Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

The components of earnings before income tax expense (benefit) were as follows:



	Successor			Predecessor
(In millions)	June 3, 2019 through December 31, 2019			January 1, 2019 through June 2, 2019			December 31, 2018			December 31, 2017
Domestic	$	(16.4	)	$	(18.6	)	$	(4.0	)	$	(18.0	)
Foreign	(3.5		)	(5.3		)	(11.7		)	4.3
Total	$	(19.9	)	$	(23.9	)	$	(15.7	)	$	(13.7	)

Schedule of Components of Income Tax Expense (Benefit)



The components of our income tax expense (benefit) were as follows:

	Successor			Predecessor
(In millions)	June 3, 2019 through December 31, 2019			January 1, 2019 through June 2, 2019			December 31, 2018			December 31, 2017
Current tax expense:
Federal	$	1.4		$	1.1		$	2.8		$	4.3
State	0.5			0.2			1.1			0.5
Foreign	2.2			1.3			3.2			6.0
Total current expense	4.1			2.6			7.0			10.8
Deferred tax expense (benefit):
Federal	(6.9		)	(4.4		)	(4.8		)	(47.9		)
State	0.8			(0.9		)	(1.2		)	0.1
Foreign	(0.7		)	(2.2		)	(8.0		)	(4.3		)
Total deferred tax expense (benefit)	(6.8		)	(7.5		)	(14.1		)	(52.1		)
Total income tax expense (benefit)	$	(2.7	)	$	(4.9	)	$	(7.1	)	$	(41.4	)

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes expected at the U.S. federal statutory income tax rate and the reported income tax (benefit) expense are summarized as follows:



	Successor			Predecessor
(In millions)	June 3, 2019 through December 31, 2019			January 1, 2019 through June 2, 2019			December 31, 2018			December 31, 2017
Income tax benefit at statutory rate	$	(4.2	)	$	(5.0	)	$	(3.3	)	$	(4.8	)
U.S. State income taxes	1.2			(0.7		)	(0.1		)	(0.2		)
Tax related to foreign activities	2.3			0.5			(2.4		)	0.1
U.S. Federal tax credits	(0.1		)	—			(0.4		)	(2.9		)
Foreign currency gains/(losses)	—			—			0.8			(3.0		)
Domestic production activities deduction	—			—			—			(0.9		)
Remeasurement of deferred taxes related to the Act	—			—			(0.2		)	(30.4		)
Transition tax related to the Act	—			—			0.2			4.3
U.S. Foreign income tax credits from amended tax returns	—			—			(1.8		)	(2.8		)
Global intangible low-taxed income	0.3			—			0.6			—
Foreign-derived intangible income deduction	(0.6		)	(0.1		)	(0.5		)	—
Non-deductible transaction costs	—			0.6			—			—
Other, net	(1.4		)	(0.1		)	(0.1		)	(0.9		)
Income tax expense (benefit)	$	(2.7	)	$	(4.9	)	$	(7.1	)	$	(41.4	)

Effective tax rate	13.3		%	20.5		%	45.0		%	301.7		%

Schedule of Deferred Tax Assets and Liabilities



Deferred tax assets (liabilities) consist of the following:

	Successor			Predecessor
(In millions)	December 31, 2019			December 31, 2018
Unrealized foreign exchange	$	0.1		0.3
Stock Options	0.4			—
Net operating losses and credits	2.0			1.8
Non-deductible interest carryforward	7.4			2.5
Other	1.3			0.6
Sub-total deferred income tax assets	11.2			5.2
Valuation allowance	(1.3		)	(0.6	)
Net deferred income tax assets	$	9.9		4.7

Depreciation	(14.4		)	(4.1	)
Amortization	(110.7		)	(70.2	)
Total deferred tax liabilities	$	(125.1	)	(74.3	)

Net total deferred tax liabilities before unrecognized tax benefits	$	(115.2	)	(69.6	)
Deferred tax impact of unrecognized tax benefits	0.2			0.1
Net total deferred tax liabilities after unrecognized tax benefits	$	(115.0	)	(69.5	)

Schedule of Unrecognized Tax Benefits Roll Forward



The components of our unrecognized tax benefits were as follows:

	Successor		Predecessor
(In millions)	June 3, 2019 through December 31, 2019		January 1, 2019 through June 2, 2019		December 31, 2018			December 31, 2017
Unrecognized income tax benefits at the beginning of the period	$	0.6	$	0.6	$	1.8		$	0.2
Increases related to prior year tax positions	0.2		—		—			1.5
Decreases related to prior year tax positions	—		—		(1.2		)	(0.2		)
Increases related to current year tax positions	0.6		—		0.2			0.3
Foreign currency impact	—		—		(0.1		)	—
Unrecognized income tax benefits at the end of the period	$	1.4	$	0.6	$	0.6		$	1.8