INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
Domestic	$	444,118	$	401,912	$	406,206
Foreign	89,325		101,367		131,792
Total	$	533,443	$	503,279	$	537,998

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,
	2024		2023		2022
Current:
Federal	$	68,321	$	64,164	$	52,237
State	27,649		25,496		26,980
Foreign	16,737		23,078		29,488
	112,707		112,738		108,705
Deferred
Federal	20,669		18,251		32,199
State	(4,415)		(9,049)		(2,432)
Foreign	2,183		3,483		(12,218)
	18,437		12,685		17,549
Provision for income taxes	$	131,144	$	125,423	$	126,254

Effective tax rate	24.6%		24.9%		23.5%

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,
	2024		2023		2022
Tax expense at U.S. statutory rate	$	112,023	$	105,689	$	112,980
State income taxes, net of federal benefit	18,555		18,067		19,831
Foreign rate differential	3,965		4,213		6,196
Valuation allowance	(6,485)		(7,699)		(18,769)
Uncertain tax position interest and penalties	(1,773)		(7)		(2,454)
Tax credits	2,694		1,653		2,768
Non-deductible compensation	2,211		2,898		2,754
Other	(46)		609		2,948
Provision for income taxes	$	131,144	$	125,423	$	126,254

Schedule of Deferred Tax Assets and Liabilities

The components of the total net deferred tax assets and liabilities as of December 31, 2024 and 2023 were as follows (in thousands):


	2024		2023
Deferred tax assets:

Provision for doubtful accounts	$	14,808	$	10,882
Closure, post-closure and remedial liabilities	32,189		31,944
Operating lease liabilities	60,929		46,784
Accrued expenses	14,749		14,963
Accrued compensation and benefits	16,876		15,058
Net operating loss carryforwards(1)	48,331		39,042
Excess business interest(2)	22,078		—
Tax credit carryforwards	2,619		6,531

Stock-based compensation	4,877		3,516
Other	2,565		4,843
Total deferred tax assets	220,021		173,563
Deferred tax liabilities:
Property, plant and equipment	(311,546)		(284,997)
Operating lease right-of-use assets	(59,999)		(46,584)
Interest rate swap asset	(8,748)		(9,576)
Permits and other intangible assets	(158,905)		(130,391)
Prepaid expenses	(10,881)		(12,372)
Total deferred tax liabilities	(550,079)		(483,920)
Total net deferred tax liability before valuation allowance	(330,058)		(310,357)
Less valuation allowance	(27,232)		(35,272)
Net deferred tax liabilities	$	(357,290)	$	(345,629)

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(1)As of December 31, 2024, the net operating loss carryforwards included (i) gross state net operating loss carryforwards of $290.7 million which will begin to expire in 2025, (ii) gross federal net operating loss carryforwards of $79.3 million which will begin to expire in 2025 and (iii) gross foreign net operating loss carryforwards of $64.3 million which will begin to expire in 2025. The increase in the state and federal net operating loss carryforward from the prior year is predominately due to assets acquired in the HEPACO transaction. See Note 4, "Business Combinations" for more information on the related transaction.

(2)Deferred tax asset acquired in the HEPACO transaction. See Note 4, "Business Combinations" for more information on the related transaction.

Schedule of Valuation Allowance

The components of the total valuation allowance as of December 31, 2024 and 2023 were as follows (in thousands):


	2024		2023
Allowance related to:
Foreign tax credits	$	346	$	4,422
Federal net operating losses	3,783		3,783
State net operating loss carryforwards	4,734		4,809
Foreign net operating loss carryforwards	14,543		17,464
Deferred tax assets of a Canadian subsidiary	3,521		4,489
Realized and unrealized capital losses	305		305
Total valuation allowance	$	27,232	$	35,272