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Income Taxes | 7 Months Ended | 9 Months Ended
--- | --- | ---
Dec. 31, 2021 | Sep. 30, 2022
Income Tax Disclosure [Abstract] |  |
Income Taxes |
8. | Income Taxes
Income before income taxes and Income tax expense consisted of the following:
|  | For the period from May 19, 2021 to December 31, 2021 |
|  | (In thousands) |
Income before income taxes: |  |  |  |
Domestic operations |  | $ | — |
Foreign operations |  |  | 11,907 |
|  | $ | 11,907 |
Income tax expense: |  |  |  |
Current: |  |  |  |
Federal |  | $ | — |
State |  |  | — |
Foreign |  |  | 4,893 |
|  |  | 4,893 |
Deferred: |  |  |  |
Domestic operations |  |  | — |
Foreign operations |  |  | 146 |
|  |  | 146 |
|  | $ | 5,039 |
The Company’s Income tax expense differs from the amount that would be computed by applying the U.S. federal statutory rate as follows:
|  | For the period from May 19, 2021 to December 31, 2021 |
|  | (In thousands) |
Taxes calculated at the U.S. federal statutory rate |  | $ | 2,500 |
Effect of tax rates on international operations |  |  | 1,112 |
Withholding taxes |  |  | 1,427 |
Income tax expense |  | $ | 5,039 |
Deferred income taxes, net reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The significant components of deferred tax assets and liabilities are as follows:​​​​​​​
|  | December 31, 2021 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |
Expenses currently not deductible |  | $ | 3,423 |
Deferred tax liabilities: |  |  |  |
Depreciation and amortization |  | $ | (8,064 | )
Inventory |  |  | (722 | )
Total deferred tax liabilities |  | $ | (8,786 | )
Total deferred tax liabilities, net |  | $ | (5,363 | )
For the year ended December 31, 2021, all undistributed earnings of the Company’s foreign subsidiaries, which are indefinitely reinvested outside the U.S., were provisionally estimated to be $17.7 million. The Company records a liability for unrecognized income tax benefits for the amount of benefit included in its previously filed income tax returns and in its financial results expected to be included in income tax returns to be filed for periods through the date of its Consolidated Financial Statements for income tax positions for which it is not more likely than not to be sustained upon examination by the respective taxing authority. The gross unrecognized tax benefit (inclusive of associated interest and penalties) at inception (May 19, 2021) and December 31, 2021 was $2.9 million. The Company is routinely examined by tax authorities around the world. Tax examinations remain in process in Peru. In Peru, tax years dating back to 2012 remain subject to examination. The Company’s total unrecognized tax benefits were $2.9 million as of December 31, 2021, inclusive of $0.8 million of interest and penalties and are included within Other liabilities on the Consolidated Balance Sheet. Due to the difficulty in predicting with reasonable certainty when tax audits will be fully resolved and closed, the range of reasonably possible significant increases or decreases in the liability for unrecognized tax benefits that may occur within the next 12 months is difficult to ascertain. Currently, the Company estimates that it is reasonably possible that the expiration of various statutes of limitations, resolution of tax audits and court decisions may reduce its tax expense in the next 12 months, the Company does not expect any such reduction to be material. | 5. Income Taxes During the three and nine months ended September 30, 2022, Income from continuing operations before income taxes was $72.1 million and $234.3 million, respectively, while Income tax expense was $17.8 million and $63.6 million, respectively. The effective tax rate was 24.7% and 27.2% for the three and nine months ended September 30, 2022, respectively. The effective tax rates differed from the 2022 U.S. federal statutory rate of 21% primarily due to the impact of withholding taxes and non-deductible expenses. During the three and nine months ended October 1, 2021, Income from continuing operations before income taxes was $78.9 million and $245.1 million, respectively, while Income tax expense was $17.4 million and $47.0 million, respectively. The effective tax rate was 22.1% and 19.2% for the three and nine months ended October 1, 2021, respectively. The effective tax rates differed from the 2021 U.S. federal statutory rate of 21% primarily due to the recognition of discrete tax benefits as a result of audit settlements that occurred in first nine months of 2021. Additionally, the Company’s foreign earnings in the first nine months of 2021 were taxed at lower rates than the U.S federal statutory rate.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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