XML 48 R34.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
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, 2022 (Successor), for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), and for the period from January 1, 2020 through January 31, 2020 (Predecessor), respectively, were as follows (in thousands):
|  | Successor |  |  |  | Predecessor |
|  | Year Ended December 31, 2022 |  |  | Year Ended December 31, 2021 |  |  | Period from February 1, 2020 through December 31, 2020 |  |  |  | Period from January 1, 2020 through January 31, 2020 |
Income (loss) before provision for income taxes from United States operations |  | $ | 46,766 |  |  | $ | (7,791 | ) |  | $ | (68,008 | ) |  |  | $ | (38,181 | )
Income before provision for income taxes from foreign operations |  |  | 38,313 |  |  |  | 32,704 |  |  |  | 9,161 |  |  |  |  | 780 |
Income (loss) before provision for income taxes |  | $ | 85,079 |  |  | $ | 24,913 |  |  | $ | (58,847 | ) |  |  | $ | (37,401 | )
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, 2022 (Successor), for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), and for the period from January 1, 2020 through January 31, 2020 (Predecessor), respectively, were as follows (in thousands):
|  | Successor |  |  |  | Predecessor |
|  | Year Ended December 31, 2022 |  |  | Year Ended December 31, 2021 |  |  | Period from February 1, 2020 through December 31, 2020 |  |  |  | Period from January 1, 2020 through January 31, 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 179 |  |  | $ | 58 |  |  | $ | 51 |  |  |  | $ | (2 | )
State |  |  | 4,593 |  |  |  | 4,003 |  |  |  | 1,994 |  |  |  |  | (79 | )
Foreign |  |  | 9,817 |  |  |  | 7,618 |  |  |  | 3,818 |  |  |  |  | 128 |
Total Current |  | $ | 14,589 |  |  | $ | 11,679 |  |  | $ | 5,863 |  |  |  | $ | 47 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 1,773 |  |  | $ | 549 |  |  | $ | (16,144 | ) |  |  | $ | (701 | )
State |  |  | 5,030 |  |  |  | (4,495 | ) |  |  | (784 | ) |  |  |  | (149 | )
Foreign |  |  | (917 | ) |  |  | 1,129 |  |  |  | (290 | ) |  |  |  | (68 | )
Total Deferred |  | $ | 5,886 |  |  | $ | (2,817 | ) |  | $ | (17,218 | ) |  |  | $ | (918 | )
Total |  | $ | 20,475 |  |  | $ | 8,862 |  |  | $ | (11,355 | ) |  |  | $ | (871 | )
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 24.07%, 35.57%, 19.29%, and 2.33%, for the year ended December 31, 2022 (Successor), for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), and for the period from January 1, 2020 through January 31, 2020 (Predecessor), respectively:
|  | Successor |  |  |  | Predecessor |
|  | Year Ended December 31, 2022 |  |  | Year Ended December 31, 2021 |  |  | Period from February 1, 2020 through December 31, 2020 |  |  |  | Period from January 1, 2020 through January 31, 2020 |
U.S. statutory federal tax rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | % |  |  |  | 21.00 | %
State and local income taxes – net of federal tax benefits |  |  | 2.85 |  |  |  | (5.32 | ) |  |  | (1.50 | ) |  |  |  | (0.99 | )
Foreign rate difference |  |  | 0.67 |  |  |  | 3.25 |  |  |  | (0.14 | ) |  |  |  | 0.06 |
Change in valuation allowances |  |  | (1.06 | ) |  |  | (2.72 | ) |  |  | 0.00 |  |  |  |  | (12.37 | )
GILTI inclusion |  |  | 1.41 |  |  |  | 7.92 |  |  |  | 2.71 |  |  |  |  | (0.34 | )
Transaction cost |  |  | — |  |  |  | 5.21 |  |  |  | (1.09 | ) |  |  |  | (3.14 | )
