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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of (Loss) Income Before Income Tax Benefits

The domestic and foreign components of income (loss) before provision for income taxes for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), the period from January 1, 2020 through January 31, 2020 (Predecessor), and for the year ended December 31, 2019 (Predecessor), respectively, were as follows (in thousands):

		Successor									Predecessor
		Year Ended December 31, 2021				Period from February 1, 2020 through December 31, 2020					Period from January 1, 2020 through January 31, 2020				Year Ended December 31, 2019
(Loss) income before provision for income taxes from United States operations		$	(7,791	)		$	(68,008	)			$	(38,181	)		$	29,196
Income before provision for income taxes from foreign operations			32,704				9,161					780				11,952
Net income (loss) before provision for income taxes		$	24,913			$	(58,847	)			$	(37,401	)		$	41,148

Summary of Current and Deferred Portions of Income Tax Benefits

The domestic and foreign components of the provision for income taxes for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), the period from January 1, 2020 through January 31, 2020 (Predecessor), and for the year ended December 31, 2019 (Predecessor), respectively, were as follows (in thousands):

		Successor									Predecessor
		Year Ended December 31, 2021				Period from February 1, 2020 through December 31, 2020					Period from January 1, 2020 through January 31, 2020				Year Ended December 31, 2019
Current:
Federal		$	58			$	51				$	(2	)		$	(96	)
State			4,003				1,994					(79	)			784
Foreign			7,618				3,818					128				4,161
Total Current		$	11,679			$	5,863				$	47			$	4,849
Deferred:
Federal		$	549			$	(16,144	)			$	(701	)		$	1,778
State			(4,495	)			(784	)				(149	)			389
Foreign			1,129				(290	)				(68	)			(118	)
Total Deferred		$	(2,817	)		$	(17,218	)			$	(918	)		$	2,049
Total		$	8,862			$	(11,355	)			$	(871	)		$	6,898

Summary of Reconciliation of U.S. Federal Statutory Income Tax Rate and Effective Income Tax Rate

The following table reconciles the U.S. statutory federal tax rate of 21% to the Company’s effective income tax rate of 35.57%, 19.29%, 2.33%, and 16.71%, for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), the period from January 1, 2020 through January 31, 2020 (Predecessor), and for the year ended December 31, 2019 (Predecessor), respectively:

		Successor									Predecessor
		Year Ended December 31, 2021				Period from February 1, 2020 through December 31, 2020					Period from January 1, 2020 through January 31, 2020				Year Ended December 31, 2019
U.S. federal statutory rate			21.00	%			21.00	%				21.00	%			21.00	%
State and local income taxes – net of federal tax benefits			(5.32	)			(1.50	)				(0.99	)			4.84
Foreign rate difference			3.25				(0.14	)				0.06				1.28
Change in valuation allowance			(2.72	)			0.00					(12.37	)			(13.81	)
GILTI inclusion			7.92				2.71					(0.34	)			3.41
Transaction cost			5.21				(1.09	)				(3.14	)			—
Share-based compensation			5.82				(0.40	)				(2.23	)			0.47
Rate change impact			2.23				—					—				1.37
US research and development credit			(7.15	)			0.85					0.35				(2.03	)
Withholding tax			5.34				(1.90	)				—				0.78
Other			(0.01	)			(0.24	)				(0.01	)			(0.60	)
Effective rate			35.57	%			19.29	%				2.33	%			16.71	%

Summary of Net Deferred Tax Assets

The primary components of temporary differences that give rise to the Company’s net deferred tax liability as of December 31, 2021 and 2020 (Successor) consist of the following (in thousands):

		Successor				Successor
		December 31, 2021				December 31, 2020
Deferred tax assets:
Federal net operating loss carryforwards		$	25,227			$	41,498
State net operating loss carryforwards			8,172				9,200
Foreign net operating loss carryforwards			5,556				8,808
Deferred revenue			172				109
Bad debt reserves			203				277
Employee benefits			3,118				2,211
Share-based compensation			586				195
Accrued expenses and loss reserves			2,346				3,997
Other deferred tax assets			9,382				8,679
Less: Valuation allowance			(2,367	)			(4,560	)
Total deferred tax asset		$	52,395			$	70,414
Deferred tax liabilities:
Trade name		$	(19,809	)		$	(22,124	)
Goodwill			(7,340	)			(3,600	)
Depreciable and other amortizable assets			(107,080	)			(130,523	)
Other deferred liabilities			(1,406	)			(130	)
Total deferred tax liability		$	(135,635	)		$	(156,377	)
Net deferred tax liability		$	(83,240	)		$	(85,963	)

Summary of Net Operating Loss Carryforwards

The net operating loss carryforward balances as of December 31, 2021 and 2020 (Successor), are as follows (in thousands):

		Successor				Successor
		December 31, 2021				December 31, 2020
Federal		$	120,130			$	197,607
State			147,539				166,196
Foreign			25,063				35,992
		$	292,732			$	399,795

Summary of Income Tax Contingencies

The aggregate changes in the balance of our gross unrecognized tax benefits, excluding accrued interest, for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), for the period from January 1, 2020 through January 31, 2020 (Predecessor), and for the year ended December 31, 2019 (Predecessor), were as follows (in thousands):

		Successor									Predecessor
		Year Ended December 31, 2021				Period from February 1, 2020 through December 31, 2020					Period from January 1, 2020 through January 31, 2020				Year Ended December 31, 2019
Balance, beginning of period		$	1,341			$	1,290				$	1,296			$	1,384
Increases for tax positions related to prior years			58				51					4				48
Decreases for tax positions related to prior years			—				—					(10	)			(136	)
Balance, end of period		$	1,399			$	1,341				$	1,290			$	1,296

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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