Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Summary of Company's Income Tax (Expense) Benefit
The Company’s income tax benefit (expense) consisted of the following components (in thousands):
Successor Predecessor
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Year Ended December 31,
2020 2019
Current:
Luxembourg $ (1) $ (11) $ (118) $ (120)
U.S. Federal 1,295  (15,123) (7,546) (1,933)
U.S. state and local 519  (6,201) (4,091) (470)
Other foreign jurisdictions 2,192  (4,045) (1,412) (1,991)
Total current 4,005  (25,380) (13,167) (4,514)
Deferred:
Luxembourg —  —  (930) (16)
U.S. Federal 1,724  7,062  1,966  15,828 
U.S. state and local 390  1,922  (213) 5,477 
Other foreign jurisdictions (1,444) 2,260  1,861  899 
Total deferred 670  11,244  2,684  22,188 
Total income tax benefit (expense) $ 4,675  $ (14,136) $ (10,483) $ 17,674 
Summary of Company's Income Before Income Taxes
The Company’s (loss) income before income taxes consists of the following components (in thousands):
Successor Predecessor
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Year Ended December 31,
2020 2019
Luxembourg $ (657,511) $ (15,309) $ (1,230) $ 50 
U.S. (23,500) 49,186  35,703  (60,660)
Other foreign jurisdictions (4,121) 888  259  899 
Total (loss) income before taxes $ (685,132) $ 34,765  $ 34,732  $ (59,711)
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:
Successor Predecessor
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Year Ended December 31,
2020 2019
Luxembourg statutory tax rate 24.94  % 24.94  % 24.94  % 24.94  %
(Increase)/reduction in income tax rate:
U.S. state and local income taxes, net 0.14  7.61  6.25  6.01 
Effect of rates different from statutory (0.10) (5.84) (3.78) (3.68)
Global intangible low-taxed income —  —  —  (1.37)
Section 250 deduction (0.05) (2.20) (1.36) 0.78 
Transaction costs (0.11) 0.02  —  — 
Founders advisory fees (23.78) —  —  — 
Tax rate changes —  1.38  3.57  4.49 
Changes in prior year estimates —  —  (2.73) 3.61 
Change in valuation allowance (0.07) 12.47  5.12  (5.31)
Other, net (0.29) 2.28  (1.83) 0.13 
Effective tax rate 0.68  % 40.66  % 30.18  % 29.60  %
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):
Successor Predecessor
December 31,
2021
December 31,
2020
Deferred Tax Assets:
Net operating loss carryforwards $ 7,360  $ 4,492 
Inventory —  58 
Interest 4,161  5,812 
Accrued liabilities 2,315  1,934 
Goodwill and other intangibles 35  545 
Other 1,821  546 
Valuation allowance (5,598) (5,060)
Total deferred tax assets 10,094  8,327 
Deferred Tax Liabilities:
Property, plant and equipment (10,077) (5,932)
Goodwill and other intangibles (284,297) (114,514)
Inventory (8,106) — 
Unremitted earnings (6,000) — 
Other (247) (43)
Total deferred tax liabilities (308,727) (120,489)
Net deferred tax liability $ (298,633) $ (112,162)