Taxes (Tables)
|
12 Months Ended |
Jan. 31, 2022 |
|---|
| Taxes |
|
| Summary of Income Tax Benefit (Provision) |
Significant components of the income tax benefit (provision) consist of the following (in thousands):
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Fiscal 2022 |
|
Fiscal 2021 |
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|
|
|
|
Successor |
|
|
Predecessor (SLH) |
|
Predecessor (SLH) |
|
|
Predecessor (PL) |
|
Predecessor (PL) |
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From |
|
|
From |
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From |
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|
From |
|
|
|
|
June 12, 2021 to |
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|
February 1, 2021 |
|
August 28, 2020 |
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|
February 1, 2020 |
|
Fiscal year ended |
|
|
January 31, 2022 |
|
|
to June 11, 2021 |
|
January 31, 2021 |
|
|
to August 27, 2020 |
|
January 31, 2020 |
CURRENT: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(14,501) |
|
|
$ |
22,113 |
|
$ |
410 |
|
|
$ |
477 |
|
$ |
1,436 |
State |
|
|
(7,215) |
|
|
|
5,893 |
|
|
603 |
|
|
|
111 |
|
|
969 |
Foreign |
|
|
2,148 |
|
|
|
1,379 |
|
|
194 |
|
|
|
1,633 |
|
|
3,048 |
Current tax provision |
|
|
(19,568) |
|
|
|
29,385 |
|
|
1,207 |
|
|
|
2,221 |
|
|
5,453 |
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
DEFERRED: |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
17,030 |
|
|
|
(20,245) |
|
|
(15,367) |
|
|
|
18,733 |
|
|
(708) |
State |
|
|
7,040 |
|
|
|
(7,266) |
|
|
(3,899) |
|
|
|
(1,477) |
|
|
(1,985) |
Foreign |
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|
(9,645) |
|
|
|
(5,582) |
|
|
(3,875) |
|
|
|
48,978 |
|
|
8,452 |
Deferred tax (benefit) / provision |
|
|
14,425 |
|
|
|
(33,093) |
|
|
(23,141) |
|
|
|
66,234 |
|
|
5,759 |
Income tax (benefit) / provision |
|
$ |
(5,143) |
|
|
$ |
(3,708) |
|
$ |
(21,934) |
|
|
$ |
68,455 |
|
$ |
11,212 |
|
| Summary of Income before Income Tax, Domestic and Foreign |
The following table presents the U.S. and foreign components of (loss) income before income taxes (in thousands):
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|
|
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|
Fiscal 2022 |
|
Fiscal 2021 |
|
|
|
|
|
Successor |
|
|
Predecessor (SLH) |
|
Predecessor (SLH) |
|
|
Predecessor (PL) |
|
Predecessor (PL) |
|
|
From |
|
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From |
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From |
|
|
From |
|
|
|
|
June 12, 2021 to |
|
|
February 1, 2021 |
|
August 28, 2020 |
|
|
February 1, 2020 |
|
Fiscal year ended |
|
|
January 31, 2022 |
|
|
to June 11, 2021 |
|
January 31, 2021 |
|
|
to August 27, 2020 |
|
January 31, 2020 |
Domestic |
|
$ |
(3,385) |
|
|
$ |
(19,928) |
|
$ |
(86,333) |
|
|
$ |
364,827 |
|
$ |
(197,600) |
Foreign |
|
|
(48,564) |
|
|
|
(33,044) |
|
|
(29,323) |
|
|
|
2,467,640 |
|
|
(640,393) |
(Loss) income before income taxes |
|
$ |
(51,949) |
|
|
$ |
(52,972) |
|
$ |
(115,656) |
|
|
$ |
2,832,467 |
|
$ |
(837,993) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the relevant statutory rate to the Company’s effective tax rate is as follows:
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|
Fiscal 2022 |
|
Fiscal 2021 |
|
|
|
|
|
Successor |
|
|
Predecessor (SLH) |
|
Predecessor (SLH) |
|
|
Predecessor (PL) |
|
Predecessor (PL) |
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|
From |
|
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From |
|
From |
|
|
From |
|
|
|
|
June 12, 2021 to |
|
|
February 1, 2021 |
|
August 28, 2020 |
|
|
February 1, 2020 |
|
Fiscal year ended |
|
|
January 31, 2022 |
|
|
to June 11, 2021 |
|
January 31, 2021 |
|
|
to August 27, 2020 |
|
January 31, 2020 |
Income tax provision (benefit) at United States (21.0%) / Luxembourg statutory rate (24.5%) / Irish Statutory rate (12.5%) |
|
|
(21.0)% |
|
|
|
(24.9)% |
|
|
(24.9)% |
|
|
|
12.5% |
|
|
(12.5)% |
Increase (decrease) in tax resulting from: |
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|
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|
|
|
|
|
|
|
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|
|
US State income taxes, net of federal benefit |
|
|
(12.0)% |
|
|
|
(2.1)% |
|
|
(5.7)% |
|
|
|
0.2% |
|
|
(0.2)% |
Foreign rate differential |
|
|
7.2% |
|
|
|
10.1% |
|
|
6.1% |
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|
(0.2)% |
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|
(1.9)% |
Global Intangible Low-Taxed Income |
|
|
(1.4)% |
|
|
|
0.2% |
|
|
0.0% |
|
|
|
0.0% |
|
|
0.0% |
Non-deductible expenses |
|
|
0.7% |
|
|
|
0.4% |
|
|
0.5% |
|
|
|
0.3% |
|
|
1.3% |
Non-deductible interest |
|
|
(3.2)% |
|
|
|
0.0% |
|
|
0.0% |
|
|
|
0.1% |
|
|
0.0% |
Non-deductible officer compensation |
|
|
4.7% |
|
|
|
0.0% |
|
|
0.5% |
|
|
|
0.0% |
|
|
0.0% |
Warrants |
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(7.1)% |
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|
|
0.0% |
|
|
(0.6)% |
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|
|
0.0% |
|
|
0.0% |
Transaction costs |
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|
3.0% |
|
|
|
0.1% |
|
|
(7.6)% |
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|
|
0.0% |
|
|
0.0% |
Unrecognized tax benefit |
|
|
9.3% |
|
|
|
(2.5)% |
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|
(0.4)% |
|
|
|
0.0% |
|
|
0.2% |
Change in valuation allowance |
|
|
12.9% |
|
|
|
6.4% |
|
|
3.6% |
|
|
|
(4.2)% |
|
|
5.5% |
Impairment of goodwill |
|
|
0.0% |
|
|
|
0.0% |
|
|
0.0% |
|
|
|
1.0% |
|
|
7.9% |
Reorganization and fresh start adjustments |
|
|
0.0% |
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|
|
0.0% |
|
|
9.7% |
|
|
|
(8.1)% |
|
|
0.0% |
Return to provision adjustment |
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|
(2.6)% |
|
|
|
5.1% |
|
|
0.0% |
|
|
|
0.7% |
|
|
0.0% |
Other |
|
|
(0.4)% |
|
|
|
0.2% |
|
|
0.1% |
|
|
|
0.1% |
|
|
1.2% |
Effective tax rate - provision (benefit) |
|
|
(9.9)% |
|
|
|
(7.0)% |
|
|
(18.7)% |
|
|
|
2.4% |
|
|
1.5% |
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| Schedule of Deferred Tax Assets and Liabilities |
|
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|
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|
Successor |
|
|
Predecessor (SLH) |
|
|
January 31, 2022 |
|
|
January 31, 2021 |
ASSETS: |
|
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
78,901 |
|
|
$ |
13,517 |
Deferred interest expense |
|
|
55,653 |
|
|
|
35,852 |
Reserves and accruals |
|
|
18,048 |
|
|
|
9,038 |
Lease liabilities |
|
|
3,381 |
|
|
|
3,862 |
Tax credits |
|
|
880 |
|
|
|
99 |
Transaction costs |
|
|
5,987 |
|
|
|
19,532 |
Other intangibles |
|
|
— |
|
|
|
3,505 |
Gross deferred tax assets |
|
|
162,850 |
|
|
|
85,405 |
Less: Valuation allowance |
|
|
(125,196) |
|
|
|
(45,567) |
Net deferred tax assets |
|
$ |
37,654 |
|
|
$ |
39,838 |
LIABILITIES: |
|
|
|
|
|
|
|
Intangibles |
|
$ |
(121,499) |
|
|
$ |
(99,587) |
Property and equipment, net |
|
|
(7,283) |
|
|
|
(2,971) |
Accrued Interest |
|
|
(4,007) |
|
|
|
(4,522) |
Right-of-use asset |
|
|
(3,169) |
|
|
|
(3,141) |
Deferred revenue |
|
|
— |
|
|
|
(6,199) |
Other |
|
|
(1,607) |
|
|
|
(4,426) |
Gross deferred tax liabilities |
|
|
(137,565) |
|
|
|
(120,846) |
Total net deferred tax liabilities, net |
|
$ |
(99,911) |
|
|
$ |
(81,008) |
|
| Schedule of Unrecognized Tax Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022 |
|
Fiscal 2021 |
|
|
|
|
|
Successor |
|
|
Predecessor (SLH) |
|
Predecessor (SLH) |
|
|
Predecessor (PL) |
|
Predecessor (PL) |
|
|
From |
|
|
From |
|
From |
|
|
From |
|
|
|
|
June 12, 2021 to |
|
|
February 1, 2021 |
|
August 28, 2020 |
|
|
February 1, 2020 |
|
Fiscal year ended |
|
|
January 31, 2022 |
|
|
to June 11, 2021 |
|
January 31, 2021 |
|
|
to August 27, 2020 |
|
January 31, 2020 |
Unrecognized tax benefits, beginning balances |
|
$ |
3,115 |
|
|
$ |
3,918 |
|
$ |
3,768 |
|
|
$ |
3,773 |
|
$ |
2,081 |
Increases for tax positions taken during the current period |
|
|
6,161 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
Increases for tax positions taken during a prior period |
|
|
5,975 |
|
|
|
— |
|
|
37 |
|
|
|
35 |
|
|
1,987 |
Decreases for tax positions taken during a prior period |
|
|
— |
|
|
|
(788) |
|
|
— |
|
|
|
(40) |
|
|
(295) |
Other |
|
|
(64) |
|
|
|
(15) |
|
|
452 |
|
|
|
— |
|
|
— |
Decreases resulting from the expiration of statute of limitations |
|
|
(847) |
|
|
|
— |
|
|
(339) |
|
|
|
— |
|
|
— |
Unrecognized tax benefits, ending balance |
|
$ |
14,340 |
|
|
$ |
3,115 |
|
$ |
3,918 |
|
|
$ |
3,768 |
|
$ |
3,773 |
|