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]  
Schedule of Components of Income Tax Expense (Benefit)
The Company's Income tax expense (benefit) is as follows (amounts in thousands):
  Successor Company Predecessor Company
  Year Ended December 31, 2020 Period from September 1, 2019 through December 31, 2019 Period from January 1, 2019 through August 31, 2019 Year Ended December 31, 2018
Current:    
Federal $ —  $ —  $ —  $ — 
State 1,791  604  1,775  2,535 
  $ 1,791  $ 604  $ 1,775  $ 2,535 
Deferred:    
Federal $ —  $ —  $ —  $ (12,892)
State 100  100  —  (1,195)
  $ 100  $ 100  $ —  $ (14,087)
Total Income tax expense (benefit) $ 1,891  $ 704  $ 1,775  $ (11,552)
Schedule of Effective Income Tax Rate Reconciliation
Total Income tax expense (benefit) differs from the amounts computed by applying the U.S. federal income tax rate of 21% as a result of the following (amounts in thousands):
  Successor Company Predecessor Company
  Year Ended December 31, 2020 Period from September 1, 2019 through December 31, 2019 Period from January 1, 2019 through August 31, 2019 Year Ended December 31, 2018
Computed expected tax expense (benefit) $ (37,772) $ (6,852) $ 126,039  $ (144,963)
Change in valuation allowance affecting income tax expense 37,669  6,958  16,769  52,916 
Cancellation of debt income not taxable —  —  (117,545) — 
Other restructuring and reorganization income not resulting in tax impact —  —  (36,453) — 
Non-deductible bankruptcy costs —  —  8,808  — 
Goodwill impairment not resulting in tax impact —  —  —  78,869 
Other expense (income) not resulting in tax impact 500  42  2,755  568 
Tax amortization of indefinite-lived assets —  —  —  — 
2017 Federal tax reform enactment —  —  —  — 
State and local income taxes, net of federal income taxes 1,494  556  1,402  1,058 
Total Income tax expense (benefit) $ 1,891  $ 704  $ 1,775  $ (11,552)
Schedule of Deferred Tax Assets and Liabilities
Components of deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows (amounts in thousands):
  December 31,
2020
December 31,
2019
Accounts receivable reserves $ 1,178  $ 1,008 
Accrued liabilities 5,044  4,395 
Earnout Payments liability 26,783  — 
Net operating loss ("NOL") carryforwards 130,461  111,512 
Derivative financial instruments 489  — 
Other deferred tax assets 5,613  7,540 
Valuation allowance (63,881) (24,457)
Total deferred tax assets $ 105,687  $ 99,998 
Intangible assets (101,729) (96,204)
Property, plant and equipment (3,374) (3,110)
Total deferred tax liabilities $ (105,103) $ (99,314)
Net deferred tax assets $ 584  $ 684 
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of uncertain tax positions, which is recorded in other long term liabilities, is as follows (amounts in thousands):
  Successor Company Predecessor Company
  Year Ended December 31, 2020 Period from September 1, 2019 through December 31, 2019 Period from January 1, 2019 through August 31, 2019 Year Ended December 31, 2018
As of the beginning of the year $ 5,629  $ 5,629  $ 205  $ 204 
Increases for tax positions of current years —  —  — 
Reductions for tax positions of prior years —  —  —  (6)
Increase from Ascent downstream merger —  —  5,424  — 
As of the end of the year $ 5,629  $ 5,629  $ 5,629  $ 205