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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|
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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 |
|
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 |
CURRENT: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(8,786) |
|
|
$ |
16,632 |
|
$ |
172 |
|
|
$ |
353 |
|
$ |
1,063 |
State |
|
|
(5,571) |
|
|
|
4,288 |
|
|
706 |
|
|
|
(21) |
|
|
363 |
Foreign |
|
|
643 |
|
|
|
1,267 |
|
|
121 |
|
|
|
982 |
|
|
1,736 |
Current tax provision |
|
|
(13,714) |
|
|
|
22,187 |
|
|
999 |
|
|
|
1,314 |
|
|
3,162 |
|
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
DEFERRED: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
12,853 |
|
|
|
(14,042) |
|
|
(9,224) |
|
|
|
9,264 |
|
|
939 |
State |
|
|
5,601 |
|
|
|
(6,189) |
|
|
(3,145) |
|
|
|
3,297 |
|
|
(871) |
Foreign |
|
|
(9,044) |
|
|
|
(5,477) |
|
|
(3,107) |
|
|
|
46,818 |
|
|
8,527 |
Deferred tax (benefit) / provision |
|
|
9,410 |
|
|
|
(25,708) |
|
|
(15,476) |
|
|
|
59,379 |
|
|
8,595 |
Income tax (benefit) / provision |
|
$ |
(4,304) |
|
|
$ |
(3,521) |
|
$ |
(14,477) |
|
|
$ |
60,693 |
|
$ |
11,757 |
|
| 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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|
|
|
|
|
|
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 |
Domestic |
|
$ |
(12,247) |
|
|
$ |
(21,838) |
|
$ |
(75,389) |
|
|
$ |
527,248 |
|
$ |
(65,175) |
Foreign |
|
|
(50,803) |
|
|
|
(32,122) |
|
|
(28,842) |
|
|
|
2,463,403 |
|
|
(653,797) |
(Loss) income before income taxes |
|
$ |
(63,050) |
|
|
$ |
(53,960) |
|
$ |
(104,231) |
|
|
$ |
2,990,651 |
|
$ |
(718,972) |
|
| 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) |
|
|
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 |
Income tax provision (benefit) at United States (21.0%) / Luxembourg statutory rate (24.9%) / Irish Statutory rate (12.5%) |
|
|
(21.0)% |
|
|
|
(24.9)% |
|
|
(24.9)% |
|
|
|
12.5% |
|
|
(12.5)% |
Increase (decrease) in tax resulting from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US State income taxes, net of federal benefit |
|
|
(7.5)% |
|
|
|
(2.5)% |
|
|
(6.1)% |
|
|
|
0.2% |
|
|
(0.2)% |
Foreign rate differential |
|
|
5.8% |
|
|
|
10.0% |
|
|
6.5% |
|
|
|
0.0% |
|
|
(0.8)% |
Global Intangible Low-Taxed Income |
|
|
(1.1)% |
|
|
|
0.0% |
|
|
0.0% |
|
|
|
0.0% |
|
|
0.0% |
Non-deductible expenses |
|
|
0.3% |
|
|
|
0.3% |
|
|
0.5% |
|
|
|
0.2% |
|
|
1.4% |
Non-deductible interest |
|
|
(2.6)% |
|
|
|
0.0% |
|
|
0.0% |
|
|
|
0.1% |
|
|
0.0% |
Non-deductible officer compensation |
|
|
3.8% |
|
|
|
0.0% |
|
|
(0.3)% |
|
|
|
0.0% |
|
|
0.0% |
Warrants |
|
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(5.8)% |
|
|
|
0.0% |
|
|
(0.7)% |
|
|
|
0.0% |
|
|
0.0% |
Transaction costs |
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|
2.4% |
|
|
|
0.1% |
|
|
(8.5)% |
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|
|
0.0% |
|
|
0.0% |
Unrecognized tax benefit |
|
|
7.6% |
|
|
|
(2.4)% |
|
|
(0.4)% |
|
|
|
0.0% |
|
|
0.3% |
Change in valuation allowance |
|
|
15.8% |
|
|
|
7.0% |
|
|
10.4% |
|
|
|
(4.7)% |
|
|
6.1% |
Impairment of goodwill |
|
|
0.0% |
|
|
|
0.0% |
|
|
0.0% |
|
|
|
0.5% |
|
|
5.6% |
Reorganization and fresh start adjustments |
|
|
0.0% |
|
|
|
0.0% |
|
|
9.8% |
|
|
|
(7.5)% |
|
|
0.0% |
Return to provision adjustment |
|
|
(3.5)% |
|
|
|
5.5% |
|
|
0.0% |
|
|
|
0.7% |
|
|
0.0% |
Other |
|
|
(1.0)% |
|
|
|
0.4% |
|
|
(0.2)% |
|
|
|
0.0% |
|
|
1.7% |
Effective tax rate - provision (benefit) |
|
|
(6.8)% |
|
|
|
(6.5)% |
|
|
(13.9)% |
|
|
|
2.0% |
|
|
1.6% |
|
| Schedule of Deferred Tax Assets and Liabilities |
|
|
|
|
|
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|
|
|
|
Successor |
|
|
Predecessor (SLH) |
|
|
January 31, 2022 |
|
|
January 31, 2021 |
ASSETS: |
|
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
77,586 |
|
|
$ |
11,098 |
Deferred interest expense |
|
|
58,237 |
|
|
|
35,741 |
Reserves and accruals |
|
|
16,309 |
|
|
|
7,297 |
Lease liabilities |
|
|
2,702 |
|
|
|
2,620 |
Tax credits |
|
|
880 |
|
|
|
99 |
Transaction costs |
|
|
6,049 |
|
|
|
19,609 |
Other intangibles |
|
|
— |
|
|
|
3,458 |
Gross deferred tax assets |
|
|
161,763 |
|
|
|
79,922 |
Less: Valuation allowance |
|
|
(144,717) |
|
|
|
(57,562) |
Net deferred tax assets |
|
$ |
17,046 |
|
|
$ |
22,360 |
LIABILITIES: |
|
|
|
|
|
|
|
Intangibles |
|
$ |
(102,819) |
|
|
$ |
(82,862) |
Property and equipment, net |
|
|
(5,823) |
|
|
|
(1,834) |
Accrued Interest |
|
|
(4,007) |
|
|
|
(4,522) |
Right-of-use asset |
|
|
(2,549) |
|
|
|
(2,260) |
Deferred revenue |
|
|
— |
|
|
|
(5,156) |
Other |
|
|
(1,243) |
|
|
|
(4,299) |
Gross deferred tax liabilities |
|
|
(116,441) |
|
|
|
(100,933) |
Total net deferred tax liabilities, net |
|
$ |
(99,395) |
|
|
$ |
(78,573) |
|
| 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 |
|