XML 35 R15.htm IDEA: XBRL DOCUMENT
v3.25.0.1

TRA Liability | 12 Months Ended
--- | ---
Dec. 31, 2024
TRA Liability |
TRA Liability | 8.TRA Liability At the closing of the IPO, we entered into a Tax Receivable Agreement, or TRA, with the Legacy Owners of Solaris LLC units (each such person, a “TRA Holder,” and together, the “TRA Holders”). The TRA generally provides for the payment by us to each TRA Holder of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that we actually realize (computed using simplifying assumptions to address the impact of state and local taxes) or, are deemed to realize in certain circumstances, in periods after the IPO as a result of certain increases in tax basis that occur as a result of our acquisition or Solaris LLC’s redemption, respectively, of all or a portion of such TRA Holder’s Solaris LLC units in connection with the IPO or pursuant to the exercise of a redemption right or call right. We retain the remaining 15% of these cash savings. A reconciliation of the changes in the TRA liability is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(in thousands) | ​ | Year Ended December 31,
​ |  | 2024 | ​ | 2023
TRA Liability, Beginning Balance | ​ | $ | 98,274 | ​ | $ | 97,980
Increase in TRA Liability Related to Current Year Share Redemption | ​ | ​ | 411 | ​ | ​ | 232
Change in Payables Related to TRA Liability | ​ | ​ | 229 | ​ | ​ | 413
Adjustments Reflected in 2022 Federal Income Tax Return | ​ | ​ | — | ​ | ​ | (351)
TRA Liability, Ending Balance | ​ | $ | 98,914 | ​ | $ | 98,274
​ The calculation of the TRA liability is complex and data-intensive due to: 1) the intricacy of the provisions of the TRA; 2) historical tax data with asset step-ups in connection with previous acquisitions and/or equity offerings; 3) the need to make assumptions and allocations on an asset by asset basis for both the historical tax basis and the step-up tax basis due to transactions; 4) the need to identify the underlying attributes associated with numerous individual TRA Holders’ accounts in order to complete specific Legacy Owner calculations; and 5) various tax elections that can be made upon the filing of our tax returns. ​ Therefore, the balance of the TRA liability resulting from the IPO and the subsequent redemptions of Solaris LLC units to Class A common stock, which were recorded in additional paid-in-capital, may change substantially in the future as we refine our initial estimates and calculations and consider tax elections to be made as part of our tax return filings for the 2024 tax year to be made later in 2025. Any change in the balance of the TRA liability related to the IPO and subsequent redemptions of Solaris LLC units to Class A common stock will be recorded as an adjustment to additional paid-in-capital. Additionally, subsequent changes in the TRA liability due to future redemptions of Solaris LLC units to shares of our Class A common stock will also be recorded as an adjustment to additional paid-in-capital. Future changes in the TRA liability due to changes in tax law and/or our historical and projected future tax profile will be recorded in earnings. ​ As of December 31, 2024 and 2023, the estimated TRA liability totaled $98.9 million and $98.3 million, respectively, of which $0.1 million was recorded in “Accrued and Other Current Liabilities” as of December 31, 2024. There was no related current liability as of December 31, 2023. The increase to the TRA liability is related to the redemption of Class B common shares to Class A common shares, which increased the liability $0.4 million, and a state tax rate change, which increased the liability $0.2 million. ​ If we experience a change of control (as defined under the TRA, which includes certain mergers, asset sales and other forms of business combinations and change of control events) or the TRA terminates early (at our election or as a result of our breach), we could be required to make an immediate lump-sum payment (or “early termination payment”) under the terms of the TRA, which can be significantly impacted by the closing price of our Class A common shares on the applicable termination date or change in control date. We currently do not anticipate experiencing a change of control or an early termination of the TRA.

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

X
- Definition Entire disclosure of tax receivable agreement liability. + References No definition available. + Details
Name: | aris_TaxReceivableAgreementLiabilityTextBlock
Namespace Prefix: | aris_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration