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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Income before Income Tax, Domestic and Foreign

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


	For the years ended December 31,
	2021		2020		2019
Domestic	$	223,438	$	168,117	$	156,571
Foreign	46,277		6,433		(8,332)
Total	$	269,715	$	174,550	$	148,239

Schedule of Components of Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands, except percentages):


	For the years ended December 31,
	2021		2020		2019
Current:
Federal	$	42,480	$	33,327	$	20,482
State	18,126		14,575		14,564
Foreign	4,380		1,559		7,448
	64,986		49,461		42,494
Deferred
Federal	2,275		(965)		7,933
State	(4,777)		(2,506)		550
Foreign	3,984		(6,277)		(478)
	1,482		(9,748)		8,005
Provision for income taxes	$	66,468	$	39,713	$	50,499

Effective tax rate	24.6%		22.8%		34.1%

Schedule of Effective Income Tax Rate Reconciliation

The Company's effective income tax rate varied from the amount computed using the statutory federal income tax rate of 21% as follows (in thousands):


	For the years ended December 31,
	2021		2020		2019
Tax expense at US statutory rate	$	56,640	$	36,655	$	31,130
State income taxes, net of federal benefit	12,101		9,837		10,597
Foreign rate differential	1,922		1,256		276
Valuation allowance	(9,139)		(11,339)		4,459


Uncertain tax position interest and penalties	263		(712)		474
Tax credits expired (used)	2,530		2,039		(50)
Non-deductible compensation	2,326		1,406		1,922
Other	(175)		571		1,691

Provision for income taxes	$	66,468	$	39,713	$	50,499

Schedule of Deferred Tax Assets and Liabilities

The components of the total net deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows (in thousands):


	2021		2020
Deferred tax assets:

Provision for doubtful accounts	$	10,188	$	10,305
Closure, post-closure and remedial liabilities	28,206		28,665
Operating lease liabilities	42,218		38,151
Accrued expenses	20,455		16,797
Accrued compensation and benefits	24,504		11,372
Net operating loss carryforwards(1)	68,381		50,433
Tax credit carryforwards(2)	12,368		14,471
Interest rate swap liability	5,215		10,089
Stock-based compensation	2,705		3,040
Other	5,635		5,553
Total deferred tax assets	219,875		188,876
Deferred tax liabilities:
Property, plant and equipment	(273,883)		(194,604)
Operating lease right-of-use assets	(41,260)		(38,018)
Permits and other intangible assets	(138,241)		(95,492)
Prepaid expenses	(10,212)		(9,660)
Total deferred tax liabilities	(463,596)		(337,774)
Total net deferred tax liability before valuation allowance	(243,721)		(148,898)
Less valuation allowance	(69,806)		(77,044)
Net deferred tax liabilities	$	(313,527)	$	(225,942)

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(1)As of December 31, 2021, the net operating loss carryforwards included (i) state net operating loss carryforwards of $280.6 million which will begin to expire in 2022, (ii) federal net operating loss carryforwards of $124.1 million which will begin to expire in 2024 and (iii) foreign net operating loss carryforwards of $116.0 million which will begin to expire in 2022. The increases in the state net operating loss carryforwards and federal net operating loss carryforwards are due to balances acquired in the HydroChemPSC acquisition.

(2)As of December 31, 2021, the foreign tax credit carryforwards of $11.0 million will expire between 2022 and 2024.

Summary of Valuation Allowance

The components of the total valuation allowance as of December 31, 2021 and 2020 were as follows (in thousands):


	2021		2020
Allowance related to:
Foreign tax credits	11,047		14,127
Federal net operating losses	3,788		779
State net operating loss carryforwards	12,053		10,429
Foreign net operating loss carryforwards	26,697		29,839
Deferred tax assets of a Canadian subsidiary	10,701		11,468
Realized and unrealized capital losses	5,520		10,402
Total valuation allowance	$	69,806	$	77,044

Schedule of Income Tax Contingencies

The changes to unrecognized tax benefits (excluding related penalties and interest) from January 1, 2019 through December 31, 2021, were as follows (in thousands):


	2021		2020		2019
Unrecognized tax benefits, beginning of year	$	5,490	$	6,414	$	3,159

(Reductions) additions to prior year tax positions	—		(833)		3,354

Expirations	—		(203)		(209)

Foreign currency translation	6		112		110
Unrecognized tax benefits, end of year	$	5,496	$	5,490	$	6,414