Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Income Tax (Benefit) Provision
Components of the income tax provision (benefit) were as follows (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
Current:
Federal $ (364) $ 916  $ (969) $ 51 
State and local 419  283  54  16 
Foreign 6,190  3,957  1,139  2,029 
6,245  5,156  224  2,096 
Deferred:
Federal (2,944) (6,498) (2,192) (4,262)
State and local (581) (2,801) 138  (259)
Foreign 3,069  (3,001) (788) (1,057)
(456) (12,300) (2,842) (5,578)
Total provision (benefit) for income taxes $ 5,789  $ (7,144) $ (2,618) $ (3,482)
Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of income tax provision (benefit) computed at the U.S. federal statutory rate to income tax provision (benefit) in the consolidated and combined statements of operations (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
(Loss) income before income taxes:
Domestic $ (86,952) $ (36,205) $ (18,981) $ (49,477)
Foreign 33,989  29,144  7,926  11,859 
Total (loss) income before income taxes $ (52,963) $ (7,061) $ (11,055) $ (37,618)
Federal income tax rate 21.0% 21.0% 21.0% 21.0%
Federal income taxes $ (11,122) $ (1,483) $ (2,322) $ (7,900)
State and local taxes (1,666) (3,572) 1,812  (278)
Foreign rate differential (545) (1,431) (70) (125)
Change in tax rates 295  225  735  — 
Change in uncertain tax positions 6  (1,005) 40  (651)
Change in valuation allowance 4,588  2,657  (1,474) 883 
Goodwill impairment 9,765  —  —  3,717 
U.S. effects of international operations 5,603  3,041  320  2,084 
Tax credits (3,250) (2,763) (2,161) (1,201)
Section 162(m) limitation 87  206  —  — 
Transaction costs 31  385  —  — 
Stock-based compensation 422  502  —  — 
Switzerland tax ruling —  (4,057) —  — 
Foreign withholding taxes 1,043  350  —  — 
Other 532  (199) 502  (11)
Total provision (benefit) for income taxes $ 5,789  $ (7,144) $ (2,618) $ (3,482)
Effective tax rate (10.9)% 101.2% 23.7% 9.3%
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Company’s net deferred tax assets and liabilities were as follows (in thousands):
December 31, 2022 December 31, 2021
Deferred tax assets:
Accounts receivable $ 441  $ 381 
Accrued expenses 4,938  5,251 
Inventory 4,112  6,166 
Other assets 1,184  930 
Pension asset 2,320  365 
Capitalized research and development expense 445  — 
Lease accounting 5,458  7,558 
U.S. and foreign net operating losses 19,150  17,433 
Deferred interest expense 11,241  6,106 
Tax credits 887  511 
Total deferred tax assets 50,176  44,701 
Less valuation allowance (16,592) (12,184)
Net deferred tax assets $ 33,584  $ 32,517 
Deferred tax liabilities:
Property, plant and equipment (6,270) (5,271)
Operating lease right-of-use asset (4,621) (6,553)
Intangible assets (45,964) (46,511)
Deferred rent (63) (59)
Unremitted earnings (2,295) (965)
Other liabilities (6,417) (6,255)
Total deferred tax liabilities (65,630) (65,614)
Net deferred tax liability $ (32,046) $ (33,097)
Changes in Unrecognized Tax Benefits
The following summarizes the changes in the Company’s liability for unrecognized tax positions (in thousands):
Year Ended December 31, 2022 Year Ended December 31, 2021
Beginning of period $ 94  $ 609 
Lapse in statute of limitations —  (507)
Currency differences —  (8)
End of period $ 94  $ 94