Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Company's Income Tax (Expense) Benefit
The Company’s income tax (expense) benefit consisted of the following components (in thousands):
Successor Predecessor
Year Ended December 31, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Year Ended December 31, 2020
Current:
Luxembourg $ —  $ (1) $ (11) $ (118)
U.S. Federal (13,561) 1,295  (15,123) (7,546)
U.S. state and local (5,453) 519  (6,201) (4,091)
Other foreign jurisdictions (3,455) 2,192  (4,045) (1,412)
Total current (22,469) 4,005  (25,380) (13,167)
Deferred:
Luxembourg —  —  —  (930)
U.S. Federal 11,029  2,060  7,062  1,966 
U.S. state and local 5,397  390  1,922  (213)
Other foreign jurisdictions 574  (295) 2,260  1,861 
Total deferred 17,000  2,155  11,244  2,684 
Total income tax (expense) benefit $ (5,469) $ 6,160  $ (14,136) $ (10,483)
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, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Year Ended December 31, 2020
Luxembourg $ 81,308  $ (657,511) $ (15,309) $ (1,230)
U.S. 9,063  (25,102) 49,186  35,703 
Other foreign jurisdictions 6,856  (5,696) 888  259 
Total income (loss) before taxes $ 97,227  $ (688,309) $ 34,765  $ 34,732 
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, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Year Ended December 31, 2020
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) 0.14  7.61  6.25 
Effect of rates different from statutory 0.36  (0.10) (5.84) (3.78)
Nondeductible officer compensation 1.59  —  —  — 
Tax on unremitted earnings 3.73  —  —  — 
Section 250 deduction (0.71) (0.05) (2.20) (1.36)
Transaction costs —  (0.11) 0.02  — 
Nontaxable gain/loss on earn-out liability (2.71) —  —  — 
Founders advisory fees (30.09) (23.67) —  — 
Tax rate changes (0.94) —  1.38  3.57 
Changes in prior year estimates (1.95) —  —  (2.73)
Change in valuation allowance 10.90  (0.07) 12.47  5.12 
Other, net 0.64  (0.19) 2.28  (1.83)
Effective tax rate 5.62  % 0.89  % 40.66  % 30.18  %
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,
2022
December 31,
2021
Deferred Tax Assets:
Net operating loss carryforwards $ 16,394  $ 7,360 
Inventory 610  — 
Interest 2,502  4,161 
Accrued liabilities 2,925  2,315 
Goodwill and other intangibles 35 
Lease liability 5,051  — 
Other 3,450  1,821 
Valuation allowance (16,142) (5,598)
Total deferred tax assets 14,795  10,094 
Deferred Tax Liabilities:
Property, plant and equipment (9,857) (10,077)
Goodwill and other intangibles (268,418) (284,297)
Inventory —  (6,621)
Unremitted earnings (9,622) (6,000)
Right-of-use asset (4,934) — 
Other (234) (247)
Total deferred tax liabilities (293,065) (307,242)
Net deferred tax liability $ (278,270) $ (297,148)
Schedule of Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
2022 2021
Balance at beginning of year $ —  $ — 
Increase in prior years’ tax positions 36,257  — 
Balance at end of year $ 36,257  $ —