Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Components of Income Tax (Benefit) Provision
Components of the income tax (benefit) provision were as follows (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020		 Year Ended December 31, 2019
Current:
Federal $ 916  $ (969) $ 51  $ 1,972 
State and local 283  54  16  197 
Foreign 3,957  1,139  2,029  5,865 
5,156  224  2,096  8,034 
Deferred:
Federal (6,498) (2,192) (4,262) (1,802)
State and local (2,801) 138  (259) 336 
Foreign (3,001) (788) (1,057) (9,034)
(12,300) (2,842) (5,578) (10,500)
Total benefit for income taxes $ (7,144) $ (2,618) $ (3,482) $ (2,466)
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 in the consolidated and combined statements of operations (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020		 Year Ended December 31, 2019
(Loss) income before income taxes:
Domestic $ (36,205) $ (18,981) $ (49,477) $ 10,859 
Foreign 29,144  7,926  11,859  17,487 
Total (loss) income before income taxes $ (7,061) $ (11,055) $ (37,618) $ 28,346 
Federal income tax rate 21.0% 21.0% 21.0% 21.0%
Federal income taxes $ (1,483) $ (2,322) $ (7,900) $ 5,953 
State and local taxes (3,572) 1,812  (278) 426 
Foreign rate differential (1,431) (70) (125) 789 
Change in tax rates 225  735  —  (2,209)
Change in uncertain tax positions (1,005) 40  (651) 64 
Change in valuation allowance 2,657  (1,474) 883  588 
Goodwill impairment —  —  3,717  — 
Impact of Luxembourg restructuring —  —  —  (6,438)
U.S. effects of international operations 3,041  320  2,084  3,079 
Tax credits (2,763) (2,161) (1,201) (5,233)
Section 162(m) limitation 206  —  —  — 
Transaction costs 385  —  —  — 
Stock-based compensation 502  —  —  — 
Switzerland tax ruling (4,057) —  —  — 
Foreign withholding taxes 350  —  —  — 
Other (199) 502  (11) 515 
Total benefit for income taxes $ (7,144) $ (2,618) $ (3,482) $ (2,466)
Effective tax rate 101.2% 23.7% 9.3% (8.7)%
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, 2021 December 31, 2020
Deferred tax assets:
Accounts receivable $ 381  $ 473 
Accrued expenses 5,251  3,838 
Inventory 6,166  5,231 
Other assets 930  160 
Pension asset 365  348 
Lease accounting 7,558  3,360 
U.S. and foreign net operating losses 17,433  13,998 
Deferred interest expense 6,106  — 
Tax credits 511  254 
Total deferred tax assets 44,701  27,662 
Less valuation allowance (12,184) (9,879)
Net deferred tax assets $ 32,517  $ 17,783 
Deferred tax liabilities:
Property, plant and equipment (5,271) (4,678)
Operating lease right-of-use asset (6,553) (2,747)
Intangible assets (46,511) (24,266)
Deferred rent (59) (78)
Unremitted earnings (965) (719)
Other liabilities (6,255) (5,921)
Total deferred tax liabilities (65,614) (38,409)
Net deferred tax liability $ (33,097) $ (20,626)
Changes in Unrecognized Tax Benefits
The following summarizes the changes in the Company’s liability for unrecognized tax positions (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
Beginning of period $ 609  $ 539  $ 895 
Lapse in statute of limitations (507) —  (291)
Currency differences (8) 70  (65)
End of period $ 94  $ 609  $ 539