Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Components of Income Tax (Benefit) Provision from Continuing Operations
Components of income tax (benefit) provision were as follows (in thousands):
(Successor) (Predecessor)
From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020		 Year Ended December 31, 2019 Year Ended December 31, 2018
Current:
Federal $ (969) $ 51  $ 1,972  $ 4,789 
State and local 54  16  197  134 
Foreign 1,139  2,029  5,865  6,449 
224  2,096  8,034  11,372 
Deferred:
Federal (2,192) (4,262) (1,802) (5,148)
State and local 138  (259) 336  (1,006)
Foreign (788) (1,057) (9,034) 94 
(2,842) (5,578) (10,500) (6,060)
Total (benefit) provision for income taxes $ (2,618) $ (3,482) $ (2,466) $ 5,312 
Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of income tax (benefit) provision computed at the U.S. federal statutory rate to income tax (benefit) provision in the consolidated and combined statements of operations (in thousands):
(Successor) (Predecessor)
From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020		 Year Ended December 31, 2019 Year Ended December 31, 2018
(Loss) income before income taxes:
Domestic $ (18,981) $ (49,477) $ 10,859  $ (6,021)
Foreign 7,926  11,859  17,487  32,174 
Total (loss) income before income taxes $ (11,055) $ (37,618) $ 28,346  $ 26,153 
Federal income tax rate 21.0% 21.0% 21.0% 21.0%
Tax provision at federal statutory rate $ (2,322) $ (7,900) $ 5,953  $ 5,492 
State and local taxes 1,812  (278) 426  (879)
Foreign rate differential (70) (125) 789  1,533 
Change in tax rates 735  —  (2,209) (53)
Changes in uncertain tax positions 40  (651) 64  (100)
Change in valuation allowance (1,474) 883  588  (1,957)
Goodwill impairment —  3,717  —  — 
Impact of Luxembourg restructuring —  —  (6,438) — 
U.S. effects of international operations 320  2,084  3,079  6,136 
Tax credits (2,161) (1,201) (5,233) (5,498)
Other 502  (11) 515  638 
Total (benefit) provision for income taxes $ (2,618) $ (3,482) $ (2,466) $ 5,312 
Effective tax rate 23.7% 9.3% (8.7)% 20.3%
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Company’s net deferred tax assets and liabilities were as follows (in thousands):
(Successor) (Predecessor)
December 31, 2020 December 31, 2019
Deferred tax assets:
Accounts receivable $ 473  $ 695 
Accrued expenses 3,838  2,065 
Inventory 5,231  4,102 
Other assets 160  1,008 
Deferred rent —  427 
Pension asset 348  1,783 
Property, plant and equipment —  864 
Lease accounting 3,360  — 
U.S. and foreign net operating losses 13,998  15,014 
Tax credits 254  2,345 
Total deferred tax assets 27,662  28,303 
Less valuation allowance (9,879) (12,409)
Net deferred tax assets $ 17,783  $ 15,894 
Deferred tax liabilities:
Property, plant and equipment (4,678) — 
Operating lease right-of-use asset (2,747) — 
Intangible assets (24,266) (38,451)
Deferred rent (78) — 
Unremitted earnings (719) (1,207)
Other liabilities (5,921) (6,406)
Total deferred tax liabilities (38,409) (46,064)
Net deferred tax liability $ (20,626) $ (30,170)
Changes in Unrecognized Tax Benefits
The following summarizes the changes in the Company’s liability for unrecognized tax positions (in thousands):
(Successor) (Predecessor)
From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020		 Year Ended December 31, 2019
Beginning of period $ 539  $ 895  $ 986 
Settlements —  (291) (92)
Currency differences 70  (65) 1 
End of period $ 609  $ 539  $ 895