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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The domestic and foreign components of income before provision for income taxes were as follows (in thousands):
 For the years ended December 31,
 202220212020
Domestic$406,206 $223,438 $168,117 
Foreign131,792 46,277 6,433 
Total$537,998 $269,715 $174,550 
The provision for income taxes consisted of the following (in thousands, except percentages):
 For the years ended December 31,
 202220212020
Current:   
Federal$52,237 $42,480 $33,327 
State26,980 18,126 14,575 
Foreign29,488 4,380 1,559 
108,705 64,986 49,461 
Deferred   
Federal32,199 2,275 (965)
State(2,432)(4,777)(2,506)
Foreign(12,218)3,984 (6,277)
17,549 1,482 (9,748)
Provision for income taxes$126,254 $66,468 $39,713 
Effective tax rate
23.5%
24.6%
22.8%
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,
 202220212020
Tax expense at U.S. statutory rate$112,980 $56,640 $36,655 
State income taxes, net of federal benefit19,831 12,101 9,837 
Foreign rate differential6,196 1,922 1,256 
Valuation allowance(18,769)(9,139)(11,339)
Uncertain tax position interest and penalties(2,454)263 (712)
Tax credits expired2,768 2,530 2,039 
Non-deductible compensation2,754 2,326 1,406 
Other2,948 (175)571 
Provision for income taxes$126,254 $66,468 $39,713 
The valuation allowance benefits recognized in 2022 were the result of cumulative profitable earnings at certain Canadian entities with historic operating losses. The 2022 earnings were sufficient to utilize substantially all of the net operating losses, and as of December 31, 2022, the Company released any remaining valuation allowances associated with these entities, which were nominal.
The valuation allowance benefits recognized in 2021 and 2020 were predominately related to taxable earnings in certain Canadian entities that benefited from amounts received under the Canada Emergency Wage Subsidiary. In addition, foreign tax credits that expired in the periods presented had full valuation allowances which were also written off, contributing to the
valuation allowance benefits in the table above. The foreign tax credit expirations and associated valuation allowance write-offs had no net impact to the provision for income taxes in any year.
The components of the total net deferred tax assets and liabilities as of December 31, 2022 and 2021 were as follows (in thousands):
20222021
Deferred tax assets:  
Provision for doubtful accounts$11,544 $10,188 
Closure, post-closure and remedial liabilities31,837 28,206 
Operating lease liabilities42,255 42,218 
Accrued expenses19,311 20,455 
Accrued compensation and benefits20,171 24,504 
Net operating loss carryforwards(1)
41,585 68,381 
Tax credit carryforwards(2)
8,903 12,368 
Interest rate swap liability— 5,215 
Stock-based compensation3,988 2,705 
Other7,487 5,635 
Total deferred tax assets187,081 219,875 
Deferred tax liabilities:  
Property, plant and equipment(281,131)(273,883)
Operating lease right-of-use assets(41,939)(41,260)
Interest rate swap asset(17,587)— 
Permits and other intangible assets(132,681)(138,241)
Prepaid expenses(12,088)(10,212)
Total deferred tax liabilities(485,426)(463,596)
Total net deferred tax liability before valuation allowance(298,345)(243,721)
Less valuation allowance(42,509)(69,806)
Net deferred tax liabilities$(340,854)$(313,527)
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(1)As of December 31, 2022, the net operating loss carryforwards included (i) state net operating loss carryforwards of $231.4 million which will begin to expire in 2023, (ii) federal net operating loss carryforwards of $34.8 million which will begin to expire in 2024 and (iii) foreign net operating loss carryforwards of $85.6 million which will begin to expire in 2023.
(2)As of December 31, 2022, the foreign tax credit carryforwards of $7.7 million will expire between 2023 and 2024.
The Company previously recognized the U.S. federal income taxes related to the operations in Canada and has not accrued for any remaining undistributed foreign earnings. These amounts continue to be indefinitely reinvested. The amount of tax associated with those unrepatriated earnings is not expected to be material.
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. The components of the total valuation allowance as of December 31, 2022 and 2021 were as follows (in thousands):
20222021
Allowance related to:  
Foreign tax credits7,666 11,047 
Federal net operating losses3,783 3,788 
State net operating loss carryforwards9,928 12,053 
Foreign net operating loss carryforwards15,488 26,697 
Deferred tax assets of a Canadian subsidiary5,339 10,701 
Realized and unrealized capital losses305 5,520 
Total valuation allowance$42,509 $69,806 
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 for calendar years 2017 through 2021. The Company may be subject to examination by Canadian federal and provincial authorities for calendar years 2015 through 2021 and by state and local revenue authorities for calendar years 2016 through 2021. 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. The Company has not identified any material uncertain positions in the periods presented.