INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Domestic	$	406,206	$	223,438	$	168,117
Foreign	131,792		46,277		6,433
Total	$	537,998	$	269,715	$	174,550

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,
	2022		2021		2020
Current:
Federal	$	52,237	$	42,480	$	33,327
State	26,980		18,126		14,575
Foreign	29,488		4,380		1,559
	108,705		64,986		49,461
Deferred
Federal	32,199		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%

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,
	2022		2021		2020
Tax expense at U.S. statutory rate	$	112,980	$	56,640	$	36,655
State income taxes, net of federal benefit	19,831		12,101		9,837
Foreign rate differential	6,196		1,922		1,256
Valuation allowance	(18,769)		(9,139)		(11,339)
Uncertain tax position interest and penalties	(2,454)		263		(712)
Tax credits expired	2,768		2,530		2,039
Non-deductible compensation	2,754		2,326		1,406
Other	2,948		(175)		571
Provision for income taxes	$	126,254	$	66,468	$	39,713

Schedule of Deferred Tax Assets and Liabilities

The components of the total net deferred tax assets and liabilities as of December 31, 2022 and 2021 were as follows (in thousands):


	2022		2021
Deferred tax assets:

Provision for doubtful accounts	$	11,544	$	10,188
Closure, post-closure and remedial liabilities	31,837		28,206
Operating lease liabilities	42,255		42,218
Accrued expenses	19,311		20,455
Accrued compensation and benefits	20,171		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 compensation	3,988		2,705
Other	7,487		5,635
Total deferred tax assets	187,081		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.

Schedule of Valuation Allowance

The components of the total valuation allowance as of December 31, 2022 and 2021 were as follows (in thousands):


	2022		2021
Allowance related to:
Foreign tax credits	7,666		11,047
Federal net operating losses	3,783		3,788
State net operating loss carryforwards	9,928		12,053
Foreign net operating loss carryforwards	15,488		26,697
Deferred tax assets of a Canadian subsidiary	5,339		10,701
Realized and unrealized capital losses	305		5,520
Total valuation allowance	$	42,509	$	69,806