Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The following table sets forth the components of the provision for income taxes:


					Year Ended December 31, 2022

	Successor						Predecessor
	Year Ended December 31, 2024		Year Ended December 31, 2023		July 25, 2022 through December 31, 2022		January 1, 2022 through July 24, 2022
Current:
Federal	$	4,220	$	63,036	$	14,096	$	148,371
State	7,965		9,692		3,307		38,814
Foreign	8,361		17,634		4,480		5,315
Total current income tax expense	20,546		90,362		21,883		192,500
Deferred:
Federal	(122,352)		(94,580)		(31,529)		(23,867)
State	(13,880)		(33,605)		(5,632)		(4,637)
Foreign	(6,323)		(5,567)		205		1,818
Total deferred income tax benefit	(142,555)		(133,752)		(36,956)		(26,686)
Income tax expense (benefit)	$	(122,009)	$	(43,390)	$	(15,073)	$	165,814

The following table sets forth a reconciliation of income tax computed at the U.S. federal statutory tax rate to the effective income tax rate:


					Year Ended December 31, 2022

	Successor						Predecessor
	Year Ended December 31, 2024		Year Ended December 31, 2023		July 25, 2022 through December 31, 2022		January 1, 2022 through July 24, 2022
Federal income tax statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax	(0.6)	%	6.1	%	3.9	%	4.0	%
Non-deductible expenses	(0.2)	%	0.7	%	(1.1)	%	0.6	%
Foreign tax and other credits	0.3	%	2.3	%	8.9	%	(0.2)	%
Section 1245 recapture	(0.1)	%	(2.1)	%	—	%	—	%
Uncertain tax positions	1.1	%	1.3	%	—	%	0.1	%
Compensation related expenses	(0.4)	%	(4.2)	%	(3.5)	%	0.1	%
Goodwill impairment	(13.4)	%	—	%	—	%	—	%
Global intangible low-taxed income	—	%	—	%	(8.7)	%	—	%
State rate differential(1)	1.2	%	10.9	%	—	%	—	%
Foreign rate differential	—	%	(2.2)	%	(1.4)	%	0.2	%
Other	0.4	%	2.7	%	0.1	%	(0.3)	%
Effective tax rate	9.3	%	36.5	%	19.2	%	25.5	%

(1)Related to the Merger transaction and internal restructuring.

The net deferred income tax liability consists of the following:


	December 31, 2024		December 31, 2023
Deferred tax assets:
Inventory obsolescence	$	8,555	$	9,215
Allowance for credit losses	3,736		5,170
Accrued and deferred compensation	6,630		13,090
Accrued insurance liability	8,888		12,124
Net operating loss and tax credit carryover	19,767		15,102
Defined benefit plans	811		2,232
Leases	107,657		82,929
Section 163(j) interest	99,064		46,274
Section 174 costs	29,602		20,942
Warranty liabilities	45,818		39,860
Other	24,971		28,928
Total deferred income tax assets	355,499		275,866
Valuation allowance	(13,500)		(1,578)
Net deferred income tax assets	341,999		274,288

Deferred income tax liabilities:
Goodwill and intangible assets	511,480		491,948
Property-related items	138,445		124,826
Stock basis	16,220		15,197
Leases	111,411		87,964
Debt	68,940		82,866
Other	25,321		24,672
Total deferred income tax liabilities	871,817		827,473
Total deferred income tax liability, net	$	529,818	$	553,185
Reflected as:
Noncurrent assets – Other assets, net	$	1,534	$	3,750
Noncurrent liabilities – Deferred income tax liabilities	531,352		556,935
Total deferred income tax liability, net	$	529,818	$	553,185

The following table sets forth the changes in the valuation allowance on deferred taxes:

(1) In connection with the Merger, the beginning balance for the Successor period reflects acquisition-related adjustments of $9.6 million.

The following table sets forth the changes in unrecognized tax benefits (excluding interest and penalties):


					Year Ended December 31, 2022

	Successor						Predecessor
	Year Ended December 31, 2024		Year Ended December 31, 2023		July 25, 2022 through December 31, 2022		January 1, 2022 through July 24, 2022
Beginning balance	$	12,150	$	14,756	$	14,928	$	14,845
Additions based on tax positions related to current year	14		245		232		—
Additions (reductions) for tax positions of prior years	(213)		(52)		5		83
Reductions resulting from expiration of statute of limitations	(10,739)		(2,799)		(409)		—
Ending balance	$	1,212	$	12,150	$	14,756	$	14,928