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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of and Provision for Income Taxes

The U.S. and non-U.S. components of income (loss) from continuing operations before income taxes and our income tax expense (benefit) from continuing operations (in thousands):

						Year Ended December 31,
						2021						2020 (1)						2019 (1)
Income (loss) from continuing operations before income taxes:
UK and Non-U.S.						$	22,094					$	(262,501)					$	26,104
U.S.						(146,566)						(85,521)						(214,482)
						$	(124,472)					$	(348,022)					$	(188,378)
Total income tax expense (benefit) from continuing operations consisted of the following:
Current:
UK and Non-U.S.						$	4,296					$	2,899					$	1,112
U.S.						4,050						(41,010)						(4,988)
						8,346						(38,111)						(3,876)
Deferred:
UK and Non-U.S.						2,852						37,151						(7,628)
U.S.						—						—						(18,870)
						2,852						37,151						(26,498)
Total income tax expense (benefit) from continuing operations						$	11,198					$	(960)					$	(30,374)

(1)Income (loss) from continuing operations before income taxes and deferred income tax expense for UK and Non-U.S. for the years ended December 31, 2020 and 2019 have been revised. For further details refer to “Note 1. Nature of Operations.”

Schedule of Effective Income Tax Rate Reconciliation

The following table is a reconciliation of the statutory income tax rate to our effective income tax rate expressed as a percentage of income from continuing operations before income taxes:

						Year Ended December 31,
						2021						2020 (1)						2019 (1)
Statutory tax rate at UK Rate						19.0		%				19.0		%				19.0		%
Deferred tax valuation allowance						(47.7)						(34.9)						(17.3)
Foreign tax rate differential						7.1						6.6						6.4
U.S. state and local tax expense, net of federal benefit						(0.3)						1.5						6.1
Effect of changes in tax rate						18.9						2.2						(3.1)
Write-off/impairment of investments						(1.8)						1.8						(2.7)
Reserve for uncertain tax positions						—						0.8						2.5
Research and development tax credits						0.3						0.9						2.2
UK CFC tax						—						—						2.1
U.S. tax on non-U.S. operations						—						—						(1.6)
Base erosion anti-abuse tax						(3.1)						(0.7)						1.5
Exempt income						—						—						1.2
Foreign tax withholding and credits						(0.2)						(0.2)						—
CARES Act rate differential						—						2.8						—
Disallowable professional fees						(1.5)						—						—
Other, net						0.3						0.5						(0.2)
Effective tax rate						(9.0)		%				0.3		%				16.1		%

(1)Reconciliation amounts for the years ended December 31, 2020 and 2019 have been revised. For further details refer to “Note 1. Nature of Operations.”

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020, are as follows (in thousands):

						2021						2020 (1)
Deferred tax assets:
Net operating loss carryforwards						$	152,491					$	133,504
Tax credit carryforwards						40,931						37,629
Interest expense carryforward						65,141						43,155
Accruals and reserves						36,796						25,589
Deferred compensation						13,262						11,868
Inventories						8,844						8,454
Other						19,119						17,522
Gross deferred tax assets						336,584						277,721
Valuation allowance						(244,978)						(186,425)
Net deferred tax assets						91,606						91,296
Deferred tax liabilities:
Property, equipment & intangible assets						(70,573)						(54,326)
Gain on sale of intellectual property						(26,564)						(41,069)
Investments						—						—
Other						—						—
Gross deferred tax liabilities:						(97,137)						(95,395)
Net deferred tax liabilities						$	(5,531)					$	(4,099)
Reported on the consolidated balance sheet as (after valuation allowance and jurisdictional netting):
Net deferred tax assets						$	2,197					$	2,990
Net deferred tax liabilities						(7,728)						(7,089)
Net deferred tax liabilities						$	(5,531)					$	(4,099)

(1)Deferred tax assets for inventories, the valuation allowance and net deferred tax liabilities as of December 31, 2020 have been revised. For further details refer to “Note 1. Nature of Operations.”

Summary of Operating Loss Carryforwards

Net operating loss (“NOL”) and tax credit carryforwards as of December 31, 2021, which can be used to reduce our income tax payable in future years (in thousands):

Region						Gross Amount						Tax Benefit						Amount with No Expiration						Amount with Expiration						Carryforward Period
Europe NOL						$	395,393					$	94,681					$	94,621					$	60					2026			-			2026
U.S. Federal NOL						169,127						35,517						4,456						31,061						2023			-			2038
U.S. State NOL						275,780						15,434						2,673						12,761						2022			-			2041
S. America & other regions NOL						18,054						6,066						6,035						31						2029			-			2037
Far East NOL						3,150						795						152						643						2025			-			2031
U.S. foreign tax credits						—						15,850						—						15,850						2025			-			2029
U.S. tax credits						—						16,623						—						16,623						2022			-			2041
U.S. State research & development tax credits						—						6,499						1,068						5,431						2030			-			2041
Other non-U.S. tax credits						—						1,959						824						1,135						2022			-			2034
						$	861,504					$	193,424					$	109,829					$	83,595

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a roll-forward of our total gross unrecognized tax benefit (in thousands):

						Year Ended December 31,
						2021						2020						2019
Balance at beginning of year						$	3,433					$	15,995					$	22,883
Increases:
Tax positions related to current year						—						—						176
Decreases:
Tax positions related to prior years for settlement with tax authorities						(1,434)						(13,989)						(2,104)
Tax positions related to prior years for lapses of statute of limitations						—						—						(4,632)
Impact of foreign currency exchange rates						(258)						1,427						(328)
Balance at end of year						$	1,741					$	3,433					$	15,995

Schedule of Income Tax Examinations by Jurisdiction

The major jurisdictions where we are subject to income tax examinations are as follows:

Jurisdiction						Earliest Year Open
U.S. - federal and state						2015
Italy						2015
Germany						2019
England and Wales						2020
Canada						2017

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