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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
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,
| 2021 |  | 2020 |  | 2019
Domestic | $ | 223,438 |  |  | $ | 168,117 |  |  | $ | 156,571 |
Foreign | 46,277 |  |  | 6,433 |  |  | (8,332) |
Total | $ | 269,715 |  |  | $ | 174,550 |  |  | $ | 148,239 |
The provision for income taxes consisted of the following (in thousands, except percentages):
| For the years ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 42,480 |  |  | $ | 33,327 |  |  | $ | 20,482 |
State | 18,126 |  |  | 14,575 |  |  | 14,564 |
Foreign | 4,380 |  |  | 1,559 |  |  | 7,448 |
| 64,986 |  |  | 49,461 |  |  | 42,494 |
Deferred |  |  |  |  |
Federal | 2,275 |  |  | (965) |  |  | 7,933 |
State | (4,777) |  |  | (2,506) |  |  | 550 |
Foreign | 3,984 |  |  | (6,277) |  |  | (478) |
| 1,482 |  |  | (9,748) |  |  | 8,005 |
Provision for income taxes | $ | 66,468 |  |  | $ | 39,713 |  |  | $ | 50,499 |
Effective tax rate | 24.6% |  | 22.8% |  | 34.1%
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,
| 2021 |  | 2020 |  | 2019
Tax expense at US statutory rate | $ | 56,640 |  |  | $ | 36,655 |  |  | $ | 31,130 |
State income taxes, net of federal benefit | 12,101 |  |  | 9,837 |  |  | 10,597 |
Foreign rate differential | 1,922 |  |  | 1,256 |  |  | 276 |
Valuation allowance | (9,139) |  |  | (11,339) |  |  | 4,459 |
Uncertain tax position interest and penalties | 263 |  |  | (712) |  |  | 474 |
Tax credits expired (used) | 2,530 |  |  | 2,039 |  |  | (50) |
Non-deductible compensation | 2,326 |  |  | 1,406 |  |  | 1,922 |
Other | (175) |  |  | 571 |  |  | 1,691 |
Provision for income taxes | $ | 66,468 |  |  | $ | 39,713 |  |  | $ | 50,499 |
The valuation allowance benefits recognized in 2021 and 2020 are predominately related to taxable earnings in certain Canadian entities that benefited from the wage subsidy received under CEWS. In addition, foreign tax credits that expired in 2021 and 2020 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 either year. During the year ended December 31, 2020, the Company recorded $1.3 million of tax benefits related to tax deductible foreign currency losses to accumulated other comprehensive loss and as such these benefits are not included within the provision for income taxes. See Note 15, "Accumulated Other Comprehensive Loss," for additional information related to these transactions. The components of the total net deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows (in thousands):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Provision for doubtful accounts | $ | 10,188 |  |  | $ | 10,305 |
Closure, post-closure and remedial liabilities | 28,206 |  |  | 28,665 |
Operating lease liabilities | 42,218 |  |  | 38,151 |
Accrued expenses | 20,455 |  |  | 16,797 |
Accrued compensation and benefits | 24,504 |  |  | 11,372 |
Net operating loss carryforwards(1) | 68,381 |  |  | 50,433 |
Tax credit carryforwards(2) | 12,368 |  |  | 14,471 |
Interest rate swap liability | 5,215 |  |  | 10,089 |
Stock-based compensation | 2,705 |  |  | 3,040 |
Other | 5,635 |  |  | 5,553 |
Total deferred tax assets | 219,875 |  |  | 188,876 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | (273,883) |  |  | (194,604) |
Operating lease right-of-use assets | (41,260) |  |  | (38,018) |
Permits and other intangible assets | (138,241) |  |  | (95,492) |
Prepaid expenses | (10,212) |  |  | (9,660) |
Total deferred tax liabilities | (463,596) |  |  | (337,774) |
Total net deferred tax liability before valuation allowance | (243,721) |  |  | (148,898) |
Less valuation allowance | (69,806) |  |  | (77,044) |
Net deferred tax liabilities | $ | (313,527) |  |  | $ | (225,942) |
___________________________________ (1)As of December 31, 2021, the net operating loss carryforwards included (i) state net operating loss carryforwards of $280.6 million which will begin to expire in 2022, (ii) federal net operating loss carryforwards of $124.1 million which will begin to expire in 2024 and (iii) foreign net operating loss carryforwards of $116.0 million which will begin to expire in 2022. The increases in the state net operating loss carryforwards and federal net operating loss carryforwards are due to balances acquired in the HydroChemPSC acquisition. (2)As of December 31, 2021, the foreign tax credit carryforwards of $11.0 million will expire between 2022 and 2024. The Company has not accrued for any remaining undistributed foreign earnings. These amounts continue to be indefinitely reinvested in foreign operations and the amount of tax associated with the 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, 2021 and 2020 were as follows (in thousands):
| 2021 |  | 2020
Allowance related to: |  |  |
Foreign tax credits | 11,047 |  |  | 14,127 |
Federal net operating losses | 3,788 |  |  | 779 |
State net operating loss carryforwards | 12,053 |  |  | 10,429 |
Foreign net operating loss carryforwards | 26,697 |  |  | 29,839 |
Deferred tax assets of a Canadian subsidiary | 10,701 |  |  | 11,468 |
Realized and unrealized capital losses | 5,520 |  |  | 10,402 |
Total valuation allowance | $ | 69,806 |  |  | $ | 77,044 |
The changes to unrecognized tax benefits (excluding related penalties and interest) from January 1, 2019 through December 31, 2021, were as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Unrecognized tax benefits, beginning of year | $ | 5,490 |  |  | $ | 6,414 |  |  | $ | 3,159 |
(Reductions) additions to prior year tax positions | — |  |  | (833) |  |  | 3,354 |
Expirations | — |  |  | (203) |  |  | (209) |
Foreign currency translation | 6 |  |  | 112 |  |  | 110 |
Unrecognized tax benefits, end of year | $ | 5,496 |  |  | $ | 5,490 |  |  | $ | 6,414 |
The unrecognized tax benefits at December 31, 2021 if and when recognized will affect the annual effective tax rate. However, the balance at December 31, 2021 included $3.2 million of unrecognized tax benefits for Canadian Revenue Agency transfer pricing adjustments. Should these be recognized, the Company would request relief from double taxation. Therefore, an offsetting benefit of $3.2 million would also recognized resulting in no net effect on the annual effective tax rate. Due to expiring statute of limitation periods, the Company believes that total unrecognized tax benefits will decrease by approximately $0.3 million within the next 12 months. At December 31, 2021, 2020 and 2019, the Company had accrued interest of $2.3 million, $2.1 million and $1.7 million, respectively, relative to unrecognized tax benefits. Interest expense and penalties relative to unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 were immaterial. 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 2016 through 2020. The Company may be subject to examination by Canadian federal and provincial authorities for calendar years 2014 through 2020 and by state and local revenue authorities for calendar years 2015 through 2020. 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.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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