INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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Summary of Company's Income Tax (Expense) Benefit |
The Company’s income tax benefit (expense) consisted of the following components (in thousands):
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Successor |
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Predecessor |
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November 9, 2021
Through
December 31, 2021
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January 1, 2021
Through
November 8, 2021
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Year Ended December 31, |
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2020 |
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2019 |
Current: |
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Luxembourg |
$ |
(1) |
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$ |
(11) |
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$ |
(118) |
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$ |
(120) |
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U.S. Federal |
1,295 |
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(15,123) |
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(7,546) |
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(1,933) |
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U.S. state and local |
519 |
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(6,201) |
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(4,091) |
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(470) |
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Other foreign jurisdictions |
2,192 |
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(4,045) |
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(1,412) |
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(1,991) |
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Total current |
4,005 |
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(25,380) |
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(13,167) |
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(4,514) |
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Deferred: |
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Luxembourg |
— |
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— |
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(930) |
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(16) |
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U.S. Federal |
1,724 |
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7,062 |
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1,966 |
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15,828 |
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U.S. state and local |
390 |
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1,922 |
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(213) |
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5,477 |
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Other foreign jurisdictions |
(1,444) |
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2,260 |
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1,861 |
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|
899 |
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Total deferred |
670 |
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11,244 |
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2,684 |
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22,188 |
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Total income tax benefit (expense) |
$ |
4,675 |
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$ |
(14,136) |
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$ |
(10,483) |
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$ |
17,674 |
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Summary of Company's Income Before Income Taxes |
The Company’s (loss) income before income taxes consists of the following components (in thousands):
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Successor |
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Predecessor |
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November 9, 2021
Through
December 31, 2021
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January 1, 2021
Through
November 8, 2021
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Year Ended December 31, |
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2020 |
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2019 |
Luxembourg |
$ |
(657,511) |
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$ |
(15,309) |
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$ |
(1,230) |
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$ |
50 |
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U.S. |
(23,500) |
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49,186 |
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35,703 |
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(60,660) |
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Other foreign jurisdictions |
(4,121) |
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888 |
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259 |
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899 |
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Total (loss) income before taxes |
$ |
(685,132) |
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$ |
34,765 |
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$ |
34,732 |
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$ |
(59,711) |
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Summary of Effective Income Tax Rate |
The Company’s income tax expense differs from the amount computed by applying the Luxembourg statutory rate of 24.94% for the reasons set forth in the following table:
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Successor |
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Predecessor |
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November 9, 2021
Through
December 31, 2021
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January 1, 2021 Through November 8, 2021 |
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Year Ended December 31, |
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2020 |
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2019 |
Luxembourg statutory tax rate |
24.94 |
% |
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24.94 |
% |
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24.94 |
% |
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24.94 |
% |
(Increase)/reduction in income tax rate: |
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U.S. state and local income taxes, net |
0.14 |
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7.61 |
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6.25 |
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6.01 |
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Effect of rates different from statutory |
(0.10) |
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(5.84) |
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(3.78) |
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(3.68) |
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Global intangible low-taxed income |
— |
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— |
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— |
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(1.37) |
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Section 250 deduction |
(0.05) |
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(2.20) |
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(1.36) |
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0.78 |
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Transaction costs |
(0.11) |
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0.02 |
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— |
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— |
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Founders advisory fees |
(23.78) |
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— |
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— |
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— |
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Tax rate changes |
— |
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1.38 |
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3.57 |
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4.49 |
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Changes in prior year estimates |
— |
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— |
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(2.73) |
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3.61 |
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Change in valuation allowance |
(0.07) |
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12.47 |
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5.12 |
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(5.31) |
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Other, net |
(0.29) |
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2.28 |
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(1.83) |
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0.13 |
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Effective tax rate |
0.68 |
% |
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40.66 |
% |
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30.18 |
% |
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29.60 |
% |
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Summary of Deferred Tax Assets and Liabilities |
Significant portions of the Company’s deferred tax assets and deferred tax liabilities are as follows (in thousands):
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Successor |
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Predecessor |
|
December 31, 2021 |
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December 31, 2020 |
Deferred Tax Assets: |
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Net operating loss carryforwards |
$ |
7,360 |
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$ |
4,492 |
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Inventory |
— |
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58 |
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Interest |
4,161 |
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5,812 |
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Accrued liabilities |
2,315 |
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1,934 |
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Goodwill and other intangibles |
35 |
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545 |
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Other |
1,821 |
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546 |
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Valuation allowance |
(5,598) |
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(5,060) |
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Total deferred tax assets |
10,094 |
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8,327 |
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Deferred Tax Liabilities: |
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Property, plant and equipment |
(10,077) |
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(5,932) |
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Goodwill and other intangibles |
(284,297) |
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(114,514) |
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Inventory |
(8,106) |
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— |
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Unremitted earnings |
(6,000) |
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— |
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Other |
(247) |
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(43) |
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Total deferred tax liabilities |
(308,727) |
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(120,489) |
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Net deferred tax liability |
$ |
(298,633) |
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$ |
(112,162) |
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