Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.24.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Company's Income Tax Benefit (Expense)
The Company’s income tax benefit (expense) consisted of the following components (in thousands):
Successor Predecessor
Year Ended December 31, 2023 Year Ended December 31, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Current:
Luxembourg $ —  $ —  $ (1) $ (11)
U.S. Federal (7,178) (13,561) 1,295  (15,123)
U.S. state and local (1,485) (5,453) 519  (6,201)
Other foreign jurisdictions (11,250) (3,455) 2,192  (4,045)
Total current (19,913) (22,469) 4,005  (25,380)
Deferred:
U.S. Federal 20,584  11,029  2,060  7,062 
U.S. state and local 4,886  5,397  390  1,922 
Other foreign jurisdictions 346  574  (295) 2,260 
Total deferred 25,816  17,000  2,155  11,244 
Total income tax benefit (expense) $ 5,903  $ (5,469) $ 6,160  $ (14,136)
Schedule of Company's Income Before Income Taxes
The Company’s income (loss) before income taxes consists of the following components (in thousands):
Successor Predecessor
Year Ended December 31, 2023 Year Ended December 31, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Luxembourg $ 85,705  $ 81,308  $ (657,511) $ (15,309)
U.S. (61,995) 9,063  (25,102) 49,186 
Other foreign jurisdictions 37,873  6,856  (5,696) 888 
Total income (loss) before taxes $ 61,583  $ 97,227  $ (688,309) $ 34,765 
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:
Successor Predecessor
Year Ended December 31, 2023 Year Ended December 31, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
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 (6.35) (0.14) 0.14  7.61 
Effect of rates different from statutory 4.50  0.36  (0.10) (5.84)
Nondeductible officer compensation 0.04  1.59  —  — 
Tax on unremitted earnings 3.55  3.73  —  — 
Section 250 deduction (0.59) (0.71) (0.05) (2.20)
Transaction costs —  —  (0.11) 0.02 
Nontaxable gain/loss on earn-out liability (2.48) (2.71) —  — 
Founders advisory fees (48.09) (30.09) (23.67) — 
Tax rate changes (0.15) (0.94) —  1.38 
Changes in prior year estimates 3.38  (1.95) —  — 
Change in valuation allowance 11.58  10.90  (0.07) 12.47 
Other, net 0.08  0.64  (0.19) 2.28 
Effective tax rate (9.59) % 5.62  % 0.89  % 40.66  %
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):
December 31,
2023		 December 31,
2022
Deferred Tax Assets:
Net operating loss carryforwards $ 22,185  $ 16,394 
Inventory 487  610 
Interest 7,263  2,502 
Accrued liabilities 3,490  2,925 
Goodwill and other intangibles —  5 
Lease liability 4,368  5,051 
Other 4,538  3,450 
Valuation allowance (23,315) (16,142)
Total deferred tax assets 19,016  14,795 
Deferred Tax Liabilities:
Property, plant and equipment (10,560) (9,857)
Goodwill and other intangibles (245,359) (268,418)
Unremitted earnings (11,824) (9,622)
Right-of-use asset (4,211) (4,934)
Other (516) (234)
Total deferred tax liabilities (272,470) (293,065)
Net deferred tax liability $ (253,454) $ (278,270)
Schedule of Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
2023 2022
Balance at beginning of year $ 36,257  $ — 
Increase in prior years’ tax positions 20,572  36,257 
Decrease in prior years’ tax positions (33,584) — 
Balance at end of year $ 23,245  $ 36,257