Income Tax (Tables)

8 Months Ended

12 Months Ended

Dec. 31, 2019

Dec. 31, 2020

Schedule of (benefit from) provision for income tax

The (benefit from) provision for income taxes is as follows:

	Year Ended December 31,
(in thousands)	2020			2019			2018
Current tax (benefit) expense
Federal	$	(9,106	)	$	45,874		$	21,399
State		4,710			11,311			11,742
Foreign		13,422			12,231			12,140
Total current tax expense		9,026			69,416			45,281
Deferred tax (benefit) expense
Federal		(6,501	)		(53,314	)		(164,208	)
State		868			(11,055	)		(48,653	)
Foreign		(8,724	)		(3,694	)		(754	)
Total deferred tax benefit		(14,357	)		(68,063	)		(213,615	)
Total (benefit from) provision for income taxes	$	(5,331	)	$	1,353		$	(168,334	)

Schedule of effective income tax rate reconciliation

A reconciliation of the provision for taxes based on the federal statutory income tax rate attributable to the Company’s effective income tax rate is as follows:

	Year Ended December 31,
	2020			2019			2018
Statutory U.S. rate		21.0	%		21.0	%		21.0	%
State tax, net of federal tax benefit		(2.6	)%		(1.1	)%		2.2	%
Foreign tax, net of federal tax benefit		1.1	%		(17.4	)%		(0.4	)%
Goodwill impairment		—			—			(10.4	)%
Global Intangible Low Taxed Income		—			(8.3	)%		(0.2	)%
Transaction expenses		(0.1	)%		(5.4	)%		(0.1	)%
Disallowed Executive Compensation		(3.4	)%		—			—
Equity-based compensation		(11.2	)%		(1.5	)%		0.2	%
Meals and entertainment		(0.7	)%		(11.1	)%		(0.2	)%
Contingent consideration fair value adjustment		(1.4	)%		7.1	%		0.7	%
Non-deductible expenses		(0.4	)%		(4.6	)%		—
Return to provision on permanent differences		0.1	%		8.2	%		0.1	%
Work opportunity tax credit		0.5	%		3.3	%		—
Research and development credit		0.3	%		4.0	%		—
Other		—			(1.6	)%		(0.1	)%
Effective tax rate		3.2	%		(7.4	)%		12.8	%

Schedule of geographic components of (loss) income before income taxes

The geographic components of (loss) income before income taxes are as follows:

	Year Ended December 31,
(in thousands)	2020			2019			2018
U.S. sources	$	(190,163	)	$	(32,893	)	$	(1,347,770	)
Non-U.S. sources		23,125			14,490			28,213
Loss before income taxes	$	(167,038	)	$	(18,403	)	$	(1,319,557	)

Schedule of net deferred tax assets

Net deferred tax liabilities consist of the following:

	December 31,
(in thousands)	2020			2019
Deferred tax assets
Accrued liabilities	$	77,599		$	70,420
Interest expense		20,851			49,586
Social security tax deferral		12,656			—
Net operating losses		10,557			7,671
Right-of-use liabilities		11,996			26,648
Transaction expenses		8,643			5,325
Debt issuance costs		6,422			973
Acquired intangibles, including goodwill .		2,205			2,292
Insurance reserves		2,262			2,403
Other		4,755			6,158
Total deferred tax assets		157,946			171,476
Deferred tax liabilities
Acquired intangibles including goodwill		618,697			636,245
Right-of-use assets		7,890			20,294
Restructuring expenses		4,977			6,857
Depreciation		2,464			1,617
Unrealized transactions		—			990
Other		6,266			6,038
Total deferred tax liabilities		640,294			672,041
Less: deferred income tax asset valuation allowances		(6,706	)		(5,570	)
Net deferred tax liabilities	$	489,054		$	506,135
	December 31,
(in thousands)	2020			2019
Reported as:
Noncurrent deferred tax asset	$	2,188		$	227
Noncurrent deferred tax liability		491,242			506,362
Net deferred tax liabilities	$	489,054		$	506,135

Predecessor Company

Schedule of (benefit from) provision for income tax

The Company’s provision for income tax consists of the following:

	For the Period From May 2, 2019 (inception) through December 31, 2019
Current:
Federal	$	730,672
State		—
Deferred:
Federal		58,712
State		—
Change in valuation allowance		(58,712	)
Income tax expense	$	730,672

Schedule of effective income tax rate reconciliation

A reconciliation of the federal income tax rate to the Company’s effective tax rate for the period from May 2, 2019 (inception) through December 31, 2019 is as follows:

Statutory federal income tax rate	21.0	%
State taxes, net of federal tax benefit	0.0	%
Change in valuation allowance	1.8	%
Effective income tax rate	22.8	%

Schedule of net deferred tax assets

The Company’s net deferred tax assets are as follows:

	December 31, 2019
Deferred tax asset:
Startup / organizational costs		58,712
Total deferred tax assets		58,712
Valuation allowance		(58,712	)
Deferred tax asset, net of allowance	$	—