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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
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,
 202320222021
Domestic$401,912 $406,206 $223,438 
Foreign101,367 131,792 46,277 
Total$503,279 $537,998 $269,715 
The provision for income taxes consisted of the following (in thousands, except percentages):
 For the years ended December 31,
 202320222021
Current:   
Federal$64,164 $52,237 $42,480 
State25,496 26,980 18,126 
Foreign23,078 29,488 4,380 
112,738 108,705 64,986 
Deferred   
Federal18,251 32,199 2,275 
State(9,049)(2,432)(4,777)
Foreign3,483 (12,218)3,984 
12,685 17,549 1,482 
Provision for income taxes$125,423 $126,254 $66,468 
Effective tax rate
24.9%
23.5%
24.6%
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,
 202320222021
Tax expense at U.S. statutory rate$105,689 $112,980 $56,640 
State income taxes, net of federal benefit18,067 19,831 12,101 
Foreign rate differential4,213 6,196 1,922 
Valuation allowance(7,699)(18,769)(9,139)
Uncertain tax position interest and penalties(7)(2,454)263 
Tax credits expired1,653 2,768 2,530 
Non-deductible compensation2,898 2,754 2,326 
Other609 2,948 (175)
Provision for income taxes$125,423 $126,254 $66,468 
The valuation allowance benefits recognized in 2023 are predominantly the result of cumulative profitable earnings at certain US entities with historic State operating losses. As of December 31, 2023, management determined that there is sufficient positive evidence to conclude that it is more likely than not that additional deferred taxes associated with these State net operating losses are realizable. Therefore, the valuation allowance was reduced accordingly.
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 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 period 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, 2023 and 2022 were as follows (in thousands):
20232022
Deferred tax assets:  
Provision for doubtful accounts$10,882 $11,544 
Closure, post-closure and remedial liabilities31,944 31,837 
Operating lease liabilities46,784 42,255 
Accrued expenses14,963 19,311 
Accrued compensation and benefits15,058 20,171 
Net operating loss carryforwards(1)
39,042 41,585 
Tax credit carryforwards(2)
6,531 8,903 
Stock-based compensation3,516 3,988 
Other4,843 7,487 
Total deferred tax assets173,563 187,081 
Deferred tax liabilities:  
Property, plant and equipment(284,997)(281,131)
Operating lease right-of-use assets(46,584)(41,939)
Interest rate swap asset(9,576)(17,587)
Permits and other intangible assets(130,391)(132,681)
Prepaid expenses(12,372)(12,088)
Total deferred tax liabilities(483,920)(485,426)
Total net deferred tax liability before valuation allowance(310,357)(298,345)
Less valuation allowance(35,272)(42,509)
Net deferred tax liabilities$(345,629)$(340,854)
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(1)As of December 31, 2023, the net operating loss carryforwards included (i) state net operating loss carryforwards of $229.9 million which will begin to expire in 2024, (ii) federal net operating loss carryforwards of $26.6 million which will begin to expire in 2024 and (iii) foreign net operating loss carryforwards of $83.2 million which will begin to expire in 2024.
(2)As of December 31, 2023, the foreign tax credit carryforwards of $4.4 million will begin to expire in 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, 2023 and 2022 were as follows (in thousands):
20232022
Allowance related to:  
Foreign tax credits$4,422 $7,666 
Federal net operating losses3,783 3,783 
State net operating loss carryforwards4,809 9,928 
Foreign net operating loss carryforwards17,464 15,488 
Deferred tax assets of a Canadian subsidiary4,489 5,339 
Realized and unrealized capital losses305 305 
Total valuation allowance$35,272 $42,509 
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 2018 through 2022. The Company may be subject to examination by Canadian federal and provincial authorities for calendar years 2016 through 2022 and by state and local revenue authorities for calendar years 2017 through 2022. 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 tax positions in the periods presented.