Annual report pursuant to Section 13 and 15(d)

TAXES (Tables)

v3.22.1
TAXES (Tables)
 12 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities are as follows (in thousands):
Successor Predecessor
  March 31, 2022 March 31, 2021
Deferred tax assets:
Foreign tax credits $ 29,624  $ 33,576 
State net operating losses 42,526  41,929 
Net operating losses 124,976  122,376 
Accrued pension liability 3,720  8,408 
Accrued equity compensation 3,994  2,913 
Interest expense limitation 39,919  37,546 
Deferred revenue 375  375 
Employee award programs 792  586 
Employee payroll accruals 1,386  2,470 
Capitalized start-up costs 5,762  6,025 
Accrued expenses not currently deductible 12,871  10,354 
Lease liabilities 66,853  67,312 
Other 4,431  6,599 
Valuation allowance - foreign tax credits (29,624) (33,576)
Valuation allowance - state (39,873) (39,276)
Valuation allowance - interest expense limitation (15,276) (11,288)
Valuation allowance (88,359) (91,764)
Total deferred tax assets $ 164,097  $ 164,565 
Deferred tax liabilities:
Property and equipment $ (96,734) $ (87,252)
Inventories (762) (4,160)
Investment in foreign subsidiaries and unconsolidated affiliates (15,588) (21,071)
ROU asset (67,433) (67,439)
Intangibles (19,663) (20,363)
Other (3,728) (6,710)
Total deferred tax liabilities $ (203,908) $ (206,995)
Net deferred tax liabilities $ (39,811) $ (42,430)
Rollforward of Valuation Allowance
The following table is a rollforward of the valuation allowance against the Company’s deferred tax assets (in thousands):
Fiscal Year Ended
March 31, 2022		 Fiscal Year Ended
March 31, 2021		 Five Months Ended
March 31, 2020		 Seven Months Ended
October 31, 2019
  Successor Predecessor
Balance – beginning of fiscal year $ (175,903) $ (118,561) $ (124,700) $ (128,214)
Adjustment due to Merger —  (52,553) —  — 
Additional allowances (16,701) (14,360) (19,434) (5,381)
Reversals and other changes 19,472  9,571  25,573  8,895 
Balance – end of fiscal year $ (173,132) $ (175,903) $ (118,561) $ (124,700)
Schedule of Components of Loss Before Benefit (Provision) for Income Taxes
The components of loss before benefit (expense) for income taxes for the periods reflected in the table below is as follows (in thousands): 
  Fiscal Year Ended
March 31, 2022		 Fiscal Year Ended
March 31, 2021		 Five Months Ended
March 31, 2020		 Seven Months Ended
October 31, 2019
  Successor Predecessor
Domestic $ (23,346) $ (14,314) $ 163,866  $ (568,781)
Foreign 18,927  (42,326) (24,308) (318,603)
Total $ (4,419) $ (56,640) $ 139,558  $ (887,384)
Schedule of Provision (Benefit) for Income Taxes
The expense (benefit) for income taxes consisted of the following for the periods reflected in the table below is as follows (in thousands):
  Fiscal Year Ended
March 31, 2022		 Fiscal Year Ended
March 31, 2021		 Five Months Ended
March 31, 2020		 Seven Months Ended
October 31, 2019
  Successor Predecessor
Current:
Domestic $ 5,971  $ 719  $ (1,542) $ 2,516 
Foreign 7,068  14,387  6,572  9,178 
$ 13,039  $ 15,106  $ 5,030  $ 11,694 
Deferred:
Domestic $ (5,945) $ (11,894) $ (5,072) $ (49,634)
Foreign 4,200  (3,567) 524  (13,238)
$ (1,745) $ (15,461) $ (4,548) $ (62,872)
Total $ 11,294  $ (355) $ 482  $ (51,178)
Reconciliation of Effective Income Tax Rate
The reconciliation of the U.S. Federal statutory tax rate to the effective income tax rate for the (expense) benefit for income taxes for the periods reflected in the table below is as follows:
  Fiscal Year Ended
March 31, 2022		 Fiscal Year Ended
March 31, 2021		 Five Months Ended
March 31, 2020		 Seven Months Ended
October 31, 2019
  Successor Predecessor
Statutory rate 21.0  % 21.0  % 21.0  % 21.0  %
Effect of U.S. tax reform —  % —  % —  % —  %
Net foreign tax on non-U.S. earnings (348.2) % (25.2) % (4.2) % (0.7) %
Benefit of foreign tax deduction in the U.S. 25.2  % 2.3  % (0.2) % —  %
Foreign earnings indefinitely reinvested abroad 44.8  % 5.8  % 2.2  % (5.9) %
Change in valuation allowance 16.7  % —  % (0.4) % (0.6) %
Foreign earnings that are currently taxed in the U.S. (40.5) % (5.6) % 0.8  % —  %
Bargain purchase gain —  % 30.1  % —  % —  %
Sales of subsidiaries 22.0  % —  % —  % (1.1) %
Effect of change in foreign statutory corporate income tax rates
 —  % 1.7  % —  % —  %
Preferred stock embedded derivative —  % 5.7  % (27.7) % —  %
Contingent beneficial conversion feature —  % —  % —  % (1.0) %
Impairment of foreign investments 62.4  % (26.2) % 1.4  % (0.6) %
Fresh start accounting and reorganization —  % —  % 6.7  % (3.6) %
Professional fees to be capitalized for tax —  % (2.9) % 1.3  % (1.3) %
Changes in tax reserves (3.8) % —  % 0.1  % —  %
Impact of U.S. withholding tax (10.1) % (1.3) % (0.3) % (0.1) %
Nondeductible employee separation payments —  % (1.0) % —  % —  %
Other, net (45.2) % (3.8) % (0.4) % (0.3) %
Effective tax rate (255.7) % 0.6  % 0.3  % 5.8  %
Summary of Open Tax Years and Unrecognized Tax Benefits The following table summarizes the years open by jurisdiction as of March 31, 2022:
  Years Open
U.S. 2019 to present
U.K. 2021 to present
Guyana 2013 to present
Nigeria 2012 to present
Trinidad 2010 to present
Australia 2018 to present
Norway 2018 to present
Suriname 2017 to present
Brazil 2017 to present
The activity associated with unrecognized tax benefit for the periods reflected in the table below is as follows (in thousands):
  Fiscal Year Ended
March 31, 2022		 Fiscal Year Ended
March 31, 2021		 Five Months Ended
March 31, 2020		 Seven Months Ended
October 31, 2019
  Successor Predecessor
Unrecognized tax benefits – beginning of period $ 4,258  $ 4,252  $ 4,060  $ 4,337 
Increases for tax positions taken in prior periods 147  30  213  170 
Decreases for tax positions taken in prior periods (420) —  (21) (442)
Decrease related to statute of limitation expirations (43) (24) —  (5)
Unrecognized tax benefits – end of period $ 3,942  $ 4,258  $ 4,252  $ 4,060