related penalties and interest) from January 1, 2012 through December 31, 2014, were as follows (in thousands):



	2014			2013			2012
Unrecognized tax benefits as of January 1	$	1,304		$	3,543		$	36,217
Additions to current year tax positions	904			210			—
Additions to prior year tax positions	419			—			—
Additions due to acquisitions	—			—			2,652
Settlements	—			—			—
Statute expiration	—			(2,843		)	(35,328		)
Foreign currency translation	(90		)	394			2
Unrecognized tax benefits as of December 31	$	2,537		$	1,304		$	3,543

At December 31, 2014, 2013 and 2012, the Company had recorded $2.5 million, $1.3 million and $3.5 million, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate.

The Company recognizes interest, and penalties if applicable, related to unrecognized tax benefits as a component of income tax expense. The Company had approximately $0.4 million, $0.2 million and $1.4 million for the payment of interest accrued at December 31, 2014, 2013 and 2012, respectively.

The Company files U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company may be subject to examination by the Internal Revenue Service (the "IRS") for calendar years 2011 through 2013. Additionally, any net operating losses that were generated in prior years and utilized in these years may also be subject to examination by the IRS. The Company may also be subject to examinations by state and local revenue authorities for calendar years 2010 through 2013. The Company is currently not under examination by the IRS. The Company has ongoing U.S. state and local jurisdictional audits, as well as Canadian federal and provincial audits, all of which the Company believes will not result in material liabilities.

Due to expiring statute of limitation periods and the resolution of tax audits, the Company believes that total unrecognized tax benefits will decrease by approximately $0.3 million within the next 12 months.