Share-based compensation |  |  | 0.62 |  |  |  | 5.82 |  |  |  | (0.40 | ) |  |  |  | (2.23 | )
Rate change impact |  |  | (0.43 | ) |  |  | 2.23 |  |  |  | — |  |  |  |  | — |
US research and development credit |  |  | (1.44 | ) |  |  | (7.15 | ) |  |  | 0.85 |  |  |  |  | 0.35 |
Withholding tax |  |  | 0.38 |  |  |  | 5.34 |  |  |  | (1.90 | ) |  |  |  | — |
Other |  |  | 0.07 |  |  |  | (0.01 | ) |  |  | (0.24 | ) |  |  |  | (0.01 | )
Effective tax rate |  |  | 24.07 | % |  |  | 35.57 | % |  |  | 19.29 | % |  |  |  | 2.33 | %
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, 2022 and 2021 (Successor) consist of the following (in thousands):
|  | Successor |  |  | Successor |
|  | December 31, 2022 |  |  | December 31, 2021 |
Deferred tax assets: |  |  |  |  |  |
Federal net operating loss carryforwards |  | $ | 2,304 |  |  | $ | 25,227 |
State net operating loss carryforwards |  |  | 6,782 |  |  |  | 8,172 |
Foreign net operating loss carryforwards |  |  | 4,888 |  |  |  | 5,556 |
Deferred revenues |  |  | 205 |  |  |  | 172 |
Bad debt reserves |  |  | 297 |  |  |  | 203 |
Employee benefits |  |  | 1,563 |  |  |  | 3,118 |
Share-based compensation |  |  | 546 |  |  |  | 586 |
Accrued expenses and loss reserves |  |  | 1,802 |  |  |  | 2,346 |
Other deferred tax assets |  |  | 5,890 |  |  |  | 9,382 |
Less: Valuation allowances |  |  | (1,467 | ) |  |  | (2,367 | )
Total deferred tax asset |  | $ | 22,810 |  |  | $ | 52,395 |
Deferred tax liabilities: |  |  |  |  |  |
Trade name |  | $ | (17,632 | ) |  | $ | (19,809 | )
Goodwill |  |  | (11,703 | ) |  |  | (7,340 | )
Depreciable and other amortizable assets |  |  | (77,127 | ) |  |  | (107,080 | )
Other deferred liabilities |  |  | (4,482 | ) |  |  | (1,406 | )
Total deferred tax liability |  | $ | (110,944 | ) |  | $ | (135,635 | )
Net deferred tax liability |  | $ | (88,134 | ) |  | $ | (83,240 | )
Summary of Net Operating Loss Carryforwards | The net operating loss carryforward balances as of December 31, 2022 and 2021 (Successor), are as follows (in thousands):
|  | Successor |  |  | Successor |
|  | December 31, 2022 |  |  | December 31, 2021 |
Federal |  | $ | 10,970 |  |  | $ | 120,130 |
State |  |  | 125,989 |  |  |  | 147,539 |
Foreign |  |  | 24,207 |  |  |  | 25,063 |
|  | $ | 161,166 |  |  | $ | 292,732 |
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, 2022 (Successor), for the year ended December 31, 2021 (Successor), for the period from February 1, 2020 through December 31, 2020 (Successor), and for the period from January 1, 2020 through January 31, 2020 (Predecessor), were as follows (in thousands):
|  | Successor |  |  |  | Predecessor |
|  | Year Ended December 31, 2022 |  |  | Year Ended December 31, 2021 |  |  | Period from February 1, 2020 through December 31, 2022 |  |  |  | Period from January 1, 2020 through January 31, 2020 |
Balance, beginning of period |  | $ | 1,399 |  |  | $ | 1,341 |  |  | $ | 1,290 |  |  |  | $ | 1,296 |
Increases for tax positions related to prior years |  |  | 28 |  |  |  | 58 |  |  |  | 51 |  |  |  |  | 4 |
Decreases for tax positions related to prior years |  |  | (455 | ) |  |  | — |  |  |  | — |  |  |  |  | (10 | )
Balance, end of period |  | $ | 972 |  |  | $ | 1,399 |  |  | $ | 1,341 |  |  |  | $ | 1,290 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration