
	Successor				Predecessor
	Year ended December 31, 2020		Period from January 1 to December 31, 2019		Period from January 1 to February 7, 2019		Year ended December 31, 2018
U.S.	$	(398.1)	$	(811.5)	$	(131.7)	$	229.8
Non-U.S	178.8		135.6		28.9		143.3
Income (loss) before provision for income taxes and equity in net income of affiliates	$	(219.3)	$	(675.9)	$	(102.8)	$	373.1


	Successor				Predecessor
	Year ended December 31, 2020		Period from January 1 to December 31, 2019		Period from January 1 to February 7, 2019		Year ended December 31, 2018
Current tax provision:
U.S. Federal	$	(28.8)	$	(0.3)	$	(11.1)	$	(5.7)
State and local	7.4		1.6		(3.4)		1.0
Non-U.S.	28.6		15.8		4.8		23.5
Total current tax provision	$	7.2	$	17.1	$	(9.7)	$	18.8
Deferred tax provision:
U.S. Federal	$	(100.7)	$	(109.8)	$	(14.8)	$	54.2
State and local	(16.9)		(23.5)		(3.0)		9.8
Non-U.S.	(0.1)		(2.0)		—		(1.2)
Total deferred tax provision	$	(117.7)	$	(135.3)	$	(17.8)	$	62.8
Provision (benefit) for income taxes	$	(110.5)	$	(118.2)	$	(27.5)	$	81.6


	Successor				Predecessor
	Year ended December 31, 2020		Period from January 1 to December 31, 2019		Period from January 1 to February 7, 2019		Year ended December 31, 2018
Statutory tax rate	21.0	%	21.0	%	21.0	%	21.0	%
State and local taxes, net of U.S. Federal tax benefits	5.8		3.4		7.0		2.9
Nondeductible charges (1)	(1.2)		(3.7)		(1.4)		0.7
Change in fair value of make-whole derivative liability (2)	(3.1)		(5.4)		—		—
U.S. taxes on foreign income	(1.0)		(0.4)		(0.2)		0.8
Non-U.S. taxes	3.8		1.5		1.2		(1.1)
Valuation allowance (3)	(0.2)		4.0		—		(0.1)
Legacy transaction costs (4)	—		—		6.8		—
Interest	(0.2)		(0.1)		—		0.1
Tax credits and deductions	6.9		1.7		0.5		(2.7)
Tax impact of earnings repatriation (5)	—		—		—		3.8
Tax contingencies related to uncertain tax positions (4)	(0.8)		(0.4)		(8.2)		(0.2)
Impact of tax accounting method change (6)	—		—		—		(3.6)
GILTI tax	(8.5)		(4.4)		—		—
CARES Act (7)	26.4		—		—		—
Other	1.5		0.3		—		0.3
Effective tax rate	50.4	%	17.5	%	26.7	%	21.9	%

(1)The impact for 2020 reflects non-deductible transaction costs associated with our Initial Public Offering in July 2020. The impact for the 2019 Successor and Predecessor periods reflects non-deductible transaction costs associated with the Take-Private Transaction.

(2)The impact was due to the non-deductible mark to market expense for tax purposes. The change in fair value of make-whole derivative liability expense was associated with the make-whole provision liability for the Series A Preferred Stock.

(5)The impact was due to the mandatory one-time tax on undistributed earnings from our non-U.S. subsidiaries as a result of the enactment of the Tax Cuts and Jobs Act ("2017 Act") in December 2017, which included a provisional charge in 2017 and measurement period adjustments in 2018 to finalize the calculation consistent with the guidance in SAB 118.

(7)The impact was due to the CARES Act which was signed into law on March 27, 2020. Among other provisions, the law provides that net operating losses arising in a tax year beginning in 2018, 2019, or 2020 can be carried back five years.

Income taxes paid were $122.1 million, $3.3 million, $29.9 million and $57.4 million for the year ended December 31, 2020 (Successor), the period from January 1, 2019 to February 7, 2019 (Predecessor), the period from January 1 to December 31, 2019 (Successor), and the year ended December 31, 2018 (Predecessor), respectively. Income taxes refunded were $1.2 million, less than $0.1 million, $0.5 million and $2.3 million for the year ended December 31, 2020 (Successor), the period from January 1, 2019 to February 7, 2019 (Predecessor), the period from January 1 to December 31, 2019 (Successor), and the year ended December 31, 2018 (Predecessor), respectively.


	December 31,
	2020		2019
Deferred tax assets:
Operating losses	$	63.2	$	68.4
Interest expense carryforward	93.5		62.3
Restructuring costs	2.3		3.9
Bad debts	4.9		3.9
Accrued expenses	9.0		21.0
Capital loss and credit carryforwards	13.8		11.5
Foreign exchange	—		2.4
Pension and postretirement benefits	71.2		49.9
ASC 842 - Lease liability	17.6		17.1
Other	9.0		5.0
Total deferred tax assets	$	284.5	$	245.4
Valuation allowance	(35.8)		(33.1)
Net deferred tax assets	$	248.7	$	212.3
Deferred tax liabilities:
Intangibles	$	(1,318.2)	$	(1,408.3)
Foreign exchange	(6.3)		—
Deferred revenue	—		(4.1)
ASC 842 - ROU asset	(15.2)		(20.5)
Other	—		(0.3)
Total deferred tax liabilities	$	(1,339.7)	$	(1,433.2)
Net deferred tax (liabilities) assets	$	(1,091.0)	$	(1,220.9)

On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Act”) was signed into law in the U.S. Among other significant changes, the 2017 Tax Act reduced the statutory federal income tax rate for U.S. corporate taxpayers from a maximum of 35 percent to 21 percent and required the deemed repatriation of foreign earnings not previously subject to U.S. taxation. As a result of the enactment of the 2017 Act, we no longer assert indefinite reinvestment for any historical unrepatriated earnings through December 31, 2017. We intend to reinvest indefinitely all earnings from our China and India subsidiaries earned after December 31, 2017 and therefore have not provided for deferred income and foreign withholding taxes related to these jurisdictions.

We have federal, state and local, and foreign tax loss carryforwards, the tax effect of which was $63.2 million as of December 31, 2020. Of the $63.2 million, $28.3 million have an indefinite carry-forward period with the remainder of $34.9 million expiring at various times between 2021 and 2040. Additionally, we have non-U.S. capital loss carryforwards. The associated tax effect was $10.0 million and $8.7 million as of December 31, 2020 and 2019, respectively.

We have established valuation allowances against certain U.S. state and non-U.S. net operating losses and capital loss carryforwards in the amounts of $35.2 million and $32.8 million as of December 31, 2020 and 2019, respectively. In our opinion, certain U.S. state and non-U.S. net operating losses and capital loss carryforwards are more likely than not to expire before we can utilize them.

We or one of our subsidiaries file income tax returns in the U.S. federal, and various state, local and foreign jurisdictions. In the U.S. federal jurisdiction, we are no longer subject to examination by the Internal Revenue Service (“IRS”) for years prior to 2017. In state and local jurisdictions, with a few exceptions, we are no longer subject to examinations by tax authorities for years prior to 2017. In foreign jurisdictions, with a few exceptions, we are no longer subject to examinations by tax authorities for years prior to 2014.


Predecessor:
Gross unrecognized tax benefits as of January 1, 2018	$	7.7
Additions for prior years’ tax positions	1.7
Additions for current year’s tax positions	0.9
Settlements with taxing authority	(1.8)

Reduction due to expired statute of limitations (1)	(3.1)
Gross unrecognized tax benefits as of December 31, 2018	$	5.4

Additions for current year’s tax positions	8.9



Gross unrecognized tax benefits as of February 7, 2019	$	14.3


Successor:
Gross unrecognized tax benefits as of January 1, 2019	$	—
Impact of purchase accounting	14.3

Additions for current year’s tax positions	5.3
Settlements with taxing authority	(1.6)
Reduction in prior years’ tax positions	(0.1)
Reduction due to expired statute of limitations (2)	(0.8)
Gross unrecognized tax benefits as of December 31, 2019	$	17.1
Additions for current year’s tax positions	2.3
Increase in prior years’ tax positions	0.3
Reduction due to expired statute of limitations (3)	(0.8)
Gross unrecognized tax benefits as of December 31, 2020	$	18.9

We recognize accrued interest expense related to unrecognized tax benefits in the Provision (Benefit) for Income Taxes line in the consolidated statement of operations and comprehensive income (loss). The total amount of interest expense, net of tax benefits, recognized for the year ended December 31, 2020 (Successor), the period from January 1, 2019 to February 7, 2019 (Predecessor), the period from January 1 to December 31, 2019 (Successor), and the year ended December 31, 2018 (Predecessor) was $0.6 million, $0.1 million, $0.3 million and $0.2 million, respectively. The total amount of accrued interest as of December 31, 2020 and 2019 was $0.7 million and $0.3 million, respectively.