Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.24.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities are as follows (in thousands):
December 31,
  2023 2022
Deferred tax assets:
Foreign tax credits $ 19,456  $ 30,142 
Net operating losses 153,068  155,532 
Pension liability (269) 5,383 
Interest expense limitation 49,431  42,995 
Accrued expenses not currently deductible 18,367  14,439 
Lease liabilities 34,553  36,101 
Other 6,544  10,771 
Gross deferred tax assets 281,150  295,363 
Valuation allowance (155,411) (159,648)
Total deferred tax assets $ 125,739  $ 135,715 
Deferred tax liabilities:
Property and equipment $ (99,684) $ (96,121)
Inventories (1,366) (2,152)
Investment in foreign subsidiaries and unconsolidated affiliates (6,365) (14,059)
Right-of-use lease asset (34,496) (35,135)
Intangibles (13,245) (14,440)
Other (2,578) (3,308)
Total deferred tax liabilities $ (157,734) $ (165,215)
Net deferred tax liabilities $ (31,995) $ (29,500)
Summary of Operating Loss Carryforwards The following table shows the expiration of such loss carryforwards (in thousands, except dates):
  December 31, 2023 Expiration
Foreign tax credit carryforwards $19,456 2024-2032
Foreign net operating loss carryforwards $395,232 Indefinite
State net operating loss carryforwards $428,846 Indefinite
State net operating loss carryforwards $134,533 2024-2041
Section 163j interest expense $235,384 Indefinite
Schedule of Components of Loss Before Benefit (Provision) for Income Taxes
The components of income (loss) before income taxes for the periods reflected in the table below were as follows (in thousands):
  Twelve Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Twelve Months Ended March 31, 2022
Domestic $ (39,130) $ (7,692) $ (23,346)
Foreign 57,142  28,771  18,927 
Income (loss) before income taxes $ 18,012  $ 21,079  $ (4,419)
Schedule of Provision (Benefit) for Income Taxes
The components of income tax expense (benefit) for the periods reflected in the table below were as follows (in thousands):
  Twelve Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Twelve Months Ended March 31, 2022
Current:
Domestic $ 10,347  $ 3,995  $ 5,971 
Foreign 13,916  8,821  7,068 
$ 24,263  $ 12,816  $ 13,039 
Deferred:
Domestic $ (2,568) $ (3,419) $ (5,945)
Foreign 3,237  (1,903) 4,200 
$ 669  $ (5,322) $ (1,745)
Income tax expense $ 24,932  $ 7,494  $ 11,294 
Reconciliation of Effective Income Tax Rate
The reconciliation of the U.S. Federal statutory tax rate to the effective income tax rate for the periods reflected in the table below is as follows:
  Twelve Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Twelve Months Ended March 31, 2022
Statutory rate 21.0  % 21.0  % 21.0  %
Net foreign tax on non-U.S. earnings 15.5  % 49.0  % (348.2) %
Foreign earnings double tax relief (9.5) % (5.0) % 25.2  %
Foreign earnings indefinitely reinvested abroad (3.4) % (28.7) % 44.8  %
Change in valuation allowance (23.6) % (12.9) % 16.7  %
Foreign earnings that are currently taxed in the U.S. 7.4  % 5.9  % (40.5) %
Changes in prior year estimates —  % 0.9  % (3.8) %
Impact of U.S. withholding tax 2.2  % 3.6  % (10.1) %
Impact of tax rate changes 2.6  % —  % —  %
Foreign tax credits 76.5  % —  % —  %
Deferred gains 7.9  % —  % —  %
GILTI income 19.8  % —  % —  %
Other, net 22.0  % 1.8  % (45.2) %
Sale of subsidiaries —  % —  % 22.0  %
Impairment of foreign investments —  % —  % 62.4  %
Effective tax rate 138.4  % 35.6  % (255.7) %
Summary of Open Tax Years and Unrecognized Tax Benefits
The following table summarizes the years open by jurisdiction as of December 31, 2023:
  Years Open
U.S. 2020 to present
UK 2022 to present
Nigeria 2013 to present
Trinidad 2010 to present
Australia 2019 to present
Norway 2019 to present
Brazil 2019 to present
The activity associated with unrecognized tax benefit for the periods reflected in the table below was follows (in thousands):
  Twelve Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Twelve Months Ended March 31, 2022
Unrecognized tax benefits – beginning of period $ 4,067  $ 3,942  $ 4,258 
Increases for tax positions taken in prior periods 106  200  147 
Decreases for tax positions taken in prior periods —  (75) (420)
Decrease related to statute of limitation expirations —  —  (43)
Unrecognized tax benefits – end of period $ 4,173  $ 4,067  $ 3,942