Redwire Corporation General form of registration statement for all companies including face-amount certificate companies

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

The table below presents the current and deferred components of income tax expense (benefit) for the following periods:


	Successor				Predecessor
			Period from
			February 10, 2020		Period from
	Year Ended		to December 31,		January 1, 2020 to
		December 31, 2021	2020		June 21, 2020
Current:
Federal	$	—	$	—	$	(387)
State		—		—		3
Foreign		—		—		—
Total current income tax expense (benefit)		—		—		(384)

Deferred:
Federal		(9,376)		(3,064)		—
State		(1,893)		(595)		—
Foreign		—		—		—
Total deferred income tax expense (benefit)		(11,269)		(3,659)		—

Total income tax expense (benefit)	$	(11,269)	$	(3,659)	$	(384)

A reconciliation of the U.S. federal statutory income tax expense to actual income tax expense is as follows:


	Successor						Predecessor
				Period from			Period from
	Year Ended			February 10, 2020 to			January 1, 2020 to
	December 31, 2021			December 31, 2020			June 21, 2020
Income (loss) before income taxes	$	(72,806)		$	(18,033)		$	(1,718)
Federal statutory income tax rate		21.0	%		21.0	%		21.0	%
Expected federal provision (benefit) for income taxes at the federal statutory income tax rate		(15,289)			(3,787)			(361)
State income tax (benefit), net of federal tax benefit		(1,946)			(595)			29
Research and development tax credits		324			(20)			(460)
Permanent differences		1,931			57			(17)
Tax (benefits) / non-deductible expenses related to equity-based compensation		5,228			—			(119)
Acquisition costs		(1,106)			685			—
Reserves for unrecognized income tax benefits		(273)			1			386
Change in valuation allowance		458			—			129
Other		(596)			—			29
Total tax expense (benefit)	$	(11,269)		$	(3,659)		$	(384)

Effective tax rate		15.5	%		20.3	%		22.4	%

The table below presents the components of the deferred tax assets, net and deferred tax liabilities:


	Successor as of
	December 31, 2021		December 31, 2020
Deferred tax assets:
Accrued expenses and reserves	$	1,106	$	493
Deferred rent		58		82
Tax credit carryforwards		226		346
Deferred revenue		636		1,168
Net operating loss carryforwards		12,052		3,467
Interest disallowance		1,921		271
Equity-based compensation		566		—
Other assets		14		—
Total deferred tax assets		16,579		5,827
Less: valuation allowance		(515)		(57)
Deferred tax assets, net of valuation allowance		16,064		5,770

Deferred tax liabilities:
Depreciation and amortization		(23,922)		(12,949)
Other		(743)		(188)
Deferred tax liabilities		(24,665)		(13,137)
Total net deferred tax assets (liabilities)	$	(8,601)	$	(7,367)

The table below presents changes in reserves for unrecognized income tax benefits for the periods presented:


	Successor				Predecessor
			Period from		Period from
	Year Ended		February 10, 2020 to		January 1, 2020 to
	December 31, 2021		December 31, 2020		June 21, 2020
Unrecognized tax benefits, beginning of period	$	1,671	$	1,671	$	1,275
Increase (decrease) for tax positions taken related to a prior period		(291)		—		105
Increase (decrease) for tax positions taken during the current period		—		—		291
Unrecognized tax benefits, end of period	$	1,380	$	1,671	$	1,671