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Income and Partnership Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income and Partnership Taxes Income and Partnership Taxes:
Federal and state tax legislation in 1997 provided a permanent income tax exemption to existing publicly traded partnerships (PTP), such as Cedar Fair, L.P., with a PTP tax levied on partnership gross income (net revenues less cost of food, merchandise and games) beginning in 1998. In addition, income taxes are recognized for the amount of income taxes payable by Cedar Fair, L.P. and its corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities that represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. As such, the "Provision (benefit) for taxes" includes amounts for both the PTP tax and for federal, state, local and foreign income taxes.

The 2022 tax provision totaled $64.0 million, which consisted of a $14.4 million provision for the PTP tax and a $49.6 million provision for income taxes. This compared with a 2021 tax provision of $20.0 million, which consisted of a $10.3 million provision for the PTP tax and a $9.7 million provision for income taxes, and a 2020 tax benefit of $137.9 million, which consisted of a $2.5 million provision for the PTP tax and a $140.4 million benefit for income taxes. The calculation of the tax provision (benefit) involves significant estimates and assumptions. Actual results could differ from those estimates.

Significant components of income (loss) before taxes for the years ended December 31, 2022, 2021 and 2020 were as follows:
(In thousands)202220212020
Domestic$327,897 $(3,603)$(675,746)
Foreign43,760 (24,880)(52,412)
Total income (loss) before taxes$371,657 $(28,483)$(728,158)
The provision (benefit) for income taxes was comprised of the following for the years ended December 31, 2022, 2021 and 2020:
(In thousands)202220212020
Current federal$22,912 $(21,438)$(61,726)
Current state and local2,799 1,395 (3,747)
Current foreign19,456 2,896 (32,987)
Total current45,167 (17,147)(98,460)
Deferred federal, state and local6,113 17,870 (43,220)
Deferred foreign(1,728)9,018 1,287 
Total deferred4,385 26,888 (41,933)
Total provision (benefit) for income taxes$49,552 $9,741 $(140,393)
The provision (benefit) for income taxes for the corporate subsidiaries differed from the amount computed by applying the U.S. federal statutory income tax rate of 21% to income (loss) before taxes. The sources and tax effects of the differences were as follows:    
(In thousands)202220212020
Income tax provision based on the U.S. federal statutory tax rate$78,048 $(5,981)$(152,913)
Partnership (income) loss not subject to corporate income tax(38,556)257 47,631 
State and local taxes, net8,154 776 (20,594)
Valuation allowance9 14,619 3,150 
Expired foreign tax credits— 888 2,253 
Tax credits(1,483)(901)(426)
Change in U.S. tax law(107)(1,326)(17,983)
Foreign currency translation losses (gains)4,754 1,143 (1,455)
Nondeductible expenses and other(1,267)266 (56)
Total provision (benefit) for income taxes$49,552 $9,741 $(140,393)
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of deferred tax assets and liabilities as of December 31, 2022 and December 31, 2021 were as follows:    
(In thousands)20222021
Deferred tax assets:
Compensation$14,817 $11,835 
Accrued expenses4,135 5,051 
Foreign tax credits11,467 8,392 
Tax attribute carryforwards13,823 20,580 
Derivatives— 5,021 
Foreign currency translation5,313 2,523 
Deferred revenue1,911 3,539 
Lease liability19,037 — 
Deferred tax assets70,503 56,941 
Valuation allowance(24,228)(24,374)
Net deferred tax assets46,275 32,567 
Deferred tax liabilities:
Property(76,871)(78,062)
Intangibles(20,170)(20,988)
Right-of-use asset(18,646)— 
Deferred tax liabilities(115,687)(99,050)
Net deferred tax liability$(69,412)$(66,483)

We record a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The need for this allowance is based on several factors including the carryforward periods for net operating losses and tax credits, prior experience of tax credit limitations, and management's long-term estimates of domestic and foreign source income.

As of December 31, 2022, we recorded a $24.2 million valuation allowance related to two items, $11.5 million related to foreign tax credits and $12.7 million related to other tax attribute carryforwards. The valuation allowance related to foreign tax credits equaled the entire $11.5 million deferred tax asset for foreign tax credit carryforwards. We do not expect to fully realize the foreign tax credit carryforwards primarily due to the U.S. statutory rate being less than the Canadian statutory tax rate. The amount recorded represented a $3.1 million increase in the valuation allowance from 2021.

The valuation allowance related to other tax attributes is the sum of $10.4 million and $2.3 million and related to $11.5 million of state net operating loss carryforwards and $2.3 million of Canadian capital loss carryforwards, respectively. We do not expect to fully realize all of the unused state net operating loss carryforwards before they expire from 2025 to 2041. This represented a $3.1 million decrease in the valuation allowance from 2021 due to income in the corporate subsidiaries. The valuation allowance relating to Canadian capital losses equals the total amount generated during 2021. We do not expect to use these capital losses as they are only available to offset Canadian capital gain. The amount recorded for Canadian capital losses represented a $0.1 million decrease in valuation allowance from 2021.
The CARES Act resulted in various changes to the U.S. tax law, including, among other things, allowing net operating losses arising in tax years 2018 through 2020 to be carried back to the preceding five taxable years and removing the limitation that such losses only offset 80% of taxable income. As a result of these changes, we received U.S. tax refunds attributable to the net operating loss in tax year 2020 being carried back to prior years. We received refunds of $77.1 million during the second quarter of 2022 and an additional $2.5 million during the fourth quarter of 2022. We also received $11.1 million in tax refunds attributable to the net operating loss of our Canadian corporate subsidiary being carried back to prior years in Canada during the first quarter of 2022. The refunds were recorded within "Current income tax receivable" in the consolidated balance sheet as of December 31, 2021.

We have recorded a deferred tax liability of $1.2 million and $3.3 million as of December 31, 2022 and December 31, 2021, respectively, to account for foreign currency translation adjustments in other comprehensive income.

Our unrecognized tax benefits, including accrued interest and penalties, were not material in any year presented. We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense.

We are subject to taxation in the U.S., Canada and various state and local jurisdictions. Our tax returns are subject to examination by state and federal tax authorities. With few exceptions, we are no longer subject to examination by the major taxing authorities for tax years before 2018.