INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
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Schedule of Company's Income Tax (Expense) Benefit |
The Company’s income tax (expense) benefit consisted of the following components (in thousands):
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Successor |
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Predecessor |
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Year Ended December 31, 2022 |
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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, 2020 |
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Current: |
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Luxembourg |
$ |
— |
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$ |
(1) |
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$ |
(11) |
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$ |
(118) |
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U.S. Federal |
(13,561) |
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1,295 |
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(15,123) |
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(7,546) |
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U.S. state and local |
(5,453) |
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519 |
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(6,201) |
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(4,091) |
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Other foreign jurisdictions |
(3,455) |
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2,192 |
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(4,045) |
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(1,412) |
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Total current |
(22,469) |
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4,005 |
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(25,380) |
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(13,167) |
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Deferred: |
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Luxembourg |
— |
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— |
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— |
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(930) |
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U.S. Federal |
11,029 |
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2,060 |
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7,062 |
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1,966 |
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U.S. state and local |
5,397 |
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390 |
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1,922 |
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(213) |
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Other foreign jurisdictions |
574 |
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(295) |
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2,260 |
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1,861 |
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Total deferred |
17,000 |
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2,155 |
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11,244 |
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2,684 |
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Total income tax (expense) benefit |
$ |
(5,469) |
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$ |
6,160 |
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$ |
(14,136) |
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$ |
(10,483) |
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Schedule of Company's Income Before Income Taxes |
The Company’s income (loss) before income taxes consists of the following components (in thousands):
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Successor |
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Predecessor |
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Year Ended December 31, 2022 |
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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, 2020 |
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Luxembourg |
$ |
81,308 |
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$ |
(657,511) |
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$ |
(15,309) |
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$ |
(1,230) |
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U.S. |
9,063 |
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(25,102) |
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49,186 |
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35,703 |
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Other foreign jurisdictions |
6,856 |
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(5,696) |
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888 |
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259 |
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Total income (loss) before taxes |
$ |
97,227 |
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$ |
(688,309) |
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$ |
34,765 |
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$ |
34,732 |
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Schedule 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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Year Ended December 31, 2022 |
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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, 2020 |
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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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0.14 |
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7.61 |
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6.25 |
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Effect of rates different from statutory |
0.36 |
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(0.10) |
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(5.84) |
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(3.78) |
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Nondeductible officer compensation |
1.59 |
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— |
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— |
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— |
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Tax on unremitted earnings |
3.73 |
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— |
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— |
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— |
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Section 250 deduction |
(0.71) |
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(0.05) |
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(2.20) |
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(1.36) |
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Transaction costs |
— |
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(0.11) |
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0.02 |
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— |
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Nontaxable gain/loss on earn-out liability |
(2.71) |
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— |
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— |
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— |
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Founders advisory fees |
(30.09) |
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(23.67) |
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— |
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— |
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Tax rate changes |
(0.94) |
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— |
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1.38 |
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3.57 |
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Changes in prior year estimates |
(1.95) |
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— |
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— |
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(2.73) |
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Change in valuation allowance |
10.90 |
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(0.07) |
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12.47 |
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5.12 |
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Other, net |
0.64 |
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(0.19) |
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2.28 |
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(1.83) |
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Effective tax rate |
5.62 |
% |
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0.89 |
% |
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40.66 |
% |
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30.18 |
% |
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Schedule 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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December 31, 2022 |
|
December 31, 2021 |
Deferred Tax Assets: |
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Net operating loss carryforwards |
$ |
16,394 |
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$ |
7,360 |
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Inventory |
610 |
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— |
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Interest |
2,502 |
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4,161 |
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Accrued liabilities |
2,925 |
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2,315 |
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Goodwill and other intangibles |
5 |
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35 |
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Lease liability |
5,051 |
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— |
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Other |
3,450 |
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1,821 |
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Valuation allowance |
(16,142) |
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(5,598) |
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Total deferred tax assets |
14,795 |
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10,094 |
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Deferred Tax Liabilities: |
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Property, plant and equipment |
(9,857) |
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(10,077) |
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Goodwill and other intangibles |
(268,418) |
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(284,297) |
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Inventory |
— |
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(6,621) |
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Unremitted earnings |
(9,622) |
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(6,000) |
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Right-of-use asset |
(4,934) |
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— |
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Other |
(234) |
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(247) |
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Total deferred tax liabilities |
(293,065) |
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(307,242) |
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Net deferred tax liability |
$ |
(278,270) |
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$ |
(297,148) |
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Schedule of Unrecognized Tax Benefits |
The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
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2022 |
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2021 |
Balance at beginning of year |
$ |
— |
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$ |
— |
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Increase in prior years’ tax positions |
36,257 |
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— |
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Balance at end of year |
$ |
36,257 |
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$ |
— |
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